Thursday, September 02, 2010
Latest Procurement News
RELATED NEWS
- Computacenter helped by UK trend to multi-vendor outsourcing
01 Sep 10 - Managed print services bring 'significant' cost savings
01 Sep 10 - Sunoco outsources indirect procurement
27 Aug 10 - China rated as mature offshoring location
12 Aug 10 - UK government cost cutting puts contracts 'at risk'
28 Jul 10 - Rent-A-Center revs up print procurement with outsourcing deal
22 Jul 10
RELATED ARTICLES
- Profile: PepsiCo CPO, Mitch Adamek
- Roundtable: Outsourcing, London
- Economic View: Onshoring to take off?
- Thought Leaders: Outsourcing
- 2010 – the year for procurement outsourcing?
- Procurement delivers for oil giants
KNOWLEDGE MANAGEMENT TAGS
"Outsourcing"
Global outsourcing market not yet bouncing back
The global outsourcing market is not yet recovering as economic uncertainty continues to weigh on corporations around the world, according to recent data released by TPI, the largest sourcing data and advisory firm in the world.
The second quarter Global TPI Index, which measures commercial outsourcing contracts valued at $25 million or more, recorded total contract value (TCV) of $18.1bn in the second quarter of 2010, down about 13% both sequentially and year-over-year. The market in the second quarter exhibited particular softness in Europe, the Middle East and Africa, Asia Pacific and IT outsourcing.
For the first half of 2010, global market TCV of $38.9bn remained flat compared with a year ago following the unprecedented surge in contract restructurings during the first quarter. In the second quarter, restructurings accounted for 20% of TCV, in line with historical trends.
The quarterly TCV of contracts for business process outsourcing (BPO) rose 60% over the first quarter of 2010, which was one of the worst on record in this segment, and 20% over the second quarter of 2009. But overall BPO activity remained weak by historical standards, with the greatest growth in contracts valued at between $10m and $25m.
"The global outsourcing market continued to recover slowly and quite unevenly in the second quarter," said Mark Mayo, Partner and President, TPI Global Operations told Reuters. "At the same time, we see corporations continuing to look to outsourcing to improve their critical business operations and enable important innovations such as cloud computing."
Despite the sluggish market, innovations such as cloud computing are beginning to influence the approach companies take to their service-delivery strategy. TPI Research released today finds that 78% of the firm's clients have had internal discussions about cloud computing.
"Our outlook for the remainder of the year remains cautious," Mayo said. "We know that third quarters are historically weak and we believe the upcoming third quarter will follow that pattern. The market should continue the slow and uneven recovery it began last year."
Procurement Tag - Outsourcing
= Associate Members Only 
