The basic concepts underlying on demand outsourcing, or purchasing IT services on a consumption-based pricing model, make it an attractive option for buyers. On demand outsourcing is a growing trend that is touted as a simple, more cost effective and strategically oriented sourcing solution. However, technical immaturity and lack of clarity regarding the precise nature of this sourcing option increases the potential complexities and risks associated with adopting it. A consumption-based pricing model is focused on activities, rather than technologies. Organisations incorporating such a model into its sourcing strategy must therefore make an assessment of potential benefits and hidden barriers to success that clearly defines the buyer’s goals and correlates these goals to services offered by vendors.

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Irene Pimentel

About The Advisor

Irene Pimentel

Irene Pimentel is an IBRS analyst who focuses on news and information on the global IT Outsourcing market. Irene provides IBRS clients with up to date information on all outsourcing deals that are taking place helping our clients understand who is winning business in what markets. With over 10 years experience as a management consultant, Irene has worked with some of Australia's largest blue chip companies and public sector organisations. Irene has also worked as a research manager for an IT sourcing consultancy, providing clients with targeted intelligence and advice for their specific IT sourcing transactions.