Long-term outsourcing deals of 10 years or more have been slammed by IT managers as lacking the flexibility to respond to the rapidly-changing IT environment.
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In the past two weeks, a £700m 10-year deal between Bank of Scotland and IBM, and a 12-year deal between Rolls-Royce and EDS, worth £1.3bn have been signed.
But IT managers are sceptical about the value of long-term deals. The Computer Weekly/Harvey Nash Big Question poll found that only 15% of IT managers believe such agreements could be flexible enough to cope with rapidly changing IT environments. In contrast, 72% dismissed long-term deals as unrealistic.
"The IT landscape changes so rapidly that entering into such a long-term agreement is foolish," said one IT manager.