The amount of IT outsourcing business up for grabs, coupled with an eruption of emerging technologies and delivery models, has made 2015 a buyers’ market for IT services. As a result, IT service providers are engaged in a price war the likes of which hasn’t been seen for nearly 15 years, says Steve Hall, partner and global application development and maintenance lead at outsourcing consultancy Information Services Group (ISG).

While Indian providers, whose value propositions have been based on the cost savings generated by labor arbitrage, are most at risk, the downward pressure on prices is affecting all multi-national outsourcers, says Hall. 

ISG Research estimates more than $100 billion of annual outsourcing contract value will be renegotiated over the next 24 months fueling increased competition among buyers.

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