Demand for outsourcing in Europe has increased dramatically in the first half of 2007, according to the latest Quarterly Index from sourcing advisers TPI.
The total value of new outsourcing contracts in the 40m euro-plus ($55.2m) bracket--where most significant outsourcing activity occurs--is up 78 percent on the same period in 2006, the report says.
This represents a significant recovery from the relatively soft outsourcing market experienced in Europe last year, and is a 23 percent increase on an average 10bn euros ($13.8bn) of new contracts added in each of the previous five years.
So impressive is Europe's record on new deals this year that it accounts for over half of new outsourcing contracts signed globally, against 32 percent last year and a five-year average of 38 percent.
Duncan Aitchison, managing director of TPI, said part of this growth could be explained by the fact that European countries have been slow to adopt the outsourcing model.
"Five years ago, the region accounted for only 12 percent of global outsourcing deal activity, and only Germany, France and the Netherlands managed to achieve above a one percent share. Now, continental Europe has nearly trebled its share to 30 percent, with Belgium, Denmark, Norway, Finland, Switzerland and Italy each representing over one percent of the global market," he said.
Source: CRM Buyer, http://crmbuyer.com