The global outsourcing market recorded a total contract value (TCV) of $24.7 billion in the 3rd quarter; up 40% from the same quarter of last year. The Global TPI Index, conducted by advisory firm, TPI (Technology Partners International), created the quarterly report based on outsourcing contracts worth at least $25 million.
Asia-Pacific earned 24 outsourcing contracts in the third quarter, totaling $6.4 billion. The Americas earned 47 contracts ($12 billion). Europe, West Asia and Africa earned a total of 68 contracts worth $6.5 billion.
As many as 139 transactions were recorded this quarter with the strong numbers being caused mostly by network outsourcing (Telco-to-Telco) contracts. TPI noted that Telco-to-Telco contracts represented over 30 percent of the total market value. Excluding these contracts, the global outsourcing market showed sluggish growth patterns that have typified the last four quarters.
Megadeals both inside and outside network outsourcing deals supplemented growth; with BPO demand remaining high as the current context proves IT outsourcing more feasible than large finance and accounting, HR, and facilities management outsourcing transactions.