Upcoming Contract Renewals – Infrastructure Services: “Over 40% Incumbents Replaced Annually; Providers Beware!”

23 Feb 2017
by Ashwin Venkatesan, Chirajeet Sengupta, Yugal Joshi

Enterprise dissatisfaction is at an all-time high with respect to traditional issues, such as project management, execution, and pricing, as well as lack of meaningful innovation. Additionally, disruptive factors such as saturation, slowing growth rate, and new and more agile competitors, have given rise to ample opportunities for non-incumbent players to expand their wallet share. Therefore, it is not surprising that 40% of the infrastructure engagements signed over the last two years have seen the incumbent being replaced.

This research provides a detailed analysis of the renewals coming up in the next two years, with a focus on infrastructure services. The report also offers key considerations for service providers looking at deal renewals, in order to help them strategize their approach towards renewals in the face of increasing discontent among enterprises.

The objective of this report is to provide a 360-degree view of the renewal market, with a focus on infrastructure services including bundled deals to understand key renewal trends across geographies, industries, functions, and service provider categories. Apart from the key trends, the report aims to address key enterprise considerations for deal renewals, to enable service providers understand the true enterprise pulse.

Scope of the research

The analysis shared in this research is based on Everest Group’s “Transaction Intelligence Database,” the most comprehensive organized record of publicly-announced outsourcing deals. The key considerations for deal renewal have been derived based on structured interviews with 130+ enterprises. References of these enterprises were shared by service providers during the various assessments undertaken by Everest Group across applications, digital, cloud, and infrastructure services over 2016.

Contents

  • Analysis of the Information Technology Services and Business Process Services markets with deals in scope that are to be renewed over the next two years, and beyond
  • Key vertical, geographical, and scope-based analysis with a focus on infrastructure services (IS) and bundled contracts
  • Deep dive analysis of IS and bundled contracts across geographies by scope
  • Key considerations for service providers to improve deal renewal success rate

Membership (s)

Cloud & Infrastructure Services

 

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