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'Business as usual outsourcing' leads to decline in 'megadeals'
 
Outsourcing is now "business as usual" for many companies, research claims.

This has led to a decline in "megadeals" - those over $1 billion (£0.51 billion) - according to industry analysts.

Kurt Potter, research director at Gartner, says this creates a "false impression" that outsourcing is decreasing.

Providers are looking at smaller contract strategies as a result of "new market realities", according to Mr Potter.

He explains clients are testing providers' capabilities and cultures before opting for larger contracts or using smaller ones before they decide on their main outsourcing partner.

"Many providers are forced to pursue larger contracts to meet growth expectations," he adds.

"Despite this pressure, providers should continue to evaluate different or at least accommodate go-to-market and product portfolio strategies for smaller clients."

Recent research by analysts Freeform Dynamics suggested a strategic approach to IT outsourcing could help businesses increase their decision making efficiency.

Companies need to align various approaches to make decisions, the company added.

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