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HOOGResearch & Advisory

Professional Services

Pricing Model Research for an IT Consulting Firm

Testing outcome-based and fixed-fee pricing as alternatives to time-and-materials billing.

Example engagement
Client
IT consulting and implementation firm
Industry
Professional Services
Geography
India, the US and the UK
Duration
6 weeks
Capabilities
Pricing Research

Research design at a glance

How the work is structured

India, the US and the UK · 6 weeks

  1. 1

    Client buyer interviews

    CIOs and procurement leaders.

  2. 2

    Pricing survey

    Preferences across models and scenarios.

  3. 3

    Competitor pricing review

    Published and reported models.

  4. 4

    Internal delivery data review

    Project cost variability.

Qualitative depth

Interviews, groups & observation

  • Client interviews~20

Quantitative scale

Surveys, audits & measurement

  • Survey responses~100

Sample sizes are indicative of a typical design for this type of question; real engagements are scoped to the decision.

01

Client context

Clients were pushing back on time-and-materials billing and asking for more predictable pricing.

02

Business challenge

The firm was unsure how to price outcome-based engagements without taking excessive risk.

03

Research objective & questions

Understand client pricing preferences and design viable alternative pricing models.

  • Which pricing models do clients prefer, and why?
  • Which engagement types suit fixed-fee or outcome pricing?
  • How do competitors price?
  • What risk-sharing would clients accept?

04

Methodology & approach

Client buyer interviews
CIOs and procurement leaders.
Pricing survey
Preferences across models and scenarios.
Competitor pricing review
Published and reported models.
Internal delivery data review
Project cost variability.

05

Sample & geography

  • ~20 client interviews
  • ~100 survey responses
  • Geography — India, the US and the UK

06

Key findings

  • Clients preferred fixed fees for well-defined implementation phases.
  • Outcome pricing appealed only where outcomes were measurable and controllable.
  • Procurement valued predictability over the lowest price.
  • Competitors used hybrid models more often.

07

Business implications

  • Adopt hybrid pricing with fixed-fee phases.
  • Pilot outcome pricing on measurable use cases.
  • Improve estimation discipline to manage fixed-fee risk.

08

Outcome

The firm received a pricing model framework and pilot recommendations.

Example engagement — Shows how Hoog approaches this type of question. Not a specific client project. Findings are directional.

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