by: Sarah Joson
Thursday, January 24, 2013 | Outsourcing News |
According to market research and consultancy firm Information Services Group (ISG), the UK was the IT outsourcing market leader last year. IT outsourcing contract values increased amidst the weak outsourcing market in the EMEA region.
In Q4, the region posted €2.1bn, a six percent decline from Q3 2012, and an even larger decline of 29 percent from Q4 2011. This was based on the 4Q12 EMEA TPI Index, with commercial outsourcing contracts which are €4m (£3.35m) or higher.
The financial services sector was identified by ISG as having the most activity and large facilities management contracts. This drove the average contract value in the UK to rise 20 percent last year to €3.7bn. ISG also said UK experienced a steady contracting environment last year, even with the decline in the number of contracts signed (year-on-year) in 2011.
Meanwhile, a 12 percent drop from 2011 was seen in EMEA’s 2012 total annual contract value. The region closed 434 deals in 2012, a 21 percent decrease compared with the record high posted by the region last year.
John Keppel, ISG North Europe President, said data from the past is crucial. It still shows that contracts from the EMEA region grew twice its size in 2007. He said this was caused by changes in the market, more multi-sourcing offerings, and digital evolution propelled by first-time outsourcing buyers.
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