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Need to Kill COLA in Services Contracts | Blog

Everest Group

Businesses relied on Cost-of-Living-Adjustment (COLA) clauses in contracts for many years. In allowing adjustments when costs went up, COLA clauses served companies well for quite a while in contracts for third-party services. I first saw it used in 1984. But that’s no longer the case.

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Integrating AI into Asset Performance Management: It’s all about the data

IBM Services

Increasing managed services contracts across the enterprise becomes a proactive measure, ensuring continuous support for evolving systems. Challenge 4: Build sustainment and resiliency The initial deployment of AI in APM isn’t the last stop on the road.

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Talking About a Services Procurement Revolution

Future of Sourcing

” This includes the many different forms of services procurement: temporary workers, outsourcing, insourcing, and services contracts. This shift in focus is compelling procurement teams to become experts in every aspect of services procurement. How will you consume the contract?

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Four Steps to Transformation: Overcoming Buyers’ Achilles Heel in IT and BPO Deals | Blog

Everest Group

Here are a few examples that highlight the extent IT and BPO providers can fall short of expectations: Example 1 : A Tier 1 IT service provider was near the end of an application management service contract with a mid-sized US-based manufacturer.

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IT Companies in Quandry as Clients Turn against COLA | In the News

Everest Group

With over $35 billion in software managed services contract value due for renewal in 2 years, IT firms may sweat over cost-of-living-adjustment clause. Prateek Gupta , Practice Director, Everest Group, says there was a decline in contracts with the COLA clause between 2018 and 2020 because of buyers’ pressure back then.

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Leaders in Innovation podcast series | Episode 4

Capgemini

A new business model based on software and data services is enabling Rockwell’s OEM (original equipment manufacturers) customers, Fields says. These “smart manufacturing” customers now can sell a physical machine as well as an outcome-based services contract using a digital twin.

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In the Long Run, Partnering (not Undercutting) Drives the Most Value for Customers

CDS

We see similar behavior among TPMs who go into a customer and denigrate the OEMs’ pricing and practices in order to win a service contract. Rimini Street’s home page now declares: “Other people do software. We do support.”