April to June 2016

It gives me great pleasure to bring to you the second quarter 2016 edition of the KPMG Global IT-BPO Outsourcing Deals Analysis. 

 

Key highlights: 

• 2Q16 also showed a deal activity similar to 1Q16 – while over the years we have seen that the second quarter is always the strongest quarter of the year
  
• Worldwide in 2Q16, 311 ITO contracts worth USD40.1 billion and 21 BPO contracts worth USD739 million were signed, worldwide.
  
• Globally 8 IT-BPO bundled deals were signed in 2Q16 with contract value worth USD463 million.
  
• In terms of value, approximately 71 per cent of deals originated from the United States, followed by the United Kingdom at 5 per cent. China and Australia were two other key outsourcing markets.
  
• The average deal tenure increased to 5 years 5 months in 2Q16 from 4 years 11 months in 1Q16.
  
• Government and Telecom sectors were the top consumers of IT-BPO services contributing to 65 per cent and 12 per cent in terms of value of outsourcing deals signed in 2Q16. Defense sector was the next big contributor in terms of deal value.
  
• IT Bundled Services and CRM contributed approximately USD31.4 billion and USD378.5 million respectively and were the largest procured services globally within ITO and BPO outsourced services, respectively
  
• Average annualized contract value in 2Q16 was USD23.0 million as compared to USD27.3 million in 1Q16 showing a decrease of 16 per cent between the two quarters

Click here to view the Infograph.