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Charging
Profit/Savings Share
This charging model is based on a percentage of the profit
generated or savings achieved.
The model is designed to ensure that there is a true focus on
Value for Money.
IT should be there to support you business, to either generate
additional income or achieve savings. This model ensures that only
sensible cost effective solutions are implemented.
A cap is also agreed to ensure that even if the profits or savings
are higher than expected, the payment remains appropriate for the effort
invested.
Example - A new e-commerce web site.
Initial discussions would identify the scope of the project and
its viability. A percentage of the profit, a cap to the total amount
payable and the timescale would be agreed.
Depending on individual requirements, zero or minimal
upfront spend would be payable. Then, as the site generates profit,
fees are paid at the agreed rate and up to the cap.
Following the initial contract term, a new percentage and cap would be agreed depending on the ongoing maintenance/changes required.