In line with good growth rate outsourcing world will also remember the year 2006 as the year where single greatest number of agreements done. A good 11% up from 2005. The study done by TPI, also noticed that in the fourth quarter the trends went towards shorter contract durations and smaller contract values.
The year also has seen, as per the study, the maximum number of contract restructurings. In total 157 European contracts, 58 service providers signed one or more contracts and 28 signed two or more. Across the board, a record number of providers was recorded in every contract category.
The annual contract value however has dwindled. The total ACV (Annual Contract Value) of the 157 European contract awards in 2006 came to €4.3B compared to ACV of €5.7B from 142 contract awards in 2005.
The average contract size in Europe also fallen from over €35M in 2002 to just over €27M in 2006.
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