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Digital disrupts traditional outsourcing market in 2016

Stephanie Overby | Jan. 27, 2017
The value of traditional outsourcing engagements have fallen to levels not seen since the recession, but as-a-service arrangements continue to grow.

Indeed, the old school mega-deal is largely a vestige of another outsourcing era, with fewer signed every year. “Going forward, we expect such contracts will be mostly renewal-based extensions of larger first- and second-generation transactions,” Keppel says.

Looking ahead, traditional IT and business processing outsourcing will have its place. “But the as-a-service solutions that fuel digital transformation are becoming more attractive,” says Keppel, “especially as pricing and margin pressure push businesses to take out cost, and competitive pressures force them to find innovative new ways of connecting with customers.” That will require technology service providers to meet new customer demands for speed, mobility, innovation and increased productivity by investing in new digital platforms and services and adapting their delivery models for the new market.

 

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