Price Benchmarking

Everest’s Price Benchmarking services help align your company’s ITO and BPO pricing with global market standards. We define benchmarking as a pricing intelligence tool that helps an organization:

• Evaluate potential financial benefits from outsourcing by comparing equivalent market rates with their current costs
• Understand how their existing outsourcing rates compare to current market pricing

Our offerings

Input-based benchmarking

This approach provides you with the comparative pricing data by resource skill and an understanding of the pricing drivers in your deal environment.

Everest conducts feasibility study prior to the engagement to ensure data availability and define the best approach to analyzing the equivalent market price to ensure apple-to-apple comparisons. At a minimum, we will use the following factors to define equivalent roles: tenure, competency and skill level. Our Input-based benchmarking report will provide you with 20th and 80th percentile of the market range, along with the median value to help you assess relative positioning of your current rates. 

Output-based benchmarking

Output-based benchmarking provides you with the comparative pricing data by resource unit for each ITO tower or BPO process and an understanding of the pricing drivers in your deal environment.

In our analysis we focus on primary drivers of output-based pricing (e.g., service level, asset ownership, client complexity, COLA) and normalize our data to match your situation. This type of benchmarking is conducted at the resource unit level for each technology (e.g., price per server, price per TB of storage) or business process (e.g., price per invoice, price per call).

Our approach

Everest Price Benchmarking teams deploys several proprietary methodologies in conducting the benchmarking engagement.

Direct benchmarking using Everest’s pricing database. This entails finding the best match between skill/resource unit in question and Everest database and leverages Everest proprietary deal database.

Bottom-up price triangulation. This approach is used to derive a typical price in a specific location, where little or no information is available from local and multinational suppliers. It entails bottom-up analysis of all the relevant supplier’s costs of delivering specific service and triangulation with similar rates and skills in other geographies.

For more information about our price benchmarking offerings or to request a briefing from one of our analysts, please call us at +1-214-451-3110 or email us at info@everestresearchinstitute.com.