IT 2.0 Economics

IT 2.0 engagements result in measurable economic improvements in the client's business performance. This is ensured by:

• Contractual alignment of the economic and strategic interests of the client and the IT provider
• Definition, focus and measurement of business performance improvements by metrics that are relevant to the client's business growth cycle and corporate priorities

This example illustrates the economic results achieved through implementing business solutions at a USA top-five insurer. The chart compares a conventional approach with two alternatives – IT 2.0 Performance Based contracts and IT 2.0 Equity Joint Venture partnership models.

The IT 2.0 approach is superior in delivering better IRR as well as minimizing up-front cash outlays for clients.