TECH SUPPLIER May 2021 - Market Presentation - Doc # US47688721

Worldwide and U.S. Outsourcing (Managed Services) Deal Analysis: 10-Year Trend, 2020 in Review, and 2021–2022 Renewals

By: Xiao-Fei ZhangResearch Director, IDC Global Services Markets and Trends, Veronica HernandezManager, Contract Services Data Base, Latin America

On-line Presentation

Abstract

This IDC Market Presentation provides an overview of outsourcing/managed services deal signings in the past 10 years, including a historical perspective of the outsourcing market and an in-depth analysis of 2020 signings. Looking beyond the COVID-19 pandemic, this document also discusses COVID-19's potential long-term impacts on future renewals and new signings.

"The outsourcing market has overall weathered better in 2020 than others," said Xiao-Fei Zhang, program director, Services Contracts Analysis and Services Tracker at IDC. "The COVID-19 pandemic did shave a few percentage points of revenue growth of most large vendors last year, and the market was virtually flat, according to our services tracker numbers. But outsourcing signings have been relatively robust. Many vendors reported book-to-bill ratios above 1, especially in the third quarter and fourth quarter. This should portend a revenue bounce back this year. Overall, the COVID-19's negative impact (on last year's signings) was milder than expected."

"Going forward, vendors and buyers will brace for recovery and reopen," said Xiao-Fei Zhang. "Renewals and new signings this year should be encouraging, at least based on what we have seen in the first quarter. Looking beyond 2021 and 2022, we will be putting this pandemic behind us, but it will have a lasting impact on the 'new norm'."


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