The growing large-deal opportunity

Pursuing large and strategic deals requires a significant initial investment from tech services companies, especially in terms of developing or hiring capabilities to track the partner ecosystem, monitor trends in both deals and technology, build relationships, and manage the operational aspects of a deal, from pricing and pitching to deal oversight. With this in mind, it’s not surprising that the largest tech services companies, or those with the deepest pockets, are best equipped to take advantage of larger deals.

However, there is a real opportunity here for smaller tech services firms. For these firms, actively pursuing large and strategic deals signifies a commitment to growth and scalability. To be sure, they will need to assess the costs associated with building and scaling a dedicated function for large and strategic deals. They will also need to reevaluate their employee value proposition and refine their recruitment and retention strategies, so as to create a more consultative team. There is also time to consider: Developing this capability may take two years or more before real revenues can be attributed — certainly something to consider for private equity-backed companies operating within a defined investment lifecycle.

That said, smaller firms have some flexibility about how to structure their large and strategic deals teams. Assigning a portion of the large deal responsibilities to client partners or vertical heads, alongside their existing roles, could be one approach. Implementing corresponding incentives such as bonuses, commissions, promotions, etc. for large deal sales can encourage and reward long-term, large deal focused efforts.

However, doing this right requires thoughtful investments in capabilities and strategic alignment across each organization. We share some learnings below.

Building dedicated large-deal teams

While some firms are using vertical teams to expand large deal offerings, we are seeing more companies establish dedicated large deal teams. These centralized units not only support and enable the pursuit of large deals but also work in conjunction with vertical teams to build a robust large deal pipeline through the creation of tailored strategies and growth plans. Done correctly, this approach is not a replacement to vertical teams, but rather a collaborative group with joint ownership and incentives.

There are a few different ways to go about this, and approaches are still being innovated. One large player, for example, uses its 120-person large-deal team — which includes solution architects, deal directors, marketing specialists and pricing strategy experts — to work across verticals, practices and geographies and manage deals from initiation to completion. Another firm’s large-deal team is something of a central coordination hub, seeking to thoroughly understand clients’ specific needs, industry trends and the implications of broader technological shifts — such as cloud computing and artificial intelligence — and then crafting proposals that meet clients’ requirements and are in line with the firm's offerings. They also involve key executives and the financial and legal departments from the outset, to streamline approval and preclude potential obstacles.

Large-deal leadership

The leaders of these large-deal teams are central to their success. They play a critical role in harmonizing organizational efforts by aligning agendas, creating joint incentive structures and guiding talent toward achieving the objectives of large deals. They are also key to driving a company-wide ethos of collaboration and communication, ensuring that vertical teams and large deal teams work together in identifying, closing and managing large deals.

The best large-deal leaders, first and foremost, have a high customer orientation. They figure out what the client needs are, and then drive a solution that is customized to those needs. They also showcase versatility in influencing styles, and are good at adapting their approach to collaboration to suit the situation or stakeholder at hand.

To establish an effective dedicated large deals team, it's crucial for the large deal leader to actively engage the organization's highest leadership, including the CEO and senior leaders, from the outset. The endorsement and sponsorship by top leadership are essential, not just for the team's formation but also equipping it with the necessary authority and resources to successfully secure and manage large deals. Without such foundational support, transforming the strategic vision of prioritizing large, multi-year projects into actionable reality is not feasible.

Selling large deals

While direct sales continue to play a role in securing large and strategic deals, our recent discussions with large-deal leaders from tech services companies highlight a shift toward more indirect selling — partnering with consulting firms — to strengthen their competitive edge. This strategy readies them for a greater share of digital transformation projects, enhancing their market positioning and opportunity pipeline.

These firms begin their sales journey not through direct contact with an enterprise, but rather by leveraging their relationships with consulting firms who advise major enterprises on business strategy, operations and technological transformations. This method paves a streamlined path to large deal opportunities. One executive we spoke with told us that his team has mapped out over 24,000 consultants across strategy consulting, identifying specific client engagements and practices. Additionally, his team tracks contract renewals across F1000 companies and monitors private equity activity, enriching the team’s overall market insights.

Obviously, this strategy requires leaders who can forge a strong rapport with consultancies and become trusted tech services partners with a strong and reliable track record of delivering on commitments. Also important is the insight such relationships can provide sales teams: extensive market intelligence and detailed knowledge of potential digital transformation projects, providing real value during client interactions and ensuring the solutions being provided align with clients' strategic objectives.

Deal mechanics

Once a deal is identified and the tech services firm is invited to pitch, a large-deal director is typically assigned. The deal director is responsible for all internal coordination needed to win a deal; this person works closely with the client partner, the executive specifically focused on managing the client relationships.

The best large-deal teams are specialized, lean and agile. They ensure deal consistency by having one centralized point of contact with clients while coordinating behind the scenes to manage deal complexity. As noted earlier, these teams need a broad array of skills to navigate the internal and external challenges of deal-making: crafting solutions, driving business development and engaging with clients. Once a deal is secured, the large deals team oversees its execution to fulfillment, serving as the main point of contact for the client and providing sales support as required.

Many organizations have revealed to us that they incentivize their client partners and direct sales teams differently to drive large deals. Sales teams are typically incentivized through commissions, but large deals involve more than just selling. They require synthesizing many moving parts. Rather than focusing on chasing the next available dollar, the most effective organizations keep their teams strategically motivated to maintain momentum on a smaller number of larger deals — which ultimately yields greater earnings for the company.

In some cases, this comes in the form of commissions. The revenue from each large deal is added to a commission pool, which is subsequently distributed among the entire team, spanning delivery, operations, finance and more. This ensures every function is incentivized to actively contribute to each deal pursuit. The incentive amount here is weighted by projected margin, ensuring that every deal is designed to be profitable.

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The shift to large deals in tech services is a strategic evolution — and one that cannot be ignored. But prioritizing long-term, higher-value contracts means that organizational structures and leadership approaches must adapt. It’s not just about enhancing sales expertise, but also about building dedicated teams capable of cultivating deep client relationships and fostering collaboration across various functions.

In light of the growing demand for comprehensive and long-term engagements tailored to clients’ evolving needs, it is clear that a strong large-deal construct will help tech services players continue to stay competitive and drive more sustainable growth and success.