Global outsourcing market boosted by mid-sized deals


Global outsourcing market boosted by mid-sized deals

Antony Savvas

The total value of deals made in the global outsourcing market rose by around 37% last year, driven primarily by business process a growing number of mid-sized contracts, according to new research.


The research by analyst Datamonitor and outsourcing advisory firm Everest Group found that outsourcing business processes - such as administrative and finance functions - was the biggest growth area.


The research echoes other research showing that organisations are signing outsourcing deals with a handful of suppliers rather than gambling on one supplier in a “mega” deal.


Datamonitor's "IT Services Contract Tracker" recorded 1,814 outsourcing deals in 2004, which represented a 4.4% increase over the 1,738 logged in 2003.


But the combined value of the 2004 deals rose more sharply - by 37% - to £90bn, compared with £66bn the previous year.


IBM Global Services was the biggest player in the market with a share of almost 11%. The overall central government market saw growth of almost 80%.


The Tracker logs every deal worth more than £555,000 ($1m) covering outsourcing, systems integration and consulting.

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