21 July 2005 Five companies dominate the business process outsourcing market in Europe, according to sourcing advisory firm TPI, despite claims from some quarters that a new ‘best of breed’ model was emerging.
The ‘Big Five,’ – Atos Origin, BT, Capgemini, Siemens and T-Systems – currently share 45% of the total European BPO contract value; and that share is growing.
These five companies have also increased their combined share of the total global contract value from 5.2% in 2002 to 28.1% in 2005.
BT has fared particularly well in 2005 so far, according to TPI’s Quarterly Index report, securing 19% of the total global BPO contract value. This performance was bettered only by IBM, the global BPO leader.
The emergence of a ‘premier league’ of BPO providers in European dispels the myth of a shift to best of breed, said TPI’s Managing Director, Duncan Aitchison. “There has been an almost equal split in the use of either single or multiple providers consistently over the last decade.”
Aitchison said that the company’s research also debunks the idea that high value mega deals are less popular than they once were. “Despite much talk of the demise of the mega deal, these large contracts continue to be a feature of the global outsourcing market,” he said.