Performance Based Pricing Model

This is a new addition to the engagement models that Mantra offers. Under this arrangement our clients pay us certain (minimum) amount for the development and QA resources. Rest of the amount is tied to the performance and completion of mutually defined goals.

Outcome-Based Outsourcing: Pros and Cons Pros (--Source: Forrester Research)

• More cohesion of work being delivered
• Freedom from interviewing and monitoring individual staff members
• Ability to reward more innovative behavior from provider
• Potential for higher eventual savings as labor arbitrage is replaced by productivity and synergies between tasks as key savings drivers

Cons

• Lack of transparency into how work is being performed
• Little insight into costs of service (unless visibility into resource consumption is maintained)
• Additional administrative burdens associated with root cause analysis (if service is not being delivered as promised) and evaluation of service delivery from outcome-based perspective

With Mantra's mSource methodology, Performance Based Pricing Model is the Best success and ROI strategy for Small and Midsize businesses looking to reap benefits of off shoring without taking significant risks.