Published: 08 April 2022
IT talent shortages, labor attrition and speed of investments in digital transformations drive higher salaries for digital talent, which impacts labor markets. Sourcing, procurement and vendor management leaders must consider key factors when negotiating rate cards for their services contracts.
The IT services delivery model is shifting to “work from anywhere” as service providers and buyers of services continue to formalize their future-of-work policies and address the attrition and talent requirements to meet demand.
Since the pandemic, many providers and buyers have moved to home-based service delivery options. Contractual terms that applied to past outsourcing deals either no longer apply or need to be made stronger and renegotiated to address and support remote working options, such as key personnel or access from home that could become a cybersecurity issue.
Providers are using increasing numbers of resources from contingent labor
Analysts:
Lebo Mabota, Gunjan Gupta, Stephanie Stoudt-Hansen, Rajib Gupta
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