System and method for service pricing optimization enables analysis of multi-phased, multi-business unit, multi-process, multi-geo/country deal structure with its parts and phases having different pricing implications, and provides a flexible composite pricing schedule optimized for both service provider and receiver by gain and risk sharing. In one aspect, elementary pricing models and pricing parameters are established and a composite pricing model is constructed based on the elementary pricing models and pricing parameters. An optimizer optimizes the composite pricing model to minimize risk and maximize one or more selected criteria. Price is generated using the optimized composite pricing model.