”Industry experience with performance or outcome-based contracts indicates that the use remains relatively immature, even though experience in many cases is favorable. There is particular evidence that this approach to contracting results in more collaborative and longer term relationships, implying that they are capable of delivering increased value for both parties. However, success typically requires a level of investment by both parties in appropriate skills, processes and supporting tools or systems. Also, the level of adoption at present appears greater in contracts where payment is based on use, rather than those where payment is based on results over time.”
IMHO, I believe most organisations are far too immature to even consider this option. Most organisations are on a much less sofisticated level of contracting and collaborating. On the other hand, I believe that companies investing in this can gain quite a lot – at least in some segments.