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You need to discuss pricing with senior management. Prepare talking points on how ITO should price its services compared to the many domestic and international companies in the same market niche and why. Be sure to include pricing strategies for on-site versus off-site projects. Also include strategies for:

* short duration, small staff projects
* long duration, large staff projects
* projects that fall in between these two categories

Also include your suggestions about how to handle competition, especially off-shore (i.e. India) or near-shore (i.e. Canada) competition offering very low pricing. Discuss how often ITO Company's pricing structure should be reviewed and why.

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Solution Summary

The response address the queries posted in 563 words with references.

Solution Preview

The response address the queries posted in 563 words with references.
//As per the directions, we will write about the outsourcing technology of the ITO firm. We will write about the pricing structure of the ITO Company. On the basis of the staff projects, the outsourcing strategy and pricing strategy of the Company will be discussed. Finally, the conclusion of the overall discussion will also be described.//

Introduction

ITO is an outsourcing firm of the US that outsources the technology to the other nations. ITO services are provided at lower costs. In the present time, ITO services are increasing in the off-shore countries for reducing the costs. This trend is also helping in the improving of the service levels and processes. There are many areas in the ITO services like system management, network management, risk management, etc. (Overview, 2006).

Pricing strategy

ITO should price for its services ...

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  • MBA (IP), International Center for Internationa Business
  • BBA, University of Rajasthan
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