May 01, 2006
The outsourcing business has taken wings
The first three months of 2006 has been a golden quarter for global outsourcing as the total contract value (TCV) saw a staggering figure of $22.7 bn for contracts over $50m. This is a 173 percent year-on-year growth with a record 83 transactions happening during this period.
These figures have been released by TPI Inc., an advisory firm in it's quarterly report catering to the state of the global outsourcing industry.
BPO transactions saw the same trend as they grew by 63 per cent year-on-year. Research reveals that cost reduction remains the primary motivating factor for outsourcing for the companies and at the same time there is an increasing trend which shows quality improvement and innovation to be other driving forces to hop into the outsourcing bandwagon. TMCnet reports:
"Restructuring of the first-generation agreements have yielded an increased impact on both the volume and the value of contracts in the broader market this quarter, with restructuring representing 33 percent of the TCV signed as against 24 percent of TCV during all of 2005, " said Siddharth A Pai, partner & managing director, TPI India.
--
Did you enjoy this post?
Comments
The comments to this entry are closed.
« Samsung plans to invest $18.5 billion on outsourcing | Main | Pearl signs a 12-year outsourcing deal worth £486m »
Recent Comments