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Report includes focus on Asia’s sourcing market
DALLAS, November 3, 2011 ─ The global outsourcing and offshoring market saw significant drops in transaction volumes during the third quarter this year, a substantial decline for the first time in four quarters, according to Everest Group, an advisory and research firm on global services. The sluggish market witnessed 472 outsourcing deals compared to 508 and 516 transactions in the first and second quarters of this year, respectively. Following a record spike in captive announcements last quarter, captive activity also fell back to a more “normal” level of 20 setups. A one-hour webinar will be held November 8, 9 a.m. CST, to present study findings and insights.
Everest Group’s Market Vista: Q3 2011, a quarterly report on global outsourcing and offshoring activity, reports third quarter global transaction volumes reached about US$2.7 billion in annual contract value (ACV), an increase of 6 percent over the previous quarter, primarily as the result of three mega deals signed during the quarter. Compared to Q2 2011, the market saw a decrease in Business Process Outsourcing (BPO) transactions by 12 percent and IT Outsourcing (ITO) transactions by 7 percent.
“The global outsourcing and offshoring market is beginning to show signs of slowing growth in selective areas, but we’ll need to see a few more quarters to determine if this is the beginning of a downturn trend,” said Eric Simonson, managing partner of Research. “Although captive setups dropped during the quarter, the captive continues to be a core component of global sourcing strategies, adoption activity remains healthy, and significant activity is spreading across industry verticals such as manufacturing and healthcare. Despite a decline in transactions, high location activity, particularly by service providers, provides indications that the outlook for the global sourcing market continues to remain cautiously optimistic in the medium term.”
Other third quarter 2011 findings include:
Everest Group’s quarterly Market Vista reports provide data and analysis of deal trends in the outsourcing and offshoring market, captive landscape, current and emerging locations and key service provider intelligence insights. Everest Group’s industry trends research complements the Market Vista reports through quarterly updates focused on industry-specific global sourcing data, developments and insights across the BFSI, MDR (manufacturing, distribution and retail), Healthcare, Energy and Utilities, Technology, and Telecom sectors.
The Market Vista Q2 report also includes these focus sections:
Quarterly Market Vista reports comprise key developments among 20 leading global service providers. Traditional service provider profiles include Accenture, ACS Xerox, AON Hewitt, Atos, Capgemini, Convergys, CSC, HP Enterprise Services, IBM, Dell Services and Unisys. Offshore-centric service provider profiles include Cognizant, EXL, Genpact, HCL, Infosys, Mahindra Satyam, Tata Consultancy Services, Wipro and WNS.
The webinar will be held November 8, 9 a.m. CST; 2 p.m. GMT Standard Time. To register, please visit: research.everestgrp.com/Events/Webinars.
Market Vista is a subscription service with four reports published per year, including location datasets, Breaking Viewpoint briefings, Market Vista Primer and Global Locations Insights newsletter. For information about the Market Vista: Q3 2011 report or other research services, please visit research.everestgrp.com, e-mail email@example.com or call +1-214-451-3110.