ITO Market Keeps Up Growth in the Third Quarter: Everest
Everest Group, a global consulting and research firm, has recently issued its Q3 Report on the global outsourcing market. The findings reflect certain improvement of the IT services (ITO) market compared to the previous quarter, while business process outsourcing (BPO) activity marginally decreased. The report mentions, that ITO activity was largely led by five “mega deals”, each having contract values over $1 billion.
Other key highlights of the report include:
- North America continued to account for about one-third of total transactions; North America and the United Kingdom contributed toward about one-half of all deals. Notable activity was reported from select geographies, including Spain, Germany and India.
- The banking, financial services and insurance (BFSI) and manufacturing, distribution, retail (MDR) verticals continued to dominate transaction signings, with some high-value contracts also reported in the public sector.
- In addition to the five ITO mega deals, 60 large deals with contract values exceeding $50 million also were recorded during the quarter.
- Offshore activity saw 34 delivery centers established in the second quarter, the majority in Asia followed by Eastern Europe and Latin America.