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UK HITS TOP SPOT IN GLOBAL
OUTSOURCING SURVEY
The UK has overtaken the US as the
leading national market for new outsourcing contracts
for the first time, according to new
research.
The UK represented over 37% of the
market for major outsourcing contracts awarded worldwide
for the first three months of 2005, followed by the US
(25%) and Asia Pacific (4%), the quarterly analysis of
the outsourcing market by outsourcing advisory firm TPI
found.
Europe's share of the total value
of new outsourcing deals worth more than £27m more then
doubled in the first three months of 2005, accounting
for 70% of around £7.5bn worth of contracts awarded. In
the same period last year Europe's share of the
outsourcing market was 34%.
'While some may argue that Europe's
€2.4bn mega deal - the Reuters/BT contract - skews the
results for this first quarter, Europe still accounted
for well over half of new contracts worldwide - a high
point for European outsourcing,' said Duncan Aitchison,
managing director, international with TPI.
The rise of offshore outsourcing
deals continued during the first three months of this
year. TPI said it saw a 17 percentage point increase in
the proportion of outsourcing deals involving an element
of offshore servicing compared to 2004.
Meanwhile, the so-called Big Six
suppliers in the outsourcing market - Accenture, ACS,
CSC, EDS, Hewlett Packard and IBM - saw their combined
market share fall by 57% in the first quarter of 2005.
They won only 27% of major contracts awarded in the
first quarter of this year, compared with 63% in the
first quarter of 2004. Non-Big Six firms have secured
64% of new deals against 45% a year ago.
Recent TPI research conducted among
UK senior management responsible for offshore
outsourcing decisions found that 60% see the large
Indian outsourcing providers as offering a service to
rival that of Western suppliers irrespective of the cost
savings.
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