PROCUREMENT MAGAZINE WHITEPAPER

Large provider workforce changes during AI transformation have also created discontinuities in delivery; public reporting on 2025 restructurings at major firms illustrates how rapid reorganisation can affect continuity for clients. Consequently, midmarket organisations are pivoting toward providers that prioritise local senior accountability and rigorous, documented protocols for change control and handovers.

The fundamental issue lies in the business model itself. As HFS Research articulates in its“ Servicesas-Software” analysis, legacy providers are often trapped in linear growth models dependent on headcount. They make money by“ selling bodies”. This creates a counterproductive incentive: if they automate a process efficiently, they reduce their billable

Across

verified client reviews, leadership turnover(“ three different leads in six months”) and inconsistency in delivery teams were among the most common red flags hours. Consequently, true innovation often stalls. Clients are beginning to feel the friction of this“ Innovation Trap,” where the factory model, designed for uniformity and volume, struggles to deliver the transparency, speed and personalisation that mid-market companies now demand.

In many large BPOs, the senior rainmakers and star teams who win deals step away once contracts are signed, leaving delivery to rotational account teams and junior staff – a predictable sales‐to‐operations gap that buyers increasingly call out. Vendor reviews and market research from the past year show this pattern clearly: buyers report that selling executives rarely maintain hands‐on involvement post‐go‐live, providers routinely reassign top talent to newer, higher‐margin clients and AI‐driven restructurings have amplified people churn and delivery discontinuities. RightFirms’ 2026 Outsourcing Review Analysis reinforces this picture. Across 200 plus verified client reviews, leadership turnover(“ three different leads in six months”) and inconsistency in delivery teams were among the most common red flags, while buyers praised vendors showing continuity, strong communication and a partnership mindset. These findings underscore why mid‐market buyers now prioritise locally accountable senior sponsorship, enforced key‐person retention and documented sales operations handovers as prerequisites for engagement. sterling-outsourcing. com