Our headlines revealed that:
- By both contract awards and total contract value (TCV), the global commercial outsourcing market dropped quarter-over-quarter and year-overyear. A weak quarter after two consecutive strong quarters is a familiar historical pattern.
- While mega deals nearly vanished, mega relationships held firm . . . the latter mainly consisting of restructurings.
- Restructuring TCV climbed over the same period a year ago, but new scope TCV continued to dwindle.
Both IT outsourcing and BPO contract numbers and TCV waned quarter-over-quarter and year-over-year.
- Europe in particular cooled off. However, Americas TCV improved sequentially, thanks in part to the lone mega deal in the market this quarter.
- ISG believes that the first half of 2012 will be a bit slower than the last half of 2011. However, we expect that second-half activity and TCV will pick up, resulting in full year 2012 TCV awards in line with historical norms.
You can read more details in our press release. A replay of today’s call is available until Apr. 20 on the TPI Index page of our web site, where you can also view the presentation slides. I hope you’ll have a chance to listen and sound off with your own perspectives in the comments section below!