July 30, 2006
$88 billion in outsourcing contracts up for grabs: new suppliers, line up!
All outsourcing contracts are time bound. As an outsourcing deal meanders toward its logical conclusion, it is a jittery time for the outsource vendor: will the outsourcer renew the contract, or simply dump the vendor in favor of another? It is certainly a time to retrospect and redefine outsourcing relationships.
The time is also one of opportunities for new suppliers. A show of one-upmanship can help them snatch a juicy outsourcing deal. According to a report by Everest Research Institute, outsourcing contracts worth $118 billion are due to expire between 2006 and 2008. While some existing relationships have firmed up and a quarter of this amount has been pushed back to status-quo relationships, contracts worth $88 billion are yet to be decided.
Some of the large existing IT contracts are likely to give way to multiple smaller contracts, and this leaves the door open for new players to flaunt their wares. In this situation, the big global suppliers such as CSC, EDS, and IBM are entirely justified in feeling the pinch of competition.
--
Did you enjoy this post?
Comments
The comments to this entry are closed.
« Weavers in south India: Weaving an outsourcing network | Main | Outsourcing storm brewing in schools »
Recent Comments