SG 3Q13 EMEA ISG Outsourcing Index

SG 3Q13 EMEA ISG Outsourcing Index

EMEA IT outsourcing and BPO recovering from weak first half.

One hundred and twenty-five IT outsourcing contracts worth at least €4m (£3.4m) were signed across EMEA in Q3, the highest quarterly number ever recorded by Information Services Group (ISG) research into the region.

According to ISG, 60 per cent more IT outsourcing deals were sealed in Q3 than in Q2. Average contract value was up 16 per cent over last year and 89 per cent over the previous quarter.

There were also 51 business process outsourcing (BPO) contracts in the region – nine per cent up on Q2 and 70 per cent more year-on-year, it said. Average contract value was €500m, down 28 per cent from Q2, and from the year-ago quarter.

Total contract value for EMEA in Q3 was €2.8bn, said ISG.

The UK did well, with average contract value up 35 per cent quarter-on-quarter to €680m.

Germany, however, passed the UK this quarter for the first time when it comes to this metric, boasting an average contract value of €810m, the market watcher said.

Ninety per cent of all contracts signed in the quarter, worldwide, with an average contract value of more than €80m were awarded in EMEA, it added.

John Keppel, partner and president at ISG North Europe, said the region appeared to be recovering from the weak first half.

“We believe the high level of contracting activity speaks volumes about the underlying strength of the current market,” Keppel said in a statement.

“However, the protracted global weakness of the first half of the year remains a drag on average contract value. While we expect the year to finish strongly, it may be down somewhat compared with 2012.”

The figures are from the ISG 3Q13 EMEA ISG Outsourcing Index (Opens in a new window) out today.

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