Outsourcing megadeals decline, Gartner says

Fewer outsourcing "megadeals" were signed last year as companies moved towards multi-sourcing to a variety of suppliers instead, said analyst Gartner.

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Megadeals are classed as those being worth more than £500m, said the analyst. In 2007, 10 outsourcing megadeals were awarded, compared with the 12 signed in 2006.

In terms of megadeal total contact value, the total for the 10 megadeals in 2007 was £6bn, the lowest level reported during the past eight years.

Average contract value of megadeals also continued to decrease, from an average of £1.3bn in 2006 to £600m in 2007.