The market for business process outsourcing (BPO) across EMEA is continuing to expand, according to the Information Services Group (ISG) index for Q2.
John Keppel, partner and president of ISG North Europe, said EMEA outsourcing saw a "notably tepid" performance in the second quarter.
IT outsourcing contract numbers, specifically, including new-scope and restructuring deals, declined in Q2 – both in EMEA and worldwide – dropping 25 per cent year over year and 36 per cent sequentially in annual contract value terms.
New-scope activity dropped to its lowest point since 2006, according to ISG.
"However, the silver lining is the record-breaking BPO activity. It was only the absence of larger awards that kept this segment from having an all-around strong showing," said Keppel.
Data from the outsourcing index indicates 45 BPO contracts were awarded in the region in the quarter ending 30 June. BPO annual contract value in EMEA was €700m (£603m) in the quarter, up 60 per cent quarter over quarter but down 20 per cent from the Q2 record set a year ago.
Forty-five is the largest number of such deals ever reported by the index – and is a 22 per cent increase on the same quarter a year ago.
The overall annual contract value is sitting at €1.6bn, down 16 per cent on Q1 and down 23 per cent year on year.
In the UK, the total value of contracts sealed, in annual terms, came to €1.3bn, down 25 per cent from the first half of 2012 and down 40 per cent from the second half of 2012.
"Germany recorded a 58 per cent drop from last quarter," according to ISG.
The 2Q13 EMEA ISG Outsourcing Index measured commercial outsourcing contracts with an annual contract value of at least €4m. Formerly known as the TPI Index, it is now in its 43rd quarter.
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