Bay Area Digital Executive Dinner Series 

Register for the event by completing the form below.

Farallon | 450 Post Street | San Francisco, CA 94102
Wednesday, May 1 at 6pm PT

ISG Partner, Prashant Kelker will present
Implementing & Tracking a Digital Operating Model

TOPIC:  Implementing & Managing New Digital Operating Models

WHY ATTEND:  This session will focus on understanding what others are doing to establish and govern digital operating models in the new world.  We will be speaking to the challenges they face, and how some companies have overcome these challenges – the key topics we will address are:

• How should the organization structure adapt/change to address new digital models, and how have the leading companies executed change management?

• How will the design and execution of technology transformation programs inform and build its required target business capabilities iteratively using an evolving provider ecosystem?

• How do you ensure a solid digital backbone and operating model is established and maintained to scale and ensure quality in your transformation programs?

• How do you harness emerging technologies and bring them to mass scale usage within your enterprise (automation, analytics, ML, cloud, blockchain, etc.)

AGENDA:

  • 6pm PT Networking/Happy Hour:  45 minutes
  • 7pm PT Dinner:
  • Appetizer:  Implementing & Tracking a Digital Operating Mode
    Presented by Prashant Kelker, ISG Partner - Digital Strategy & Solutions
  • Dinner:  Open Q&A
  • Dessert:  Future Topics & Networking

This is a great opportunity to network and learn from peers. Feel free to bring a colleague!

Upcoming dinners:

Date TBD - Palo Alto: Blockchain Reality & Impact

Date TBD - San Francisco: The Automation Journey Conundrum

Expiring Contracts Reach New Highs, Create New Opportunities

What happens when you combine a long-time trend of declining average durations for outsourcing contracts, growing desire for multisourcing, and clients who are increasingly willing to test their leverage with service providers?

You get a record number of expiring outsourcing contracts.

There were 572 outsourcing contracts worth at least $25 million that expired in 2011, which was the fourth straight year to set a volume record. We’re updating our record book in pencil, not pen, because 2012 is on track to set new records for expiring contract volume and value.

Here are key issues service providers need to know about the 2012 expiring contract market:

Expiring Contract Volumes and Values are High

ISG is tracking 686 outsourcing contracts with TCV of at least $25 million that are due to expire in 2012. These contracts collectively are worth $19.5 billion. The volume and collective value would both establish new records. There are 78 expiring contracts with a TCV of at least a quarter billion dollars. This has implications for both incumbent providers and those trying to get their foot in the door, as many of the deals are likely to be multisourced if current trends continue.

The Americas Has a Disproportionate Share

Nearly half of the expiring contract volume and value is with clients in the Americas. Competition will be very strong to replace these expiring contracts, and it looks to be a buyer’s market. To succeed, service providers will have to identify client opportunities early and carefully tailor their pursuits.

Expirations Could Shift Market Share

The Big 5 Americas service providers hold 37 percent of the contract value due to expire in 2012, which is more than any other provider classification. The growing preferences for multisourcing and a best-of-breed approach to sourcing mean exclusive renewal with the incumbent is far from a given, resulting in many new client opportunities for other service providers.

Big Developments in ADM

About one-third of expiring deals in 2012 have an Application Development & Maintenance (ADM) component, which is by far the most of any service line. Enterprise demand for mobile, business intelligence and social media applications has grown significantly since many of the expiring ADM contracts were originally written, so it will be interesting to see which service providers fare well in the new market.

Value is Rising in Most Verticals

Expiring outsourcing contract value in 2012 should surpass 2011 totals in 23 of the 27 vertical industries that ISG tracks. Three verticals – Telecommunications Services, Consumer Durables  and Software & Services – have at least $1 billion worth of contracts due to expire.

These high-level insights are drawn from the 2011 Momentum Market Trends & Insights Annual Report and the Momentum Contract KnowledgeBase. The Contract KnowledgeBase is accessible online via subscription and has detailed about information about thousands of outsourcing contracts, including their expiration date, service lines covered, value, incumbent service provider and more. Contact the author at paul.reynolds@isg-one.com to learn more.

About the author

Paul Reynolds leads Momentum, a division of ISG that provides research services to help service providers better target, win and retain business. Paul has 25 years of market research experience with specific expertise in methodology development, data analytics and research process design. Having found many service providers’ Advisor Relations functions to lack appropriate analytics, Paul is working to develop innovative new approaches that allow for data-driven programs based on the unique needs of each client. His approach benefits Advisor Relations, go-to-market functions, sales, strategy, marketing, and market/competitive intelligence teams.