Outcome-Based Contracts

Outcome-based contracts, also known as performance-based contracts or results-based contracts, are agreements between a client and a service provider in which the compensation is tied to the achievement of specific outcomes or results, rather than the completion of tasks or activities. In an outcome-based contract, the service provider is responsible for delivering measurable results that align with the client’s objectives and key performance indicators (KPIs). This incentivizes the service provider to focus on delivering value and driving outcomes that directly impact the client’s business success.