IT Outsourcing India

by Indiaoutsourcewatch Bureau 

A recent TPI Index from TPI reported a strong market growth in the outsourcing industry during 2Q 2008. The report also stated that the outsourcing sector is expected to maintain the current growth rate during the next two quarters of 2008. During the quarter, about 146 contracts were signed in the outsourcing domain, with a total contract value (TCV) of USD 25.6 billion and an annualized contract value (ACV) of approximately USD 5 billion. TPI cited that 2Q 2008 witnessed the strongest performance since 2000. In addition, the outsourcing domain witnessed the signing of the maximum number of contracts during 1H 2008 (in terms of both TCV and ACV) since the last decade. During the six-month period of 2008, the domain witnessed the signing of over 282 contracts, with a TCV and ACV of approximately USD 49 billion and USD 10 billion, respectively, reflecting a year-on-year increase of 24 percent in TCV and 36 percent in ACV. From a geographical perspective, TCV in the EMEA market increased by 58 percent during 1H 2008 over that in 1H 2007; this is primarily due to an increase in the number of contracts. The region witnessed over 10 of the 13 large contracts (in which TCV was equal to or greater than USD 1 billion) and 16 of the 24 large contracts (with an ACV of USD 100 million or more) signed during 1H 2008. According to Peter Allen, Partner and MD, TPI, companies across sectors in various countries are concerned about uncertain business conditions, thereby taking initiatives to reduce operational costs.

NEW DELHI: The first half of the current calendar year has seen the IT outsourcing industry post its strongest performance in a decade, a leading IT research firm has announced.

With a total of 282 outsourcing contracts valued at $49 billion in total contract value (TCV) and $10 billion in annualised contract value (ACV), or the value of a contract divided by its duration, the IT outsourcing industry notched up record business during the first two quarters of the current calendar year, according to TPI, the sourcing data and advisory firm.

The TPI, a division of US-based Information Services Group Inc (ISG), announced that according to the latest TPI Index, which tracks commercial contracts valued greater than $25 million, the recently-completed second quarter produced significant market strength and a solid trajectory for growth during the remainder of the year.

In the second quarter, 146 contracts were awarded in the global outsourcing industry, valued at $25.6 billion in TCV, and almost $5 billion in ACV, a TPI statement said.

All three measures indicate noteworthy market strength as this was the strongest second quarter performance since 2000. Additionally, each of the past three quarters has topped the $20 billion TCV mark; this series represents the best three-consecutive quarter performance ever, the statement said.
According to TPI’s analysis, the industry has seen the highest number of outsourcing contracts, TCV and ACV during the first half of 2008 in more than 10 years.

At the midpoint of the year, TCV in the broader market is on trajectory to eclipse the TCV record of 2004, which has been the most prolific full year to date.

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