Europe's Diverse Outsourcing Market

Throughout 2004, Forrester tracked IT outsourcing deals with a minimum contract value of €10 million that large European IT services firms signed. During the year, we gathered details of 248 deals from 29 outsourcing vendors. What did we find? Two-thirds of the deals were new, and a third were renewals.

Throughout 2004, Forrester tracked IT outsourcing deals with a minimum contract value of €10 million that large European IT services firms signed. During the year, we gathered details of 248 deals from 29 outsourcing vendors. What did we find? Two-thirds of the deals were new, and a third were renewals. Buyers in different national markets and verticals showed a striking level of diversity in buying behaviour. The UK was the most mature market in Europe, with 90 deals totalling nearly €12 billion in value. Further, outsourcing flourished in financial services (including insurance) and government (including all public-sector agencies). We saw equal diversity in vendor offerings, but the most popular among buyers were infrastructure management deals at the lower end of the deal-value scale. Five-year contracts were most popular with buyers, although a scattering of mega deals with long contractual terms and values of more than €1 billion skewed the aggregated statistics to falsely suggest an enthusiasm among buyers for larger deals.
This was last published in January 2006

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