ServiceNow is offering federal agencies discounts as high as 70% on higher-tier information technology bundles through September 2028 under a GSA agreement. The GSA has centralized vendor negotiations to leverage federal purchasing power and has secured similar deals with Microsoft, Salesforce, Adobe, Google, and Amazon, plus AI tool arrangements with OpenAI and Anthropic. GSA projects ServiceNow implementations could raise efficiency by up to 30%. ServiceNow provides personnel and IT operations software and is integrating AI into its platform. About 75% of agencies already use ServiceNow's IT management tool, and discounts apply at renewal for existing customers.
Agencies buying a higher-tier bundle of ServiceNow's information technology products will see discounts as high as 70% though September 2028, the US General Services Administration said Wednesday in a statement. The deal follows a spate of similar announcements touting big discounts on software and cloud products used by federal workers, as the GSA has sought to centralize negotiations with technology vendors to leverage the federal government's purchasing power.
GSA estimates that implementation of ServiceNow's tools could increase efficiency by as much as 30%, as President Donald Trump has sought deep personnel cuts to federal agencies. ServiceNow makes software to manage personnel and IT operations, and has been implementing AI through its platform. IT service management is one of the more obvious places to use AI to find efficiencies, Josh Gruenbaum, commissioner of GSA's Federal Acquisition Service, said in an interview.
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