IT outsourcing “explodes into life”

There was a sharp uptick in outsourcing deals at the end of 2010, Ovum has found

The number and value of IT services deals signed globally “exploded into life” at the tail end of 2010, having stagnated for much of the year.

Research by analyst house Ovum found that $49 billion-worth of new outsourcing contracts were signed in the fourth quarter of 2010, up 66% compared with the preceding three months. This, says Ovum, was the highest grossing quarter of the past seven years.

Notable agreements signed towards the end of last year included energy provider E.ON’s $1.4 billion infrastructure outsourcing agreement with Hewlett-Packard, and BP’s $400 million data centre deal with the same vendor.

“The fourth quarter saw a remarkable turnaround for the sector which, after a sluggish first three quarters, was forecast to hit its lowest total contract value level for five years,” commented Ovum analyst Ed Thomas.

“However, rather than enduring another stagnant quarter, a string of large deals meant that the IT services market exploded into life.”


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