By Mark Mayo, Partner & President, Global Resources Management, TPI
There’s no question the global economy has been weighing on the outsourcing industry, and despite some disappointing numbers, we’ve found a few bright spots in this quarter’s TPI Index:
1. ITO has kept a reasonable pace. It has been supported in particular by global Network Services agreements in the Telecom sector. Also, in the Americas, a consistent flow of ITO awards supported the global market results. In fact, 6% more ITO TCV was awarded in the Americas in 1H09 than in 1H08.
2. Transportation industry saw 26 contracts signed in the most recent half which represented 44% growth in contract number when compared to 2H 2008 and a 270% increase from 1H08.
3. The number of contracts in Diversified Financials has increased about 35% and their total contract value has more than tripled from the last Half of 2008.
Now, before this becomes a misleading blog post, it’s important to emphasize that despite the bright spots we observed, the sourcing market overall remains in a relatively lower gear as we enter the third quarter.
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