May 27, 2021
Article Published by John Moore, Senior Feature Writer at Tech Target – SearchITChannel

Outcome-Based Contracting Sees Uptick During Pandemic

Contracts that tie service provider payments to results has gained momentum as customers pursue digital transformation projects

Outcome-Based Contracting Sees Uptick During PandemicOutcome-based contracting has become more popular during the COVID-19 pandemic as organizations look to share risk with service providers.

Industry executives reported increased interest in this contracting approach, which links some, or all, of a service provider’s payment to meeting performance objectives. Outcome-based contracting has existed for decades but appears to be gaining ground in the COVID-19 era. That contracting shift could affect service provider business models.

Paul Wilkinson, EVP at 1901 Group, a Reston, Va., MSP and wholly owned subsidiary of Leidos, equated outcome-based contracting with as-a-service purchasing among public sector customers. Agencies are turning to enterprise IT as a service, divesting themselves of capital expenditures for items such as network infrastructure, endpoint hardware and software, and end-user support.

Read the article at Tech Target – SearchITChannel

“The public sector as-a-service trend has taken off over the last three years, but COVID-19 fueled its growth. The pandemic has certainly increased demand for [cloud services providers], with new resources being acquired for data analytics, VPN, collaboration solutions … and remote support,” – Paul Wilkinson, Executive Vice President, 1901 Group, a Leidos company

Relevant Links:


Please share this post!