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Volume baseline

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Definition Edit

Volume baselines are used in ARC/RRC pricing models (a type of unit pricing model that is found most often in outsourcing contracts and which was invented by TPI — now ISG). The volume baseline for a particular pricing unit represents the expected usage by the customer over the term of the contract.

Overview Edit

If the customer does use that volume in practice, then it will pay the contracted "base charge" for that element of the services. However if usage is greater than the volume baseline, an additional resource charge will be payable, or if less, the base charge will be reduced by a reduced resource credit.

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