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The IT outsourcing price wars are on

Stephanie Overby | April 8, 2015
Outsourcing customers are seeing some IT services prices dip as much as 40 percent. But industry experts advise caution during this period of industry transition.

Clients should be clear about their long-term as-a-service strategy as the being part of negotiations over the next 18 months, says Hall of ISG. "This includes broader movement to hybrid and public cloud environments, quicker adoption of Software-as-a-Service solutions, and movement to more agile delivery models that includes extending enterprise applications with services and container technologies that ease the deployment of applications to alternative environments."

"My advice is to be careful only making decisions based on lowest price," says Fersht of HfS Research. "They'll get sucked into years of purgatory with the service provider's 'c-team' if they squeeze them too hard. This is not a new thing either; it's happened to many customers on many deals which simply failed to deliver any value beyond very operational delivery."

 

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