According to the latest Quarterly Index from outsourcing advisory firm TPI,Europe accounted for just under half of the value of major outsourcing contracts (those worth over €40m) awarded worldwide in 2004. The US came in second at 44 per cent, with Asia Pacific trailing at just seven per cent.The €28bn of contracts awarded by European companies last year is more than double the value in 2002, TPI reported.
Duncan Aitchison, international managing director at TPI, said: "The equalisation between the European and US outsourcing markets comes through dramatic growth in Europe, not any significant decline in outsourcing in the Americas."European companies realise that they cannot continue to compete effectively on a global scale without utilising the increased efficiency and flexibility they can gain through outsourcing." The report also found that the value of major outsourcing contracts awarded last year was a record €58bn worldwide.Over two thirds of this was IT outsourcing and a third business process outsourcing, whereby companies engage third parties to perform functions such as finance, accounting"More and more companies, particularly the larger companies, are moving towards what we term 'global service delivery' in which they buy services provided in several different locations internationally through a single contract," said Aitchison., procurement and human resources processing.
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