The prevalence of IT outsourcing megadeals valued at $1 billion or more dropped 67% in the first quarter of this year, according to Gartner Inc.
But that doesn't mean IT outsourcing is showing any signs of slowing down, said Kurt Potter, research director at Stamford, Conn.-based Gartner. In fact, company research has found that end-user spending for IT outsourcing will grow at a 7.5% annual rate globally, to $318 billion in 2011.
Outsourcing megadeals
"There are only so many megadeals out there, and 80% to 85% of the largest companies have significant outsourcing deals. We're going to see more deals in the $350 million to $500 million range. Future megadeals will come from government," Potter said, citing last year's announcement that the German military had awarded a 10-year, $9.3 billion deal to Siemens AG and IBM to modernize and run much of its communications network.
