Reviewing 2013 IT Outsourcing Predictions

Some predicted that the latest generation of outsourcing deals would be complex and that incumbents would have the advantage. However, while deals in 2013 were more complex, quite the opposite came to pass regarding incumbents.

“Incumbents are always ‘sticky’ because of high—or perceived high—barriers to exit,” said Mario Dottori, head of Pillsbury’s Washington, D.C. global sourcing practice. “We have seen more movement away from incumbents where there are lower barriers to exist. Customers are balancing the switching costs and risks with significant improved service delivery and meaningful reduction in spend.”