Renewal/Restructure Outsourcing Deals Declining | Market Insights™
August 20, 2014
Share of renewals / restructured deals in outsourcing declining over time
Share of renewals / restructured deals in outsourcing declining over time
ITO continues to gain share of total outsourcing market; BPO and combined shares decline in both number of transactions and ACV
ITO Services Arbitrage Sustainability in Chile: at current rates, Chile’s labor arbitrage advantage can be maintained for 6-8 years
Longer-term deals (5+ years) have taken up a greater share of the BPO transactions market over the past year while share remains relatively unchanged in the ITO market.
Global services operating costs: Focus on Central & Eastern Europe
BFSI outsourcing transaction activity rose steadily in 2013 following an earlier dip; activity in Q4 2013 reached 2011 levels.
Non-performing loans and loan loss provisions and lower interest income are putting pressure on banks, which is likely to result in a high level of activity in the first half of 2014.
Service provider alliance activity was robust in the last two quarters of 2013 following three earlier quarters of decline
In the past 5 quarters, BPO share of outsourcing transactions has declined while ITO share has increased
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