By Michael Shott, Managing Consultant, Alsbridge, Inc.

Prices in the information technology services market are changing in response to the current economic atmosphere, corporate America's drive to cut costs and competition from IT services providers from other parts of the globe.

However, the changes in price are not as clear as you might find at the gas pump. Part of the change is a true price reduction in the traditional sense, but there is also a major portion of the change that is mostly cosmetic. The pricing methodology is moving towards a model that is similar to the way a new car is priced, with the options (major price drivers) added on top of a stripped model (base services charge).

This white paper discusses why this change is taking place and what it means for buyers of IT services moving forward.