Gartner Research

Outsourcing Trends, 2011-2012: Exploit Opportunities From the Evolution of Contract Structures

Published: 20 January 2012

ID: G00226179

Analyst(s): Dean Blackmore , Allie Young

Summary

This research is part of the "Gartner on Outsourcing, 2011-2012" Spotlight. Buyers of outsourcing services can use this document to better understand the market dynamics that affect outsourcing contract structures and approaches so they can make choices that ensure long-term, beneficial contracts.

Table Of Contents
  • Overview
  • Impacts

Analysis

  • Key Challenges and Trends in 2011 and 2012
  • Impact 1: Desire for Greater Control, Flexibility, Increased Contract Manageability and Buyer Maturity Increase the Likelihood of Multivendor Outsourcing Strategies, but This Demands Effective Governance and OLAs
  • Impact 2: Continued Risk-Averse Fiscal Diligence, Along With IT Budget Constraints, Drives More-Cautious Contracting Practices, Cost-Focused Decision Making, Shorter Contracts (Term and Value) and New Considerations of Alternative Models/Pricing — but Also More Renegotiation
  • Impact 3: Cost-Focused Buyer Priorities, Hypercompetition, and Buyers' Protracted Outsourcing Decision Making/Sales Cycles Compromise the Likelihood of Deal Success
  • Impact 4: Economic Uncertainty Creates Reluctance to Hire or Make Large Capital Purchases and Increases Consideration/Adoption of New Cloud Delivery Models, Which Requires New Contracting Expertise

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