January to March 2017
It gives me great pleasure to bring to you the first quarter 2017 edition of the KPMG Global IT-BPO Outsourcing Deals Analysis.
- 1Q17 witnessed a slight drop in deal activity as compared to 4Q16. There was a slight decrease of 2 percent in total contract value and a 25 percent decrease in total number of deals in 1Q17 as compared to 4Q16.
- Worldwide in 1Q17, 143 ITO contracts worth USD14.3 billion and 23 BPO contracts worth USD2344 million were signed.
- Globally 9 IT-BPO bundled deals were signed in 1Q17 with contract value worth USD600 million.
- In terms of value, approximately 42 percent of deals originated from the United States, followed by United Kingdom at 22 percent. Australia and India were two other key outsourcing markets.
- The average deal tenure increased to 4 years 8 months in 1Q17 from 3 years 8 months in 4Q16.
- Defense and Government sectors were the top consumers of IT-BPO services contributing to 35 percent and 25 percent in terms of value of outsourcing deals signed in 1Q17. Telecom sector was the next big contributor in terms of deal value.
- IT infrastructure and CRM contributed approximately USD5.11 billion and USD1729.84 million respectively and were the largest procured services globally within ITO and BPO services, respectively.
- Average annualized contract value in 1Q17 was USD20.40 million as compared to USD18.71 million in 4Q16 showing an increase of 9 percent between the two quarters.
Click here to view the Infograph.
If you have any questions or comments on the newsletter or would like more information regarding the SSOA practice, please get in touch with Kartik Ramakrishnan or GO-FM IT-BPO Deals Team