Friday, April 20, 2007

Outsourcing Deals’ TCV Declined to $17.6Bn in 1Q’07 – TPI

According to TPI Index report for 1Q 2007, about 68 outsourcing contracts having a total contract value (TCV) of USD 17.6 billion have been awarded in 1Q 2007 as compared to 99 contracts having a TCV of USD 25.6 billion in 1Q 2006. TCV recorded in 1Q 2007 was the lowest as compared to the corresponding first quarters in last five years. In addition, the annualized contract value declined from USD 4.3 billion in 1Q 2006 to USD 3 billion in 1Q 2007.

The total number as well as the total value of commercial contracts (above USD 50 million) awarded in 1Q 2007 in the Americas declined as compared to 1Q 2006 and 4Q 2006. About 27 contracts were awarded in the Americas; the number was lowest as compared to the number of contracts awarded in the corresponding quarters of the past five years.

Among the other key findings, the index revealed that information technology outsourcing (ITO) is increasing as compared to BPO. Managed network services (MNS) outsourcing witnessed better growth rate as compared to ITO in the Americas. However, the European outsourcing market is predicted to grow as large number of ITO deals is yet to be awarded.

According to TPI’s study, annualized revenue from the outsourcing industry is estimated to grow by 3.9 percent in 2007 over 2006. This increase can be attributed to a 4.4 percent year-on-year increase in ITO.

1 comment:

Anonymous said...

good work keep it up...

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