Today’s global outsourcing market is characterized by increasingly intense competition and downward pressure on pricing. The big-ticket, long-term ‘mega deal’ that was once a staple is now an anomaly. Client organizations have a larger pool of viable service providers to select from, scope is narrower and deal sizes are trending smaller over the long term. A service provider awarded a contract is often one of many organizations in a multi-vendor delivery mix, and is encouraged to integrate with competitors or risk losing their existing footprint.
This evolution presents opportunities and challenges for both buyers and providers. Clients have a wider variety of options and can leverage specialist capabilities, but risk choosing the wrong vendor or missing out on a rising star. Service providers, meanwhile, have access to new deal opportunities, but must guard against spreading themselves too thin by chasing too many deals, and face the task of articulating their value proposition in an increasingly crowded and noisy space.
This ISG white paper examines key trends in the outsourcing marketplace and their impact on service provider go-to-market strategies.
ISG White Paper