Nov

26

According to global business analyst, IDC– the sum value of the top 100 outsourcing deals worldwide in 2007 is USD58.6 billion;  39.2 percent lower than 2006.

And the number of outsourcing deals that amount to USD 1 billion or more: “mega-deals” have decreased from 29 in 2006 to 14 in 2007.

What could this mean?

For one, it could mean we just pay way too much attention to BIG numbers. Not that big numbers are not attractive or valuable, but a little perspective on the present circumstances would be prudent rather than going on a panic.

Companies are tight on their budgets this year, that is a given in the face of some countries suffering recession and other regions that are about to suffer. I just find it somewhat ridiculous the implication that number of mega-deals are supposed to maintain its figure this year or perhaps even more ludicrous, increase.

It is common sense that numbers would be lower this year not only because just of the worldwide recession woes but consider how many companies can do such mega-deals.

I am sure one cannot count all with just one hand, but maybe with a pair of hands? Or perhaps three pairs of hands? Not every registered business organization can do USD1 billion outsourcing deals and when ever they can, the deal pretty much covers a half-decade’s worth of services and support.

To hope to see a rise in major outsourcing deals is a bit too much, I think.

Outsourcing Solutions, Inc. – your outsourcing partner!

 

References:

  1. Reidy, Chris. “Market softens for outsourcing megadeals.” 24 November 2008. The Boston Globe. Accessed 26 November 2008. Link here
  2. Mahlong, Audra. “Outsourcing megadeals decline.” 26 November 2008. IT WEB. Accessed 26 November 2008. Link here

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