Last year was one of the strongest ever for the IT services industry, but providers will have to make changes to thrive in the current buyers’ market.
Double-digit growth in the fourth quarter capped off one of the best years ever for the global outsourcing industry, according to analysis by outsourcing consultancy Information Services Group (ISG).
Total annual contract values were up 16 percent from 2013 to $23.1 billion last year—the third best year in the last decade—driven by a buyers’ market, a rise in contract restructuring, and an increase in mega relationships, according to ISG. The number of contracts last year signed inched up 4 percent to 1,218—the second-highest number of deals ever signed in a single year:
- Positive Economic Conditions Favorably Impact IT Outsourcing Deals
- The New Normal: Mega-Relationships, Restructured Deals, Shorter Contracts