Tuesday, December 16, 2008 11:00 AM

Over the last 20 years, various methods have been used to implement how the pricing aspects of outsourcing relationships should be structured.

There are two key aspects of the issue:

• first, how is financial responsibility for the various factors of production (facilities, people, hardware, software and third-party agreements) divided between the parties?
• second, what are the proper billing elements of the charge (including the extent to which such billing elements are fixed or variable)?

As outsourcing has evolved from relatively well understood mainframe data center operations to more complex, multi-sourced environments that may include not just IT outsourcing but also a broad range of business process outsourcing (BPO), the complexity of the pricing mechanisms and the difficulty in sorting out how the pricing should be structured has increased.

This Webinar provides both a conceptual approach to addressing these tough structuring issues and specific, detailed recommendations on how to handle common issues that often arise.

The Webinar will cover:

1. A set of generally applicable guidelines for determining when clients should sell or transfer assets and when they should maintain financial control over those assets.
2. What aspects of the price should be variable and what aspects should be fixed and why.
3. The role that pricing elements play in properly aligning the incentives for each party.
4. The growing impacts from cost of living adjustments (COLA) and currency exchange issues and how best to allocate the risks arising from these mechanisms.
5. The importance of termination fees and so-called “stranded” costs and how these charges relate to an overall pricing regime.

This online presentation will be 90 minutes. Starting time is PST.