Often, deal conversations are impacted by cost and margin pressures across geographies. Standard and commodity IT service rates, as well as ACV/TCV reduction for managed services, are likely to decrease in the coming year, making it vital for service providers to account for this decline in ongoing or near-term bids.

In this insightful webinar, Everest Group experts Parul Jain, Manish Malik, Harshit Mittal, and Ricky Sundrani explored the price and cost forecasts for the next 6 to 12 months across key categories, such as Applications, Infrastructure, and BPO services, across locations such as North America, Europe, and India. The team discussed whether leveraging low-cost locations might be the ideal route for deal fee reduction for service providers, as well as other levers for managing this predicted cost and price decline.

From this webinar, attendees understood the latest standings on leading global service delivery locations, key factors driving price and cost changes, and the best strategies for navigating changing markets and mitigating margin erosion.

What questions did the webinar answer for the participants?

• What are the key market trends influencing the shoring and sourcing decisions in 2024?
• What are the price and cost changes expected over the next 6-12 months, and what will drive these changes?
• How will they impact the overall commercial deals, and what are service providers doing to navigate through these changes (such as leveraging low-cost locations, gen AI, etc.)?
• How are service providers managing potentially shrinking margins?