If you're leading a technology services organization, you're no stranger to disruption. But recently, global tariff negotiations have introduced a new layer of uncertainty, forcing you to rethink your operations. These potential tariffs aren’t just numbers on a spreadsheet—they’re driving real change in your hiring strategies, sourcing decisions, and service delivery models.

You might already feel the pressure to freeze hiring, reduce service costs, or explore new offerings to maintain your revenue targets. And you're not alone. Many tech services leaders are working to build smarter, more resilient business models that can weather tariff-driven disruption.

This blog breaks down the key ways tariffs impact technology service organizations like yours and what you can do to stay ahead. From revisiting sourcing strategies to creating dedicated response teams, you'll find insights to help you adapt and thrive in this shifting landscape.

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Why Tariff Uncertainty Puts Your Service Business at Risk

Let’s face it—uncertainty sucks. And regarding global tariffs, the uncertainty isn’t just frustrating; it’s disruptive to your entire technology service business model.

Unlike other market challenges that follow patterns or trends, tariffs are politically driven and change fast. They can shift overnight based on trade negotiations, retaliatory decisions, or national security rulings. That means you can’t rely on historical data or forecasting models to guide your next move. Instead, you’re left reacting to decisions outside your control, with little time to prepare.

If your organization is built around predictability, standardization, and scale, which most service businesses are, this type of disruption shakes the very foundation of your operating model. You might not be the one shipping physical hardware, but you're still feeling the impact. Product teams may face immediate cost spikes, but your service organization sees the aftershocks: unpredictable customer demand, tighter margins, and rising delivery challenges.

The hardest part is being asked to make significant strategic decisions quickly, often with incomplete information. When your ability to plan proactively is diminished, your entire growth strategy is at risk.

Related: The Frameworks That Will Shape the Future of Technology Services

7 Ways Tariffs Are Disrupting Services Organizations 

Tariff negotiations are already affecting how service organizations operate today. From hiring freezes to pricing pressure, here are seven immediate impacts you must be ready for.

1. Hiring Freezes Even When Demand Remains Steady

When tariffs disrupt hardware sales and profitability, leadership often hits pause on hiring—even in service departments. The result? You’re left managing steady or growing service demand with fewer people. That puts stress on your teams and increases the risk of service quality slipping.

2. Pressure to Cut Delivery Costs

Companies will look at services to make up the margin if tariffs increase product costs. That means you're likely under pressure to lower the cost of service delivery—fast. Automation becomes a top priority, even if customers still expect high-touch, complex support. It’s a tricky balancing act between efficiency and experience.

3. Increased Emphasis on Service Revenue

If hardware sales dip, services become even more critical to your company’s bottom line. You might be pushed to upsell or bundle more services, even when hardware adoption slows. You must sharpen your messaging, pricing strategy, and attach-rate tactics to protect your revenue.

4. Requests for “Free” Services to Win Favor

With higher product prices and potential international backlash, account teams may want to offer free services to sweeten the deal. But beware—once a customer receives a service for free, it’s tough to charge them for it later. Giving away value now can undermine long-term monetization opportunities.

5. Demand for New Service Offerings

If customers aren’t buying new hardware, they want to get more out of what they already have. That creates an opening for you to offer services like asset optimization, extended warranties, or lifecycle planning. The catch? Before competitors do, you must define, price, and promote these offerings quickly.

6. Rethinking Your Sourcing Strategy

Some tariffs may even apply to services, especially those delivered remotely across borders. That could force you to rethink how and where your services are delivered. Moving away from centralized global hubs to more localized delivery models may be costly but necessary to avoid additional fees and satisfy customers.

7. Forming a Cross-Functional “Tariff Response” Team

You’ll need a tiger team—a fast-acting, cross-functional group of leaders from services, finance, supply chain, legal, and sales. Their job will be to assess new tariffs, model financial risk, redesign services if needed, and keep everyone (internal and external) informed. This team becomes your front line in protecting margins, maintaining quality, and minimizing disruption.

Related: The State of Technology Services 2025

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How to Move Forward When the Future Is Unclear

If tariffs and geopolitical shifts are making it harder to plan, you're not alone. Uncertainty might be the norm right now, but that doesn’t mean you have to face it without support.

At TSIA, we’re helping technology service leaders like you take informed, strategic action—even when the future is unclear. Our research, benchmarking, and member community are designed to give you practical insights, peer comparisons, and expert guidance to help you lead with confidence.

Here’s how we’re supporting service organizations during this turbulent time:

• Weekly quick polls for industry trends: Stay informed with rapid-response polling that captures how other tech companies handle the current environment. You’ll gain real-time data on hiring trends and service optimization strategies.
• Benchmarking your operational resilience: How does your cost structure compare to industry peers? Our benchmarking tools help you identify where to cut costs without sacrificing service value to make smart moves, not just fast ones.
• Emerging Service Offerings Playbooks: TSIA has mapped service offers that support customers looking to sweat existing assets, from advisory and health checks to usage analytics and optimization services.
• Guidance on global delivery strategy: Tariffs force companies to rethink global delivery models. We will provide case studies and frameworks to help you restructure your delivery teams tariff-awarely without compromising quality or speed.
• Revenue growth models for a service-led recovery: With product revenue under pressure, services must pick up the slack. Our models show that you can grow service revenue through smarter pricing, packaging, and value communication.
• Peer collaboration and insights: Through TSIA World conferences, virtual roundtables, and research exchanges, you’ll connect with other leaders navigating the same issues. Learn what’s working for them, share your insights, and avoid doing it alone.

Related: State of Revenue 2025

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It's Time to Treat Tariffs as a Business Model Challenge

The uncertainty surrounding tariffs isn’t going away anytime soon. And if you’ve been treating it as just a product team issue, it’s time to shift your perspective. Tariffs are reshaping how your entire business operates—including your services organization.

Now is the time to take a proactive stance. Treating tariffs as a business model challenge rather than just a product disruption, you’ll be better equipped to make smart decisions, protect your margins, and continue delivering value to your customers.

At TSIA, we’re here to help you build a reactive and resilient service business that adapts to global shifts while continuing to drive growth, customer satisfaction, and long-term success.

Your Key Takeaways

• Tariffs are a services issue, not just a product problem: The ripple effects of global tariffs impact your ability to hire, price, and deliver services, making it critical to treat tariffs as a full-scale business model challenge.
• Your organization needs to adapt quickly and strategically: Resilience depends on fast, informed action, from forming a cross-functional tariff response team to rethinking global delivery models and launching new service offerings.‍
• You don’t have to face this alone: TSIA provides the research, benchmarking, and peer insights you need to make smart decisions, grow revenue, and maintain service quality in an uncertain global landscape.