The “lumpy nature” of the real world

by Rengan Jayakrishnan

Pune, February 14th, 2017. One of the challenges faced by many of our clients is controlling costs in the face of dynamic demand. While companies are usually able to predict demand within a reasonable tolerance over a defined future period, these predictions are by their nature aggregates, and can’t be accurately matched to the “lumpy nature” of the real world.

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Rengan Jayakrishnan, JK, is the Global Sales Manager at TecSurge.

Rengan Jayakrishnan, JK, is the Global Sales Manager at TecSurge. JK is a Specialist in Sales and Managing Global Opportunities. JK has worked previously as Managing Director for CAXperts in India. He is based in Pune Area, India, where he lives with his wife and two sons.

Obviously, as a service provider, we offer discounted unit rates for greater volumes of work, as we can take advantage of economies of scale, automation and stable resource planning models. The challenge of accurately predicting demand to be able to take advantage of such discounts, however, often prevents customers from being able to lock in such cost efficiencies.

At TecSurge, we’ve examined this challenge, and have started to put together service pricing models which can potentially offer the best of both worlds; lowering unit rates based on volume, while still matching supply to unpredictable demand.

The approach we’re taking involves identifying standardised and repeatable services, and establishing fixed unit rates for these. Our clients are then able to select from two pricing approaches:

  • The traditional “pay as you go” approach (i.e. invoiced on consumption), or
  • A new option, of guaranteed volume (e.g. minimum X units over the next 12 months).

The guaranteed volume option enables us to discount unit rates to very attractive levels, while still giving our clients the freedom to apply the individual services when and where they are required based on their own project requirements.

We are seeing an increasing interest in innovative service delivery and pricing models, and a trend away from the traditional professional services project delivery model, especially for standardised, repeatable services such as:

  1. Preparation of piping specifications
  2. Custom report template development
  3. Drawing template, style and rule configuration and customization
  4. Symbol development and catalogue building
  5. Hanger and support library development
  6. P&ID, instrument loop drawing and datasheet migration and updates

TecSurge has the experience, expertise, and well-deserved reputation for quality that you need to ensure the successful delivery of these services to your organisation. Added to this, our innovative and flexible approach to pricing helps you obtain the best value for money, streamline your own project delivery, and exceed the expectations of your stakeholders.

If you’re interested in discussing how we can deliver project content OnDemand to help your business, please leave a comment below or contact us today.