Outsourcing Market Shows New Growth, Record Contracting Activity
ISG TPI index shows contract value up 7 percent in Q4
Among industries, after underperforming the prior year through the third quarter, the Financial Services sector awarded a spurt of large contracts to push its 2011 TCV to $27 billion, its third-highest annual result on record. The 235 contracts awarded for the year was the highest ever for the sector.
In the Manufacturing sector, fewer contracts were signed yet TCV for the year increased. Off a smaller contract number and TCV base, Telecom & Media did very well in 2011, signing more contracts of considerably greater value.
“As we anticipated last quarter, the outsourcing market finished 2011 within historical norms, slightly outpacing our prediction for TCV, growth,” Keppel said. “Our prediction for the outsourcing marketplace in 2012 is continued growth in contracting activity of between 5 and 7 percent, led by Asia Pacific and BPO, with overall market TCV holding firm for the year.”
