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EMEA Region Posts Record Outsourcing Growth in Q2

by: Karen Cayamanda

Monday, August 3, 2015 | Outsourcing News |

A healthy level of outsourcing activity was seen in the Europe, Middle East & Africa (EMEA) region in the second quarter. This is according to market intelligence and advisory services company Information Services Group (ISG) in its EMEA ISG Outsourcing Index™.

Record-high outsourcing growth

Based on the index, 169 outsourcing deals worth €2.2 billion were awarded to the EMEA region. This is 23 percent higher than the annual contract value (ACV) posted in the previous period. This is also one-third more than the number of contracts.

There may be a record-high outsourcing activity in the second quarter, but the region still fell short compared to figures posted last year. ACV in the second quarter was 12 percent lower than what was posted in the second quarter last year. Compared to last year’s first six months, ACV posted in the first half this year was lower by 21 percent.

The market seems to be shifting to getting smaller deals, as the strong activity in the second quarter posted only two mega outsourcing deals (contracts valued at €80 million or higher). ISG North Europe Partner and President John Keppel said the market has moved to awarding a high number of contracts with lower ACV in recent years.





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