How the IT Cost Plus Model Can Help Reduce the Maintenance Cost of ServiceNow Software

Aug 24, 2020

ServiceNow software offers a company many benefits and allows you to build and innovate your business in the modern business landscape. This is why you need ServiceNow software maintenance in these areas: Administration, ServiceNow Development, Business Analyst, Implementations, Application, Upgrade & Technical Support, Reporting, and  Service Portal. The complete maintenance of your ServiceNow software is best handled by ServiceNow consultants who can offer ServiceNow remote support so that your business continues to benefit.  

 

Sadly the cost of maintaining software is rising exponentially, yet what is software without maintenance. The way out appears to be choosing a pricing model that works for you. One of the more popular pricing models used for outsourcing IT services is the cost-plus model. Modern businesses are now leveraging this pricing model to reduce the maintenance cots of their ServiceNow software. 

 

What is the IT Cost Plus Model?

 

The IT Cost-plus model is a pricing model in which the price charged for a product or service is equal to its cost of production in addition to a specific mark up. It is primarily used to regulate negotiated prices for managed services providers, so it is an excellent choice for ServiceNow software managed services. 

 

How the IT Cost Plus Model Can Help Reduce The Maintenance of ServiceNow Software

 

ServiceNow software maintenance is becoming a major industry because more enterprises now opt for ServiceNow software managed services for ServiceNow support. These corporations which opt for outsourcing IT services can make the most of ServiceNow software managed services by leveraging the IT cost-plus model.  

 

The IT cost-plus model is fast-becoming one of the most cost-effective, practical, and sustainable solutions for the ServiceNow support industry.  The cost of maintaining your ServiceNow software includes maintaining a team of ServiceNow consultants that are charged with developing codes that match customers needs with IT cost-plus models.

 

The full costs of creating and rendering ServiceNow support is calculated per user or resource. 

It ensures that the full cost of rendering the ServiceNow support service is covered and the mark-up can generate a positive rate of return. The cost-plus model offers a buffer against unexpected maintenance costs due to changes in service delivery, and the pricing can be adjusted accordingly. In addition, profits are basically guaranteed by the implementation of the cost-plus model,  and there is less risk of loss. The cost-plus model is essentially the most risk-averse pricing model to use in outsourcing IT services. This is because, with an aspect of maintenance rendered, the margins increase as costs are paid back, and the mark-up is converted into margins. 

 

Takeaway 

 

The IT cost-plus model is simple to implement and even much easier to calculate. It is the pricing model of choice in ServiceNow remote support solutions. When applied correctly, it can be used to reduce the maintenance of ServiceNow software effectively. Ready to take the plunge? Request a free consultation today!

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Topics: ServiceNow, Managed Services, ITOM, ITSM, Cloud Computing, ITSM platforms, itom implementation, servicenow itsm, cloud services, IT Managed Services, Managed Service Providers