BPM companies increasingly moving towards outcome-based deals

Business process management (BPM) firms say they are increasingly moving towards outcome-based deals, or tying sourcing strategy to business results, in keeping with clients’ requirements and changing efficiencies brought on by automation and adoption of digital.

As more and more businesses move towards digital technology-enabled solutions such as chatbots to increase interaction with their own customers, BPM companies have seen a significant chunk of their revenue proceeds shifting towards business outcomes.

In a 2015 whitepaper, research firm ISG defined outcome-based pricing as one that ties service provider fees to a metric directly relevant to the business for clients. For example, it could be linking of fees to factors such as customer churn rate reduction, customer satisfaction, incremental revenues earned and cost savings.