Menu
Gartner: Outsourcing megadeals remain scarce

Gartner: Outsourcing megadeals remain scarce

Further slowdown expected in the first half of next year

Large outsourcing deals signed by businesses increased in number last year, but they remained rare compared to pre-2007 figures.

That is the conclusion of research by Gartner, which found 12 deals of over US$1 billion were signed globally with individual suppliers last year, compared to 10 in 2007. The largest deal signed was $2.5 billion.

While the total value of megadeals was $17.1 billion, a near 50 percent increase on the $12 billion in 2007, this represented a slump on pre-2007 values, Gartner said in its 'Outsourcing contracts annual review'. From 2000 to 2006, the average annual total value was $28 billion.

"With the increasing popularity of selective sourcing and the trend toward greater control of the buyer, we continue to see both the average value of a deal, and the average duration of a deal decline," said Dean Blackmore, senior research analyst at Gartner.

In 2008, Europe, the Middle East and Africa overtook the Americas as the leading geographic region in terms of the volume of deals signed. Some 162 deals were signed in EMEA compared to 158 in the Americas.

Gartner said there was "softness" in large deal signings, but "no catastrophic decline". Nevertheless, it expects to see a greater slowdown in the first half of next year as IT budgets tighten.

Organisations were still outsourcing for cost, efficiency, access to skills, to focus on their core business, innovation, modernisation and business transformation, Gartner said.

Follow Us

Join the ARN newsletter!

Error: Please check your email address.

Tags Gartneroutsourcing

Upcoming

Slideshows

IN PICTURES: VMware's VMworld 2015 day 1 (+13 photos)

IN PICTURES: VMware's VMworld 2015 day 1 (+13 photos)

VMware has kicked off VMworld 2015 in San Francisco and the first day saw keynotes from its president and CEO, Carl Eschenbach; executive vice-president and general manager, Bill Fathers; and executive vice-president and general manager of SDDC, Raghu Raghuram; amongst others. VMware also made Cloud-related announcements and demonstrated its latest technology.

IN PICTURES: VMware's VMworld 2015 day 1 (+13 photos)
IN PICTURES: 2015 Microsoft Australia Partner Awards (+21 photos)

IN PICTURES: 2015 Microsoft Australia Partner Awards (+21 photos)

The achievements of Microsoft’s Australian partners over the past year have been recognised through a number of prestigious awards announced at the 2015 Microsoft Australia Partner Conference (APC) on the Gold Coast. The Microsoft Australia Partner Awards showcased partners delivering innovative solutions and services to customers, with many embracing Microsoft’s Cloud solutions. Awards were presented in 17 categories. The winners were chosen from more than 170 nominations. With more than 11,000 partners in Australia it was a competitive field. Photos by ARN Editor, ALLAN SWANN.

IN PICTURES: 2015 Microsoft Australia Partner Awards (+21 photos)

iasset.com is a channel management ecosystem that automates all major aspects of the entire sales, marketing and service process, including data tracking, integrated learning, knowledge management and product lifecycle management.

Show Comments