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Global IT outsourcing demand witnessed a marginal increase quarter-on-quarter with 436 outsourcing transactions completed in Q1 2021 compared to 422 in Q4 2020, says a report by Everest Group.
The uptick in global sourcing transactions in Q1 2021 over Q4 2020 was driven by demand for cloud services, cybersecurity, digital engineering and support for the modern workplace.
IT outsourcing market: TCS tops chart with 30 deals in Q4
Digital components up
The share of digital services in these transactions increased significantly as well, with 59 per cent of Q1 2021 deals having digital components whereas only 54 per cent of Q4 2020 deals featured digital components.
For instance, IBM and Tech Mahindra collaborated to enhance their 5G, hybrid cloud, automation, and cybersecurity capabilities as part of their aim towards creating a billion-dollar ecosystem over the next three years.
Demand for techies nearly doubled in last 14 months: ISF
Accenture expanded its partnership with Microsoft to help speed up the UK’s low carbon transition via their joint venture, Avanade. The partnership will help utility and energy companies transform the energy system and lower costs, the report said.
System integration services
Demand for system integration services witnessed an increase in recent quarters. One of the major contributors to this trend is the adoption of advanced technologies such as big data, cloud-based services, Software-as-a-Service and numerous others.
Deals for government and banking, financial services and insurance (BFSI) were the highest among all industry verticals, although BFSI saw a decline quarter on quarter due to fewer deals across banking and capital markets.
Advanced automation — including artificial intelligence, machine learning and cognitive technologies — was included in 16 per cent of those deals, robotic process automation in 13 per cent and analytics in 11per cent.
Globally, companies are heavily focused on leveraging artificial intelligence and there is an increased focus on creating a digitally capable workforce.
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