The 100 biggest outsourcing deals in western Europe reached a total value of $40.5bn (£22.2bn) last year, figures from industry analyst IDC have revealed.
By submitting your personal information, you agree that TechTarget and its partners may contact you regarding relevant content, products and special offers.
Information systems and network and desktop outsourcing (NDOS) accounted for a huge chunk of the total, with a combined value of $32.7bn. Business process outsourcing was growing across western Europe, but outside the UK the net value of the market was very small, the research found.
The top-100-deals total is down on the 2004 figure of $42.1bn, but the largest deals increased in value, with nine “megadeals” signed for a combined sum of $20.5bn in 2005 – more than half the total figure.
Jennifer Thomson, research manager for IDC European services, said the figures confirmed the emergence of large-scale multi-sourcing, “with five out of nine megadeals awarded by two government agencies”.
The government, manufacturing and financial services sectors accounted for nearly 90% of the top 100 deals.
The figures revealed that while IBM signed 14 deals last year – more than any other outsourcing firm – the total value of the contracts was less than those won by BT Global Services and EDS.