Gartner Research

Market Insight: Drive a Market Differentiator With AI-Driven Forward Pricing for Infrastructure Outsourcing

Published: 14 November 2016

ID: G00318738

Analyst(s): Fred Ng, David Ackerman

Summary

Infrastructure outsourcing buyers will expect lower pricing each year from AI/automation activity, possibly conflicting with providers' hope for margin expansion. Technology product management leaders must balance the AI benefits of speed and quality with lower forward pricing for the buyer.

Table Of Contents

Analysis

Background and Context

  • Pricing Pressures

The Impact

  • Manage and Pace Automation Rollouts
  • Address Poor Practice of Cost-of-Living Adjustment Clauses That Are Contrary to Historical IT and Anticipated AI-Impacted Pricing Trends
  • Understand the Level of Cost Reduction to Project Forward Pricing in the Contract
  • Cost Savings From Automation
  • Drive Contract Capability and Practice Modernization With the Future Impact of Lower Costs and Pricing

Conclusion

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