$88bn of outsourcing deals up for renewal

New research has shown that over the next 2 years outsourcing deals worth a total of $88bn per year globally are up for renewal.

Many of those contracts at are at risk of being given to new suppliers or lower cost offshore players.

Why not if time and money can be saved.

"The Everest Research Institute (ERI) estimates that first generation outsourcing deals worth $118bn in annualised contract value are set to expire between 2006 and 2008, with a quarter of these having already been renewed during the first quarter of this year."

That leaves about $88bn worth of contracts still avaliable.
More than 40 per cent of these deals face a "medium to high risk" of being restructured, which opens the doors for new suppliers and the offshore outsourcing companies ERI claims.

"The so-called "big six" traditional outsourcers are expected to be hardest hit as buyers look to unbundle contracts among multiple suppliers as they increasingly move away from awarding IT infrastructure and application maintenance and development under a single big deal."

To view the full article click here