Computer Business Review

IT outsourcing grows 32% in EMEA region

CBR Staff Writer

13:41, July 31 2014

EMEA’s overall contract value was flat when compared to Q1 2014.

Outsourcing activity in Europe, Middle East & Africa (EMEA) region has recorded its strongest performance during the first half of the year since 2008 in terms contract value, accounting for more than half of worldwide value, according to Information Services Group (ISG).

The growth was driven by a stronger demand for IT outsourcing activity in the UK, Germany and France.

During the period, the outsourcing contracts value increased 32% year-on-year in the region to €5bn, while the number of contracts increased 25%.

The UK saw a 6% increase in contract value to €1.4bn despite a slight drop in contract counts to 83, from 92 the previous year.

Germany recorded a strong year-on-year growth in the first half of 2014, with around €740m worth of contract awards compared to €530m in 2013.

The growth was driven by almost double the number of contract awards from 30 in the first half of 2013 to 59 during this year.

France became the second largest outsourcing market in the region with €930m of ACV along with some big contracts signed during the period which was more than three times compared to the first half of 2013.

ISG partner David Howie said: "Overall, we've seen a good performance across EMEA this quarter - and not just because last year's weak second quarter makes this year's results shine."

"The market is moving in the right direction, and the first-half year-on-year comparison is testament to the market's strength."


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