Everest Research claims that IT outsourcing will decline in popularity in 2008, predicting a decline in both the number and size of outsourcing deals in the coming year. The prediction applies to so-called "mega-deals" or those worth more than $1B in total value.

Everest predicts a buyer's market in outsourcing, and competition will be keen. This will force outsourcing firms to sign more smaller clients and will also require the outsourcers to reduce their pricing. Further, buyers will be looking for shorter contracts to allow them to consider other options sooner. Everest cites increasing competition from new firms entering the market as the primary reason for the slow-down.