The KPMG Shared Services and Outsourcing Advisory (SSOA) practice publishes a quarterly analysis on IT-BPO outsourcing contracts signed across industries and geographies, with a total contract value (TCV) of USD5 million and above per deal.
Key highlights of 2Q17 :
- 2Q17 witnessed a major increase in deal activity as compared to 1Q17. There was an increase of 278 percent in total contract value and an 88 percent increase in total number of deals in 2Q17 as compared to 1Q17.
- Worldwide in 2Q17, 182 ITO contracts worth USD17.2 billion and 51 BPO contracts worth USD8.3 billion were signed.
- Globally 97 IT-BPO bundled deals were signed in 2Q17 with contract value worth USD39.6 billion.
- In terms of value, approximately 77 percent of deals originated from the United States, followed by Spain at 7 percent. United Kingdom and Denmark were two other key outsourcing markets.
- The average deal tenure decreased to 5 years 2 months in 2Q17 from 5 years 5 months in 2Q16.
- Defense and Government sectors were the top consumers of IT-BPO services contributing to 75 percent and 9 percent in terms of value of outsourcing deals signed in 2Q17. Travel and logistics sector was the next big contributor in terms of deal value.
- IT infrastructure and SCM contributed approximately USD5.1billion and USD6.1billion respectively and were the largest procured services globally within ITO and BPO services, respectively.
- Average annualized contract value in 2Q17 was USD31.92 million as compared to USD22.98 million in 2Q16 showing an increase of 39 percent
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