Study Data · Part 1 · Indicator Deep-Dive Analysis

What is the pricing model for this engagement?

Indicator C044 · By Phil Hatch · Akholi · October 9, 2026

Indicator Specification

Table 1. Indicator specificationTable
FieldValue
Indicator codeC044
Question as askedWhat is the pricing model for this engagement?
Failure categoryNot one of the 100 rated indicators
Place in the surveyEngagement Details > 2.4 Commercial Structure > Contract
Indicator classPerceived fact
Indicator typeCategorical
Response scaleLevels: FTE-based, Fixed price, Transaction or outcome based, Hybrid, Consumption based
Answering base347 of 850 respondents gave one of the listed answers. 575 answered, counting I do not know and I prefer to not answer, across 150 of 150 engagements
Non-answersI do not know 228, I prefer to not answer 0, blank 275
Written responses coded to the indicator33 responses from 33 respondents on 31 engagements (0 primary, 33 secondary)

Summary of Findings

Table 2. Key results: association of the indicator with the four study measuresTable
MeasureEffect sizenValuep
Cancellation rateOmega squared, 0 or 1 flag71 engagements−0.0010.412
Customer satisfactionNot computable, fewer than two listed answers reach 10 engagements
Engagement indicator meanOmega squared71 engagements−0.0070.290
Intent to leaveOmega squared71 engagements−0.0150.511

FTE-based pricing was the most common answer (140 of 347 respondents, 40.35%), ahead of Fixed price (61 of 347 respondents, 17.58%) and Transaction or outcome based pricing (58 of 347 respondents, 16.71%). Cancellation was highest for Consumption based pricing (60.00% canceled, n = 10 engagements), with no difference across the tested answer levels (chi-square 2.97, p 0.412, Cramer’s V 0.20, n = 71 engagements). Customer satisfaction could not be compared across answer levels (fewer than two answer levels with at least 10 engagements). The engagement indicator mean was lowest for Consumption based pricing (mean 3.4, n = 10 engagements) and highest for Fixed price (mean 4.2, n = 13 engagements), with no difference under test (Welch F 1.31, p 0.290, omega squared −0.007, n = 71 engagements). Intent to leave was highest for Consumption based pricing (mean 7.7, n = 10 engagements), with no difference across the tested answer levels (Welch F 0.79, p 0.511, omega squared −0.015, n = 71 engagements). The answer mix did not differ after Holm control in any segment family (Holm p 0.161 or higher in every family).

The indicator had 33 written responses coded to it, from 33 of 850 respondents on 31 of 150 engagements. All 33 scored responses were negative. The strongest negative score, −10, was carried by 10 of the 33 scored responses (30.30%). Every response was a secondary response, written in answer to a question outside the indicator’s own survey section.

Distribution of Responses

Table 3. Distribution of responses, respondent levelTable
AnswerRespondentsShare of answered (base 347)Cumulative shareEngagements with at least oneShare of 150 engagementsDistressed
FTE-based14040.35%40.35%6241.33%Not applicable
Fixed price6117.58%57.93%2818.67%Not applicable
Transaction or outcome based5816.71%74.64%2416.00%Not applicable
Hybrid4613.26%87.90%1912.67%Not applicable
Consumption based4212.10%100.00%1711.33%Not applicable
I do not know228Not in baseNot in base12986.00%Not applicable
Answered, total347100.00%150100.00%

A categorical answer has no engagement mean. Each engagement took its respondents’ plurality answer, and tied engagements were left out. An answer was assigned to 107 of 150 engagements.

Distressed is not applicable, because the answer has no good or bad end on a scale.

Coverage and Origin of Written Responses

Figure 1. Written responses coded to the indicator, by the question answered and by written score (n = 33 responses)Exhibit
05101520C055 (secondary)C029 (secondary)311C135 (secondary)610Written responses−10 Strongly negative−5 Negative0 Neutral+5 Positive+10 Strongly positive
Note: Primary responses were written in answer to a written-answer question in the indicator’s own survey section. Secondary responses were written in answer to a question outside that section and coded to the indicator because their content addressed it. Segments run from −10, strongly negative, in full amber at the left to +10, strongly positive, in the darkest gray at the right. Segments of 3 or more responses are labeled with their count where the drawn segment can hold the label. C135 asked: “Add any comments on your employer that the ratings in this section do not capture.” C029 asked: “What are your top 3 challenges that reduce your job satisfaction?” C055 asked: “How does the vendor manipulate performance reports and dashboards?”
Table 4. Written responses by originTable
OriginResponsesRespondentsEngagementsNegativeStrongest negative (−10)PositiveMean written score
Primary000a
Secondary33333133 of 33 (100.00%)10 of 33 (30.30%)0 of 33 (0.00%)−6.5
All responses33333133 of 33 (100.00%)10 of 33 (30.30%)0 of 33 (0.00%)−6.5
Note: a No scored responses.

All 33 responses were secondary responses. The secondary responses came from 33 respondents on 31 engagements, in answer to 3 questions outside the indicator’s own survey section (C135 with 16 responses, C029 with 14 responses and C055 with 3 responses). Among the Part 1 indicators with 30 or more scored responses, the secondary share of the indicator ranked 1 of 6 from the highest, tied with 4 other indicators. The median secondary share was 100.00% across the 6 indicators.

Distribution of Written Sentiment

Figure 2. Distribution of written sentiment (n = 33 scored responses)Exhibit
10 (30.30%)−10 Stronglynegative23 (69.70%)−5 Negative0 (0.00%)0 Neutral0 (0.00%)+5 Positive0 (0.00%)+10 Stronglypositive
Note: Column height is the share of all scored responses. Labels give the count and the share.
Table 5. Summary statistics of written sentimentTable
StatisticValueBasis
Mean written score−6.595% CI −7.3 to −5.8, cluster bootstrap by engagement, 10,000 draws, n = 33 responses
Median written score−5.0n = 33 responses
Negative responses33 of 33 (100.00%)95% CI 100.00% to 100.00% of 33 responses, cluster bootstrap by engagement
Strongest negative responses (−10)10 of 33 (30.30%)Statements of totality, constancy or serious harm
Positive responses0 of 33 (0.00%)+5 or +10
Net balance−100.00 percentage pointsShare positive minus share negative, base 33 responses
Respondent-level mean−6.5Mean of each respondent’s own mean written score, n = 33 respondents

The indicator has no good or bad end. Under the coding rulebook’s rule for such indicators, the written score records the effect each response states on the engagement or on the respondent. The survey question is “What is the pricing model for this engagement?” The frequency, scope and consequence a response states set the strength of its score. A score of +10 marks a response that describes “this attribute of the engagement as helping the engagement at its best.” A score of −10 marks a response that describes “this attribute as harming the engagement at its worst . . . .”

Of the 33 scored responses, all were negative and 10 (30.30%) carried the strongest negative score. The responses had a mean written score of −6.5 (95% CI −7.3 to −5.8, n = 33 responses on 31 engagements).

Descriptive Statistics by Segment

Table 6. Descriptive statistics by segmentTable
SegmentBaseAnsweredAnswer rateEngagementsFTE-based, shareFixed price, shareTransaction or outcome based, shareHybrid, shareConsumption based, share
Study set85034740.82% of 85015040.35%17.58%16.71%13.26%12.10%
Outsourcing model
CXM2329641.38% of 2324240.63%25.00%13.54%5.21%15.63%
ITO2449940.57% of 2444043.43%12.12%20.20%12.12%12.12%
BPO2098641.15% of 2093740.70%17.44%19.77%13.95%8.14%
KPO1656640.00% of 1653134.85%15.15%12.12%25.76%12.12%
Institution type
Asset management1325541.67% of 1322432.73%27.27%14.55%3.64%21.82%
Wealth management and private banking1405337.86% of 1402341.51%11.32%9.43%18.87%18.87%
Investment banking (advisory and capital-markets origination)1054240.00% of 1051976.19%9.52%4.76%9.52%0.00%
Insurance (life, property and casualty, health)783342.31% of 781451.52%6.06%9.09%18.18%15.15%
Commercial and business banking823542.68% of 821320.00%0.00%40.00%25.71%14.29%
Payments and merchant acquiring (networks, acquiring, processing)713143.66% of 711341.94%16.13%6.45%25.81%9.68%
Credit card and payments issuing732736.99% of 731222.22%22.22%18.52%22.22%14.81%
Retail and consumer banking733041.10% of 731220.00%30.00%40.00%3.33%6.67%
Markets and trading (sales and trading, global markets)572136.84% of 571142.86%28.57%23.81%0.00%4.76%
Private equity and private capital392051.28% of 39950.00%40.00%10.00%0.00%0.00%
Process family
Corporate and back-office functions24810040.32% of 2484744.00%18.00%20.00%7.00%11.00%
Technology engineering and operations2048642.16% of 2043547.67%12.79%18.60%11.63%9.30%
Client servicing and communications943537.23% of 941640.00%8.57%17.14%17.14%17.14%
Trade, settlement and reconciliation803138.75% of 801538.71%25.81%3.23%22.58%9.68%
Payments, cards and disputes733142.47% of 731222.58%45.16%9.68%9.68%12.90%
Credit, underwriting and suitability572543.86% of 57924.00%0.00%36.00%20.00%20.00%
Regulatory, audit, tax and legal511937.25% of 51942.11%26.32%0.00%21.05%10.53%
Financial crime and client onboarding432046.51% of 43740.00%10.00%15.00%20.00%15.00%
Class of work
LOB Operational45118340.58% of 4517631.69%21.86%18.03%12.57%15.85%
Corporate Functional39916441.10% of 3997450.00%12.80%15.24%14.02%7.93%
Engagement status and lifecycle stage
Active, Build-Out1756939.43% of 1753156.52%14.49%13.04%11.59%4.35%
Active, Transition/Cut-Over25010542.00% of 2504340.00%19.05%13.33%19.05%8.57%
Active, Production1034038.83% of 1032025.00%25.00%12.50%17.50%20.00%
Canceled32213341.30% of 3225636.84%15.79%22.56%8.27%16.54%
Respondent role
Individual Contributor66716624.89% of 66714738.55%16.27%19.28%13.86%12.05%
Engagement Manager150150100.00% of 15015041.33%18.67%16.00%12.67%11.33%
Portfolio Director312993.55% of 312944.83%20.69%3.45%13.79%17.24%
Customer Management Executive222 of 2210100
Vendor type
IT services major31612439.24% of 3165941.94%16.94%13.71%13.71%13.71%
BPO specialist1988341.92% of 1983736.14%26.51%12.05%10.84%14.46%
Consulting firm1174639.32% of 1172328.26%15.22%28.26%17.39%10.87%
Boutique or specialist provider873944.83% of 871753.85%20.51%23.08%2.56%0.00%
Pure-play agentic AI firm753648.00% of 751438.89%5.56%13.89%25.00%16.67%
Not reported, recovered by engagement571933.33% of 573452.63%5.26%21.05%10.53%10.53%

Shares are of the answered respondents in each row, which is the base beside them. A row under 10 prints counts in place of shares.

Tests of Difference Between Segments

Table 7. Tests of difference between segmentsTable
Segment familyUnitChi-squaredfpHolm pCramer’s VTest for pLevels left out
Outsourcing modelEngagement14.28120.2901.0000.25Monte Carlo, simulatedNone
Institution typeEngagement14.1180.0660.3950.46Monte Carlo, simulateda
Process familyEngagement1.8540.8461.0000.22Monte Carlo, simulatedb
Class of workEngagement2.8240.5971.0000.19Monte Carlo, simulatedNone
Engagement status and lifecycle stageEngagement10.65120.5831.0000.21Monte Carlo, simulatedNone
Respondent roleRespondent5.3180.7301.0000.09Monte Carlo, simulatedc
Vendor typeRespondent34.35200.0230.1610.16Monte Carlo, simulatedNone
Note: a Insurance (life, property and casualty, health), n = 9, Commercial and business banking, n = 7, Payments and merchant acquiring (networks, acquiring, processing), n = 7, Credit card and payments issuing, n = 5, Retail and consumer banking, n = 7, Markets and trading (sales and trading, global markets), n = 4, Private equity and private capital, n = 7. b Client servicing and communications, n = 9, Trade, settlement and reconciliation, n = 7, Payments, cards and disputes, n = 8, Credit, underwriting and suitability, n = 5, Regulatory, audit, tax and legal, n = 6, Financial crime and client onboarding, n = 5. c Customer Management Executive, n = 2.

Engagement families were tested on engagement answers, and respondent role and vendor type were tested on respondents. No difference held after Holm control for outsourcing model, institution type, process family, class of work, engagement status and lifecycle stage, respondent role and vendor type.

Written Sentiment by Segment

Figure 3. Written sentiment by engagement status and lifecycle stage, share of each group’s responsesExhibit
0%25%50%75%100%Canceled (n = 8)3 of 85 of 8Active, Production (n = 4)1 of 43 of 4Active, Transition/Cut-Over (n = 9)2 of 97 of 9Active, Build-Out (n = 12)33.33%66.67%All responses (n = 33)30.30%69.70%−10 Strongly negative−5 Negative0 Neutral+5 Positive+10 Strongly positive
Note: Segments run from −10, strongly negative, in full amber at the left to +10, strongly positive, in the darkest gray at the right. Each bar is 100% of its group’s responses. Segments of 12% or more are labeled, as a share on groups of 10 responses or more and as a count on smaller groups.
Table 8. Written sentiment by segmentTable
SegmentResponsesRespondentsEngagementsMean written scoreNegativeStrongest negative (−10)
Engagement status and lifecycle stage
Active, Build-Out121210−6.712 of 12 (100.00%)4 of 12 (33.33%)
Active, Transition/Cut-Over999‡9 of 92 of 9
Active, Production444‡4 of 41 of 4
Canceled888‡8 of 83 of 8
Respondent role
Individual Contributor131312−6.213 of 13 (100.00%)3 of 13 (23.08%)
Engagement Manager151515−7.015 of 15 (100.00%)6 of 15 (40.00%)
Portfolio Director555‡5 of 51 of 5
Customer Management Executive000No responses
Note: ‡ Base under 10. No statistic is reported.

Scored responses came from 10 engagements in the Active, Build-Out group, 9 engagements in the Active, Transition/Cut-Over group, 4 engagements in the Active, Production group and 8 engagements in the Canceled group. A test of mean written scores across the groups, with each engagement counted once, showed no difference that reached significance at 0.05 (Kruskal-Wallis H 0.61, df 3, p = 0.894, n = 31 engagements). Groups under 10 responses are reported as counts only. Negative responses numbered 9 of 9 in the Active, Transition/Cut-Over group, 4 of 4 in the Active, Production group and 8 of 8 in the Canceled group.

Across respondent roles, no test was run, because fewer than two roles reached 30 scored responses. Roles under 10 responses are reported as counts only. Among portfolio directors, negative responses numbered 5 of 5.

Association with Cancellation Rate

The share of engagements canceled on the study date, measured at engagement level (base 150 engagements, 56 canceled). The association is a descriptive contrast, inflated because canceled engagements were rated after cancellation, and is not predictive.

The measure by the engagement’s assigned answer.

Table 9. Association with cancellation rate by answer levelTable
Answer levelEngagementsCanceledCancellation rate
FTE-based351131.43%
Fixed price13538.46%
Transaction or outcome based86‡
Hybrid13430.77%
Consumption based10660.00%
I do not know281242.86%
Note: ‡ Base under 10. No statistic is reported.

The test across answer levels, in the study set and inside each segment. Levels under 10 engagements were left out of each test.

Table 10. Association with cancellation rate, tests across answer levels by segmentTable
SegmentEngagementsChi-squaredfpHolm pCramer’s VTest for p
Study set712.9730.4130.4130.20Monte Carlo, simulated
Outsourcing model
CXMFewer than two answer levels with at least 10 engagements
ITOFewer than two answer levels with at least 10 engagements
BPOFewer than two answer levels with at least 10 engagements
KPOFewer than two answer levels with at least 10 engagements
Institution type
Asset managementFewer than two answer levels with at least 10 engagements
Wealth management and private bankingFewer than two answer levels with at least 10 engagements
Investment banking (advisory and capital-markets origination)Fewer than two answer levels with at least 10 engagements
Insurance (life, property and casualty, health)Fewer than two answer levels with at least 10 engagements
Commercial and business bankingFewer than two answer levels with at least 10 engagements
Payments and merchant acquiring (networks, acquiring, processing)8‡
Credit card and payments issuing8‡
Retail and consumer banking9‡
Markets and trading (sales and trading, global markets)7‡
Private equity and private capital7‡
Process family
Corporate and back-office functionsFewer than two answer levels with at least 10 engagements
Technology engineering and operationsFewer than two answer levels with at least 10 engagements
Client servicing and communicationsFewer than two answer levels with at least 10 engagements
Trade, settlement and reconciliationFewer than two answer levels with at least 10 engagements
Payments, cards and disputesFewer than two answer levels with at least 10 engagements
Credit, underwriting and suitability6‡
Regulatory, audit, tax and legal7‡
Financial crime and client onboarding7‡
Class of work
LOB OperationalFewer than two answer levels with at least 10 engagements
Corporate FunctionalFewer than two answer levels with at least 10 engagements
Engagement status and lifecycle stage
Active, Build-OutNot computable, no variation in cancellation
Active, Transition/Cut-OverNot computable, no variation in cancellation
Active, ProductionNot computable, no variation in cancellation
CanceledNot computable, no variation in cancellation
Note: ‡ Base under 10. No statistic is reported.

Cancellation in the study set did not differ across answer levels (Monte Carlo, simulated, chi-square 2.97, p 0.412, n = 71 engagements).

Association with Customer Satisfaction

The satisfaction score recorded against each engagement on a 100-point scale. The primary estimate uses the 94 active engagements. A descriptive contrast uses all 150 engagements.

The measure by the engagement’s assigned answer.

Table 11. Association with customer satisfaction by answer levelTable
Answer levelEngagementsMean of the measureSD
FTE-based2465.211.5
Fixed price8‡
Transaction or outcome based2‡
Hybrid9‡
Consumption based4‡
I do not know1664.411.7
Note: ‡ Base under 10. No statistic is reported.

The test across answer levels, in the study set and inside each segment. Levels under 10 engagements were left out of each test.

Table 12. Association with customer satisfaction, tests across answer levels by segmentTable
SegmentEngagementsWelch FdfpHolm pOmega squared90% CI
Study setFewer than two answer levels with at least 10 engagements
Outsourcing model
CXMFewer than two answer levels with at least 10 engagements
ITOFewer than two answer levels with at least 10 engagements
BPOFewer than two answer levels with at least 10 engagements
KPOFewer than two answer levels with at least 10 engagements
Institution type
Asset management9‡
Wealth management and private banking9‡
Investment banking (advisory and capital-markets origination)6‡
Insurance (life, property and casualty, health)7‡
Commercial and business banking7‡
Payments and merchant acquiring (networks, acquiring, processing)7‡
Credit card and payments issuing4‡
Retail and consumer banking5‡
Markets and trading (sales and trading, global markets)4‡
Private equity and private capital5‡
Process family
Corporate and back-office functionsFewer than two answer levels with at least 10 engagements
Technology engineering and operationsFewer than two answer levels with at least 10 engagements
Client servicing and communications5‡
Trade, settlement and reconciliation5‡
Payments, cards and disputesFewer than two answer levels with at least 10 engagements
Credit, underwriting and suitability5‡
Regulatory, audit, tax and legal3‡
Financial crime and client onboarding4‡
Class of work
LOB OperationalFewer than two answer levels with at least 10 engagements
Corporate FunctionalFewer than two answer levels with at least 10 engagements
Engagement status and lifecycle stage
Active, Build-OutFewer than two answer levels with at least 10 engagements
Active, Transition/Cut-OverFewer than two answer levels with at least 10 engagements
Active, ProductionFewer than two answer levels with at least 10 engagements
Canceledno clean estimate, canceled engagements fall outside the active population
Note: ‡ Base under 10. No statistic is reported.

The study set test could not be computed: fewer than two answer levels with at least 10 engagements.

Association with the Engagement Indicator Mean

The mean of an engagement’s 100 indicator ratings, measured at engagement level (base 150 engagements). Where this indicator is one of the 100, the mean is recomputed without it.

The measure by the engagement’s assigned answer.

Table 13. Association with the engagement indicator mean by answer levelTable
Answer levelEngagementsMean of the measureSD
FTE-based354.11.6
Fixed price134.21.6
Transaction or outcome based8‡
Hybrid133.81.1
Consumption based103.40.9
I do not know283.81.7
Note: ‡ Base under 10. No statistic is reported.

The test across answer levels, in the study set and inside each segment. Levels under 10 engagements were left out of each test.

Table 14. Association with the engagement indicator mean, tests across answer levels by segmentTable
SegmentEngagementsWelch FdfpHolm pOmega squared90% CI
Study set711.313, 27.80.2900.290−0.0070.000 to 0.096
Outsourcing model
CXMFewer than two answer levels with at least 10 engagements
ITOFewer than two answer levels with at least 10 engagements
BPOFewer than two answer levels with at least 10 engagements
KPOFewer than two answer levels with at least 10 engagements
Institution type
Asset managementFewer than two answer levels with at least 10 engagements
Wealth management and private bankingFewer than two answer levels with at least 10 engagements
Investment banking (advisory and capital-markets origination)Fewer than two answer levels with at least 10 engagements
Insurance (life, property and casualty, health)Fewer than two answer levels with at least 10 engagements
Commercial and business bankingFewer than two answer levels with at least 10 engagements
Payments and merchant acquiring (networks, acquiring, processing)8‡
Credit card and payments issuing8‡
Retail and consumer banking9‡
Markets and trading (sales and trading, global markets)7‡
Private equity and private capital7‡
Process family
Corporate and back-office functionsFewer than two answer levels with at least 10 engagements
Technology engineering and operationsFewer than two answer levels with at least 10 engagements
Client servicing and communicationsFewer than two answer levels with at least 10 engagements
Trade, settlement and reconciliationFewer than two answer levels with at least 10 engagements
Payments, cards and disputesFewer than two answer levels with at least 10 engagements
Credit, underwriting and suitability6‡
Regulatory, audit, tax and legal7‡
Financial crime and client onboarding7‡
Class of work
LOB OperationalFewer than two answer levels with at least 10 engagements
Corporate FunctionalFewer than two answer levels with at least 10 engagements
Engagement status and lifecycle stage
Active, Build-OutFewer than two answer levels with at least 10 engagements
Active, Transition/Cut-OverFewer than two answer levels with at least 10 engagements
Active, ProductionFewer than two answer levels with at least 10 engagements
CanceledFewer than two answer levels with at least 10 engagements
Note: ‡ Base under 10. No statistic is reported.

The measure in the study set did not differ across answer levels (Welch F 1.31, p 0.290, n = 71 engagements).

Association with Intent to Leave

The respondent’s stated likelihood of leaving the current job within 12 months, rated 1 to 10 (C019). Measured at respondent level on up to 798 respondents, with the engagement-level form reported alongside.

The measure by the engagement’s assigned answer.

Table 15. Association with intent to leave by answer levelTable
Answer levelEngagementsMean of the measureSD
FTE-based356.52.5
Fixed price136.62.6
Transaction or outcome based8‡
Hybrid136.62.4
Consumption based107.72.1
I do not know286.82.7
Note: ‡ Base under 10. No statistic is reported.

The test across answer levels, in the study set and inside each segment. Levels under 10 engagements were left out of each test.

Table 16. Association with intent to leave, tests across answer levels by segmentTable
SegmentEngagementsWelch FdfpHolm pOmega squared90% CI
Study set710.793, 25.70.5110.511−0.0150.000 to 0.080
Outsourcing model
CXMFewer than two answer levels with at least 10 engagements
ITOFewer than two answer levels with at least 10 engagements
BPOFewer than two answer levels with at least 10 engagements
KPOFewer than two answer levels with at least 10 engagements
Institution type
Asset managementFewer than two answer levels with at least 10 engagements
Wealth management and private bankingFewer than two answer levels with at least 10 engagements
Investment banking (advisory and capital-markets origination)Fewer than two answer levels with at least 10 engagements
Insurance (life, property and casualty, health)Fewer than two answer levels with at least 10 engagements
Commercial and business bankingFewer than two answer levels with at least 10 engagements
Payments and merchant acquiring (networks, acquiring, processing)8‡
Credit card and payments issuing8‡
Retail and consumer banking9‡
Markets and trading (sales and trading, global markets)7‡
Private equity and private capital7‡
Process family
Corporate and back-office functionsFewer than two answer levels with at least 10 engagements
Technology engineering and operationsFewer than two answer levels with at least 10 engagements
Client servicing and communicationsFewer than two answer levels with at least 10 engagements
Trade, settlement and reconciliationFewer than two answer levels with at least 10 engagements
Payments, cards and disputesFewer than two answer levels with at least 10 engagements
Credit, underwriting and suitability6‡
Regulatory, audit, tax and legal7‡
Financial crime and client onboarding7‡
Class of work
LOB OperationalFewer than two answer levels with at least 10 engagements
Corporate FunctionalFewer than two answer levels with at least 10 engagements
Engagement status and lifecycle stage
Active, Build-OutFewer than two answer levels with at least 10 engagements
Active, Transition/Cut-OverFewer than two answer levels with at least 10 engagements
Active, ProductionFewer than two answer levels with at least 10 engagements
CanceledFewer than two answer levels with at least 10 engagements
Note: ‡ Base under 10. No statistic is reported.

The measure in the study set did not differ across answer levels (Welch F 0.79, p 0.511, n = 71 engagements).

Association of Written Sentiment with the Study Measures

Table 17. Written sentiment and the study measuresTable
ComparisonWith a negative responseWithout a negative responseTestStatisticp
Cancellation rate8 of 31 engagements (25.81%)48 of 119 engagements (40.34%)Fisher exact0.151
Customer satisfaction, active engagementsMean 65.83%, n = 23 engagementsMean 63.54%, n = 71 engagementsWelch t0.780.440
Engagement mean written score and cancellationPoint-biserial rr = −0.11, n = 31 engagements0.539
Respondent mean written score and intent to leaveSpearman rhorho = −0.14, n = 33 respondents0.448

The cancellation and customer satisfaction contrasts compared engagements with a negative written response against the 119 other engagements, none of which had a scored written response coded to the indicator. The two contrasts therefore did not test written sentiment by themselves. Cancellation was recorded for 8 of the 31 engagements with a negative response (25.81%), against 48 of the 119 other engagements (40.34%). The difference did not reach significance at 0.05 (Fisher exact p = 0.151). Mean customer satisfaction was 65.83% on the 23 active engagements with a negative response, against 63.54% on the 71 other active engagements. The difference did not reach significance at 0.05 (Welch t 0.78, p = 0.440). The association of written sentiment itself with the study measures was tested by two correlations. The association of the engagement mean written score with cancellation did not reach significance at 0.05 (r = −0.11, p = 0.539, n = 31 engagements). The association of the respondent mean written score with intent to leave did not reach significance at 0.05 (rho = −0.14, p = 0.448, n = 33 respondents). None of the four outcome comparisons reached significance at 0.05. Both comparisons with cancellation were descriptive, because responses on canceled engagements were written after cancellation.

Comparison of Associations Across the Four Measures

Table 18. Associations across the four measuresTable
MeasureEffect sizenValuepEquivalent to zeroRank among the four
Cancellation rateOmega squared, 0 or 1 flag71−0.0010.412No1
Customer satisfactionNot computable, fewer than two listed answers reach 10 engagements
Engagement indicator meanOmega squared71−0.0070.290No2
Intent to leaveOmega squared71−0.0150.511Yes3

Steiger’s z compares two correlations, and a categorical answer yields an effect size across levels rather than a correlation, so the pairs are not tested.

Clustering and Effective Sample Size

Table 19. Clustering and effective sample sizeTable
StatisticValueReading
Clusters (engagements)150Engagements with at least one answer.
Mean respondents per engagement3.8Answers per engagement with at least one answer.
ICC(1)0.22Share of variance between engagements.
Design effect1.631 plus (mean cluster size minus 1) times ICC.
Nominal respondent n575Every answer, with I do not know and I prefer to not answer counted as levels, as the plurality rule counts them.
Effective n352Nominal n divided by the design effect.
Cluster bootstrap appliedYesApplied to every respondent level CI where the ICC is 0.05 or above.

Clustering reduced the 575 respondent answers to about 352 independent answers. Respondent level intervals therefore used the cluster bootstrap, and respondent level tests on intent to leave used cluster-robust errors.

Equivalence Tests of Null Results

Table 20. Equivalence tests of null resultsTable
MeasurenOmega squaredEquivalence boundEquivalence pEquivalent to zeroAchieved powerMDE at power 0.80
Cancellation rate71−0.001Omega squared < 0.0900.079No0.560.140
Customer satisfactionNot computable, fewer than two listed answers reach 10 engagements
Engagement indicator mean71−0.007Omega squared < 0.0900.060No0.560.140
Intent to leave71−0.015Omega squared < 0.0900.037Yes0.560.140

The bound is the ruled |r| < 0.30 expressed as variance explained (V15-R22). Equivalent to zero: intent to leave.

Robustness Checks

Table 21. Robustness checksTable
CheckMeasurePrimary pCheck pCheck statisticConclusion holds
Kruskal-Wallis in place of Welch FCustomer satisfactionaaaNot computable
Kruskal-Wallis in place of Welch FEngagement indicator mean0.2900.5142.29Yes
Kruskal-Wallis in place of Welch FIntent to leave0.5110.6721.55Yes
Active engagements onlyEngagement indicator mean0.290aaNot computable
Active engagements onlyIntent to leave0.511aaNot computable
Respondent level, cluster-robust Wald F by engagementCancellation rate0.4120.3061.22Yes
Respondent level, cluster-robust Wald F by engagementCustomer satisfactiona0.5500.76Not computable
Respondent level, cluster-robust Wald F by engagementEngagement indicator mean0.2900.4120.99Yes
Respondent level, cluster-robust Wald F by engagementIntent to leave0.5110.5710.73Yes
Note: a Not computable.

Every computable check held. 4 checks could not be computed, as the table shows. A check holds when its test lands on the same side of 0.05 as the primary test.

Measure Independence and Part-Whole Correction

Each of the four measures was computed from data this indicator does not contain, so each result is a finding rather than an arithmetic consequence.

Comparison with the Study Norm

Not applicable. A categorical item has no signed correlation, so it has no profile. Its per-level means carry the comparison.

Comparison of Written Sentiment with Indicators of the Four Parts

Figure 4. Share of negative written responses, indicators of the four Parts with 30 or more scored responses (n = 101 indicators)Exhibit
0%10%20%30%40%50%60%70%80%90%100%110%120%C044, 100.00% of33C044C052C053C128C209C205C203C199C211C159C132C152C105C098C126C148C108C122C116C021C096C149C112C173C097C113C139C201C109C157C101C172C158C213C095C094C138C187C100C106C127C195C111C186C176C110C143C144C175C207C102C196C145C103C133C124C125C020C115C130C189C168C182C164C049C178C123C141C188C147C179C137C160C120C040C018C174C181C104C161C165C183C092C129C185C136C017C190C012C035C212C036C171C071ENG:Use CaseC200C080C206C014C069C084Median of the 101 indicators (dashed line)
Note: Each column is one indicator, ordered from the highest share of negative responses. The indicator is shown in amber. The dashed line marks the median share across the 101 indicators, 79.55%.

The peer set comprised 101 indicators of the four Parts with 30 or more scored responses. The indicator was within the peer set. Its share of negative responses ranked 1 of 101 from the highest. Its mean written score (−6.5, n = 33 responses) ranked 15 of 101 from the most negative. The peer median of the mean written score was −4.6 across the 101 indicators.

Co-Occurring Indicators and Themes

Figure 5. Other indicators and themes coded in the same written responses (n = 33 responses)Exhibit
Theme: Documentation lags the build1 (3.03%)Theme: Liability or regulatory accountabilityunclear1 (3.03%)Theme: No out-of-hours or incident path1 (3.03%)Theme: Positive with an embedded negative1 (3.03%)Theme: Team or colleagues2 (6.06%)Theme: Comparison to a prior engagement3 (9.09%)C1204 (12.12%)C1234 (12.12%)Theme: Respondent proposes a remedy4 (12.12%)Theme: Raised it, nothing came back5 (15.15%)C1296 (18.18%)C12817 (51.52%)C11618 (54.55%)
Note: Gray bars are other indicators coded in the same responses. Amber bars are themes of the coding rulebook, which carry no score. Shares are of the 33 responses coded to the indicator. Every co-coded indicator and every theme at or above the fifth-highest count of its kind is shown, ties included. C116: “Rate how well your employer is transforming its commercial model as agentic AI reduces the billable human effort it sells today.” C128: “Rate your employer’s ability to price agentic work profitably when billable hours no longer measure the value delivered.” C129: “Rate how well the technical platforms your employer builds or licenses are optimized for agentic AI outsourcing.” C120: “Rate the depth of your employer’s knowledge of the financial industry.” C123: “Rate the adequacy of your employer’s investment in training its workforce.” Emotional states coded in the same responses, as counts: stressed 1.

The responses coded to the indicator were most often also coded to “Rate how well your employer is transforming its commercial model as agentic AI reduces the billable human effort it sells today” (C116, 18 responses). The second most frequent co-coded indicator was “Rate your employer’s ability to price agentic work profitably when billable hours no longer measure the value delivered” (C128, 17 responses). The most frequent theme of the coding rulebook in the same responses was “Raised it, nothing came back” (5 responses).

Interpretation of the Data

Consumption based pricing had the weakest figures on the three measures that could be compared, on the smallest tested group of engagements (60.00% canceled, n = 10 engagements). Every robustness check that could be computed on this item held (5 of 9 checks, 4 not computable). None of the three differences across pricing models held under test (chi-square 2.97, p 0.412, Cramer’s V 0.20, n = 71 engagements, Welch F 1.31, p 0.290, omega squared −0.007, n = 71 engagements, Welch F 0.79, p 0.511, omega squared −0.015, n = 71 engagements).

The indicator is a survey question that is not a rating, so the written responses were not set against a rating. Written responses were voluntary. They recorded what the respondents who wrote reported, and how common it was is measured by the answers.

Limitations

The evidence is reported experience: what the delivery team said about its own engagement, gathered in one cross-section. The figures showed associations, not causes. Indicators about the financial institution were reported at second hand by vendor staff. Cancellation is a descriptive contrast, because canceled engagements were rated after they ended.

Tests across respondent role and vendor type were run at respondent level and treated respondents as independent. The section Clustering and Effective Sample Size states whether, and by how much, clustering within engagements reduced the information in respondent level figures.

Each engagement took its plurality answer, with ties left out (107 of 150 engagements). The tests left out Transaction or outcome based pricing, which fell under the size floor, and the I do not know answers (n = 8, n = 28 engagements).

Shares of written sentiment were shares of responses, not of the study set of respondents. The written score took five fixed values, so its mean and median were coarse. Responses clustered within engagements. Intervals for written sentiment used a bootstrap by engagement. Coding was performed by AI coders under a fixed rulebook. Agreement on whether a response was coded to the indicator rested on 6 responses second-coded under rulebook 0.5, with the coders agreeing on 6 of 6. Agreement on the score rested on 3 responses second-scored under rulebook 0.6, with the scores agreeing in 2 of 3. These bases of second-coded responses are too small for an indicator-level alpha.

Definitions

Table 22. DefinitionsTable
TermDefinition
Response scaleAs recorded, shown in Table 1. The indicator is not a rating, so no distressed range is defined.
Answering baseRespondents who gave one of the listed answers.
Non-answers“I do not know” and “I prefer to not answer” are counted separately and are excluded from the answering base and the shares.
Indicator classPerceived fact: a state of the engagement as the respondent perceives it, so “I do not know” is counted and reported as an answer.
Failure categoryOne of the five failure categories of the Study Taxonomy, section 3. Only the 100 rated indicators carry one, and the indicator is not among them.
Engagement indicator meanThe mean of an engagement’s 100 indicator ratings.
Written responseA coded written answer about the respondent’s own engagement. Non-answers and answers about another engagement are excluded.
Primary and secondaryPrimary responses were written in answer to a written-answer question in the indicator’s own survey section. Secondary responses were written in answer to a question outside that section and coded to the indicator because their content addressed it.
Written sentiment scaleFive fixed values of the coding rulebook: −10, −5, 0, +5, +10. The sign is the direction and the magnitude is the strength.
CodingResponses were coded under rulebook 0.5. Scores were added under rulebook 0.6 to every mark and every quote, with the score rulings of rulebook section 21. AI coders worked under a fixed rulebook. A sample of records was second-coded. Score agreement across all indicators was Krippendorff’s alpha 0.969 on the 0.5 scores and 0.930 on the scores added in 0.6.

Sources and Provenance

Table 23. Sources and provenanceTable
ItemValue
Study dataStudy Data.xlsx, Data sheet, column C044, sha256 219eba0457274d04
Statistics enginecompute_statistics.py, sha256 738319eef764602b
Statistics recordComputed Statistics.json, record C044, sha256 e405f65a43e37a6e
ComputedOctober 8, 2026, 01:38 UTC
TemplateIndicator Statistical Analysis Template, version 1.1 of 2026-10-06
Figures placed by script704 of 704
Study metadataStudy Meta.md, sections 10.4 and 10.4.1, coder agreement across all indicators
Coded written responsesQuotes Master.jsonl, sha256 27da38085e2b13fd. Quote Coding Rulebook, version 0.6 with section 21
Written-response computationqa_stats.py, sha256 74a61f3a96169da9. wfacts.py, sha256 b85fae20adf812a1. prose_gen.py, sha256 c277d2c752f8d88f. build_indicator.py, sha256 da3473bd56a4a7b9
Written-response recordsC044.qa.json, sha256 6740a4a2dab8ded4. C044.wfacts.json, sha256 4e95ac07eae5e593. Prose C044.json, sha256 04be8038b88e9c23

Continue the report

Executive summary →
Overview

Executive Summary

Four findings from 150 engagements

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Introduction

Introduction

Scope, evidence, and how the report is organized

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Part 1

Engagement Outcomes

Poor results on every measure, and what separates them

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Part 2

The Five Failure Categories

Where failure concentrates, category by category

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Part 3

Governance, Oversight, and Control

Controls that existed in name only

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Part 4

The Delivery Workforce

Early in their careers, dissatisfied, and many intending to leave

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Part 5

Manual Alteration

How the delivery team altered the work to sustain it

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Part 6

Executive Action Plan

Seven immediate actions and a first-year plan

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Appendices

Appendices

Definitions, indicator inventory, method, and disclosures

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Data

Study Data

Deep-dive analyses of the study indicators, published in stages

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