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Reports clash over outsourcing mega deal trends

Flying in the face of what AMR Research recently said about the decline of outsourcing mega deals, Tekrati reports that just the opposite is true. According to TPI (a company specializing in sourcing advice) outsourcing mega deals are not on the decline.
Written by Natalie Gagliordi, Contributor on

scoreFlying in the face of what AMR Research recently said about the decline of outsourcing mega deals, Tekrati reports that just the opposite is true. According to TPI (a company specializing in sourcing advice) outsourcing mega deals are not on the decline. Tekrati had this to say: "The report presents facts that dispute recent media and pundit conjecture about a decline in outsourcing mega deals -- those deals valued at or above US$1 billion -- and several other misconceptions about who is doing mega deals, why and where. For example, TPI shows that BPO mega deals also reached an all-time high in 2004."

The recent media would include statements made by Azim Premji, chairman of Indian outsourcing provider Wipro Technologies, who last week said, "There is a global trend which we've seen over the last six to nine months away from mega deals, and to split them into different areas so that they get expertise in each area," according to Computer Business Review Online.

The freeTPI white paper says otherwise. In both 2003 and 2004, the number of mega deals stood at 19, the highest number in the industry's history according to the firm.The engaging read goes on to debunk several "common myths" about outsourcingmega deals.

So what is going on?If the numbers are to be believed, could it be that AMR and others are off the mark? Can the shifting strategies of a few big outsourcersrepresent the entire market for mega deals?


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