Which Technology Service Providers Are Strategic to The Enterprise?
Summary
A Forrester survey of 2,078 enterprise services decision-makers reveals key trends and characteristics of strategic technology service providers. The study projects global spending on services to reach $1.6 trillion by 2028, representing nearly a third of overall IT budgets for many firms. Key trends include a shift towards results-based and fixed-price contracts, with over half of decision-makers using outcome-based pricing. Enterprises anticipate increased spending across all 12 service categories, driven significantly by AI's impact. The survey also highlights market dominance by large providers like Accenture, IBM, and Deloitte, while noting that smaller firms such as Bain and PwC can achieve high strategic partner ratios despite lower overall adoption. Strategic partnerships are primarily defined by industry expertise, trust, and co-innovation, rather than commercial terms.
Key takeaway
For Directors of AI/ML evaluating strategic service providers, recognize that deep industry expertise, demonstrated trust, and a willingness to co-innovate are more critical than a provider's sheer size or commercial terms. Ensure your internal buying groups are diverse and robust, as larger groups lead to better decision-making and higher confidence in vendor selection. Prioritize providers who actively invest in your success and respond quickly to team quality concerns.
Key insights
Strategic technology service partnerships are defined by expertise, trust, and co-innovation, not just scale or commercial terms.
Principles
- Outcome-based pricing is becoming the norm.
- Relationships define strategic partnerships.
- Capabilities are a baseline for strategic suppliers.
Method
The study surveyed 2,078 enterprise services decision-makers, tracking 12 service categories and evaluating 34 providers on value, satisfaction, challenges, and benefits to identify strategic partners.
In practice
- Prioritize providers with deep industry expertise.
- Insist on quality from provider teams.
- Form larger internal buying groups for better choices.
Topics
- Enterprise Services
- Strategic Partnerships
- Outcome-Based Pricing
- IT Spending
- AI Services
Best for: VP of Engineering/Data, Director of AI/ML, Executive, CTO, IT Professional, Business Analyst
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Editorial summary, takeaway, and curation by AIssential. Original article published by Featured Blogs - Forrester.