Find out why AI productivity gains in IT services fell short, and what is being changed
For COOs, delivery heads and investors who need a clear account of where AI productivity did and did not land, and how providers are recalibrating.
- Engagement type
- Team Pod
- Experts
- 3 consulted · 1 lead
- Hours
- ~40
- Duration
- 3 weeks
What the client needed
A firm needed to understand why the AI-driven productivity and cost expectations set in 2023–24 had not fully materialised by early 2026: where the gaps emerged across the software lifecycle, customer experience, finance, IT service management and talent; how the industry is recalibrating — revised estimates, extended timelines; what providers are changing in governance, workflows, talent models and operating mechanisms to make gains measurable and durable; and what that means for headcount, delivery models and pyramids.
The brief
The questions on the table
As the client wrote them, lightly shortened. Client and respondents are not named.
- Q1
Why did the 2023–24 productivity and cost expectations not materialise, and where exactly did the gaps appear?
- Q2
How are expectations being recalibrated — lower estimates, longer timelines, different metrics?
- Q3
What are providers changing in governance, workflows, talent and operating mechanisms to make gains stick?
- Q4
Are fewer people really needed for the same work, and where is that showing in pyramids and delivery models?
The hours
What the work involved
- 01
Gap analysis
Expected versus realised gains by area — SDLC, CX, F&A, ITSM, change — with the reasons the lead saw from inside a provider’s AI enablement programme.
- 02
Recalibration
How targets, timelines and measurement were reset in 2025–26, and what the new commitments to clients look like.
- 03
Operating changes
Governance, workflow redesign, talent models and incentives that providers are putting in place, with what is working.
- 04
Cross-check
Two delivery leaders and a finance leader from captive and provider organisations reviewed the headcount and pyramid conclusions.
- 05
Working session
With the client’s operations leadership.
Deliverables
What the client received
- Gap analysisBy area, with causes.
- Recalibration noteTargets, timelines, measurement.
- Operating-change catalogueWhat providers are doing.
- Headcount and pyramid viewWhere fewer people are actually needed.
- One working sessionWith notes.
The terms
What an engagement like this costs
You buy hours in blocks and can change the expert at the end of any block, at no extra cost. Longer projects run in stages: pause after a block, pick up the next stage when you are ready.
- Rate band
- $65–$250 /hr
- Senior specialists can be up to $500
- Hour blocks
- 1 · 2 · 5 · 10 · 20 · 50 · custom
- This engagement
- Team Pod · ~40 hours · 3 weeks
More in IT services
Resetting your AI productivity case?
Describe what you needFor example: “Our board wants to know why the AI savings we promised in 2024 are not in the numbers, and what to commit to now.”
We aim to come back with matched experts within 24 to 72 hours.