According to Mint’s research, there has only been one transaction worth over $1 billion that has been awarded to IT service providers each year since 2014. He notes that many arbitrage-based service providers remain in the market and still appear to be holding on tenaciously. The only two incumbents that succeeded in making the change from the operational model to the labour arbitrage model were Accenture Plc. Changing the business model requires that talent be organized in a different structure, with a different way of pricing services. According to Bendor-Samuel, service providers struggled for about 20 years to transition from the operational excellence model to the labour-arbitrage model.

Source: Forbes December 25, 2017 20:48 UTC