In this quarterly report, Avasant provides key information on IT Services Solution and Pricing Trends. The report covers market (buyer) perspective, macro trends from service provider community and finally, the pricing, solution and staffing trends in the space. The report covers trends across services including Infrastructure and Cloud Services, Application Services, and Digital Services. The geographic coverage is global, with a larger share of data points from North America. The report builds on insights gathered through our enterprise interactions, ongoing market research and data collection, as well as AvaMark Price Benchmarking database.
In addition to pricing commentary, Avasant covers market data from providers through a number of sources i.e. Public Disclosures, Market Interactions and Deal Data. This report also highlights the key trends in the market and Avasant’s viewpoint on the future direction of the industry.
Key Buyer Trends Shaping the market:
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- Enterprises plan to increase IT operational budgets despite economic slowdown
- Digital transformation is increasingly becoming a necessity
- Cybersecurity leads in IT spending and adoption levels across organizations
- Employee costs are on the rise and right skilled workers are becoming scarce
Key service provider trends:
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- QOQ revenue for providers sees a decrease despite an increase in new bookings
- Clients adopt a wait-and-see attitude
- Service providers increase their focus on AI
- Service providers see a decrease in net head count as well as a decline in attrition
Managed Services Pricing and Solution Trends:
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- Rates for premium skills and digital talent see a slight increase
- FTE rates increase marginally, while managed services deals remain competitive
- Clients look to have more control over the key functions in their organizations
- Service providers leverage strategic pillars to reduce cost of operation
