TPI, a leading advisory organisation for the outsourcing industry, completed a report showing that the amount of outsourcing contracts is expected to grow in 2010.
As the global economic situation becomes more secure, companies are starting new projects and resuming projects that had been put on hold. This will result in an increase in the number of outsourcing contracts because businesses are unable to upgrade their internal resources and revive all of their projects at once. Another driver for the increase in demand for outsourcing is the expansion of cloud computing.
TPI’s fourth quarter report for 2009 indicated that there was a stable improvement for contract value and market dynamics in the industry. Looking at the growth of Total Contracts Value, there was a 135 percent growth in the last quarter of 2009 in comparison to the final quarter of 2008.
Numerous outsourcing professionals doubted if the industry’s improvement in 2009’s final quarter was the usual year-end boost or if it really signalled the revival of the global economy. TPI’s managing director and partner John Leppel believed it was both, because the improved market dynamic showed the increasing certainty of European companies in making and finalising decisions. The advisory firm did not forecast a relapse to pre-recession circumstances, and claimed, “We are maintaining a positive outlook for IT industry in 2010 as the market started to show momentum in key industries and signs of steady recovery in broader market.”
