Information Services Group (ISG), a sourcing advisory company, has reported a decline in the value of outsourcing contracts during 2013, due to buyers opting for more but smaller deals.
The number of outsourcing contracts in the European, Middle East and Africa (EMEA) markets rose during the final quarter of 2013, compared to the same period in 2012, yet the value of these deals fell, ISG said.
ISG reported there were 167 outsourcing contracts awarded in EMEA in the fourth quarter of 2013, a 25% rise year on year.
But the annual contract value fell to €2.16bn, a 20% decrease quarter on quarter.
The total value of contracts in the fourth quarter of 2013 was more than €8bn, which was 6% less than the same period in 2012.
ISG said: "As business focus changes from recessionary cost cutting to strategic advantage, factors such as competitive market conditions, automation and other technology innovations have combined to create a market characterised by good volumes but weaker values."
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