Outsourcing grows 10% to £44bn in EMEA

Outsourcing business grew 10% to £44bn this year,...

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Outsourcing business grew 10% to £44bn this year, according to the half-year figures from researcher TPI.

The Europe, Middle East and Africa region showed major growth in large contracts. More than 34 contracts worth more than £100m were signed in the first half of the year, compared with 51 for the whole of 2007 and 38 for 2006, TPI said.

The telecommunications sector outstripped both financial services and manufacturing, but telcos are emerging as contenders in their own right for multiple contracts.

The global outsourcing market is developing unevenly, with US firms signing fewer large long-term contracts since 2006, the firm said.

The market is also changing. Some sectors, such as telecommunications and energy, are signing bigger contracts, whereas retail, financial and business services firms are signing more contracts for relatively less money.

TPI also found that the trend to outsource to firms from the Indian subcontinent well-entrenched and increasingly competitive. Tata Consulting Services, a leading Indian outsourcing provider, said last week its first quarter profit to £148m, was sluggish at 2%.

N Chandrasekaran, chief operating officer and executive director, said, "Traction in the manufacturing, life sciences and retail verticals has helped drive growth in Q1." He was "cautiously optimistic" for the rest of the year.



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