When an enterprise chooses to renegotiate its IT services, it does so in search of something better—better contracting terms, better performance, better solutions. In the past, expiring contracts were, more often than not, renewed with the incumbent provider, and enterprises would hope for the best. But today’s business decision-makers are less and less averse to change, and the cost of switching providers is no longer the deal-breaker it once was. The reality is, companies are increasingly willing to invite new service providers to sit at the negotiation table and square off with their incumbent.
Indeed, research from ISG that looks at recent renegotiation activity suggests a major change is upending the sourcing industry. And with thousands of IT outsourcing contracts coming up for rebid in 2018, that change could prove to be significant. What’s going on?
I explore this question in The Incumbent’s Dilemma: Enterprises Changing Service Providers at an Accelerating Rate in CIODive.com. Read the article and contact me to discuss further.
About the authorTodd Lavieri is responsible for ISG’s largest region, encompassing the United States, Canada and Latin America and representing more than half of the firm’s revenue. He also is responsible for the Pacific subregion, including Australia and New Zealand. He joined ISG in July 2014 with 24 years of experience in the global services industry.
Previously, Todd was with IBM, where he served as general manager of IBM Global Consulting and more recently as general manager, Global Business Services, IBM Canada. Before joining IBM in 2010, Todd was president and CEO of Archstone Consulting, a strategy and operations advisory firm he founded in 2003 and sold to The Hackett Group in 2009. Earlier, he was a partner at Deloitte Consulting and a member of its Global Management Committee during a distinguished 13-year career with the firm.
An expert on business transformation and growth strategies, he has personally advised Global 1000 clients across such sectors as manufacturing, retail, life sciences, healthcare, energy and consumer products. Todd is a graduate of Trinity College, Hartford, Connecticut, and holds an MBA from Duke University’s Fuqua School of Business.
About the author
Todd D. Lavieri
Todd Lavieri is Vice Chairman of ISG, working closely with the executive leadership team on corporate strategy and governance matters. He also is responsible for ISG Americas – the firm’s largest region, encompassing half of ISG’s revenues – and ISG Asia Pacific. He joined ISG in July 2014.
Previously, Todd was with IBM, where he served as general manager of IBM Global Consulting and more recently as general manager, Global Business Services, IBM Canada. Before joining IBM in 2010, Todd was president and CEO of Archstone Consulting, a strategy and operations advisory firm he founded in 2003 and sold to The Hackett Group in 2009. Earlier, he was a partner at Deloitte Consulting and a member of its Global Management Committee during a distinguished 13-year career with the firm.
An expert on business transformation and cost optimization services, he has personally advised Global 1000 clients across such sectors as manufacturing, retail, life sciences, healthcare, energy and consumer products. Todd is a graduate of Trinity College, Hartford, Connecticut, and holds an MBA from Duke University’s Fuqua School of Business.
