October 15, 2011: Global TPI Index; a well reputed company in sourcing advisory has come up with something really surprising finding.
Recent study conducted by Global TPI Index could found out that the total contract value in the third quarter of 2011 is far above the ground. The exact calculation says the third quarter generated value of 41 % higher than 2010 and 31 % higher than that of the first quarter of 2011. This is considered biggest achievement ever in the industry. There is also impact created by the some acquisition made by companies such as Siemens. If the contract value generated by such acquisitions is considered than the average TCV might shoot up to at a higher rate of five previous quarters. It is the 36th consecutive quarter. And at present the TPI index provides clear picture of the outsourcing industry and its potential.
The study could also find out that the TCV of contracts for IT based service providers has also increased. The report states that the growth has reached up to 50 %. As far as Business process Outsourcing is concern the growth of contract values are comparatively pretty law. At present the Business Process outsourcing sector has grown at a rate of 18 % over the year. In the BPO short term contract has almost diminished in the previous years, where as it is only because of the long term contract which the industry could generate at least 18 percent revenue.
The study also stated that the industries such as financial services hand a great rise in its TCV. Financial services are the only sector which has been showing consistence growth year on year. It is around $ 27.7 billion, which the sector has grown up to in the particular year.
According to the survey, Asia Pacific region showed a slow trend in the current year but towards the end there was up trend at a rate of around 20 %. Many global players are becoming more conscious on the threats that may arise as economic issues might end up in negative impacts on the global outsourcing business. Keeping this in mind, companies are more focusing on deciding on long term contract with service providers which will not only enhance them to reduce the risk and cost, but also help them to maintain a healthy relationship with the service providers, the report added.
As Asia-Pacific service providers are more equipped and have huge potential to deliver the best quality service it is sure that in the long run more contract can be seen in the outsourcing industry.