Outsourcing is set to continue its decade-long decline in deal size,according to an analysis of last year’s activity despite the numbers of mega deals and mid-range contracts remaining relatively stable since 2002
Those valued at $100 million (£63 million) or less have more than tripled, according quarterly data from outsourcing consultancy Information Services Group (formerly TPI).
The shift toward smaller IT services deals has been happening for the past several years, with sub-$100 million deals holding steady at around 70 percent of contracting activity since 2009, according to ISG. While IT contracting activity in 2011 increased by 8 percent over last year and is up 86 percent since 2005, total contract values declined slightly year-over-year in the fourth quarter, and the full-year total of $66 billion represented a 6 percent decline over 2010.
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