Outsourcing activity was particularly strong in Europe, the Middle East and Africa during the first quarter of this year, according to new figures from advisory and analyst company TPI.
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The combined value of outsourcing contracts signed in the EMEA region hit €8.1 billion in the first three months of 2011, up 5% from the same period of last year. This made it "one of the stronger first quarters of the last decade", TPI said.
By contrast, TPI described the global market’s €14 billion total contract value as its "worst first-quarter performance in a decade".
Outsourcing growth in EMEA was driven in part by the resurgence of business process outsourcing (BPO). At a combined contract value of €3.2 billion, European BPO activity was at its highest level for more than two years.
One major deal, a call centre outsourcing between Saudi Telecom and Aegis, contributed €2 billion to that figure. Nevertheless, the number of BPO contracts signed during the quarter also rose by 65%.
Thanks to a number of megadeals, the Telecom & Media and Energy sectors accounted for almost 66% of total contract value (TCV) during the first quarter of this year. Financial Services, usually one of EMEA’s strongest sectors, contributed just 8% of TCV.
