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Outsourcing deals get bigger in Europe

Outsourcing is on the up in Europe as mainland firms increase their share of global outsourcing contracts

Outsourcing is on the up in Europe as mainland firms increase their share of global outsourcing contracts.

New contracts, as opposed to renewals or restructured deals, in the £250m-plus bracket increased 78% in 2006, according to research from sourcing advisory TPI.

With £8.2bn in new business, this represents a 23% increase in the average value of new business in the past five years.

Duncan Aitchison, managing director at TPI, said continental European countries have been relatively slow in adopting outsourcing. He said this means that there is huge growth potential.

"Five years ago, the region accounted for only 12% of global outsourcing deal activity. Now continental Europe has nearly trebled its share to 30%."

Comment on this article: computer.weekly@rbi.co.uk

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