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EMEA technology outsourcing activity on course to be a bumper year

Antony Savvas | Nov. 4, 2014
The UK is the largest and most mature market.

The technology outsourcing industry in the EMEA region is on course to achieve one of its strongest years in a decade, according to research.

The Q3 2014 EMEA ISG Outsourcing Index, which measures commercial outsourcing contracts with an annual contract value (ACV) of 4 million (£3.3 million) or more, found that despite a slower third quarter, ACV across EMEA reached almost 7 billion (£5.8 billion) for the year so far. This is the third highest year-to-date total in the last 10 years.

John Keppel, a partner at ISG, said: "The EMEA market presents a very encouraging picture so far in 2014, and the level of activity underway leaves us optimistic for the rest of the year. Indeed, 2014 could end up being one of the strongest - if not the strongest - years in a decade."

ACV in France for the first three quarters reached more than 1 billion, an increase of more than 250 percent on the same period in 2013. Due to increased activity in Spain and Italy, Southern Europe saw ACV reach 0.74 billion, its highest level ever.

As the largest and most mature market in EMEA, the value of outsourcing in the UK has remained largely consistent over the past five years. Both ACV and contract counts increased substantially compared to the previous quarter, up 120 percent and 48 percent respectively. Despite this though, UK values and contract numbers did not quite reach 2013's third-quarter results.

Across EMEA, third-quarter IT outsourcing ACV rose nearly 15 percent for the first three quarters of 2014, compared with the same period in 2013, while the volume of outsourcing contracts in EMEA hit an all-time high.


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