Changes in client needs and business goals require operational shifts for service providers.
Changes in client needs and business goals require operational shifts for service providers.
By Chrissy Healey | May 22, 2025
Geopolitical instability and changing dynamics pressure growth for services providers, but many remain optimistic about the impact they can create amidst this uncertainty.
The pressure to create a growing and profitable services practice has never been greater. Service providers must figure out how to support clients in a rapidly accelerating and changing world. Succeeding in this market will require tech services leaders to drive change by adjusting how they operate internally and monetize the work they do for clients — all while delivering sustainable impact.
Tech services leaders must transform how their own enterprises operate to better serve their clients and adapt to the rapidly shifting business environment.
Fifty-six percent of services leaders say they are helping clients make business and technology decisions amid an increasing pace of change. High-tech providers who see the pace of change accelerating over the next three years outweigh those anticipating a slowdown by two to one.
This unprecedented technological, cultural, political and business change has broad-reaching implications. Clients are making decisions without insight into their potential future impact. Service providers have an opportunity to help.
In order to better assist their clients, high-tech providers must understand what is now driving the business and work with clients to create confidence in their ability to manage through change. In turn, this will help enterprises make effective technology investments more efficiently.
Today’s buyers expect a provider to leverage assets and technology to deliver services. In fact, three of the top five considerations for how an enterprise selects a service provider are related to the use of assets or the optimal use of technology.
Meanwhile, service providers tend to undervalue the importance of assets and don’t even rank them in the top five purchase considerations for clients. While two-thirds of providers are integrating assets as a significant element of their portfolio, they underestimate the importance of speed to impact and enable via assets to their clients.
Increasingly, a majority of B2B leaders report levels of high regret when down-selected providers were incumbents. In the future, 50% of buyers plan to expand their roster of service providers.
This is a wake-up call for incumbent providers that they must shift their focus to client-specific needs, while strengthening account relationships. This requires commitment, capacity and a relentless focus on the client.
Further, it requires service providers to undergo operational shifts that change the way the enterprise thinks about sharing customer intelligence, the role of account leadership and the practices they employ to drive decision confidence.
To effectively respond to these 2025 trends, tech services leaders will need to build client capability around anticipating and creating plans amid an ever-increasing pace of change. Service providers must optimize their use of assets and AI in delivery and build account engagement strategies that deepen client relationships.
Tech services leaders must set the vision to successfully close out 2025 amid a challenging time of fluctuating growth, services opportunities and cannibalization of revenue from assets and AI, and do so among a continuously changing market landscape.
Attend a Conference
Join Gartner experts and your peers to accelerate growth
Join the leading technology and service provider peers to get an update on accelerating tech growth in a new era of transformation and technology trends.
Gartner Product Leadership Conference
Grapevine, TX
Drive stronger performance on your mission-critical priorities.