Two major trends led to lower prices for outsourced IT services last year–the global economic downturn and the uptick in remote infrastructure management (RIM) adoption.
With the financial picture still far from clear and companies remaining interested in offshoring and remote infrastructure management to save money, outsourcing prices this year should follow a similar–if less dramatic–path downward, according to first quarter IT service price analysis from ProBenchmark, the pricing subsidiary of outsourcing consultancy Alsbridge.
“How long the economy will be like this and how long client companies will continue to more aggressively [offshore] infrastructure remains to be seen,” says Chris Pattacini, ProBenchmarks’s director. “It is clear that RIM will continue to proliferate in the market, continuing that downward price pressure, but not as much as last year.”
Another factor causing outsourcing prices to drop is contract renegotiation, according to ProBenchmark’s Howard Davies. He says clients are responding to tough times by renegotiating with their vendors on price
Source:http://www.networkworld.com/news/2010/030410-outsourcing-prices-still-headed-down.html
