The impressive client wins by the top Indian IT (information technology) companies and their impressive revenue growth in the quarter ending December 2011 is perfectly in sync with the growth in the global outsourcing market.
According to the latest fourth quarter Global Sourcing Market Data and Insights disclosed in TPI Index, the total contract value (TCV) of IT outsourcing deals in 2011 at $95 billion was 3 per cent higher than 2010. TPI is a global IT sourcing advisory firm that tracks larger IT deals worldwide.
At this level of annual TCV of $95 billion is also the highest since 2005 and the total number of deals at 870 is also an all-time record, TPI Index said. The TPI Index data also showed a healthy growth in the global outsourcing market during the fourth quarter (December quarter) amid record contracting activity for the full year.
The deals in the fourth quarter, according to TPI Index, which covers commercial outsourcing contracts valued at $25 million or more, found the total contract value of $26.4 billion, 7 per cent higher than the same period a year ago.
Interestingly, an analysis of TPI Index data shows that the intensified contracting activity is the result of a decade-long rise in the smallest awards. While the numbers of mega-deals and mid-range contracts awarded each year has remained relatively stable since 2002, those valued at $100 million or less have more than tripled. In fact, the TPI data shows that in the deal size between $25 and $99 million (smaller size contracts) the number of annual deals have risen from 212 in 2002 to 663 in 2011 accounting for 76 per cent of the total 870 deals in 2011.
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Tags: application, china, company, IT, outsourcing