UK no longer biggest outsourcing market outside US


UK no longer biggest outsourcing market outside US

Karl Flinders

For the first time, France, Germany and Sweden all spent more on outsourcing than the UK in the first quarter of this year as contract renegotiations surged, according to TPI.

The UK spent less than €800m, 50% less than last year, compared with more than €1bn in Germany and €2bn in France as a result of a massive SNCF deal.

TPI said one mega-deal in Sweden meant the country doubled its total value of outsourcing contracts. It would not name the customer, but Swedish engineering company ABB recently signed a big deal with IBM.

This was on the back of a 7% increase in the total Emea market to €7bn.

TPI's Index measures commercial outsourcing contracts valued at €20m or more.

Contract restructuring accounted for a massive 40% of the total value of deals in the Emea region, which was significantly more than the previous record of 24% set in 2006.

New scope in deals in Europe was down by 22% and the number of contracts awarded in the region also declined by 24%.

"Even though this is only one quarter's results, it does appear that the key countries contributing to Europe's outsourcing performance are shifting to the less mature continental markets," said Duncan Aitchison, president at TPI Emea.

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