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Day Rate Trends: The Narrowing Gap
Datamonitor, April 2010, Pages: 25
Introduction
'Man-day rates', or more simply 'day rates', the prices charged for individual IT personnel used within an outsourced project or IT service, are a fundamental part of overall contract pricing for suppliers looking to manage their profitability. For clients, this price can determine whether vital enhancements or technology refreshes are affordable.
Scope
-Pricing data in this report is from UK contract engagements over the past nine years.
-Data comes from a mix of negotiated rate cards and supplier proposal materials.
Highlights
Clients are now getting 'more for less'. Day rates for outsourcing staff have fallen at a CAGR of -1.4% over the past eight years, during which the retail price index grew around 3%. Offshore deflation and recessionary pressures related to the global financial crisis are the main contributors to this.
Reasons to Purchase
-Day rates are a fundamental part of overall contract pricing for suppliers looking to manage their profitability.
-For clients, this price can determine whether vital enhancements or technology refreshes are affordable.
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