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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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Outsourcing contracts become uncompetitive over time, as services are added and COLA clauses kick in

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