Report: Fewer outsourcing 'mega-deals'

SAN FRANCISCO, Feb. 21 (UPI) -- Outsourcing non-core operations to external specialists has matured, with smaller jobs replacing "mega-deals," a U.S. outsourcing law firm says.

"Not only has the mega-deal suffered ... but most deals are now shorter in duration and smaller in value than two years ago," says the Morrison & Foerster's Global Sourcing Group of San Francisco.

Businesses remain committed to outsourcing, but are less prepared than in the recent past to lock into long-term deals, the law firm said. "Flexibility has become the outsourcing mantra," the firm said.

Growing outsourcing trends also include an increasing importance of data privacy and security and an "anti-outsourcing" U.S. sentiment, the firm said.