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ABC Corporation is facing turbulent business environment. With an objective to optimize IT cost, the company has decided to outsource its maintenance activities. Jack, a senior manager at ABC Corporation, has been asked to manage this initiative. During his discussion with various vendors, he is providing adequate information about the scope of applications being outsourced and current volume of transaction for each application. From the options provided by different vendors, which of the following model should Jack go for in order to optimize cost?
Fixed price based model as there is good clarity on scope and business environment is uncertain
Time and Material based model as ramp up / ramp down can be easily managed and the committed productivity improvement by the vendor will result into further cost optimization
Transaction based pricing as there is a clarity on the current transaction volume and scope
Any of the above as there is no significant difference among the three models
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Qtr No. 213, New Town Yehlanka Indore 454775
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