Tuesday, 25 July 2017

Managing global contracts

By Joe Gallagher and Alex Phelps, KPMG
Wednesday 18 November 09

The major players in the outsourcing market are more focused than ever on selecting the right contracts to pursue before entering into a bidding race.

Over the last few years, global businesses have increasingly been demanding scalable, global networks to serve their businesses, often as part of outsourcing plans to achieve cost reductions and focus purely on core business activities. As a result global telco providers have seen a marked growth in orders and top-line revenues, securing multi billion dollar contracts to provide outsourced services for anything up to 10 years. With traditional product revenue and margins declining, the global contracts market has become a key expansion strategy for many players within the industry. To become market leaders, providers have expanded technical boundaries and promoted the excellence of solutions, while keeping margins low to secure business in a competitive market. Many believed that these initial relationships would lead to future incremental growth and a mutual benefit…

Over the last few years, global businesses have increasingly been demanding scalable, global networks to serve their businesses, often as part of outsourcing plans to achieve cost reductions and focus purely on core business activities. As a result global telco providers have seen a marked growth in orders and top-line revenues, securing multi billion dollar contracts to provide outsourced services for anything up to 10 years. With traditional product revenue and margins declining, the global contracts market has become a key expansion strategy for many players within the industry. To become market leaders, providers have expanded technical boundaries and promoted the excellence of solutions, while keeping margins low to secure business in a competitive market. Many believed that these initial relationships would lead to future incremental growth and a mutual benefit…

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