Top Consulting firm rips up traditional billing playbook for it wind – ryan
Global, A Large Tech Consulting Firm, Just Ripped Up Its Traditional Billing Strategy to More Fully Embrace He use Cases and Projects.
This is a trend of told you about back in april. The Generation ai Boom is Pushing Companies to Adopferent Pricing Models, Partly Because the Latest Models Have Become So Expensive to Use.
This is already taching hold in the saas industry. Now it is beginning to open in consulting.
Globant, an it serves specialist that Competes with Accenture and Other Consulting Firms, is Rolling Out he pods, a subscription for it-played offers including software Engineering, Product Definition, and Testing.
Clients Can Subscribe Monthly to an AI pod, and each Subscription Includes Token-Based Capacity, Similar to How Some Leading He Labs Structure Usage.
Every Time a Company Taps Into a Major AI Model, The Prompts and Other Requests Are Broken Down intoens, “The New Language of Generation AI, which have to be process. When Complex Projects Are Handled This Way, The Cost of Token Processing Can Add Up Quickly, especally if Newer, “reasoning” models are used.
Traditional Consulting Projects Offen Come with Time-Intensive Billing Structures: Work Is Scoped, Employees are assigned, and hours tracked to calculate what to chargers. But in the World of Generation AI, Where Outputs are Driven by Token-Based Usage and Cost Depending on the Models Used, The Old Approach Could Create Misalignment Betime Providers and Clients.
“This is a departure from the traditional effhority-based appraaches,” Global CEO MARTín migoya explained, describing the move as “Radical departure?
Tokens versus effort
Globant’s New He Pods Package This New Reality Into A Managed-Serservices Model: For a Monthly Subscription Fee, Clients Access a Virtual Workforce of He Agents Supervised by Globant’s Human Tech Consultants. EACH SUBSCRIPTION COMES WITH A CERTAIN NUMBER OF TOKES TO USE.
This is only a theoretical example and doesn’t represent what Globant Will Actually Charge Clients, but you get the gist: a client might pay $ 20,000 a month and get 100 million included in that subscription.
“My Business is to Create Software for You, to Create Technology for You,” Migoya Added in An Interview. “We’re Proposing A Novel Way of Engaging, which is more connected to Throughput Rather than just the time and efffort i’m consuming.”
Migoya Said the Token Limits are High, so Globant Consultants and their Clients have more than Enough to get projects compiled. If some customers Blow Through Token Allocations, Global Will Will Work Out Solutions, but the goal is to keep pricable stable in this new generation he wind, while minimizing surprises, he explained.
“Streaming” Consulting Services
He Called It “Streaming Engineering,” LikeNing it to How We Pay a monthly Fee to Stream Netflix Movies and TV Shows. Instead of Spinning Up Custom Teams for Every Client Need, Customers Now Subscribe to Digital Capacity.
Under the hood, the he pods are power by global enterprise he platform, which taps into different leading he models.
The firm also use its its Own Agent Framework, Coda, which Automates aspects of Code Generation, Testing, and Deployment while Enterprise Output High-Quality. This apprroach lets Globant Reuse Existing Software components, which Reduces the need to ping the underlying he models (Reducing Those token-Processing Costs!).
GLOBANT SAYS The new model is Already Being Used by Clients in Finance, Entertainment, and Energy. Early Adopters Include Oil and Gas Company Ypf and Holding Company JM Family Enterprises.
While Subscript-Based and Token-Based Models Have Caught on in the Saas World, Globant’s Move is a signal that Enterprise Consulting May Be Heading the Same Way.
The Larest Consulting Firms, Including Deloitte, Ey, PWC, and KPMG, Have Been Investing Heavily in Automation and AI over the past few years. Recently, Deloitte and eye announed new agentic he platforms, Both stupid in collaboration with nvidia.
With he redefining how software is built and deployed, billing just based on human time and efffort May soon feed as outdated as dial-up internet.