Replay: Buying Services-as-Software™: A new playbook for enterprise buyers

The way enterprises buy services hasn’t fundamentally changed since the 1990s, yet the services themselves have transformed completely. AI has collapsed the delivery model, but sourcing teams are still running RFPs, counting FTEs, and pricing by transaction. It’s the equivalent of subscribing to Netflix while counting DVDs. And it’s the single biggest reason enterprises are struggling to translate AI investment into real business value.

In this webinar, Saurabh Gupta hosted a panel of four senior HFS advisors: Mike Hobday, Ian Maher, Joseph Montrosse, and Justin Southwell, to discuss how enterprises should buy and sell services in the Services-as-Software™ era.

The discussion went deep into why the traditional sourcing process is broken, how HFS AI First Deal Labs offer a new problem-solving approach, why vendor cost savings from AI rarely reach the client, and what outcome-based contracting looks like in practice. The panel shared real examples from ongoing engagements and provided frank advice for buyers, sellers, and everyone stuck in between.

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Key takeaways

• Enterprise sourcing has not fundamentally changed since the 1990s, and it’s blocking AI value from reaching the buyer.
• Services-as-Software™ collapses services and software into one — requiring new contracts, pricing models, and governance.
• HFS AI First Deal Labs are a problem-solving approach to modern sourcing, not a templated process.
• Vendors are capturing most of the AI-driven cost reduction; buyers need new levers to claim their share.
• Traditional metrics like cost per FTE and cost per transaction no longer reflect where value is created.
• Outcome-based pricing needs clear decision ownership, measurable outcomes, and shared governance from day one.
• RFPs written by AI and responded to by AI defeat the purpose. Sourcing needs humans, transparency, and honest problem-solving.
• Market discovery is a legitimate lever. Buyers should not feel locked in with incumbent providers.

Learn more
Whether you’re renegotiating an existing outsourcing contract, building a new services-as-software procurement approach, or trying to translate AI value into commercial terms, HFS can help you rethink sourcing for the AI era.

Contact us to learn more about how HFS can support your services-as-software sourcing journey.