KPMG’s Shared Services and Outsourcing Advisory (SSOA) practice publishes a quarterly analysis on Information Technology and Business Process Outsourcing (IT-BPO) contracts signed across industries and geographies, with a Total Contract Value (TCV) of USD5 million and above per deal.
Key highlights of 2017 :
- 2017 witnessed an increase in deal activity as compared to 2016. There was an increase of 128 percent in total contract value and a 3 percent increase in total number of deals in 2017 as compared to 2016
- Worldwide in 2017, 727 ITO contracts worth USD137.2 billion and 167 BPO contracts worth USD30.6 billion were signed
- Globally 220 IT-BPO bundled contracts were signed in 2017 with contract value worth USD94.2 billion
- In terms of value, approximately 84 percent of deals originated from the United States, followed by United Kingdom at 5 percent. Spain and Australia were two other key outsourcing markets
- The average deal tenure increased to 5 years 1 month in 2017 from 4 years 7 months in 2016
- Defense and Government sectors were the top consumers of IT-BPO services contributing to 39 percent and 29 percent in terms of value of outsourcing deals signed in 2017. Insurance sector was the next big contributor in terms of deal value
- IT bundled and SCM contributed approximately USD88.4 billion and USD16.3 billion respectively and were the largest procured services globally within ITO and BPO services, respectively
- Average annualized contract value in 2017 was USD32.6 million as compared to USD21.3 million in 2016 showing an increase of 53 percent
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