Strong outsourcing in EMEA bucks global trend

Outsourcing activity was particularly strong in Europe, the Middle East and Africa during the first quarter of this year, according to new figures from advisory and analyst company TPI.

The combined value of outsourcing contracts signed in the EMEA region hit €8.1 billion in the first three months of 2011, up 5% from the same period of last year. This made it "one of the stronger first quarters of the last decade", TPI said.

By contrast, TPI described the global market’s €14 billion total contract value as its "worst first-quarter performance in a decade".

Outsourcing growth in EMEA was driven in part by the resurgence of business process outsourcing (BPO). At a combined contract value of €3.2 billion, European BPO activity was at its highest level for more than two years.

One major deal, a call centre outsourcing between Saudi Telecom and Aegis, contributed €2 billion to that figure. Nevertheless, the number of BPO contracts signed during the quarter also rose by 65%.

Thanks to a number of megadeals, the Telecom & Media and Energy sectors accounted for almost 66% of total contract value (TCV) during the first quarter of this year. Financial Services, usually one of EMEA’s strongest sectors, contributed just 8% of TCV.

Beatrice Bartlay

Beatrice Bartlay founded 2B Interface, a temporary and permanent staffing agency in 2005 and has since been serving the UK recruitment sector with specialised services. With more than ten years’ experience...

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