The EMEA outsourcing market staged a drastic recovery in the final quarter of 2009, according to the latest data from TPI.
The outsourcing market has been in freefall since the third quarter of 2008, but volumes finally recovered in the three months to December, the 4Q09 EMEA TPI Index reveals.
TPI, a sourcing data and advisory firm, tracks commercial outsourcing contracts valued at more than €20m (£17.5m).
In Q4, total contract value (TCV) in the EMEA region hit €12.4bn, 61 per cent up year on year and 135 per cent higher than Q3.
The figure was also almost as high as the second quarter of 2008, the last quarter before the downturn hit the sector. IT outsourcing led the charge, growing 62 per cent year on year to €10bn.
Duncan Aitchison, partner and president EMEA at TPI, said: “The market clearly bottomed in the first half of 2009 but managed to turn in the second half of the year.
“While we don’t expect a bounce back to pre-recession levels, we are maintaining a positive outlook for 2010 as the market starts to show momentum in key industry verticals and signs of steady recovery in the broader market.”
Despite the fourth-quarter bounce, full-year TCV in EMEA fell 21 per cent to €29.3bn, the lowest annual total since 2006.
Although the number of mega-deals rose sharply during the quarter, TPI noted that the overall shift to smaller value deals continued in the fourth quarter.
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