Changing anatomy of large outsourcing deals


Is the number and size of large outsourcing deals getting shrunk? Answer seems to be Yes. For the mega deals happening in the market, there are some business takeover activity – where suppliers have to make significant upfront payments. It typically involves writing a check to create joint fund, buying an asset or taking over delivery centers with a large ticket long term deal commitment. This requires a revised mindset of suppliers and such changing behaviors include,

  • Put skin in the game to partner in large smart sourcing transaction rather than just winning a hefty TCV contract
  • Collaborate with clients to expediting cloud adoption – end of life asset strategies and strike a balance with apt markups to manage cloud contracts
  • Refresh application / software currency delivering services in hyper connected world
  • Enable efficient business processes with platforms that offer predictive and prescriptive capabilities with consumption based pricing
  • Not really offshoring but the right balance with local-shoring offering cost arbitrage
  • Revived business model with competitive margins. Automation is the next frontier for to improve profit margins
  • Progress beyond automation – a software bot is costing about one-third the price of an offshore full-time employee
  • Keep in mind “Digital is default” – partner to digitally reimagine client’s business and transform into AI’led sourcing.

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