Covid-19 crisis: $30-billion deal renewal headache for IT companies

Outsourcing deals are either going to be renewed at a lower price or they will be delayed, say experts.

IT outsourcing deals worth around $30 billion that are coming up for renewal over the next three months are likely to be negatively impacted owing to the uncertain demand environment. 

According to outsourcing advisors and experts, while almost half of the deals are likely to see delay, the others are expected to be renewed at a lower price as enterprises ask for discounts in roll-over contracts.

“There are contracts worth $29.2 billion coming up for renewal in the next three months. We anticipate at least 50 per cent (of these contracts) are likely to be either delayed or reduced in