Outcome Based Pricing Model

The pricing models that have been traditionally adopted by management consulting companies have been Time and Material, and Fixed Fee. However, in recent times outcome based pricing models have come into prominence owing to factors like reduced budgets and risk sharing opportunities available with the suppliers. Suppliers have also been trying to adopt this approach in a bid to differentiate themselves with others in the market. At the same time buyers are interested in measuring the effectiveness of outcome for indirect services like consulting.