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.