CX Files Episode 435: Beyond FTEs – The Road to Outcome-Based BPO Pricing
Guest: Victor Manzanera, Founder and Principal Analyst, Scale Edge Group – Oslo, Norway
Everyone in the BPO industry is talking about outcome-based pricing, but how do we actually move away from charging for headcount and hours? And is the industry ready for such a fundamental change?
In this episode of CX Files, Mark Hillary and Peter Ryan explore the challenges of traditional BPO contracts before Mark interviews Victor Manzanera, founder of Scale Edge Group.
Victor has just published The Outcome-Based BPO Model, a 33-page report examining how BPO buyers and suppliers can gradually transition from traditional FTE pricing towards contracts that reward genuine business outcomes.
Key discussion points include:
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Evolution, not revolution: Why outcome-based pricing requires a gradual transition rather than an overnight replacement of FTE contracts.
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Rethinking KPIs: Why traditional performance metrics often have little connection to the business outcomes clients actually want.
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Sharing the rewards: How gain-sharing agreements and meaningful bonuses can encourage BPOs to improve efficiency, customer retention, and revenue.
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The AI incentive problem: Why headcount-based contracts can discourage automation and how new commercial models could accelerate AI adoption.
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Beyond pricing: Why achieving better outcomes may require different agent skills, training, technology, and operating models.
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Practical next steps: How buyers can start changing their BPO relationship immediately, even without renegotiating their entire contract.
Victor argues that the most important change is not simply how BPOs get paid, but how buyers and suppliers define success and work together to achieve it.
The central message: Stop buying people and hours. Start building partnerships focused on business results.
Victor's report, The Outcome-Based BPO Model, was published by Scale Edge Group on October 14, 2026, and is freely available through Scale Edge Group - link is below.
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https://www.linkedin.com/in/victor-manzanera/
https://www.scaleedgegroup.com/
https://www.scaleedgegroup.com/outcome-based-bpo-model
https://www.linkedin.com/posts/scale-edge-group_bpo-outsourcing-cx-activity-7516022738088640513-BHiE
Summary & Overview
The discussion examined a gradual shift from FTE pricing to outcome-based BPO relationships, including incentives and prerequisites for adoption.
Hybrid Transition
- Victor argued that pricing and performance measurement can evolve separately: companies can keep FTE contracts while aligning KPIs and incentives to business outcomes.
- Buyers and BPOs need to agree on the company's actual objectives; excessive or conflicting operational KPIs can obscure results and limit BPO ownership.
Incentives and Readiness
- Bonuses tied to outcomes such as efficiency, first-contact resolution, revenue, or reduced churn can reward BPOs for improvements and support AI adoption.
- Transaction pricing is most viable with reliable volume forecasts, handle-time data, and contractual volume protections. How can companies without these prerequisites create aligned incentives while retaining FTE pricing?
