Upcoming Contract Renewals – Application Services

Introduction

Enterprises are beginning to challenge the traditional engagement models and deal constructs as newer mechanisms of pricing and consuming services emerge. While larger service providers are investing in expanding their solutions portfolio, they are getting challenged by newer and more agile competitors that want to grab a larger wallet share. Renewals and recompetes provide an opportunity for these newer players to make their presence felt amidst disruptive technology changes. Buyers, on the other hand, can also correct their course based on lessons learned during the engagement and adjust their sourcing strategy to suit their changing business environment.

In particular, buyers of Application Services (AS) with longer, multi-tower engagements are pushing the productivity agenda and are not averse to considering alternate service providers to derive the most value.

Over US$68 billion worth of ITS and BPS contracts are up for renewal in the 24-month period beginning January 01, 2016. This report explores trends in such upcoming renewals.