Report Predicts Rise in Global Outsourcing Contracts in 2010
Monday, March 22, 2010 |
As the economy recovers from the financial crisis, it is predicted that the number of global outsourcing contracts will increase this year due to acceptance to cloud computing, multi-sourcing, and focus on governance and risk management. However, these factors will also drive down value and duration of outsourcing projects. These findings are based on the Momentum Market Trends & Insights 4Q09 Annual Report by TPI, the world’s largest sourcing data and advisory firm.
"With the outlook of the global economy still uncertain, clients are clearly turning toward smaller, lower-risk transactions that focus on short-term cost savings," said John Keppel, Partner and Managing Director, TPI Research. The report further predicts that large contracts signed when the global economy was still stronger will be broken up and granted in smaller deals. This is also another factor that will boost the volume of outsourcing contracts this year.