Global Services: Special feature
The Global Services inbox sees news of at least one  global outsourcing contract every other day, as we’re sure so does yours if you subscribe to alerts, newsletters or feeds on outsourcing. And ever so often these outsourcing contracts, signed between corporates/governments and global IT and Business Process Outsourcing (BPO) service providers, are mega contracts, with values upwards of $200 million. A little less often, though by no means rare, there is also news of billion-dollar contracts.

What does Global Services do with all this information? We compile all publicly disclosed outsourcing deals in a “Deal Search” available for free browsing at globalservicesmedia.com. We also work with Datamonitor every month to get a list of the top 10 IT Outsourcing (ITO) deals of that month.

And, now that we have a sizeable collection of data, we decided to analyze it to see the trends in outsourcing deals in the year gone by. For this cover story, we have analyzed our data bank of global IT services  and IT and BPO bundled deals with a value of over $200 million each. Some of our analysis in the pages that follow excludes contracts signed by government agencies and multivendor deals.
Here are our broad findings from analyzing 85 such deals contracted in 2007.

The Billion-dollar Club. Twenty billion-dollar deals were signed in 2007, the largest among these signed by the private sector was a $5 billion global contract given out by IBM to AT&T for network management and integration. The largest deal signed by the government sector was the $50 billion Alliant Program for IT infrastructure, applications and hardware. This was awarded to 29 providers, including CSC, Communications Holding, EDS, IBM, Lockheed Martin and Unisys.

ACS and HP: Missing From Action. The Big Six IT service providers — Accenture, ACS, CSC, EDS, HP, and IBM Global
Services — did not fare equally well in 2007. While IBM Global Services emerged as the favorite provider for private-sector firms, EDS came in a close second. CSC and
Accenture, too, managed a few wins above $200 million. ACS and HP, however, were clearly missing from action last year. Neither of the two won even a single deal over
$200 million in value!

Non Americans Take to Outsourcing. Almost 40 percent outsourcing contracts involving single vendors were signed by non-American customers. These include, predictably, customers mostly from the U.K. and some from Continental Europe, Australia and Canada. Less predictably, however, they also include customers from India, otherwise considered the leading “low-cost” outsourcing destination. India saw two large ITO deals in 2007, both by the country’s growing telecom sector. Both deals went to IBM Global Services.

Financial Services Still Rules. But, Who’s Next? That the financial-services sector contracts the largest value of outsourcing deals in the private sector is well known. What is not as well understood is the market potential of outsourcing by other industry verticals. Our research shows that in 2007, the financial-services sector was followed by the IT sector, health care and retail sectors. The health care and retail sectors saw a billion-dollar deal each; and the customers in both cases were non American — AstraZeneca (Anglo-Swedish) and KarstadtQuelle (Germany) respectively.

The following pages list the marquee deals of 2007 and see an analysis of some key global sourcing trends.  

Public Sector's Favorite IT Providers

Top 10 Deals

Top Deals by Industries

Top 10 Providers

The BIG SIX providers

Mega Outsourcing Deals 2007 

Customer (s)	Provider(s)	Engagement(s)	Value($)	Duration (yrs)
The U.S. Govt. (Alliant program)	29 firms, including EDS, IBM, Communications Holding, CSC, Lockheed Martin, Unisys	IT infrastructure, applications, hardware	50 bn	10
The U.S. Govt. (Networx Enterprise)	AT&T, Qwest, Verizon	Telecommunication services	20 bn	10
The U.S. Dept. of Defense	Five firms, including Northrop Grumman	ADM, IT services	15 bn	5
The Defense Information Systems Agency	Booz Allen Hamilton, CACI EDS, Lockheed Martin SAIC, SRA International	Systems integration, infrastructure mgmt., maintenance	12.2 bn	10
IBM	AT&T	Network mgmt. & integration	5 bn	5
The U.S. Dept. of Justice	General Dynamics	Wireless communication services	5 bn	–
Centers for Medicare and Medicaid Services	16 companies led by Northrop Grumman	ADM, IT-infrastructure & managed services	4 bn	9
Italian Ministry for Agriculture, Food & Forestry Policies	AlmavivA	IT-infrastructure mgmt.	1.7 bn	9
Prudential	Capita	IT services, BPO	1.5 bn	15
AstraZeneca	IBM Global Services	Server, network & desktop mgmt., storage hosting, help-desk mgmt.	1.4 bn	7
The U.K. Home Office	Accenture, Capgemini, Detica,  QinetiQ, Raytheon, Serco, Steria	ADM, system integration	1.3 bn	–
The U.K. Ministry of Defence	EDS-led team	IT infrastructure & managed services, desktop management, hardware integration	1.27 bn	8
Nielsen Company	TCS	Offshore contracting, applications mgmt., BPO	1.2 bn	10
Resolution	Capita	IT services, BPO	1.2 bn	12
Credit Suisse	BT	Network mgmt.	1.1 bn	7
General Motors	AT&T	Network integration mgmt. for telecommunications network	1 bn	5
KarstadtQuelle	EDS	IT-infrastructure & managed services, ADM	1 bn	8
NASA	Unisys	Maintenance, network mgmt., server mgmt., storage services	1 bn	7
The U.S. Army	Multimax (Harris)	Application mgmt., IT-infrastructure mgmt., maintenance/support	1 bn	8
Reuters	Fujitsu Services	Desktop maintenance, help-desk support	1 bn	10
The U.S. Dept. of Justice	CACI, Labat-Anderson, Lockheed Martin	Automated litigation-support services	950 mn	6
The U.S. Dept. of Defense	SAIC	Systems integration, performance monitoring, validation of testing methods	930 mn	10
InfoPrint Solutions	IBM Global Services	IT-infrastructure & managed services, hardware integration	920 mn	5
The U. S. Air Force Space Command	CSC and Raytheon	Operation & maintenance services for instrumentation, information systems	820 mn	10
Somerset County & Taunton Deane Borough Councils	IBM Global Services	IT-infrastructure mgmt., BPO	817 mn	10
Dept. of Homeland Security	EDS	Data-center outsourcing	800 mn	8
IDEA Cellular	IBM Global Services	Application & infrastructure mgmt., BPO	600-800 mn	10
Circuit City Stores	IBM Global Services	Data-center mgmt., network mgmt., desktop support, help-desk operations & security admin.	775 mn	7
Bristol-Myers Squibb	EDS	IT infrastructure	715 mn	7
The U.S. State Dept.	CACI, Northrop Grumman, ManTech International & five other firms	Risk assessment, threat projection & analysis, infrastructure support, disaster recovery	710 mn	5
Centrica	T-Systems	Data-center mgmt.	700 mn	10
Sparkassen-Finanzgruppe	IBM Global Services	IT-infrastructure & managed services, application development & support, infrastructure mgmt.	700 mn	5
Sabre Technologies	EDS	Data-center outsourcing, infrastructure mgmt.	630 mn	7
SpareBank 1 Gruppen	EDB Business Partner	ADM, systems integration	605 mn	11.5
NASA	CSC	IT-infrastructure & managed services, IT services, ADM, support	597 mn	10
Prestige Hotels	T-Systems	IT services, infrastructure & managed services	593 mn	8
Southampton City Council	Capita	IT services	592 mn (est.)	10
Sandwell Metropolitan Borough Council	BT and Liberata	IT-infrastructure & managed services, IT consulting, IT services, BPO	588 mn	7
AGIS	Fujitsu Services	Desktop mgmt., IT-infrastructure mgmt., maintenance	560 mn (est.)	5
Continental Airlines	EDS	Compute environments, reservation systems, legacy application development & maintenance, network & voice systems	550 mn	7
7-Eleven	EDS	ADM, IT-infrastructure mgmt., maintenance	500 mn	5
Novartis	BT	IT-infrastructure & managed services	500 mn	7
The U.S. Defense Finance & Accounting Service	EDS-led team	ADM, IT services	500 mn	5
Swindon Borough Council	Capita	IT-infrastructure & managed services, maintenance, BPO	496 mn (est.)	15
The U.K. Ministry of Defence	EDS-led consortium	IT infrastructure	489 mn	8
Scotiabank	IBM Global Services	Data-center outsourcing, help-desk mgmt., IT-infrastructure mgmt.	480 mn	5
Fondiaria-Sai	EDS	IT-infrastructure & managed services, application development, IT support	463 mn	10
Banque Cantonale Vaudoise	IBM Global Services	ADM, IT-infrastructure & managed services, application hosting, maintenance	460 mn	5
Space and Naval Warfare  Systems Center	SAIC	IT-infrastructure & managed services, computer engineering, maintenance, systems  integration	459 mn	10
Royal and Sun Alliance	IBM Global Services	Mainframe, server, desktop & e-business systems mgmt.	450 mn (est.)	10
Anglo American	BT and HP	Data-center operations & end-user workplace environment	450 mn	7
U.S. Army Corps of Engineers	Lockheed Martin	IT services	447 mn	5
Naval Air Warfare Center	CSC	Training & simulation, engineering & instrumentation, aviation modifications	430 mn	5
Achmea	Atos Origin, Getronics	Data-center mgmt., applications, PinkRoccade, KPN communication services	415 mn	5 (each)
Missouri HealthNet	Wipro Infocrossing	Application mgmt., maintenance, BPO	410 mn	8
Public Works & Govt. Services Canada	CGI	IT-infrastructure & managed services, IT services, product and engineering, mainframe & midrange servers, desktop PCs & e-business systems	400 mn	7
The Texas Dept. of Information Resources	Lockheed Martin	Hardware & software upgrades, help-desk, asset mgmt & security services	400 mn	5
The U.S. Dept. of Education	Perot Systems	Network, communication & multimedia services, disaster-recovery services, e-mail, desktop & help-desk support services	400 mn	10
Thomas Cook	Accenture	Application & infrastructure mgmt., and BPO	400 mn	10
Pacific Air Forces	SAIC	Engineering and IT services	394 mn	5
Gruppo Monte Paschi Siena	IBM Global Services	Application mgmt., infrastructure mgmt.	382 mn	6
BlueScope Steel	CSC	Application development & support, business continuity, IT services	378 mn	8
The U.S. Army Aviation	Lockheed Martin	Engineering and hardware services	376 mn	—
State of California	AT&T, Verizon	IT-infrastructure and managed services	350 mn	7
Washington Gas Light	Accenture	IT-infrastructure & managed services, IT services, BPO	350 mn	10
Rijkswaterstaat	Capgemini and HP	IT-infrastructure and managed services	337 mn	7.5
Allianz	IBM Global Services	ADM, IT infrastructure & managed services, IT services	330 mn	7.5
Space & Naval Warfare Systems Center	ActioNet, CACI International	ADM, IT support	330 mn	5
TDC	CSC	IT infrastructure & managed services, data-center outsourcing, desktop mgmt.	330 mn	7
Commonwealth Bank of Australia	EDS	Desktop mgmt., infrastructure mgmt., maintenance	310 mn	5
BT	Computacenter	Desktop mgmt., infrastructure mgmt., maintenance	294 mn	5
Ukvisas	CSC	Infrastructure mgmt., processing services, BPO	275 mn	7
The U.S. Army	Northrop Grumman	Application mgmt., IT-infrastructure mgmt.	267 mn	3
The U.S. Army	Stanley Associates	IT-infrastructure mgmt., maintenance/support	267 mn	5
The U.S. Postal Service	Serco	Computer engineering, IT-infrastructure mgmt., maintenance	260 mn	10
The U.S. Defense Logistics Agency	Accenture	Supply-chain, SAP based e-procurement	252 mn	10
The U.S. Defense Finance & Accounting Service	CSC along with 27 other companies	Infrastructure mgmt., ADM, BPO development & mgmt., system integration	250 mn	5
The U.S. Air Force Air Combat Command	SAIC	IT consulting, IT services, computer engineering, maintenance/support	250 mn	5
The U.S. Dept. of Veterans Affairs	Dell	IT-infrastructure & managed services, IT services	248 mn	3
The U.S. Dept. of Homeland Security's US Citizen & Immigration Service	General Dynamics-led team	Server and desktop mgmt., mainframe services, program mgmt., hardware support	227 mn	6.5
Jet Propulsion Laboratory	Lockheed Martin-led team	Desktop mgmt., helpdesk mgmt., infrastructure mgmt.	227 mn	10
The U.S. National Security Agency	Northrop Grumman	Applictaion design & system engineering & integration	220 mn	4 (est.)
Canadian Defense Dept.	Telus	IT-infrastructure mgmt., maintenance/support, network mgmt., network consulting	213 mn	5
NASA	SAIC	Integrated enterprise-mgmt. program, WAN, IT security	206 mn	1 (est.)
Vodafone Essar	IBM Global Services	IT operations	—	5

Parameters: IT-services deals; integrated IT-services and BPO deals; valued >$200 million;
linked between Jan. 1, '07 and Dec. 12, '07
Source: Global Services and Datamonitor