The Market Price Benchmark

Only a few enterprises nowadays operate their IT completely of their own accord. Managed services and outsourcing in all their variations – outsourcing of tasks, processes and structures to external partners – have become a permanent part of a professional IT organisation and its sourcing strategy. Nevertheless, there is a lack of standards and market transparency to be able to compare reasonably and weigh up the services offered and prices demanded. Moreover, general market conditions are changing at a rapid pace – what was considered a bargain three years ago can today already be daylight robbery. Therefore, benchmark clauses are a necessity in outsourcing contracts.

The market price benchmark test by Maturity was conceived to create transparency where transparency has previously been difficult or impossible. We analyse whether services for which our clients pay money conform to the current market level, we review all service level agreements (SLAs) between the customer and service provider and we take into account special conditions in daily business as well as any special requirements. This can be seen from a contract and service assessment or through the analysis of customer requirements. From our constantly updated database we derive realistic prices for changes and identify trends in daily rates of consultants from different markets.

Neat, accurate and objective market comparisons are an important component of every contractual relationship. As benchmarking experts with sound experience of tactical projects, even extending to "mega deals", we also issue recommendations and point out how best practices have to be designed so they will afford concrete benefits. Thus, the benchmark of an outsourcing agreement is not a sign of lack of confidence, but the basis for a long-term stable partnership.