Risk-Reward model for outsourcing companies

I am sure all of you know about the engagement models consulting companies offer to their clients.

- T&M model
- Fixed bid model
- Onsite-offshore model
- Near Shore model
- Managed services model

Have you ever thought about the Risk-Reward model. Here you go.

Take a project with aggressive timeline or high failure rate. If you are ready to take up the challenge with the customer then give him a proposal where you will bill him @ cost and complete the project on time. Based on the benefits the customer will derive out of the project implementation you agree on an upside !! This upside should be much much higher compared to any of the other models that others would propose. This completely becomes a value based model which most of your competitors may not want to venture.