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2018 Update to Pricing in the Worldwide Services Market

2018 Update to Pricing in the Worldwide Services MarketThis IDC Market Perspective seeks to explore recent trends in pricing within the entire services industry."This IDC Market Perspective looks at trends within variable pricing in the worldwide services industry," said Chad Huston, research manager in IDC's Worldwide Services program. "Interest in variable-based pricing overall is increasing, but there is a decline in the highest level of interest as compared with last year. All demographic views of variable-based pricing are converging toward a similar point, signaling that some customer subsets (the Americas, SMB, IT department, and retail/wholesale) were too bullish on their expectations last year and moving to a more realistic level. In addition, contract data shows that fixed price contracts declined sharply in 2016 due to an increase in consumption-based/on-demand pricing; however, 2017 did not see this trend continue as the share of spend remained fairly steady state."

Executive Snapshot
New Market Developments and Dynamics
Industry Dynamics
IDC's Services Pricing Framework
Fixed Price
Variable Price
Common Pricing Models
T&M, Cost Plus, and Open Book
Risk/Reward, Gain Share, and Outcome Based
Other Considerations
Survey Data
Contractual Data
Advice for the Services Provider
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