More than 1,400 information technology (IT) contracts worth an estimated $48.5 billion in the Asia-Pacific (APAC) region are set to expire between 2020 and 2024, according to research firm GlobalData.
Accenture, TCS, Cognizant, Wipro, HCL Technologies, Capgemini, IBM and Infosys are some of the leading IT services companies.
Nearly 60 percent (843) of the IT contracts with an estimated contract value of $16 billion are set to expire in 2020, followed by 293 contracts worth $14.2 billion in 2021. Major portion of these IT deals are in the government sector.
“A major portion of the contracts expiring in 2020 are in the infrastructure outsourcing and business process outsourcing areas, with the former accounting for approximately $9.3 billion of the total contract value estimated to cease in 2020,” Sunil Kumar Verma, lead ICT Analyst at GlobalData, said.
In 2020, IT contracts worth $3.5 billion will be up for renewal in the government sector and nearly contracts worth $12.2 billion (equivalent to around 25 percent of overall contract value) are set to expire during 2020-2024.
The value of IT contracts set to expire in the telecommunication is estimated to be $2.7 billion in 2020.
The value of contracts set to expire in the banking, financial services and insurance (BFSI) verticals in 2020 is estimated to be $2.3 billion.
The report said IT contract signings and renewals in the coming years will be more outcome based, as clients continue to assess the vendors’ value provided via contracts and their potential for future relationships.