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How AI Is Changing IT Labor Rates and IT Services Economics
The impact of AI on IT labor rates is one of the most common questions facing sourcing leaders, CIOs and service providers. Yet current market evidence suggests AI's most significant economic effect is not on the price of labor but on the amount of labor required to deliver a business outcome.
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$200 billion
ISG influenced technology spend annually.
Are your IT services market competitive?
Outsourcing contracts become uncompetitive over time, as services are added and COLA clauses kick in
Determining price competitiveness using a tripartite cost benchmark analysis is costly, and typically is performed only once every 12 to 18 months
Most organizations don't know when their contract becomes uncompetitive, or by how much