Outsourcing Deals are Changing

Filed in archive Opinions & Insights on January 31, 2007

I guess I could rename this blog entry as "Megascope vs. megadeals".

Gartner recently mentioned that for the year 2007, Megascope deals are prevalent and the number of megadeals are declining. Before, megadeals dominates the outsourcing sector but this trend is about to change.

Let me differentiate these two trends in outsourcing deals. Megascope deals are outsourcing contracts which covers a wide scope of tasks which are outsourced. On the other hand, megadeals are outsourcing deals which focuses on only one or two outsourced tasks but the outsourcing value is much higher.

Megascope deals is preferrable for small and medium-sized business because they could have more outsourcing benefits with this approach. On the other hand, this prediction for the year 2007 does not an end to megadeals. According to Kurt Potter, research director for Gartner megadeals would still be practiced but this would be more suitable for larger organizations.