For Service Providers, AI Giveth and AI Taketh Away
Forrester, Friday, October 16th, 2026
Forrester analyzes how AI is undermining IT services firms' headcount model and how they are adapting pricing and delivery.
Forrester's review of Q2 2026 results from leading technology services firms found revenue up slightly, bookings mostly flat and revenue per employee up nominally.
AI accelerates delivery while undermining the industry's traditional growth engine of headcount and billable hours, putting services near the top of Forrester's disruption list.
Firms with large pyramid delivery teams are the most exposed.
Providers are adapting with new partnerships, industrialized delivery, products and risk-sharing commercial models, which technology buyers should factor into sourcing decisions.