Market & Sourcing

Impact of Market Price Benchmarks

by Timo Kopp

It is a well-known fact that a market price benchmark can score advantages over an RfP in the case of an expiring contract. We show how the contractual option of the benchmark performs during the term of the contract.

An evaluation shows that 45 per cent of outsourcing contracts include the implementation of a market price benchmark in the first twelve months, and another 40 percent in months 13 to 36. In two-thirds of the benchmarks, prices are lowered by an average of eleven per cent to the market level.

Timo Kopp

Timo Kopp

Communication psychologist Timo Kopp supports organisations in harmonising their IT sourcing relationships - from the design of IT services to the development and monitoring of service level agreements. In addition, he is an expert in classic IT benchmarks.