Europe overtook the Americas, as the global value of
IToutsourcing contractsnudged towards
£40bn per year with India leading new business gains, theTPI Indexwill reveal this week.
TPI, a research firm that collects data on IT outsourcing
contracts worth more than £12.5m, will say on Wednesday that the
total value of contracts awarded in 2007 was 5.5% lower than in
2006. New contracts dropped from 556 in 2006 to 487 in 2007, 12%
down, it will say.
"The market for commercial outsourcing contracts of £12.5m or
greater in value is estimated to comprise almost 2,700 active
contracts yielding approximately £40bn in revenue," it will
say.
However, TPI will say the annualised value of contracts (ACV)
awarded in 2007 was more than £8bn. This matched previous years,
and that the annualised value of new contracts was up a healthy
13%, pushing up the annual growth in the value of the global market
by 6%. "4Q07 was the best quarter on an ACV basis in 11 years," it
will say.
TPI will report that 2007 was the first time that both the
number of contracts and total contract value in the Europe, Middle
East and Africa region exceeded those measures in the Americas.
The company will report that 113 service providers (12% fewer
than in 2006) won contracts in 2007, with the India-based providers
experiencing notable growth.