While traveling in India recently I didn't get a chance to respond to a post by Phil Fersht, who was writing in response to my own blog of January 10 making some predictions about 2007.
By our estimates, about one in five ITO deals worth more than $50 million rely on an advisor (a look at Advisor IT Marketshare). As the ITO marketplace has become mature - with established providers, experienced buyers, lessened employee transfers and capital asset components, and better-defined services - many corporate procurement organizations undertake their ITO endeavors without calling upon experts. What might change that percentage in 2007? Certainly the increased use of offshore delivery models, and complex multi-sourcing arrangements, are providing reasons to call upon specialized expertise.
From our own experience in the recent year, I can tell Phil that we're seeing almost as much activity in the under-$50M segment as we are in the over $50M segment. Size doesn't matter as much as complexity.
Do you have a question, comment or suggestion?
