The number of 'mega-deal' outsourcing contracts awarded to a single supplier is declining as more companies opt for multiple outsourcing deals, according to new research from Gartner.
The analyst firm classes mega-deals as having a value of more than $1bn. Ten such deals were signed in 2007, down from 12 in 2006.
"The decline in reported outsourcing contracts can be partially explained by the fact that outsourcing is now 'business as usual' for many enterprises," said Kurt Potter, research director at Gartner.
"There is more outsourcing activity, but fewer deals on average are reported and this creates the false impression that outsourcing is decreasing."
In all other measures, the overall size of single outsourcing deals is also declining. The total contact value for the 10 mega-deals in 2007 was $12bn, the lowest level during the past eight years. The closest level was $20.3bn in 2001.
The average contract value of mega-deals also continued to decrease, from an average of $2.6bn in 2006 to $1.2bn in 2007.
Of the total contact value of all outsourcing deals reported in 2007, Gartner said that mega-deals represented 39.4 per cent of the contract value and represented only 6.8 per cent of the number of total contracts in 2007, down from 7.4 per cent in 2006.
Although deals with less than $50m in total contact value continued to increase, and reached 39.5 per cent of the total number of contracts, they only represented 3.3 per cent of the total contact value for 2007.
New regulation expected to cut greenhouse gas emissions by about 17 million metric tonnes between 2020 and 2050
Molybdenum ditelluride is a two-dimensional material that can be easily stacked into multiple layers to create a memory cell
New light-guiding nanoscale device can control and monitor a nanoparticle trapped in a laser beam with high sensitivity
Optical traps are scientific instruments in which a focused laser beam is used to exert an attractive or repulsive force on a microscopic object to hold it in place
Scientists estimate that the exoplanet has already lost up to 35 per cent of its mass over its lifetime