Problems
What will AGI do for Retainer Margin Compression?
Professional services firms, agencies, and managed service providers operate on fixed monthly retainers that predictably lose profitability over time. Account managers and delivery teams absorb out-of-scope requests, unlogged micro-revisions, and ad-hoc communication without adjusting the billing. This unmeasured labor drives up the cost of delivery, directly compressing the gross margin of the contract.