The global outsourcing industry ended the second quarter of 2010 with a 6.6 percent increase in number of deals compared to figures posted in the same period last year, according to Everest Group. Q2 outsourcing deals also rose 12.1 percent compared to first quarter of this year.
This increase in global outsourcing activity can be attributed primarily to BPO contracts, while IT deals only had a slight increase. “This is because BPO operations tend to be more in sync with running day-to-day business (functions such as customer support and back-office), while in the case of IT, it is more discretionary and involves project-based work where clients are still cautious,” said Mr. Amneet Singh, Vice-President, Global Sourcing. Everest added that clients arrange IT outsourcing work into smaller deals, which explains the decline in the annual contract value (ACV) of IT contracts.