The document discusses how ICT providers should offer services on a consumption-based model to support businesses that experience growth, mergers, divestitures, and other changes. It recommends that ICT providers offer opex-based services with volume-based pricing that allows customers to increase or decrease services on demand according to business needs. It also suggests that customers define consumption parameters like population or time and that providers offer per-unit pricing so customers can adjust volumes as required.

1. ICT outsourcing on
consumption based costs
By ajay kumar uppal

2. ICT should support
Growth and Divestitures
• Considering businesses can grow, merge,
carve-out and go through divestitures; the
underlying ICT needs to support
– Capacity increase (ramping-up resources) and
– Capacity decrease (ramping down resources)
• Resources include underlying infrastructure like DCs,
HW, Network, Telecommunications, Business
Applications, other Technology elements, ICT/ Support
Staff, On-going services, Maintenance etc.

3. ICT Providers should share the gain
and also the pain
• ICT providers must offer OPEX based services
• ICT providers must allow for volume based pricing
• where customers can increase or decrease or order
services on-demand in-line with business requirements.
IT HW, SW and Services companies need to look at
offering services on usage / actual consumption as
opposed to ‘dumping ’.

4. How to offer/buy consumption based
services?
• Customers should define ‘parameters’ of consumption
e.g. Population, Time, Capacity etc..
• ICT providers should also come forward with ‘per unit’
rates/prices whereby customers can increase or
decrease the volumes/quantities..
• End to end services should be expressed in terms of
simple consumption units e.g.
– Desktop support per end-user (like US $ 40/End-user)
– Application as a service or IaaS or PaaS or SaaS based on
» Compute capacity and storage per GB or TB
• e.g. SAP Service @ $88/1000 SAPS, $ 4000/TB of HANA