Allocation of Risk in Pricing Methods for Professional IT Services
Telén, Karl (2026)
2026
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-202604166750
https://urn.fi/URN:NBN:fi:amk-202604166750
Tiivistelmä
Professional IT services vary from straightforward consulting work to large scale system implementation projects. The services are typically complex and customized to the customer’s needs. These services are priced using various pricing methods, which have their own characteristics and associated risks. The objective of the thesis is to assess and summarize how different pricing methods allocate risk between service provider and customer within IT services. The thesis will provide insight into how different pricing methods are used within professional IT services and which party bears the associated risks.
The research is done using a narrative literature review as the research method. Literature used as source information is focused on recent studies and sources relevant to professional IT services. The knowledge base of the thesis explains key concepts such as professional IT services, various pricing methods applied in the area, and the associated risks. The results of the research are summarized in a table and further explained through relevant sources. According to the research, the pricing method has a significant impact on whether the service provider or the customer bears the risks. The research results indicate that choosing the appropriate pricing method can align the incentives for the parties involved, whereas an inappropriate pricing method can yield undesired business outcomes, such as financial or quality related issues. The results of the thesis provide a summary of how pricing methods allocate risk between the parties and highlight the importance of understanding the implications of each method before entering a contract.
The research is done using a narrative literature review as the research method. Literature used as source information is focused on recent studies and sources relevant to professional IT services. The knowledge base of the thesis explains key concepts such as professional IT services, various pricing methods applied in the area, and the associated risks. The results of the research are summarized in a table and further explained through relevant sources. According to the research, the pricing method has a significant impact on whether the service provider or the customer bears the risks. The research results indicate that choosing the appropriate pricing method can align the incentives for the parties involved, whereas an inappropriate pricing method can yield undesired business outcomes, such as financial or quality related issues. The results of the thesis provide a summary of how pricing methods allocate risk between the parties and highlight the importance of understanding the implications of each method before entering a contract.