Customers of top IT services firms are seeking pre-inflationary rates and pricing concessions for both new agreements and contract renewals, amidst a challenging macroeconomic environment and cuts in discretionary technology budgets.
Peter Bendor-Samuel, founder and CEO of Everest Group, a research and management consulting firm said that despite the increasing pushback from the customers, IT services firms aren’t willing to budge. “There is an increasing pushback against the post-pandemic price increases, this can cause protracted negotiations and along with the economic uncertainty contribute to the slowdown in pipeline closing and the increase of deal delays,” he said.
