In Q3 the EMEA region saw a strong contract value rise driven by nine mega-deals and high contracting activity, according to ISG Outsourcing Index (former TPI Index) by market consultancy ISG.
Also, the third quarter confirmed Europe as world's largest outsourcing market with 176 contracts being awarded across the region of total value €2.8bn. Additionally, the number of contracts awarded in Q3 saw a 60% both year-on-year and quarter-on-quarter growth. In the same time the annual contract value (ACV) was up 16% y/y and 89% q/q, as the study indicates.
As far as the ITO market is concerned, the 125 contracts were signed in Q3 which made this the highest number ever recorded in any quarter in the EMEA. The total value of ITO contracts stood at €2.3bn and was up 177% q/q.
However, the Business Process Outsourcing (BPO) market saw a dip in ACV in Q3 and was down 28% both quarter-on-quarter and year-on-year, it says.
Also, for the first time in history Germany surpassed the UK in terms of region's growth and showed €810m in ACV while all other sub-regions in EMEA recorded healthy increases of ACV year-on-year.
"Casting a look ahead to the final quarter of this year, we predict a continuation of the healthy contracting activity just witnessed. However, the protracted global weakness of the first half of the year remains a drag on ACV levels. While we expect the year to finish strongly, it may be down somewhat compared with 2012," says John Keppel, Partner & President, ISG North Europe.