Put simply, CSC has not won any big, new outsourcing deals for at least a year, and Sears terminated its A$1.6 billion contract early.

CSC Australia was unavailable to comment, but a statement on the company's Web site states: "The CSC board of directors has decided to explore strategic alternatives to enhance shareholder value, including a potential sale of the company."

Mergers and acquisitions, Longwood said, have become a standard part of the services landscape.

He warned that service providers will also try to renegotiate their contract in mid-term if it is struggling to make its profit margin with a client.

"Buyers of outsourced services risk facing wavering levels of service if their provider is either the acquirer or acquired, users need to actively discuss their risk issues when their provider is in this scenario," he said.