Gartner Insights Abstract

Operational Metrics and KPIs Supporting Profitable Services Growth

Published: 25 July 2024

Summary

Tech service companies face challenges in adopting AI and automation, coupled with effective measures to drive business value and innovation. Tech services leaders can use this document to learn key operational metrics and KPIs that will help drive up contribution margins and improve services.

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Overview

Key Findings
  • Many tech service companies are challenged with a lack of AI and automation adoption at the account level, resulting in labor cost challenges and missed client expectations.

  • Tech service companies are not bringing consulting-based expertise into accounts consistently to help identify opportunities to implement innovation and process efficiency.

Recommendations

To improve contribution marginsat the client level, tech service providers must implement these essentials:

  • Be disciplined about reducing labor costs by implementing key operational AI and automation KPIs that improve labor-based contribution measures.

  • Engage specialized consulting to address process improvement by using measures that drive engagement, quality, customer satisfaction (CSAT) scores and

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Analysts:

David Ackerman

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