Summary

Over the last 10 years there has been a discernable decline in the number of outsourcing transactions over $250 million in total contract value. This relentless migration resulted in a shift toward smaller, more flexible outsourcing deals and leads to an increasingly fragmented supplier landscape. While the benefits of more focused, flexible, shorter-term deals meet many outsourcing buyers’ needs, the megadeal segment remains alive and well, albeit fueled by different forces than just a few years ago and substantially smaller than in the past. Today’s large deal typically results from one of two primary buyer motivations:

• Secure substantially better economics by consolidating outsourcing spend from multiple suppliers into a single transaction with a sole provider
• Pursue true transformational outsourcing across the enterprise, bundling activities that are key to unlocking significant gains in business performance

This Executive Perspectives note focuses on the second of these – transformational outsourcing.