Benchmarking Application Development Contracts
Currently, large enterprises increasingly rely on long-term outsourcing arrangements, potentially costing millions of dollars. In this environment, the customer often assesses “billable hours” rather than the “value created.” It can be difficult to determine if rising costs are the result of increasing scope or a reduced efficiency. To address this issue, organizations must shift to an objective, evidence-based approach. The benchmarking process uses a structured methodology that highlights expenditures into clear productivity metrics that can be compared against industry standards. Outsourcing contracts can then be transformed from financial burdens into high-performing partnerships, that ensure that the money spent is aligned with competitive, market-standard productivity.
