As an industry analyst, I’ve had a front-row seat to the dramatic changes sweeping through the IT services sector. Recently, I reviewed the changes at many service providers, and it struck me just how quickly agentic AI and automation are reshaping the way service providers operate and deliver value.
It’s clear to me that the old ways of relying on billable hours and armies of consultants are fading fast. Clients today want more than just advice or manpower; they’re looking for outcomes, speed, and transparency.
Data from IDC’s APJ Services Sourcing Survey 2025 really drives this home: many organizations are pulling services in-house, not just to save costs, but because they believe AI can solve problems that previously required external expertise.
There’s a growing sense that innovation is lacking from traditional providers, and that’s a wake-up call for the industry.
I’ve watched as leading service providers have started to restructure, reducing headcount and doubling down on AI and automation. It’s not just about efficiency, it’s about survival. The pricing models are shifting too, with clients demanding more value and less dependence on time and materials. This is a fundamental change in how services are bought and sold.
What excites me most is the rise of agentic AI across the service delivery chain. We’re seeing AI agents embedded everywhere—from onboarding and compliance to diagnostics and insights. The case studies being highlighted are compelling: AI-augmented consultants and outcome-based services aren’t just buzzwords—they’re delivering real results, like double-digit sales growth and significant cost reductions.
But this transformation isn’t just about technology. It’s about a new value equation, where continuous delivery, co-creation, and data-driven insights matter more than ever. Clients want stewardship, not just service. They want partners who can help them navigate complexity and deliver tangible business outcomes.
Looking ahead, I believe the journey to agentic AI maturity will be a defining story for our industry.
By 2035, we could see a world where a significant portion of services are delivered autonomously by AI agents, freeing up human talent for higher-value and more nuanced work.
For providers, the challenge is clear: invest in shared platforms, rethink financial and talent models, and build trust through robust risk management.
As I reflect on these changes, I’m convinced that those who embrace agentic AI and orchestrated value will be the ones who thrive. The future of IT services is not just about agentic technology—it’s about reimagining how we deliver outcomes, build relationships, and create lasting impact for clients.
Get Ahead of the Curve: Attend IDC FutureScape Technology and AI Predictions in Singapore
If you’re a leader in services, now is the time to rethink your strategies—before AI forces the change for you. Join IDC and industry peers to gain exclusive insights from our 2026 technology and AI predictions for Asia/Pacific and catch my presentation on how AI is reshaping the services landscape to prepare organizations for the agentic era.
