3Q10 Global TPI Index Shows Outsourcing Market Has Slow Recovery from Economy
By Adriana Barnes on October 27, 2010, 8:00 am
largest sourcing data and advisory firm in the work, TPI, is a unit of Information Services Group, Inc.(ISG). ISG is an industry-leading information based services company that recently released data that show a sharp increase in the restructuring of outsourcing contracts and a delay in the overall outsourcing market’s recovery. The delay in recovery is due to the uncertainty and continued weakness of the global economy.
The 3Q10 Global TPI Index measures the commercial outsourcing contracts that are valued at more than $25 million. The recent index recorded that the total contract value is around $14 billion which is down more than 20 percent from the previous quarter and the same period as 2009. Third quarter market activity usually slows but this year is the lowest third-quarter total contact value in more than five years.
The restructuring of outsourcing contracts includes renegotiations, renewals and extensions of existing contacts and totaled $6.8 billion in the third quarter which is about 48 percent of the worldwide market. In the past year, restructurings have accounted for more than one third of overall total contract values.
The TPI Index, which is now in its 32nd quarter, provides a snapshot of the sourcing industry for clients, analysts, service providers and the media on a quarterly basis. The TPI Index is considered to be the industry’s most authoritative source for intelligence related to the industry.
TPI, founder and innovator of the sourcing advisory industry, is an expert at the broad range of business support functions and related research methodologies. TPI uses deep functional domain expertise and extensive practical experience to help advance the organizations’ operations.
