Capability Pattern: Service Pricing and Contract Administration

The purpose of the Service Pricing and Contract Administration process is to establish a pricing mechanism for the IT entity to sell its services to internal or external customers, and to administer the contracts associated with selling those services.

Outcomes

As a result of successful implementation of this process:

Prices are set that reflect the charging policies of the IT organization
Pricing is aligned to achieve business objectives
Requests for pricing are satisfied in a responsive manner
Customer contracts and agreements are administered effectively and efficiently

Scope

This process applies if the decision is made to charge for IT services. It encompasses defining a pricing method, establishing prices, managing the resulting contracts, tracking the effect of pricing on how well the service or solution is being accepted by the customer, and examining proposals and contract continuation.

Includes

Defining the charging pricing algorithm
Providing standard prices for IT services
Providing pricing alternatives (such as fixed, time and materials, and flexible terms and conditions)
Monitoring impact on user and customer behavior and making appropriate adjustments

Excludes

Metering (Service Execution, Data Management)

Billing (Financial Management)

Initiating pricing negotiations (Service Marketing and Sales)