Changing anatomy of large outsourcing deals

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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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