June 30, 2006
IT outsourcing in Western Europe
A new study conducted by the IDC revealed that the top 100 Western Europe outsourcing deals totaled $40.5 billion in value last year. It is driven by nine mega deals signed for a total of $20.5 billion. Five out of nine deals have been awarded by two government agencies. Outsourcing deals are getting shorter in length because customers are less willing to stick to a contract for long periods. Vendors must explore cost-savings in a much shorter time period. The study also revealed that IBM is no longer the topnotch company in the Western European outsourcing industry. Although it signed 14 deals in 2005, the aggregate value was lower than that of BT Global Services and EDS.
In addition, the study highlighted positive growth rates in BPO (Business Process Outsourcing) across Western Europe, especially within the UK.
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