Outsourcers are taking aim at smaller companies as mega-deals dry up, and will need help from smaller players to get into the market.
"The very large deals are few and far between and are do-or-die situations, so companies are betting on the mid-market," Keith Wilman, vice president of managed services at Computer Sciences (CSC), told vnunet.com.
Wilman explained that the only way the large services houses are able to attack this market is through alliances with niche players. CSC uses smaller organisations, such as Fox IT, to service smaller customers.
Outsourcing is one of the few areas in which analysts are predicting growth in the UK this year.
Other large services houses, which are also attempting to focus on the mid-market as the big outsourcing deals dry up, will need similar partnerships, said Wilman.
"There are a lot of these partnerships coming up. To address the whole market, you can only do it through partnerships," he maintained.
The smaller companies that CSC is targeting may have IT departments as small as 100 people.
"We have some outsourcing deals in the hundreds of thousands of pounds [bracket], but these might be tied to an ongoing SAP support deal that is worth £2m," Wilman said.
"These companies are putting their toes in the water and, once they are comfortable and realise it delivers savings, they are doing more. It is also blue chip companies [which haven't outsourced before] that are putting a toe in the water," he concluded.
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