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KPMG Deal Tracker - Year 2014 Analysis

KPMG Deal Tracker - Year 2014 Analysis

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January to December 2014 

 

Key highlights:

  • Of the three years (2012 - 14) analysed, the year 2012 was a strong year for outsourcing in terms of total contract value (TCV) and numbers. However, deals signed in 2012 had an average TCV of USD95 million compared to USD99 million and USD105 million in 2013 and 2014 respectively
  • Worldwide in 2014, 889 ITO contracts worth USD86.7 billion and 189 BPO contracts worth USD23.7 billion were signed
  • Globally, 66 IT-BPO Bundled deals were signed in 2014 with aggregate contract value of USD9.9 billion
  • Average deal tenure for contracts in 2014 was 4 years 4 months which was shorter compared to the previous two years, indicating the continuity of the market’s proclivity towards shorter tenure deals
  • Defence and Government were the top two consumers of IT-BPO services contributing 24 per cent, and 26 per cent respectively of the total deal value signed in 2014. Telecom, and Banking and Financial Services were the next big contributors by deal value IT Bundled Services and BPO Bundled
  • Services contributed USD26.9 billion and USD10.1 billion respectively and were largely procured services globally within ITO and BPO outsourced services respectively, in 2014
  • Average annualised contract value in 2014 was USD23.4 million as compared to USD21.7 million during 2013 showing an increase of around 8 per cent 

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