The January 2022 Consumer Price Index (CPI) reported year-over-year inflation rose to 7.5%, its highest rate in 40 years.
This is predominantly due to increasing energy bills, which will be exacerbated by the crisis in Ukraine. Supply problems and higher shipping costs are also putting pressure on companies. Add to this the talent crisis and spiralling attrition rates and wages are being increased. But what does this mean to the strategic sourcing industry? Are service providers passing on the extra costs to customers in the same way as retailers can pass them on to consumers?
According to Everest Group, 43% of service providers are actively seeking to increase prices on existing contracts. 12% have received an increase whilst 11% have been declined an increase. Globally there has been an average of a 6% increase in price requested by service providers.
The GSA is hosting a dedicated webinar on the subject of price increases which will cover:
- the increased pricing trends across technology and business services
- what the future of pricing looks like
- how to best address inflation in contracts
- how should price increases best be negotiated
- how can we ensure that price increases are reaching the employees of service providers?
- should there be industry standard guidelines on how to approach this subject?
Chaired by Kerry Hallard, CEO of the GSA, speakers include:
- Ricky Sundrani, Vice President at Everest Group
- Mark Crichard, Partner – Commercial, Technology and Outsourcing, RPC
