Outsourcing contract values soaring in boom
The latest Information Services Group (ISG) outsourcing index posted significant market growth with an 89 per cent rise in the annual contract value compared to the last quarter.
The latest figures posted in the index recorded record numbers of outsourcing deals in the EMEA, with nine out of ten outsourcing contracts in the world worth over €80 million occurring in the region, confirming it as the world’s largest outsourcing market.
The index recorded a total of 125 ITO contracts taken out in the Q3 alone, overtaking the previous EMEA record.
On a regional level, the United Kingdom showed strong third-quarter results, recording €680 million in annual contract value, up 35 percent over the prior quarter. However, Germany led the region’s growth, posting €810 million in annual contract value and surpassing the UK for the first time.
“EMEA achieved the highest third-quarter results on record, a strong rebound from the weakness observed in the first half of the year,” said John Keppel, Partner & President, ISG North Europe. “While the improvements we are seeing are in comparison to weak performances in the first half, we believe the high level of contracting activity speaks volumes about the underlying strength of the current market.”