Kari Krusmark, a partner in our technology transactions, outsourcing, and commercial contracts practice, is a leading advisor in complex technology initiatives, outsourcing arrangements, and digital transformation projects. With deep background guiding global companies through high-value technology deals, evolving regulatory requirements, and vendor ecosystem shifts, Kari has a unique perspective on how organizations should prepare for the rapidly changing technology and outsourcing landscape. Her insights highlight the key trends shaping 2026 and what businesses should be doing now to stay ahead.
What major trends do you expect to shape technology transactions in 2026?
In 2026, we expect technology transactions to 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.
We also anticipate an increase in multivendor platform deals as organizations consolidate their tech stacks and seek partners who can deliver integrated cloud, analytics, and automation solutions. This will drive more complex contracting structures, particularly around interoperability, shared service-level agreements, and data-sharing arrangements.
What are the most important shifts you see coming in the outsourcing market in 2026?
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.
What opportunities will companies have as these trends accelerate?
There will be significant opportunity for companies that are proactive. 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.
What challenges should businesses 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.
Closing Thoughts
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.