Nobody wants to ‘pay for nothing’. Yet, firms enter into contracts with pricing models that reinforce this evil. For example, many contracts have minimum volume requirements. Once the firm goes below the minimum volume then they might have to pay for a proportion of the cost even though they no longer require that service volume. High-risk areas where firms can pay for nothing are; Strategic Services. Examples of strategic services are innovation and architectural services. These offers simply do not warrant pre-payment in any outsourcing relationship. .
