TECH SUPPLIER Oct 2020 - Market Perspective - Doc # EUR146909420
Optimizing Services to Accommodate the Financial Needs of Clients
This IDC Market Perspective explains that IT services may be treated as either operational expenditure or capital expenditure depending on the output of the services and client preferences. Services firms that can offer services that can be treated either way will have an advantage in winning business, as the way they will treat the spending financially can drive decision making.
"Whether spending will be treated as operating expenditure or capital expenditure can have a big impact on the type of services a client buys and who they buy it from. Services firms that can adapt their pricing models to meet the needs of their clients will have a particular advantage during an economic downturn," said Tom Seal, senior program director, IDC European Services.