Key Takeaways
- Technology transactions in 2026 will be dominated by AI enablement, data governance, and platform consolidation
- The outsourcing market will shift toward AI-enhanced managed services and specialized cybersecurity and data-resilience outsourcing
- Companies can use AI-enabled outsourcing to transform operations and achieve meaningful efficiency gains
- Flexible, scalable technology agreements will position companies to adopt emerging tools without costly renegotiation
- Strong partnerships with providers will benefit companies through co-innovation, faster solution deployment, and shared value creation
- Governance, contracting, and talent alignment will be major challenges for businesses in 2026
Introduction to Technology Trends
Kari Krusmark, a leading advisor in complex technology initiatives, outsourcing arrangements, and digital transformation projects, provides insights on the key trends shaping the technology and outsourcing landscape in 2026. With her deep background in guiding global companies through high-value technology deals and evolving regulatory requirements, Kari has a unique perspective on how organizations should prepare for the rapidly changing technology landscape. According to Kari, technology transactions in 2026 will be dominated by AI enablement, data governance, and platform consolidation. Companies across all industries are moving past experimentation and into scaled AI deployment, which means transactional work will focus heavily on licensing models, training data rights, performance assurances, and risk allocation related to AI outputs.
Outsourcing Market Shifts
The outsourcing market is evolving quickly, and in 2026, we expect to see a strong shift toward AI-enhanced managed services, where service providers leverage automation and generative AI to deliver higher productivity and lower cost. This will put pressure on clients to rethink pricing models, moving away from traditional FTE-based structures and toward outcome-based and consumption-based models. Another major shift will be the rise of specialized cybersecurity and data-resilience outsourcing, driven by heightened regulatory scrutiny and the need to defend against increasingly sophisticated threats. Clients will rely more heavily on providers with deep sector expertise and continuous monitoring capabilities. As a result, companies will need to adapt their outsourcing strategies to take advantage of these new trends and stay competitive.
Opportunities for Companies
There will be significant opportunities for companies that are proactive in embracing these trends. First, organizations can use AI-enabled outsourcing to transform operations and achieve meaningful efficiency gains, particularly in areas such as customer service, back-office processing, and compliance. Additionally, companies that negotiate flexible, scalable technology agreements will position themselves to adopt emerging tools without costly renegotiation. This flexibility will be especially valuable as vendors rapidly update their AI models and cloud capabilities. Finally, companies that develop strong partnerships with providers, rather than purely transactional relationships, will benefit from co-innovation, faster solution deployment, and shared value creation. By taking a proactive approach, companies can stay ahead of the curve and achieve significant benefits from these emerging trends.
Challenges for Businesses
However, there are also challenges that businesses should be prepared for in 2026. One of the biggest challenges will be governance: as AI and automation become embedded in outsourced services and technology solutions, companies must ensure proper oversight, audit rights, and transparency in how data is used, secured, and processed. Another challenge is contracting at the pace of innovation. Technology cycles are shortening, and organizations will need agreements that anticipate change, whether that involves model updates, new regulatory obligations, or shifts in service delivery. A final challenge is talent alignment. Even as outsourcing expands, companies still need internal expertise to oversee providers, evaluate AI solutions, and ensure accountability. Building and sustaining that capability is essential for long-term success.
Conclusion and Future Outlook
As organizations prepare for 2026, the intersection of AI, outsourcing, and digital transformation will define their competitive advantage. Companies that embrace new delivery models, invest in governance and flexibility, and form strategic partnerships will be best positioned to navigate the rapidly evolving technology landscape. Morgan Lewis, through advisors like Kari, remains committed to helping clients shape forward-thinking strategies and structure the sophisticated transactions that will drive their digital future. By staying ahead of the curve and addressing the challenges and opportunities presented by these emerging trends, companies can achieve significant benefits and stay competitive in a rapidly changing world. Ultimately, the key to success will be a combination of proactive planning, strategic partnerships, and a commitment to innovation and flexibility.
