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Europe Stays Strong in Global Outsourcing Market

by: Sarah Joson

Tuesday, April 22, 2014 | Outsourcing News |

According to research data from sourcing advisory firm Information Service Group (ISG), the outsourcing market of EMEA (Europe, the Middle East, and Africa) continues to withstand the various changes and forces that have come along its way.   

Global outsourcing market growth

During the first quarter of 2014, nearly 165 contracts were closed/renewed from the EMEA outsourcing market. This is 21 percent higher than last year’s first quarter, but only a percent more from the previous quarter. However, the market was estimated to be worth €2.4bn for this year’s first quarter, a 10 percent increase from the previous quarter, and 29 percent higher than the first quarter of 2013.
Meanwhile, growth in the global outsourcing market remains constant with €1.5bn in contracts being awarded in America. This shows that growth slowed down by 16 percent compared to 2013’s first quarter, but posted an increase of 32 percent in the fourth quarter of 2013.

ISG also pointed out that 76 percent of the total contract value posted for the first quarter is accounted for by new contracts. This is a 48 percent increase year-on-year, and is the highest value posted in four years.

In line with that, UK posted a total contract value (for the first quarter of 2014) of €1bn, which is 33 percent higher quarter-on-quarter and 66 percent higher year-on-year. The UK also posted 59 closed deals, the highest volume so far in the last three quarters.

David Howie, a partner at ISG, pointed out that UK is the frontrunner of Europe’s bullish outsourcing industry. He said Q12014 is a good period for the UK because it has outdone the average performance of the last eight quarters wherein the average total contract value per quarter is $800m.

Howie believes that UK and the US will continue to outdo outsourcing growth in Germany and the rest of Europe. He stated that there are similarities on how economies are run in the two countries.


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