Strategic drivers behind IT outsourcing mega deals

Abstract

In today s business world, competition has become fierce and sophisticated. Companies worldwide are striving hard to operate as efficiently as possible and pass on the savings to the end consumers, in a bid to stay ahead of the competition. In the process, many companies are resorting to outsourcing of large areas of their operations to IT solution providers. IT companies, in turn, have to continuously innovate and come up with ways to reduce costs, increase efficiency and identify differentiators not only for their own organizations but also for their customer organizations. In the midst of this dog eats dog global competition, customers are true beneficiaries by demanding additional value, process innovation and business transformation from suppliers. During the course of the last decade, many of the IT services offered by the major players in the industry have almost been commoditized, with hardly any differentiation in the offerings. Winning large deals is what seems to be the driver behind sustenance, which leads to innovation and moving up the value chain. While small and medium contracts cannot be ignored, it is these large deals which serve as a testimony to the capabilities of an organization and help break into the top of the pyramid as established players. Through this project we intend to study the drivers of multi-billion dollar deals from the perspectives of both the outsourcer and vendor in the IT services industry.