The profit sharing pricing model is an outcome-based pricing model. From an investment perspective, profit sharing plans are evidence of a partnership between management and employees in the success of the business. This framework is based on incentivizing and rewarding the service provider for increasing the overall value delivered to the outsourcing organization beyond what is contractually expected from the service providers, This model encourages and empowers service providers to engage in collaborative and creative problem solving as they work with the client organization towards achieving mutually beneficial business goals. This model, therefore,For a successful outcome, this model requires a high level of trust to exist between the participating organizations, equal distribution of risk and reward, and significant upfront investment. In general, the profit participation is closely linked to the risk sharing.