CIO - IT services industry watchers say the question is not if, but when the next big merger between outsourcing vendors will happen.
"There will be more consolidation in the ITO industry, and it will occur at every level," says Mark Robinson, chief operating officer for outsourcing consultancy EquaTerra. That's good news for some providers and for the industry, but the outlook for customers is cloudy.
"Overall, consolidation tends to concentrate quality and spark innovation," Robinson says. "However, these benefits to the industry come at a price, and that price includes a reduction in competition and an increased--albeit transient--risk of service quality disruption. The next 24 months will be a period of relative instability in the industry, and you should expect to see other big names make their moves."
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