The world of IT outsourcing today has reached its
strongest performance within the decade, says a leading IT research firm. From
January-June this year, 282 IT outsourcing contracts reached the value of over $49 billion in total contract value
(TCV), and $10 billion in annualized contract value (ACV) or the value of a
contract divided by its period.
According to TPI, the largest data source and
advisory firm in the world, the IT outsourcing industry marks a record in the business
industry during the first quarters of the present calendar year. TPI, a
division of US-based Information Services Group Inc. (ISG), tracks a commercial
contract that has values reaching to more than $25 million.
According to the latest TPI Index, the
recently-completed second quarter report produced significant market strength
and a solid route for growth during the residue of the year. One hundred
forty-six contracts were awarded in the global outsourcing industry, which are
projected to be at the value of $25.6 billion in TCV and almost $5 billion in
ACV in the second quarter.
The three measures point out a notable market
strength as this was the strongest second quarter performance since 2000. In
addition, each of the past three quarters has topped the $20 billion TCV mark. This
series signifies the best three consecutive quarter performance ever.
The industry has witnessed the highest number of
outsourcing contracts, TCVs and ACVs during the first half of 2008 in more than
10 years. At the average of the year, TCVs in the broader market is on a
trajectory to conceal the TCV record of 2004, which has been the most
productive full year to date.
The first half of the year has been concluded to
be one of the strongest within more than a decade. This feat is credited to the
282 contracts worth nearly $49 billion in TCV, and nearly $10 billion in ACV,
that were awarded in the first half of 2008. The said contracts yielded a fast
year-over-year increase of 24% by TCV and 36% in ACV.
This indicates that the outsourcing industry is
continuously increasing despite the difficulties that it is facing today.


