Business Process Outsourcing News and Information

The final quarter of 2006 has seen worst outsourcing market conditions since 2002 in terms of value of awarded outsourcing contract. Also, new outsourcing contracts value also gone down 8% than 2005. The prevalent trend is shorter and smaller contracts. Seems clients are shying away from long term commitment to vendors and instead preferring specialist and single process deals. Companies who are trying to be an one stop outsourcing solution shop may find a set back temporarily unless their proposition do not match up to the specialist one's.    

 

Duncan Aitchison, managing director of TPI EMEA and Asia-Pacific, said: 'In practice, the trend towards shorter contract duration means that outsourcing providers are obliged to compete more often in order to secure the same level of business. For many the cost of sale can become a major issue. Consequently service providers need to be increasingly selective in terms of the contracts they pursue.'

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