When it comes to sophisticated, risk mitigated and flexible sourcing strategies and contractual obligations, the UK is considered to be the most advanced market in the world, developing innovative and sustainable relationships.
EquaTerra incorporating Morgan Chambers has been at the heart of creating solutions for the UK and international marketplace for over a decade and has a thorough understanding of the complexities involved in a constantly changing supply market where many of the contracts are now on the second or third time around and the initial cost benefits associated with outsourcing have now been exhausted.
As the market continues to mature we are witnessing a number of fresh challenges facing providers, clients and advisors alike. One of the most recent trends is detailed below.
Consolidation in the IT supplier market.
This has been driven by the rise of niche and offshore providers, plus ‘investor power’. However, the dramatic credit crunch we have seen over recent weeks is limiting the flow of money to fund acquisitions. In the short term at least, it is probable that this risk averse debt market will only lend for small scale, lower risk acquisitions and "no brainers" where the economics are overwhelming. If the shortage of funds for large scale acquisitions continues, this may force CEOs to consider their strategy and shift the focus to smaller acquisitions, funded by targeted divestments.
The 2007-8 UK Service Provider Performance study investigated over 300 outsourcing contracts held by 110 of the top IT spending organisations in the UK. It evaluated £34 billion worth of contracts, accounting for around two thirds of the total UK market. All commercial sectors are represented in the study, as is the public sector, including both central and local government organisations.
Recognised as the most extensive and representative ‘perception study’ on the issues of ICT sourcing in the marketplace today, once again this year’s report uncovered some exceptional findings.
- For more information on the UK please contact Malcolm Swallow.