Gartner Research

Use Forward Pricing to Reap the Benefits of Artificial Intelligence in Your Infrastructure Outsourcing Deal

Published: 28 September 2016

ID: G00301454

Analyst(s): William Maurer, David Ackerman , Mark Ray

Summary

Sourcing executives will need to negotiate forward pricing as AI and analytics drive new price points in the next 18 months. Applying advanced service sourcing to optimize cost-effectiveness and business value with forward pricing will increase service standards and improve labor efficiency.

Table Of Contents
  • Key Challenges

Introduction

Analysis

  • Address Poor Practice of COLA Inflation Clauses That Are Contrary to Pricing Trends
  • Understand the Level of Cost Reduction to Negotiate Effective Forward Pricing in the Contract
  • Adopt Effective Contract Capabilities to Take Into Account the Future Impact of Lower Costs and Pricing

Case Study

Gartner Recommended Reading

©2020 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its affiliates. This publication may not be reproduced or distributed in any form without Gartner’s prior written permission. It consists of the opinions of Gartner’s research organization, which should not be construed as statements of fact. While the information contained in this publication has been obtained from sources believed to be reliable, Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Although Gartner research may address legal and financial issues, Gartner does not provide legal or investment advice and its research should not be construed or used as such. Your access and use of this publication are governed by Gartner’s Usage Policy. Gartner prides itself on its reputation for independence and objectivity. Its research is produced independently by its research organization without input or influence from any third party. For further information, see Guiding Principles on Independence and Objectivity.

Already have a Gartner Account?

Purchase this Document

To purchase this document, you will need to register or sign in above

Become a client

Learn how to access this content as a Gartner client.