First-generation outsourcing deals, the former behemoths of the industry, are going the way of the dinosaurs. Today, very few enterprises are sourcing their entire IT environment to a single service provider. Instead, most enterprises have adopted a multi-sourcing model in which they seek best-of-breed providers to support specific components of their IT organization. While first-generation deals typically included a transfer of assets to the service provider, organizations today are shifting more and more to a hybrid-cloud environment, one that leverages a blend of on-premises data centers and private and public clouds. These changes have dramatically impacted contract terms and duration. The average duration of outsourcing deals has shrunk from seven years to three.