Tuesday, 4 March, 2025

AI Surge Prompts Clients to Renew IT Service Contracts Proactively

The rise of artificial intelligence is leading clients to renew IT service contracts proactively, often before their scheduled end dates. This trend results in higher total contract value (TCV) but modest revenue growth, as clients opt for shorter, smaller contracts to leverage AI-driven productivity gains. Experts predict that approximately 20% of deals will undergo early renewals, signaling a shift toward outcome-based projects over traditional, personnel-centric models.