IT Services Outsourcing Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Every organization and its procurement team look forward to negotiating the best deal while procuring a set of products or subscribing to services. Rate benchmarking involves price/cost comparison of more than one set of products/services to analyze the most efficient combination that can potentially help the procurement team in getting the optimum rate.

On an average, based on real-world instances and industry data, the price per hour for software development projects can vary from $24 to $149 based on the location, technology stack, and project's complexity. Projects on the higher end of the range can need specialized knowledge or cutting-edge technologies. The price of infrastructure management services can be expressed as a monthly charge or as a percentage of the devices or servers that are maintained. For small to medium-sized firms, the typical monthly cost might vary from $499 to $1,999.

Cost incurred on data analytics services can vary depending upon the variables such as amount of data, the intricacy of the analysis, and the intended insights. The price involves hourly charges ranging from $49 to $299. Technical support services can be paid for on a monthly retainer basis or according to the quantity of people or devices they assist. Depending on the extent of support and service needs, the monthly fee might vary from $14 to $49 per user/device.

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Labor cost is one of the key components of the total incurred costs while offering a product or service. Therefore, an organization must decide on whether the focus category should be retained in-house or outsourced if the organization is providing its products or services at competitive prices. If the organization decides in favor of outsourcing, it must understand the difference in the salary structures of suppliers before selecting a supplier and formulating a negotiation strategy.

According to our research, Software Developers working in Accenture plc and IBM Corporation receive a 10% - 15% higher base salary compared to the salary received by Software Developers working in Amadeus IT Group and Pointwest Technologies Corporation. However, the year-on-year increment rate in all these companies majorly depends on the Key Result Areas (KRAs).

Organizations may find it cumbersome to continuously track all the latest developments in their supplier landscape. Outsourcing the activities related to gathering intelligence allows organizations to focus on their core offerings. At this juncture, our newsletter service can help organizations stay updated with the latest developments and innovations and subsequently assist in preventing disruptions in the supply chain. We have identified the following developments within the IT Services Outsourcing category over the last two years:

In November 2023, Accenture plc announced acquisition of Innotec System S.L.U. from Entelgy Group. The acquisition will add over 499 cybersecurity specialists to Accenture’s existing security workforce and increase its capacity to offer clients critical cybersecurity knowledge and skills and position itself as one of the leading providers of MSS (managed security services) in Spain.

In October 2023, IBM Corporation announced the acquisition of Manta Software Inc. This acquisition will help IBM to enhance its offerings in ‘watsonx.ai’, ‘watsonx.data’, and ‘watsonx.governance’ product space and support business enterprises in offering highly quality products, as increasing integration of artificial intelligence (AI) into business workflows and the complexity of data has made data quality and explainability crucial components of company strategies and systems.

In September 2023, Infosys Limited announced the acquisition of Danske Bank’s IT Centre in India. Infosys was chosen by Danske Bank as a key partner to scale and expedite digital transformation projects. Through this partnership, Danske Bank will be able to fulfill its strategic goals of improving client experiences, achieving operational excellence, and modernizing its technological environment with next-generation solutions.