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EMEA Outsourcing Activity Hits Record High(ENP Newswire Via Acquire Media NewsEdge) ENP Newswire - 30 July 2014 Release date- 29072014 - LONDON- Information Services Group (ISG) (NASDAQ:III), a leading technology insights, market intelligence and advisory services company, today reported that outsourcing activity in the Europe, Middle East & Africa (EMEA) region hit a record high in the first half based on the volume of contract awards, and achieved its strongest first-half performance by contract value since 2008. The Q2 2014 EMEA ISG Outsourcing Index, which measures commercial outsourcing contracts with an annual contract value (ACV) of EUR4 million or more, found that first half ACV across EMEA totaled EUR5 billion, an increase of 32 percent year-on-year. The number of contracts signed was up 25 percent for the same period. With more than half of all global outsourcing value awarded in EMEA, the region continues to dominate the global outsourcing market. Commenting on the latest findings, David Howie, partner, ISG, said, 'EMEA continues to maintain its leading position in the global outsourcing market. The region's increased contract volume and value in the first half was driven by a rise in demand from continental Europe, most notably France and Germany. Looking ahead, we're seeing a great deal of transaction activity in the market that should come to fruition in the second half of 2014. Taking the year as a whole we would expect ACV in the region to comfortably exceed 2013 levels.' The United Kingdom market maintained its steady performance, with ACV of EUR1.4 billion, an increase of 6 percent compared with the first half of last year. This occurred despite a slight drop in contract counts to 83, from 92 the previous year. Germany saw year-on-year ACV growth in the first half of 2014, with around EUR740 million in contract awards compared to EUR530 million in 2013. This growth was driven by a return to strong contracting activity with almost twice as many contracts awarded: 59 compared with 30 in the first half of 2013. France had it best-ever half year performance by both contract value and volume. The EUR930 million of ACV awarded was boosted by a number of mega-relationships signed in the first half and resulted in France becoming EMEA's second-largest outsourcing market for the period, behind only the UK. Although the presence of large deals can temporarily boost market values, France also saw a corresponding increase in the number of contract signings. The 40 contracts awarded in the first half was the highest ever, and more than three times the number recorded in the first half of 2013. This has been driven in part by increased innovation as French businesses embrace new sourcing options such as Software as a Service (SAAS) and cloud-based solutions. For the quarter, EMEA ACV remained flat compared with the strong first quarter of 2014 but finished 50 percent ahead year-on-year. The region benefitted from a steady IT Outsourcing (ITO) performance. Though modestly down sequentially, this was the strongest second quarter ever for ITO award value (EUR2 billion) and counts (111) in EMEA. Meanwhile, Business Process Outsourcing (BPO-) continued its lackluster performance across the region, with values continuing to hover around the EUR500 million mark for the quarter. '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,' said Howie. 'Solid performances in volume and value across most industry sectors give us confidence that this is not simply a blip.' ISG presented the Q2 2014 EMEA ISG Outsourcing Index during a conference call for media and analysts. To listen to an audio replay of the call and view presentation slides, please visit: http://www.isg-one.com/web/research-insights/isg-outsourcing-index/ About the ISG Outsourcing Index Now in its 47th consecutive quarter, the ISG Outsourcing Index provides a quarterly review of the latest sourcing industry data and trends for clients, service providers, analysts and the media. For more than a decade, it has been the authoritative source for marketplace intelligence related to outsourcing transaction structures and terms, industry adoption, geographic prevalence and service provider performance. About Information Services Group Information Services Group (ISG) (NASDAQ: III) is a leading technology insights, market intelligence and advisory services company, serving more than 500 clients around the world to help them achieve operational excellence. ISG supports private and public sector organizations to transform and optimize their operational environments through research, benchmarking, consulting and managed services, with a focus on information technology, business process transformation, program management services and enterprise resource planning. Clients look to ISG for unique insights and innovative solutions for leveraging technology, the deepest data source in the industry, and more than five decades of experience and global leadership in information and advisory services. Based in Stamford, Conn., the company has more than 850 employees and operates in 21 countries. For additional information, visit www.isg-one.com. Follow us on Twitter: https://twitter.com/ISG_News Follow us on LinkedIn: http://www.linkedin.com/company/information-services-group Follow us on Google Plus: https://plus.google.com/b/118326392175795521009/118326392175795521009/posts CONTACT: Denise Colgan, ISG +44 1737 371 523 [email protected] Bhakti Gajjar, Cohn & Wolfe for ISG +44 207 331 5363 [email protected] (c) 2014 Electronic News Publishing - |