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Web-based services make it difficult to bilk customers because there is no way to increase costs.

Web-based services make it difficult to bilk customers because there is no way to increase costs. The rate is fixed ahead of time. The service either works or it doesn't. There is no possibility of hardware problems, software rework, configuration issues, overbilling, etc. There are no contract negotiation or lowball bidding games (and subsequent cost overruns) either because services are pay as you go. Outsourcers will have to either invent new corporate IT products that are not provided as services yet or build competing services.

Posted by codeonfire on Jul 13, 2015, 7:02 AM

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pricing (SaaS)

Web-based services make it difficult to bilk customers because there is no way to increase costs.

codeonfireJul 13, 2015, 7:02 AM

Web-based services make it difficult to bilk customers because there is no way to increase costs. The rate is fixed ahead of time. The service either works or it doesn't. There is no possibility of hardware problems, software rework, configuration issues, overbilling, etc. There are no contract negotiation or lowball bidding games (and subsequent cost overruns) either because services are pay as you go. Outsourcers will have to either invent new corporate IT products that are not provided as services yet or build competing services.

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