Outsourcing contracts to face headwinds amid looming Brexit
Even with Britain’s scheduled formal exit from the European Union (EU), outsourcing contracts from the country are expected to see a marginal increase in total value, although the base will be lower. Experts have pointed out, however, that the nature of such outsourcing deals has been seeing some major changes. For instance, it has become more glaring that the contracts are being split into parts and outsourced to more than one vendor. Data from global IT research and advisory entity ISG showed that the British outsourcing market contracted by 27% to EUR2.5bn (USD2.9bn) last year because of the uncertainty brought by Brexit. This year, some analysts expect that all of Britain’s big IT service companies will experience headwinds to their businesses in the UK due to the Brexit’s imminent implementation.