The IT applications services landscape is undergoing a rapid transformation, fueled by AI, emerging technologies, and evolving deal constructs. As enterprises shift from pure play cost-savings to value-driven engagements, traditional pricing models are being reshaped to demand greater efficiency, flexibility, and innovation from service providers. Watch Everest Group experts Achint Arora, Partner, Prateek Gupta, Vice President, and Amanpreet Manchanda, Vice President, as they explored the NOW and NEXT of IT applications services pricing, covering the evolution of commercial models, the role of AI in redefining cost structures, and the key differentiators that maximize value in outsourcing deals. Attendees came away with actionable insights to help buyers and providers navigate shifting market dynamics and stay ahead in the competitive IT services ecosystem. What questions did the webinar answer for the participants? How are current macroeconomic trends impacting the IT applications services pricing and commercial construct? How are deal constructs evolving and may further change evolve due to gen AI, emerging technologies, and macroeconomic trends? What actions should be taken to successfully navigate the current market?

In today’s IT services landscape, early signs of recovery are beginning to emerge. While North America shows encouraging momentum, Europe remains steady, making it an optimal time for organizations to prepare for the next phase of growth. This webinar provided insights into the IT services market in EMEA, focusing on current outsourcing pricing trends and the forecast for 2025 in key European markets. We also shared our observations on what European organizations expect from their IT service providers and what makes a successful outsourcing deal in today’s dynamic environment. Watch our commercial and solution experts as they discuss strategies to prepare for upcoming deal renewals in 2025 and how to navigate the shifting IT services landscape with confidence. What questions did the webinar answer? How has the demand for IT services in EMEA evolved in 2024, and what’s the outlook for 2025? What are the latest outsourcing pricing trends, and what is the forecast for 2025 in European markets as we start to see early green shoots of recovery? What do European organizations expect from their IT service providers? What does a good outsourcing deal look like in this shifting market?

The economic environment is currently uncertain due to concerns around inflation and geopolitical instability in parts of the world. As a result, enterprises are pushing service providers to deliver more while keeping costs static or even lowering them. Providers can differentiate themselves through a mix of efficient solution sizing, which involves the best use of granular market insights, continuous service improvement levers (including generative AI impact), balanced risk-taking to do more with less, and competitive underlying rates. In this webinar, Everest Group’s pricing experts discussed some of the true differentiators observed on recent deals and the outlook for these approaches. What questions did the webinar answer for the participants? What selection criteria have enterprise clients prioritized in recent IT outsourcing deals? What are the price and solution sizing themes that land well in terms of win rates? What are the pitfalls that enterprises and service providers should be mindful of?

Persisting economic uncertainty and increasing geopolitical pressures continue defining the macroeconomic environment this year. Because outsourcing service providers are unable to pivot to meet changing demands, buyer satisfaction with providers is hitting a record low, and the Asia Pacific (APAC) region is no exception. In this webinar, our analysts discussed shifting buyer expectations and the defining characteristics of the outsourcing climate in 2023 from an APAC-focused lens. We also explored what sourcing leaders are doing to navigate uncertainties across a range of levers, including service provider portfolio shifts, location and talent strategies, pricing and contracting tactics, and engagement models. Our speakers discussed: What are the macroeconomic trends shaping the APAC outsourcing market? What are the top focus areas in APAC for buyers of outsourced services? What location and talent strategies are sourcing leaders adopting to overcome increasing uncertainties? What are the pricing trends and forecasts in APAC? Which skillsets are facing more demand? How should APAC-focused procurement leaders shape their contracting and negotiation strategies?

Enterprises have leveraged SAP for more than a decade to manage and streamline their core business operations. In recent years, SAP expanded its predominantly on-premise enterprise products to the cloud. In response, providers have invested in tools and accelerators to align with this shift, helping enterprises migrate to the cloud seamlessly – creating a rapidly growing market. In this webinar learn insights into the latest pricing and investment themes, enterprise challenges, and solutioning approaches in the SAP services market Our speakers discussed: What are the key enterprise investment themes and opportunity areas for service providers in the SAP services market? What are the enterprise challenges arising with the SAP and service partner community? What are the approaches and key solution tenets that drive SAP pricing? What are the pricing trends observed in SAP-managed and transformation services? What are the differentiators and value adds proposed by leaders in SAP services?

2022 has proven to be a constantly shifting and unpredictable year for outsourcing services. The first half witnessed an unprecedented demand surge accompanied by cost and price inflation, and the second half saw a slowdown in client decision-making with fears of a recession. In this webinar, Everest Group’s pricing experts analyzed the trends observed this year and delivered the pricing outlook for IT and BPO services in 2023. Our speakers discussed: How the outsourcing services demand has evolved in 2022 What the most successfully negotiated clauses have been in recent deals How the pricing of IT and BPO services has changed What the future outlook for pricing will be

There is clear intentionality as IT applications and infrastructure move to managed services, a shift that the global challenge to find talent across industries accelerated. Pricing model asks are now moving from simple day rates to more complex pricing constructs, such as pricing for agile pods, weekly pricing, fixed fee, and output and outcome-based pricing. In such scenarios, getting the solution sizing right is often the difference between wins and losses in competitive deal scenarios. Within a managed services model, providers will also need to correctly translate these underlying solution considerations and the value they bring to the client to ensure that the solution is evaluated for its true merit. What questions did the webinar answer for the participants? Why is razor-sharp solution sizing so critical? What are the important parameters to keep in mind? What are the common pitfalls to avoid to ensure a competitive fee profile?

The selection of an appropriate pricing model is always an area of concern for enterprises that seek to outsource their IT services. Over the last few years, we have seen a tremendous growth in the adoption of next-generation pricing arrangements such as output- and outcome-based pricing. More and more enterprises are leveraging these alternate models for their outsourced IT services. Application services is one such area where these models have witnessed good traction. Scope This viewpoint reviews the shift in demand in the pricing arrangements of Application Outsourcing (AO) services. It showcases the prominent output-based pricing constructs witnessed in the AO contracts. It will help the reader understand the benefits as well as the pitfalls of each pricing model. This viewpoint also highlights some of the key challenges that enterprises should address while implementing the output-based pricing model. The overall scope of the viewpoint covers: Detailed assessment of some of the major output-based pricing constructs, including: Definitions and resource units Benefits and suitable scenarios Challenges and pitfalls Key points to consider Typical challenges to be addressed while implementing output-based pricing construct

In this viewpoint, we explore shifting demand in the Application Management (AM) space. Despite its importance as a major enterprise spend area, AM is considered a commoditized service – in most cases, enterprises view it as reactive, focused largely on “keeping the lights on.” As a result, many enterprises see AM as a non-value added expenditure and expect perpetual year-over-year cost reductions from service providers. Scope However, things are changing. In this report, we explain the major trends that are reshaping traditional application services, including key challenges service providers face today in responding to complex enterprise demands. Specifically, the report addresses: An assessment of the major factors impacting traditional application services proposals as well as delivery: AM deal pricing mechanism changes  The revenue shift to cloud providers Customer expectations from AM Other factors that have impacted AM Measures that AM service providers should take to adapt to the changing requirements

PricePoint reports identify trends in the pricing of ITO and BPO deals through a comprehensive analysis of key demand-side, supply-side, and macroeconomic factors that impact the pricing. Additionally, the reports include insights into contemporary outsourcing trends driven by key market developments. Scope PricePoint Q3 2018 includes the following: Assessment of pricing drivers in ITO and BPO, including: Buy-side dynamics Supply-side dynamics Key macroeconomic factors Overall impact of the drivers on pricing in Q3 2018 Pricing outlook for Q4 2018 Featured research Introduction to PaaS Contents This report contains in-depth analysis of the drivers that impact the pricing of ITO and BPO services in India and the United States. The drivers included in the analysis are: Buy-side drivers including deal size, deal volume, value mix, and new deal-renewal mix Supply-side drivers including resource utilization, support costs, and service provider financial performance Macroeconomic factors including operating cost inflation and foreign exchange rates The report also contains the aggregated impact of these drivers on pricing in Q3 2018 and the outlook for Q4 2018. The featured research includes: Introduction to PaaS Benefits and limitations of PaaS Comparison of leading PaaS platforms Pricing mechanism of leading PaaS providers