TPI Index: Asia Pacificís Outsourcing Market Improved in Q2
by: Sarah Joson
Tuesday, July 17, 2012
An increase of 7 percent was posted from 2011 Q2 and 2012 Q1, based on commercial contracts amounting to $25 million and above, reaching a total contract value (TCV) of $21.4 billion. Developments in the Asia Pacific regionís business process outsourcing (BPO) industry fuelled the growth.
On the other hand, the industry saw a decline in contract activity during the second quarter with only 173 transactions. This is a 22-percent decline year-over-year and 14 percent sequentially. However, the market saw large contract awards with TCV valued at $1 billion and above. Mega partnerships were also established during these periods, with contracts having an annual contract value (ACV) of $100 million or more.
According to John Keppel, Partner and President at ISG, the global outsourcing market improved year-over-year but it wasnít able to match last yearís outstanding figures in value and activity.