Tag

alternative fee arrangements

2 insights

CXO editorial cover charting alternative fee arrangements as a share of firm revenue, rising from about 20% in 2023 toward a projected 70% or more, illustrating that rate strategy has stopped being a profit lever and margin now depends on the cost of delivery.

Rate Strategy Stopped Being a Lever. Your Advantage Moved to the Cost of Delivery.

2026 rate data shows firms collect the same effective rate whether they discount hard or hold firm. Pricing power is neutral. The margin lever that still moves is the cost of delivery.
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Bar chart showing 160% average ROI for firms with three or more AI use cases in production versus 40% for a single deployment

AI Is Not Killing the Billable Hour. It Is Exposing That You Were Never Selling Hours.

AI is not killing the billable hour. It is exposing that firms were pricing the input, not the outcome. Why margin now moves to the firms that redesign delivery before they touch the rate sheet.
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