Europe sees growing demand for outsourcing

12 July 2007
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13 July 2007 | Antony Barton

Demand for outsourcing rose sharply in Europe during the first half of this year, compared with the same period in 2006.

Consultancy TPI said the total value of new outsourcing contracts in the ?40 million (£27 million) and upward category - where it claims most significant outsourcing activity occurs - was up 78 per cent on 2006.

TPI's Quarterly Index reveals this ?12.3 billion of new business is a 23 per cent increase on an average ?10 billion (£7 billion) of new contracts added in each of the previous five years.

This year's deals mean European buyers account for 54 per cent of new outsourcing contracts signed globally, compared with 32 per cent last year and a five-year average of 38 per cent.

Duncan Aitchison, TPI managing director, said continental European countries have been relatively slow to adopt outsourcing. "Five years ago, the region accounted for only 12 per cent of global outsourcing deal activity, and only Germany, France and the Netherlands managed to achieve above a one per cent share.

"Now, continental Europe has nearly trebled its share to 30 per cent, with Belgium, Denmark, Norway, Finland, Switzerland and Italy each representing over one per cent of the global market."


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