How could the shift to outcome-based consulting affect ServiceNow's market demand?
ServiceNow may benefit from consulting firms shifting to outcome-based solutions The industry is moving away from traditional time-and-materials billing, as clients increasingly demand fixed deliverables and outcomes rather than just advice. This shift requires consultancies to build solutions, not merely advise on what to do. ServiceNow, as an integrated platform provider, is positioned to meet this demand by offering the necessary technology infrastructure for large enterprises to execute and manage these complex, outcome-driven solutions.
- Effect
- Mild positive
- How direct
- Brind's reasoning
- When
- Within months
- The story
- No new developments lately
How it reaches ServiceNow
-
Svilena Tzekova, KPMG's London-based global head of consulting, stated that artificial intelligence is challenging the consulting industry's traditional business model and fee structures. She noted that intellectual property and knowledge are becoming highly accessible, making traditional advice less valuable. Firms are currently struggling to establish a commercially sensible outcome-based pricing model while factoring in new AI-related costs.
The full event1independent outlet -
As traditional advice loses value, clients are increasingly demanding that consultancies help them build solutions, and they want to pay for fixed deliverables and fixed outcomes. This necessitates the use of robust, integrated technology platforms to manage the scope and delivery of these complex solutions.
No report states this step directly. Brind drew it from the reporting on each side of it, so treat it as an informed guess.
-
American technology company
Everything about ServiceNow
Tap any step to see the evidence behind it.
The facts so far
As reported. Each one links to where it comes from.
- Clients increasingly say they want to pay for outcomes, but procurement departments still compare consultancies on hourly rates and number of people assigned to a project.cnbc.com
- Clients now want consultancies to help them build solutions, not just advise them on what to do.cnbc.com
- Smaller, AI-native consultancies are better positioned for the AI era because they have never billed clients on a time-and-materials basis.cnbc.com
Why it matters
The shift in the professional services model represents a fundamental change in how large corporations procure expertise. If the industry successfully transitions from selling hours and knowledge to selling measurable, fixed outcomes, the demand structure for technology changes dramatically. This favors platform providers that can manage and execute complex digital transformations.
This trend is being accelerated by AI, which is automating foundational tasks like data analysis and research, thereby questioning the traditional value proposition of large, established firms. Smaller, nimble consultancies are already demonstrating a competitive advantage by focusing on outcome-based delivery, setting a new market standard that larger firms must adapt to.
What we don't know yet
- How quickly will the Big Four firms successfully transition their pricing models to outcome-based structures?
- Will the increased reliance on integrated platforms lead to greater consolidation among technology solution providers?
What would change this answer
Who else could feel it
Other possible ripples from the same event.
Reporting
- cnbc.comThursday
Keep going
Brind's analysis is written by AI from the reporting linked above and can be wrong. This explainer is a possibility worth considering, not a forecast: steps marked as Brind's reasoning are not stated in the reporting. It is not investment advice; do your own research.