Today’s marketplace is constantly evolving and so are customer’s needs. Customers are expecting hi-tech vendors to meet their business needs. This new paradigm shift is making services business mainstream.Traditionally hi-tech vendors have a portfolio of individual services that have multiple service offers, dozens of assessment services and multiple technology architectures to single customer-centric portfolio of service solutions that helps enable a customer’s desired outcomes.

Outcome based business model is the new wave in the industry. Hi-tech manufacturers have realized this and are making transformational changes in their internal capabilities. They have decided to ride the wave as it would be suicidal to ride the storm!


Transactional Minded Culture Culminate In Commoditizing Traditional Offerings Source: Forrester Research

Key Drivers Of Outcome Based Business Model

There are several major drivers of the Outcome based business model that have most recently converged, creating a massive churn in the marketplace and spurring a re-evaluation of vendor/customer relationships.

Changing business priorities of clients:

Business executives in client organizations see technology as vital to driving global expansion, integrating businesses and driving business model innovation. Hence, they expect hi-tech vendors to move faster and be more flexible in delivering results that meet their evolving business needs.

Easy access to options:

Innovations in the industry has led to low cost ‘plug & play’ options. Open source, ‘anything-as-a-service’ (XaaS), annualized licensing, offshoring, virtualization are all examples of buyer options that have evolved over the past five years. As the number of solution sources grows, the pool of possible IT suppliers that buyers can consider does too./p>

Perceived degradation in value realization:

Customers have significant cost pressures and hence are demanding more from the hi-tech vendors. With vendors using the traditional model of selling, customers don’t see much value in what vendors are providing.

Examples Of ‘Customer Outcomes’


Example Of ‘Customer Outcomes’ That Is Being Measured

Defining Outcome Based Model

Develop an outcome- based relationship with your customer: Hi Tech Vendors need to act as a trusted advisor and provide Solution that is tailored to help them achieve their desired outcomes.


Outcome Based Solutions Need Paradigm Shift And New Age Capabilities


Outcome Based Service Offers transform the way Hi Tech Vendors present the Traditional Services portfolio. Outcome Based Service Offers increase service relevancy by highlighting only those services that directly align with the desired Customer Outcome and are, therefore, more meaningful to the customers.

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