"The market has been changing over the last several years, with the automation of people and processes and with the enablement of cloud and robotic process automation. Sourcing strategies and transactions are also evolving, with non-traditional challengers in the [IT and business process outsourcing] space like Amazon Web Services changing the game on how customers procure and buy. All of this is blurring the lines and driving a migration away from the traditional outsourcing deals," says Rudd.
The combination of more contracts being signed at lower value is an early indication that service provisions are becoming more efficient, says Keppel. That is "something we would associate with more widespread adoption of automation and robotics solutions," he adds. "We are not seeing a massive uptick in specific automation deals, per se. But, based on our volume and value numbers, we believe that the technology is increasingly being embedded within provider solutions."
As the IT outsourcing price wars continue, those providers with strong automation propositions "will likely gain market share," Keppel adds, "while others with less-well-developed capabilities will scramble to adopt the technology to remain competitive in an increasingly price-conscious marketplace."
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