1 hr ago
IT Firms Rebrand Conventional Software Jobs With AI Labels
Some IT companies may be giving ordinary software work new AI-related names.
Peter Bendor-Samuel of Everest Group said this can be part of their move toward using AI.
He also said the practice is usually not considered unusual.
However, it can make it harder for customers to understand what they are buying.
Customers want to know whether the work has really changed.
They also do not want to pay extra for the same services.
Finally, they want proof that companies are actually using AI in ways that help them.
IT services firms are described as applying AI labels to regular software jobs.
Everest Group founder Peter Bendor-Samuel called the practice part of providers’ AI transformation path.
He said the repackaging is generally not considered remarkable.
The practice can create transparency issues for clients, according to Bendor-Samuel.
Clients want assurance they are not paying more for unchanged services and that AI is benefiting them.
- Who
- IT services firms and their clients; Peter Bendor-Samuel of Everest Group commented on the practice.
- What
- Regular software jobs are being described or repackaged with AI labels.
- Where
- The issue concerns the IT services industry; Everest Group is based in Dallas.
- When
- The articles do not specify when.
- Why
- Providers may be moving toward AI transformation, while clients seek transparency and assurance that AI delivers benefits.
Services-Provider Perspective
Client Concerns
Meaning of AI labeling
Services-Provider Perspective
Repackaging can represent IT service providers moving down the AI transformation path and is generally not considered remarkable.
Client Concerns
Clients may question whether an AI label reflects a meaningful change in the work.
Pricing and value
Services-Provider Perspective
Providers may present the work as part of adopting AI-enabled services.
Client Concerns
Clients want assurance they are not being charged more for the same services and that AI is producing benefits for them.
Key facts
- Industry
- IT services and software
- Reported practice
- Repackaging regular software jobs with AI labels
- Commentator
- Peter Bendor-Samuel, founder of Everest Group
- Company location
- Everest Group is based in Dallas
- Main concern
- Clients may be charged more for unchanged services
- Client expectation
- Service providers should adopt AI for clients’ benefit
- Transparency
- The repackaging can create transparency issues
Quotes
Peter Bendor-Samuel
Founder of Everest Group, a Dallas-based IT search firm
“It does in some instances create some transparency issues and clients are keen to ensure that they are not being charged more for the same services or that the service providers are in fact adopting AI to their benefit.”
livemint.com
“The ‘repackaging’ is often viewed as the services providers moving down the AI transformation path, and for the most part is not thought of as remarkable.”
livemint.com
Sources
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