July to September 2016
It gives me great pleasure to bring to you the third quarter 2016 edition of the KPMG Global IT-BPO Outsourcing Deals Analysis.
- 3Q16 witnessed a sharp drop in deal activity as compared to 2Q16. There was a decrease of 74 percent in total contract value and 52 percent decrease in total number of deals in 3Q16 as compared to 2Q16
- In 3Q16, 135 ITO contracts worth USD8.2 billion and 11 BPO contracts worth USD876 million were signed, worldwide
- Globally 18 IT-BPO bundled deals were signed in 3Q16 with contract value worth USD1.9 billion
- In terms of value, approximately 42.6 percent of deals originated from the United States, followed by India at 10.6 percent. Australia and China were two other key outsourcing markets
- The average deal tenure decreased to 4 years in 3Q16 from 5 years 5 months in 2Q16
- Telecom and Government sectors were the top consumers of IT-BPO services
contributing to 30 percent and 25 percent in terms of value of outsourcing deals signed in 3Q16. Defense sector was the next big contributor in terms of deal value
- IT Bundled Services and CRM contributed approximately USD2.8 billion and USD706.8 million respectively and were the largest procured services globally within ITO and BPO services, respectively
- Average annualized contract value in 3Q16 was USD19.7 million as compared to USD23.0 million in 2Q16 showing a decrease of 14 percent between the two quarters
Click here to view the Infograph.