itb-nz logo
Story image

IT contracts worth $48.5bn up for renewal in APAC

As more than 1,400 information technology (IT) contracts worth an estimated US$48.5bn in the Asia-Pacific (APAC) region are set to expire between 2020 and 2024, both clients and vendors should adopt a collaborative approach to share risk outcomes, according to data and analytics firm GlobalData.

An analysis of GlobalData's IT Services Contracts Database reveals that nearly 60% (843) of the contracts with an estimated contract value of US$16bn are set to expire in 2020, followed by 293 contracts (US$14.2bn) in 2021.

"A major portion of the contracts expiring in 2020 are in the infrastructure outsourcing and business process outsourcing areas, with the former accounting for approximately US$9.3bn of the total contract value estimated to cease in 2020," says Sunil Kumar Verma, lead ICT analyst at GlobalData.

"The deal renewal strategies to be adopted by the vendors might be quite interesting, as a major portion of these deals are in the government sector.
In 2020, contracts worth US$3.5bn will be up for renewal in the government sector and nearly contracts worth US$12.2bn (equivalent to around 25% of overall contract value) are set to expire during 2020-2024," he says. 

Additionally, the value of contracts set to expire in the telecommunication, and banking, financial services and insurance (BFSI) verticals in 2020 is estimated to be US$2.7bn and US$2.3bn, respectively.

"Contract signings and renewals in the coming years will be more outcome based, as clients continue to assess the vendors value provided via contracts and their potential for future relationships," says Verma.

"In a nutshell, a more collaborative approach from both clients and vendors will become important, as together they would be sharing the risk outcomes."

Story image
ServiceNow extends Microsoft partnership with new Teams functionality
Powered by ServiceNow’s digital workflow platform, the Now Platform, the new capabilities are also said to improve agent productivity by enabling them to more effectively collaborate and complete key tasks in Microsoft Teams.More
Story image
Gigamon and Nokia deliver 5G network visibility solution
The purpose-built joint 5G solution delivers real-time analytics to enhance the customer experience and maximise investment impact.More
Link image
<span class="coloured">Unleash the intelligent way to automate at Pega Discover – Intelligent Automation</span>
Find out how the world’s largest brands are accelerating business and simplifying systems in this two-hour, interactive virtual event. By the end you’ll be primed to start getting business done smarter and faster while scaling toward your biggest business goals. Register Now.More
Story image
New Relic recruits former Qlik, Delphix execs to boost A/NZ team
"We are absolutely thrilled to have two very seasoned executives join us at New Relic as we help customers chart and execute on their plans for digital delivery and cloud services."More
Story image
Spark removes data caps on wireless broadband
Spark New Zealand has removed data caps on its Unplan Metro, giving almost a third of addresses across the country access to an uncapped wireless broadband plan.More
Story image
Evolving threat landscape top priority for security and risk leaders
"COVID-19 has proved how rapidly and how drastically such risks can change."More