Contract Renewal – Information Technology (IT) Services 2022

Every year, a large proportion of the sourced services market returns to the planning/negotiating table with the expiry of contracts. Most of these deals were originally procured via a competitive process involving Request For Proposals (RFPs), capability assessment, and a shortlisting of providers. Renewals offer providers the opportunity to deliver innovative services and next-generation technology solutions to expand their wallet share amid challenges such as saturation, slowing growth rates and new and more agile competitors. They also provide enterprises the opportunity to make course corrections based on lessons learned during the lifetime of the just-concluded engagements, and adjust their sourcing strategies to suit the current business environment. In the post-pandemic market, vendor consolidation is emerging as a theme across most geographies and verticals, and IT services buyers are not averse to letting go of their non-strategic partners. This shift presents an opportunity for incumbent providers to increase their wallet shares in the client landscape