By John Keppel, Partner & President, Research and Managed Services
Earlier today, we held our 1Q12 Global TPI Index conference call, during which we discussed noteworthy trends in the sourcing market during the first quarter.
Our headlines revealed that:
- By both contract awards and total contract value (TCV), the global commercial outsourcing market dropped quarter-over-quarter and year-overyear. A weak quarter after two consecutive strong quarters is a familiar historical pattern.
- While mega deals nearly vanished, mega relationships held firm . . . the latter mainly consisting of restructurings.
- Restructuring TCV climbed over the same period a year ago, but new scope TCV continued to dwindle.
Both IT outsourcing and BPO contract numbers and TCV waned quarter-over-quarter and year-over-year.
- Europe in particular cooled off. However, Americas TCV improved sequentially, thanks in part to the lone mega deal in the market this quarter.
- ISG believes that the first half of 2012 will be a bit slower than the last half of 2011. However, we expect that second-half activity and TCV will pick up, resulting in full year 2012 TCV awards in line with historical norms.
You can read more details in our press release. A replay of today’s call is available until Apr. 20 on the TPI Index page of our web site, where you can also view the presentation slides. I hope you’ll have a chance to listen and sound off with your own perspectives in the comments section below!