Trend Report

Four Forces Shape Technology Services In 2025

The Path Forward Is AI-Powered, Asset-Intensive, And Services As Software

 and  three contributors
Apr 02, 2025

Summary

Generative AI (genAI) and agentic workflows are roiling technology services markets, overturning 15 years of stability in the business model. The age of time-and-materials pricing, agnostic technology positions, and people-driven business is no longer viable. Four forces converge to disrupt the services status quo and force providers to make radically different choices in what they do, how they operate, and what they are paid for. The result is a revamped value proposition for services as software. This report tees up the changes and what they mean for buyers and providers.

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