Europe has overtaken the US as the world's leading market for new outsourcing contracts, according to the latest Quarterly Index from TPI, the leading international sourcing advisory firm. TPI's research reveals that in 2004 Europe represented 49% of the value of major outsourcing contracts (those worth over ?40 million) awarded worldwide, with the USstanding at 44% and Asia Pacific at 7%. The ?28 billion of contracts awarded by European companies last year is more than double the value in 2002.
?The equalisation between the European and US outsourcing markets comes through dramatic growth in Europe, not any significant decline in outsourcing in the Americas,? says Duncan Aitchison, Managing Director, International with TPI.
?European companies realise that they cannot continue to compete effectively on a global scale without utilising the increased efficiency and flexibility they can gain through outsourcing.?
TPI's research reveals that the value of major outsourcing contracts awarded last year was a record high of ?58 billion worldwide. Of this, 67% was information technology outsourcing (ITO) and 33% business process outsourcing (BPO), whereby companies engage third parties to perform functions such as finance and accounting, procurement, customer relationship management and human resources processing.