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Thursday, December 22, 2005

The Coming Restructuring Of The Outsourcing Market

New flurry of deals amidst a near miss of a potential takeover by CSC shows that a lot more action await us ahead. Everest Group sees trends in the global outsourcing industry point to a market ripe for restructuring. Peter Bendor-Samuel, chief executive of Everest Group views that a number of trends are converging and market-changing drivers are coming into play-from the coming of age of the major Indian suppliers, to the unbundling of contracts where deal size is getting smaller. Contracts are getting shorter and work is being spread across multiple providers, and large outsourcing contracts signed in the 1990s are coming up for re-bidding. Look at this well compiled list of top ten events in outsourcing in 2005. This in essence means that the global industry is beginning to see industry consolidation and leadership changes, among other things and is on the verge of restructuring, resulting in a redistribution of wealth across the entire spectrum of suppliers, buyers and investors.

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Sadagopan's Weblog on Emerging Technologies, Trends,Thoughts, Ideas & Cyberworld
"All views expressed are my personal views are not related in any way to my employer"