The rising dissatisfaction among enterprises with respect to traditional issues such as project management, execution, and pricing as well as lack of meaningful innovation, coupled with disruptive factors such as saturation, slowing growth rate, and new and more agile competitors, has led to the creation of ample opportunities for non-incumbent players to expand their wallet share.
This research provides a detailed analysis of renewals coming up in the next two years with a focus on application services. Additionally, the report also provides key considerations for service providers for deal renewals in order to strategize their approach towards renewals in the face of increasing discontent among enterprises.
The objective of the report is to provide a 360-degree view of the renewal market with a focus on application services including bundled deals to understand key renewal trends across geographies, industries, functions, and service provider categories. Apart from 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 analysis
The analysis 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 from structured interviews with 130+ enterprises that were shared as references by the service providers during the various assessments undertaken by Everest Group across applications, digital, cloud, and infrastructure services over 2016.
The research focuses on innovation in Application Services and includes:
- Analysis of ITS and BPS deals (deal volumes, contract sizes, and contract durations) nearing end of term by buyer geography and buyer industry
- Trends in AS and bundled deal renewals by buyer industry, buyer geography, and service provider category
- Analysis of AS contract renewals by scope across geographies
- Key considerations for service providers for improving deal renewal success rates