ISG Momentum® Strategic Perspectives 2021 - ITO Pricing Trends: Market Trends and Insights
09 Sep 2021
by Ted Bedell, Sagnik Biswas, Paul Reynolds
ITO Price Trend Summary
- Trend data in this report is based on information collected as part of the ISG Assessment service offering, which provides clients with detailed comparisons of their IT operating costs an marketplace alternatives.
- The repository of global data from ITO outsourcing relationships includes multiyear contracts signed by medium and large clients across all geographies. It provides insight into real market pricing and covers each functional area within IT. Since prices are typically specified in advance in a contract and are valid for the term of the agreement, we can draw general conclusions about what service providers are predicting for future pricing.
- Regular enhancements and revisions to the ISG benchmark models provide support for new and upgraded technologies, as well as improvements to benchmarking techniques for ISG clients that occasionally require restating some ITO unit cost trends.
ISG annual research into pricing trends for ITO services revealed that service provider pricing is continuing to fall for most service lines, despite disruption from the pandemic. The notable exceptions are for application services and Unix support, where the equilibrium between demand for services and available skills is keeping prices from falling. While the overall general trend is for lower prices, the factors that are driving price declines are different in each service line.
Access to the full report requires a subscription to ISG Research. Please contact us for subscription inquiries.
Page Count: 18
QUESTIONS?
To purchase this product or for more information, please contact your account manager: