In 2006, US companies have signed fewer outsourcing contracts, the number of contracts are down by 17% and since 2001, the first three quarters of the year has seen the lowest numbers of outsourcing contracts being signed. US companies also committed less time and effort and money to outsourcing deals. The finding has come out from TPI's latest outsourcing study. TPI executives feel this finding t
ells the story of how American companies are shifting towards smaller contracts value and shorter duration.
MD of TPI, Duncan Aitchison, said the shift is partly due to US companies using framework agreements rather than full outsourcing contracts and also companies favouring a multi-sourcing approach.
Europe is now the largest market according to TPI, with 56 per cent of the global market share - totaling more than $20bn. The region's share a year ago was just 37 per cent ($17bn).
Another point to emerge from the index is that 59 per cent of outsourcing contracts involve some kind of offshore activity.
Aitchison said the rise in offshoring shows the market is becoming more diversified, offering a greater choice of location and provider. Source
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