Ongoing uncertainty regarding the economic climate has discouraged European businesses from signing large outsourcing deals, according to research from outsourcing analyst company TPI.
Data published by the market insight firm showed that total contract value fell 10% year-on-year to just over €5 billion during the third quarter of 2010.
The value of large outsourcing contracts fell sharply in the UK and Germany during the three months ending 30 September, TPI said, while in smaller markets including the Nordics and the Netherlands they grew unusually quickly.
The overall value of large contracts signed by companies across the globe plunged by 20% to approximately €11.3 billion.
TPI blamed the lacklustre performance on “continuing uncertainties” in the economic outlook, giving a modest forecast for the coming quarter. “Whilst we foresee a more robust fourth quarter for outsourcing awards in general, we do not believe it will be as strong as the fourth quarter in 2009 and do not expect.