In this moment, taken from the “SI & ISV Partner Roundtable on AI Business Model Impact” session, Mike Gillis, Principal, RSM, explains that with AI expected to lower delivery costs and expand total digital spending, service providers are required to scale project volume and rethink pricing.
Key Takeaways
- Market impact: Gillis says that digital spending could double as a percentage of gross domestic product, even as the cost of individual deliverables declines. As such, customers may receive more value for the same budget, while providers could preserve profits by completing more engagements.
- Delivery model: Gillis explains that “we’re going to have to learn how to stack jobs and how to create this backlog on demand” to maintain profit. He suggests that facilitation will become a required skill in the near future.
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