Trends Report

What The Technology Services Q2 2024 Earnings Means For Technology Executives

Providers Tell A GenAI Story, But Their Real Challenge Is Stalled Core Transformations

 and  three contributors
Sep 04, 2024

Summary

We analyzed the Q2 2024 earnings announcements of large public technology service providers. Big picture, the market is more difficult than in the past decade. First, tech service providers continued slow organic growth or decline in Q2 2024, with little change expected for the rest of the year. But bookings are up, which we attribute to enterprise clients’ commitment to core transformations. Second, every provider is telling an AI story, but there’s a fair amount of AI washing going on, where any project with AI in there somewhere gets labeled as “AI revenue.” With that in mind, it’s important to see AI as a driver of transformation that needs expensive foundations in place to achieve desired benefits.

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