IT Contracts - Where are they headed!

IT contracts with service providers have seen a changing phase in last few years. While the industry sought and leveraged various smaller and larger IT service providing firms for its generic and niche needs. It seems to be converging now. There is more and more push on Vendor Managers to deepen the relationship with larger service providers and procure mass of the required service mix through one window rather than negotiting with multiple firms.
If you have observed, most large IT procurement organizations have consolidated their requirements to negotiate through one window and usually sign one large master service agreements with chosen few vendors who they trust with provisioning 60-70% of their BAU services. The consolidation helps them create volume and get better prices, it also in a way leaves the smaller contracts' resposibility on service providers by pushing them to provide end to end services. Many IT service firms are moving to liasion with Data Centers, product vendors, to create services that they can provide under the MSA rates and that can help them gain larger share of pie and keep competition out. This has also made the larger service firms power centers and doorways for smaller, niche firms to co share the revenue pie in larger accounts.
Contractually, this is making power centers in IT industry. Brining in margin pressure and passing on the risk and responsibility on service providers. The volume presence and assured tenure of business gives service provider a timeframe to strategically setup the shop under MSA and further pass on similar terms on smaller players.
While the MSA's operate at the org wide level, based on the nature of business sub segments and their price and demand prerogative, some organizations leave the choice of choosing the vendors on business sub segments. The catalogus of firms to work with at a broad level is fixed at org level. Vendor Management assures that all terms and conditions are met, rate card is looked into and any new vendor is not onboarded unless the service can not be provided by the chosen few. This keeps the web simple for vendor management.
Does this mean, services industry game plan is changing?? The small niche vendors, even large product providers will have to rely on service providers. They will be the door guards for getting in the right technology at right price and with minimal risks. Service providers for large accounts will have to work on mutiple alliances, taking on the right level of risks on their books and provide end to end services without compromising on their final service catalogue and organziational growth strategy. Interesting unfolding of events and interesting will be to see at what level the appetite to take risks will have to be monitored. The risk content on balance sheets of the large service providing firms is something to watch for in coming years. Sales people have to be extremely cautious and make the decision which lead to safe yet meaningful selling.