Findings from the Q1 TPI Index indicates that trends emerging in the last half of 2007 in the Americas are firming up in 2008. While the health of the market globally is strong, the market in the Americas appears to be exhibiting signs of a re-orientation. Key findings from the Index:
- Americas contracts are smaller and shorter in duration ( less than 5 years for first time ever)
- Staff augmentation continues to obviate some outsourcing opportunities
- BPO continues to be stronger than ITO
- Mega deals and mega relationships appear to be on the wane in the Americas
- Strong increase in "new scope added" to existing contracts
- EMEA now accounts for more total contract value than the Americas
- Overall BPO strength is being driven by strength in non-traditional services including facilities management, document management and supply chain/procurement.
- 50 different service providers won $25+ million awards in Q1
While one quarter's results in no way define a new market structure, it does appear that a combination of competitive and technological drivers are beginning to impact the outsourcing market in the Americas.