Great news: the outsourcing industry is making a gradual recovery - or so says the largest sourcing data and advisory firm in the world. TPI released their fourth-quarter and full-year 2009 data showing that the global outsourcing market had its best performance in six quarters and that a slow but steady recovery in the industry is underway.
The 4Q09 Global TPI Index revealed that total contract values are up 47 per cent sequentially to $24.7 billion, the highest since 2Q08. 2010 is looking like it is going to be a positive year for outsourcing - and about time too.
It is nice to start the Round-Up on a high. The positive news has been flowing into the sourcingfocus.com news room this week. So, for a change, the Round-Up is overflowing with optimism.
Analyst firm Ovum has agreed with the National Outsourcing Association’s predictions which indicated that public sector outsourcing is on the rise. In particular, contact centre outsourcing is set for significant growth as public sector organisations attempt to cut costs.
Among the new deals we reported on this week was the US drugstore chain Walgreens and tycoon Richard Branson’s Virgin Atlantic. Walgreens announced a BPO deal with Genpact for a ten-year period that will involve the transfer of at least 500 jobs. Virgin Atlantic signed a five-year agreement with SITA who will be providing IT support for the airline.
There were some new mergers and acquisitions announced this week too. BPO provider Intelenet launched a new operations and customer contact centre in Krakow, Poland. Outsourcing Malaysia on the other hand announced plans to undergo a consolidation of sorts. The aim is to make it more competitive in the global market by merging it into a larger force to be reckoned with.
It’s looking good, sourcing folks! If you fancy having your say about the outsourcing market check out Op2i’s outsourcing survey. The survey will be looking at the impact of the recession and its recovery on the outsourcing sector – with the results to be made available on sourcingfocus.com.
