HFS Research has featured Movate in its highlight report, “Movate offers CIOs a trail map to reorganize operations for AI adoption.” According to the report, enterprise AI adoption has given CIOs a case of commercial and governance whiplash; and states that “Movate is one such provider, evolving its strategic direction by reorganizing to a model that could help enterprises better embrace AI enabled work.
A Leap Forward: More Than Just AI Adoption
AI is changing how businesses operate. The main challenge is that many companies are adding AI to older systems built for people instead of machines. This mismatch leads to issues such as unpredictable costs, unclear productivity measures, and gaps in oversight. This is where Movate makes a difference. Click here to access the complete report.
Key Points to Know
- Movate is pricing some engagements based on outputs, such as story points delivered per sprint or improvements in testing coverage according to the report.
- The SaS market is expected to exceed $1.5 trillion by 2035; (Venkatesan et al., 2025)
- AI is moving services from being based on human labor to being driven by software (software-driven delivery);
- Movate’s strategy centers on engineering, data, operations, and customer experience.
- The Mova iO platform provides advanced, context-aware AI management for businesses;
- Future service models will focus more on results than on how much work is done.
Services-as-Software (And Why It Matters)
The old IT services model was simple: hiring more people meant more work got done.
That approach doesn’t work anymore.
HFS defines Services-as-Software (SaS) as a new way to deliver services powered by:
- AI/ML, automation frameworks;
- Reusable engineering assets; and,
- Domain-specific platforms. (Fersht, 2025)
This isn’t just a small change. It’s a fundamental shift.
In fact, HFS estimates the Services-as-Software market will exceed $1.5 trillion by 2035. (Venkatesan et al., 2025)
What’s driving this change?
- Enterprises want “outcomes,” not headcounts;
- AI agents can now perform tasks traditionally done by humans; and,
- Productivity is increasingly software-defined.
Movate’s approach shows it was an early and intentional adopter of this new model.
The Pivot: From Labor to AI-Led Outcomes
Movate is not only testing AI; it is rebuilding its whole way of working to center around AI.
Instead of:
- Billing by hours; and,
- Scaling through workforce expansion.
Movate is moving toward:
- Output-based pricing;
- AI-driven delivery systems; and,
- Platform-led services.
This change tackles a main problem from the report: companies are still measuring AI productivity with old methods.
Key Focus Areas to Help Clients Re-operationalize
Movate’s transformation is practical and based on the following key focus areas:
1. AI-Led Application Engineering
Movate is building an AI-enabled SDLC platform that:
- Automates 35–40% of development lifecycle activities; (Global Report Reveals DevOps Automation Is Becoming a Strategic Imperative for Large Organizations, but Only 38% Have a Clear Strategy for Implementing It, 2023)
- Uses copilots for developers, testers, and analysts; and,
- Leverages knowledge graphs to contextualize enterprise data.
This greatly shortens development time and makes results more accurate.
2. Data Engineering for AI Readiness
AI is only as good as the data behind it; to strengthen this foundation, Movate acquired Prescience (a specialized data engineering firm), invested in data governance and cleansing IP, and focused on building AI-ready data ecosystems.
These developments at Movate help clients expand their use of AI without facing data problems.
3. AI-Led Enterprise Operations
One of the biggest disruptions is happening in IT operations.
Movate is embedding AI across:
- Application management;
- Infrastructure operations; and,
- Service desks.
What does this lead to?
- Reduced reliance on tiered support (L1/L2/L3);
- Faster resolution times; and,
- Hybrid human+AI support models.
This completely changes how support teams in companies are organized.
4. AI-Led Customer Experience (CX)
With deep roots in CX, Movate is doubling down on AI-enabled customer engagement.
Key developments include:
- -Voice bots and call deflection;
- -Agent assist tools;
- -Automated call summarization; and,
- -AI-driven quality monitoring.
These tools help companies become more efficient and keep customers happier at the same time.
The Mova iO Platform: Orchestrating AI at Scale
At the heart of this strategy is Movate’s own platform, Mova iO. Think of it as the main control layer (orchestration layer) for AI in a business.
It enables:
- AI agent marketplaces;
- Workflow orchestration;
- Knowledge graph integration; and,
- Digital twins for roles like developers and testers.
Most importantly, it gives context to AI actions. Instead of generic AI outputs, agents can:
- Understand enterprise workflows;
- Access historical data; and
- Operate within governance frameworks.
This is what separates using AI as just a tool from making it a core part of business operations.
CIOs Must Realistically Evaluate
The report makes it clear that AI adoption is causing “operational whiplash” for CIOs. (Fersht, 2026)
The main challenges are unpredictable costs, complex governance, and a lack of standard metrics. Movate helps address these problems by offering a clear guide to reorganizing business operations. This includes redesigning workflows, introducing new performance metrics, and enabling output-based pricing models.
It helps companies move from simply experimenting with AI to making it part of everyday operations.
The Bigger Leap: Organizational, Not Just Technical
One of the most important points from the report is this: The biggest changes are not technical, but organizational. (Gupta & Daher, 2025)
AI adoption requires:
- New roles (hybrid human + AI operators);
- Redesigned workflows; and,
- Upskilled teams.
For example:
- Support engineers evolve into AI supervisors;
- Developers collaborate with AI copilots; and,
- CX agents focus on complex interactions while AI handles routine queries.
This is a change in how people work, not just an update to technology.
Rethinking Commercial Models: From Hours to Outcomes
One of the biggest changes with Services-as-Software is how pricing works. Movate is moving toward:
- Output-based pricing (e.g., story points delivered); and,
- Value-based metrics (e.g., improved test coverage).
This approach ensures that both service providers and businesses share the same goals.
Instead of paying for the amount of work, clients pay for real results.
In Summary: SaS Is the Future
The report concludes with a clear message that Services-as-Software is the future, but it requires a complete operational pivot. (Fersht & Fersht, 2026)
Enterprises that succeed will embrace AI-native operating models, partner with forward-thinking providers; and focus on outcomes, not inputs.
FAQs
Coined by Phil Fersht (CEO, HFS Research), it refers to a model where services are delivered using AI, automation, and platforms instead of relying primarily on human labor.
Movate has demonstrated strong capabilities in AI-led services, agentic solutions, and platform-driven delivery models aligned with the Services-as-Software vision.
Mova iO is Movate’s AI orchestration platform that manages agents, workflows, and enterprise knowledge systems to deliver intelligent outcomes.
AI reduces manual effort, automates workflows, improves decision-making, and shifts pricing models from hours worked to outcomes delivered.
They should modernize operating models, invest in data readiness, adopt AI governance frameworks, and partner with providers experienced in AI-led transformation.
References
Venkatesan, A., Chaturvedi, A., & Gupta, S. (2025, July 1). $1.5 trillion services-as-software market takes off—three swimlanes emerge. HFS Research. https://www.hfsresearch.com/research/1-5-trillion-services-as-software/
Fersht, P. (2025, October 1). HFS Research trademarks services-as-software, a new operating model [LinkedIn post]. LinkedIn. https://www.linkedin.com/posts/pfersht_servicesassoftware-hfsresearch-sas-activity-7374819243780886528-gRVt
Venkatesan, A., Chaturvedi, A., & Gupta, S. (2025). $1.5 trillion services-as-software market takes off—three swimlanes emerge. HFS Research. https://www.hfsresearch.com/research/1-5-trillion-services-as-software/
Business Wire. (2023, September 26). Global report reveals DevOps automation is becoming a strategic imperative for large organizations, but only 38% have a clear strategy for implementing it. https://www.businesswire.com/news/home/20230926365257/en/Global-Report-Reveals-DevOps-Automation-Is-Becoming-a-Strategic-Imperative-for-Large-Organizations-but-Only-38-Have-a-Clear-Strategy-for-Implementing-It
Fersht, M. (2026, April 6). Movate offers CIOs a trail map to reorganize operations for AI adoption. HFS Research. https://www.hfsresearch.com/research/movate-cios-trail-map/
Gupta, S., & Daher, D. (2025, November 11). AI-powered consulting forces reckoning: 65% of enterprises say traditional models no longer deliver value. HFS Research. https://www.hfsresearch.com/press-release/ai-powered-consulting-forces-reckoning-65-of-enterprises-say-traditional-models-no-longer-deliver-value-2/
Fersht, M., & Fersht, P. (2026, April 6). Movate offers CIOs a trail map to reorganize operations for AI adoption. HFS Research. https://www.hfsresearch.com/research/movate-cios-trail-map/
Related Information
- Enterprise reinvention studio: Mova iO platform
- Infograhphic: AI-Led CX Transformation | Outcome-Based Digital Interventions for Unified Customer Experiences – M…
- Blog: Biz Genie: Next-Gen Enterprise Intelligence Enablement – Movate