New analysis by Gartner says the IT outsourcing industry is at the beginning of a period of rapid and dramatic change marked by consolidations and some business failures as a result of the current economic downturn.
“As providers are exposed to the economic crisis, loss-making contracts, and an inability to adapt to standardized delivery models, many will struggle to survive in their current form,” says Robert Brown, research vice president at Gartner.
In light of its pessimistic prognostication, Gartner analysts are recommending that IT executives entering into outsourcing agreements should seek information on the outsourcing vendor’s profitability and business activity, making sure the vendor is not heavily leveraged and that there is a comfortable level of transparency.
EasyStreet, by the way, agrees with the Gartner recommendations. We pride ourselves in our transparency and financial stability. Most importantly, we want our clients to be secure in their relationship with EasyStreet.