20 October 2008 | Andy Allen
The global market in outsourcing has seen its quietest quarter in six years, according to data services and sourcing advisory firm TPI.
However the firm said it still believes 2008 will surpass 2007 in terms of the number and value of outsourcing deals signed.
TPI's third quarter index shows that 128 contracts were agreed worldwide with a value of $11.5 billion (£6.5 billion). Duncan Aitchison, partner and president at TPI EMEA (Europe, Middle East and Africa), said: "Third quarters are traditionally weak and looking ahead we see considerable activity in the market."
The sharpest decline was seen in EMEA countries, where 56 contracts worth ?4.4 billion (£3.3 billion) were signed in the third quarter of 2008. This compares with 75 contracts quarters worth ?14.8 billion (£11.4 billion) signed during the second quarter of 2008.
Within the hard-hit financial services sector fewer contracts were signed and contracts were of smaller value, particularly among banks, TPI said.
Nevertheless it believes outsourcing will rebound as organisations look to achieve short-term cost savings and carry out restructuring.