KPMG Deal Tracker - 3Q15

KPMG Deal Tracker - 3Q15

3Q15 shows outsourcing deal activity in lines with the weak economic activity in most major industrialized markets

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  • 3Q15 shows outsourcing deal activity in lines with the weak economic activity in most major industrialized markets – though there is a sharp dip as compared to 2Q15, it is comparable to the third quarters of the last couple of years 
  • In 3Q15 (July to September), 222 ITO contracts worth USD32.9 billion and 23 BPO contracts worth USD4.5 billion were signed, worldwide 
  • Globally eight IT-BPO bundled deals were signed in 3Q15 with contract value worth USD1.4 billion 
  • In terms of value, approximately 59 percent of deals originated from the United States, followed by the United Kingdom at 9.8 percent. India and Australia were two other key outsourcing markets 
  • The average deal tenure decreased to 4 years 3 months in 3Q15 from 4 years 9 months in 2Q15 
  • Defense sector continued to be the top consumer of IT-BPO services contributing to 54 percent in terms of value of outsourcing deals signed in 3Q15. Telecom sector exhibited continuous growth over past two quarters doubling in total contract value in 3Q15 over 2Q15 
  • ADM and SCM contributed approximately USD9.6 billion and USD1.7 billion respectively and were the largest procured services globally within ITO and BPO outsourced services, respectively 
  • Average annualized contract value in 3Q15 was USD36.4 million as compared to USD24.9 million in 3Q14 showing an increase of 46 percent between the two quarters 

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