IT managers steering clear of multi-sourcing

Power in the IT industry is moving away from niche providers to the massive, one-stop-shop suppliers, according to a new report.

According to industry analysts Ovum, the current trend in mature markets is away from multi-sourcing models and towards and ‘ever reducing number of megadeals’.

Jens Butler, principal analyst for Ovum and author of the report, IT Services Contracts: A Single, Trusted Supplier, says 60% of total contract values since 2009 have been allocated to a single, lead supplier.

"The mix of major providers in outsourcing contracts has shifted from the much-heralded multi-sourcing approach to a more contained portfolio of suppliers and services in recent contracts,” Butler says.

"The more mature markets are moving towards consistency in contract size and length, enabling suppliers the ability to plan and think strategically and develop value that can be delivered through the lifecycle of the contract.”

Go here for more on the report.

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