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. Anatomy of Large Outsourcing Deals is changing demanding  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.

Related Article: Supplier Negotiation Strategy: How to negotiate with a powerful supplier?

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Selling Outsourcing Services in the Digital Age

As the great boxer Mike Tyson said, “Everyone has a plan until they get punched in the mouth.” In the context of a legacy outsourcing agreement, that punch has come in the form of robotic process automation and artificial intelligence. Make no mistake about it, we are experiencing the fastest technological evolution in history, and the outsourcing industry is leading the charge.

To succeed in the digital outsourcing age, service providers will have to transform their pricing, staffing, and delivery models, and the legacy outsourcing agreement must follow suit. Selling Outsourcing Services in the Digital Age asks difficult questions, challenges the status quo, and leads you through the process of negotiating an outsourcing agreement that accounts for the deployment of digital technologies and facilitates timely, quality, and cost-effective delivery.

Do not be afraid: in chaos comes opportunity, and Grant Lange’s expertise in negotiating outsourcing agreements will guide you through safely. Humans can and will peacefully co-exist with the robots. Buckle up−it should be a wild ride.