Trends Report

Overview Of Outsourcing Advisory Firms

What Customers Should Know About The "Dealmakers"

January 12th, 2007
With contributors:
Francesca Bartolomey , Tom Pohlmann

Summary

Forrester estimates that the worldwide IT and applications outsourcing market is now worth about $120 billion per year. Because multiyear outsourcing deals are common, even a conservative estimate is that outsourcing agreements lock up more than half a trillion dollars of total contract value (TCV). IT and procurement executives frequently turn to outsourcing intermediaries to help build successful deals. The technology trappings of IT outsourcing have been subject to endless scrutiny, but successful outsourcing relationships are built on deals that in many cases get crafted with guidance from specialized consultants — dealmakers who wield tremendous sway over customers, suppliers, and the overall sourcing industry. Forrester interviewed representatives from some of these advisory firms to help IT and procurement executives make more informed sourcing decisions.

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