Data from ISG (Information Services Group) indicates that IT outsourcing is fuelling outsourcing activity in the EMEA (Europe, Middle East, & Africa) region.
EMEA is said to be one of the key markets of the entire outsourcing industry. The Q2 2014 Outsourcing Index, which covers commercial outsourcing and large deals amounting to €4 million (£3.2 million), indicated that for the first two quarters of 2014, outsourcing activity in the region clocked in at €5 billion (£3.95 billion). This is nearly a third larger than the value posted by the region last year, and the deals signed likewise increased by 25 percent.
On the other hand, ISG noted that outsourcing activity in the UK remained stable, but total contract value grew by six percent to €1.4 billion (£1.1 billion). However, even with the growth, the number of large deals dropped from 92 to 83 year-on-year.
The IT outsourcing segment in the EMEA region peaked during Q2 with a total contract value of €2 billion (£1.6 billion).
David Howie, a partner at ISG, explained that EMEA remains as the leader of the global outsourcing market. He added that demand, particularly in Germany and France, contributed to the volume and value of contracts during the first half of 2014. Moreover, he said more deals are awaiting approval and execution in the second half of 2014. As for annual contract value, he said 2014 will definitely surpass 2013 figures.
Meanwhile, the total contract value posted by France is €930 million (£735 million), putting it to the second spot after the UK. Germany, on the other hand, experienced a 40-percent increase year-on-year on contracts.