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Global Outsourcing Market Posts 7% TCV Growth

by: Sarah Joson

Friday, January 20, 2012 | Outsourcing News |

Positive growth figures were posted in the 4Q11 Global TPI Index report of leading technology insights, market intelligence, and advisory services firm Information Services Groupís (ISG), with the annual total contract value (TCV) hitting the highest point since 2005 at $95 billion. The total number of signed contracts is also at its highest at 870.

Compared to the same period in 2010, a seven percent increase in TCV was witnessed during Q4 2011 at $26.4 billion. The 4Q11 Global TPI Index covers commercial outsourcing contracts valued at $25 million or more. The key drivers of the growth are $1 billion worth contracts from BPO-related TCVs initiated in Europe, the Middle East, and Africa (EMEA).

TPI Index proved that the gradual increase of small contracts helped establish contracting activities for over 10 years. Moreover, contracts which are valued $100 million or lower increased three-fold, while medium and mega deals are stable since 2002.

John Keppel, Partner & President, Research and Managed Services at ISG said the increase in global BPO transactions and continued growth in overall contract value show the evolution of the outsourcing market.

The 4Q11 Global TPI Index also showed that the sudden influx in the largest contracts helped augment the market for the period.

EMEA contributed four out of five mega-deal awards. TCV of mega deals grew 22 percent from the previous quarter. The regionís 4Q11 TCV grew 12 percent year-on-year and 27 percent for the whole year at $55 billion.


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