India’s IT services vendors wary of making long-term commitment to single vendors: Report

Bengaluru: The evolving digital economy is leading to smaller and shorter deals for IT services vendors in India, which could reflect the fact that enterprises are increasingly becoming wary of making a long-term commitment to a single vendor, according to GlobalData, a data and analytics company.
GlobalData said that the average outsourcing contract deal size amongst the Indian IT services vendors has come down to $17.2 million in the first half of this year from $22.9 million during the same period last year.
Similarly, the average contract duration for Indian vendors has come down from 40.2 months to 35.8 months during the same period, it added.
“The trend is still in its infancy, which gives the Indian IT players sufficient time to adapt to the changing business environment and transform themselves,” said Nishant Singh, Head of Data for Technology and Telecoms at GlobalData.