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TECH SUPPLIER Mar 2019 - Market Perspective - Doc # US44125819

2019 Update to Pricing in the Worldwide Services Market

By: Chad HustonResearch Manager, Worldwide Services

Abstract

This IDC Market Perspective develops a comprehensive framework that explains in detail the terms used in the IT services pricing lexicon.

"The goal of this document is to develop a comprehensive framework that explains in detail the terms used in the IT services pricing lexicon. In addition, a robust data set has been developed, which provides both a demand-side view and a supply-side view of how IT services pricing is changing over time," said Chad Huston, research manager in IDC's Worldwide Services program." Demand-side buyer interest in variable-based pricing is increasing for the fourth straight year (2015–2018), while supply-side contract data shows the share of 'fixed price' contracts is declining in favor of 'consumption based/on demand.' In addition, buyers still prefer technological-based outcomes as the underlying factor to base the variable price upon; however, that preference is declining in favor of financial outcomes and relational outcomes."


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