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This analysis is based on deal data extracted from the ValueNotes Outsoucring Dealtracker, which tracks contracts, M&As and other deals in IT and BPO outsourcing.
During the last 18 months (January 2007 to July 2008), a total of 566 global contracts were recorded by ValueNotes.
Decline in deals globally: attributed to lower deals in BFS sector
From approximately 100 large contracts in each of the quarters of 2007, the number deals have reduced drastically in to 58 in Q2 2008. This is largely due to a 75-85% decline in deals happening in the BFS sector. Though the economic slowdown has affected other sectors as well, the bulk of the decline is due to BFS.
Not only have the number of contracts declines, the average recorded quarterly deal value (AQDV) has reduced by 40% since Q1 2007, though this trend was visible even towards the end of 2007.
Distribution of deals across segments
As is evident from the charts, both BFS and healthcare have seen their share decline, and that too on a smaller base of deals. The only real gainer has been the telecom sector.
US continues to lead the outsourcing market
Surprisingly, despite expectations that the US share would shrink, this has not been as dramatic as it should have been. Even European contracts have slowed down. The only good news is from the Asia Pac region.
List of deals signed in Q2 2008
|
Month
|
Year
|
Vendor name
|
Client name
|
Services offered
|
|
April
|
2008
|
Accenture
|
New York City IT&TC Department
|
Technology and business processing support
|
|
April
|
2008
|
UGL Services
|
Department of Foreign Affairs and Trade (DFAT), Australia
|
F & A, Administration support services
|
|
April
|
2008
|
Kuehne + Nagel
|
Whitbread
|
CRM
|
|
April
|
2008
|
HP
|
Tribune Publishing
|
F & A, CRM
|
|
April
|
2008
|
TechTeam Global NV/SA
|
Sanofi-Aventis
|
CRM- clinical support services
|
|
April
|
2008
|
Capgemini
|
Unilever
|
F & A
|
|
April
|
2008
|
SunTrust Bank
|
Symcor
|
F & A
|
|
April
|
2008
|
Sagem Mobile
|
ANOVO
|
CRM
|
|
April
|
2008
|
ePLDT Ventus
|
Ingram Micro
|
CRM-sales
|
|
April
|
2008
|
TeleTech Holdings
|
Unnamed Client
|
CRM
|
|
April
|
2008
|
Yooralla
|
Stellar
|
F & A
|
|
April
|
2008
|
ICG Commerce
|
Hertz Corporation
|
Procurement services
|
|
April
|
2008
|
iBasis
|
TDC
|
International voice services
|
|
April
|
2008
|
ACS
|
California Health and Human Services Agency
|
Transaction Processing, F & A
|
|
April
|
2008
|
Perot Systems
|
Harvard Pilgrim Health Care
|
IT infrastructure & Admin services
|
|
April
|
2008
|
SEI
|
Silver Creek Capital Management
|
F & A
|
|
April
|
2008
|
Convergys
|
Avaya
|
HR, Payroll & F & A services
|
|
April
|
2008
|
Convergys
|
Unnamed Client
|
CRM
|
|
April
|
2008
|
ICICI Pru AMC
|
HSBC Securities Services
|
F & A
|
|
April
|
2008
|
TeleTech Holdings
|
Unnamed Client
|
CRM- laptop and desktop products
|
|
April
|
2008
|
TeleTech Holdings
|
Unnamed Client
|
CRM
|
|
April
|
2008
|
MakeMyTrip.com
|
IBM Daksh
|
CRM- ticketing and hotel portfolio
|
|
May
|
2008
|
4D
|
United Utilities
|
F & A
|
|
May
|
2008
|
APAC Customer Services
|
MediaNews Group
|
CRM
|
|
May
|
2008
|
Veritude
|
Morgan Memorial Goodwill Industries
|
Recruitment Process Outsourcing
|
|
May
|
2008
|
EDS
|
U.S. Department of Veterans Affairs (VA)
|
CRM- voice based services
|
|
May
|
2008
|
Capita
|
Hart District Council
|
F & A
|
|
May
|
2008
|
The RightThing
|
New contracts - Boehringer Ingelheim, MedImmune, Eli Lilly, Amylin, Cartus, Vale Inco, Union Pacific, Prudential, Cigna, Archer Daniel's Midland, Dimensions Data, Northwest Airlines, Cooper Tire, Ciba Vision, Spirit Aero.
Contract extensions - CVS, Chubb & Son, and Unisys.
|
Recruitment Process Outsourcing
|
|
May
|
2008
|
Liberata
|
Local Government Association
|
HR, Payroll & F& A services
|
|
May
|
2008
|
CDI Marine Co.
|
U.S. Navy
|
Engineering design
|
|
May
|
2008
|
DeskDirect Global
|
Document Outsourcing
|
Document management
|
|
May
|
2008
|
Achievo
|
Nycomed
|
Consulting- drug safety solution
|
|
May
|
2008
|
Firstsource Solutions
|
Bharti Airtel
|
CRM & F& A
|
|
May
|
2008
|
Stellar
|
Simply Energy
|
CRM- sales, consulting- retail energy business
|
|
May
|
2008
|
ACS
|
State of Tennessee
|
Operations & data management
|
|
May
|
2008
|
Cable & Wireless
|
Aviva
|
CRM
|
|
May
|
2008
|
Convergys
|
Unnamed Client
|
CRM
|
|
May
|
2008
|
Veritude
|
Varian Semiconductor Equipment Associates
|
Project management & Recruitment Process Outsourcing
|
|
May
|
2008
|
StarTek
|
Unnamed Client
|
CRM- inbound
|
|
May
|
2008
|
AFFINA
|
Omron Healthcare
|
CRM- inbound
|
|
June
|
2008
|
SRA International
|
Environmental Protection Agency's (EPA) Office of Emergency Management (OEM)
|
HR, Research
|
|
June
|
2008
|
Convergys
|
Unnamed client
|
CRM
|
|
June
|
2008
|
IBM
|
Bristol-Myers Squibb
|
HR, Payroll, CRM
|
|
June
|
2008
|
LogicaCMG
|
Spring Global Mail
|
F & A
|
|
June
|
2008
|
Aditro
|
DNA Services
|
CRM- Tele services
|
|
June
|
2008
|
Northern Trust Corporation
|
Hermes Fund Managers Limited
|
F & A
|
|
June
|
2008
|
API Outsourcing
|
Katun Corporation
|
F & A
|
|
June
|
2008
|
Aditro
|
Riksbyggen
|
Transaction Processing
|
|
June
|
2008
|
Empyrean Benefit Solutions
|
Panda Restaurant Group
|
Admin services- health and welfare
|
|
June
|
2008
|
Paragem Partners
|
Total Financial Solutions
|
F & A
|
|
June
|
2008
|
Convergys
|
Advanced Info Service (AIS)
|
CRM consulting services
|
|
June
|
2008
|
EXL
|
Unnamed client
|
F & A
|
|
June
|
2008
|
SS&C Technologies
|
General Motors Investment Management Corporation (GMIM)
|
Investment management process outsourcing
|
|
June
|
2008
|
Capita Group
|
Marsh
|
Transaction Processing
|
|
June
|
2008
|
CDI Corp.
|
Hertz Corporation
|
Recruitment Process Outsourcing
|
|
June
|
2008
|
TeleTech Holdings
|
Unnamed client
|
F & A
|
|
June
|
2008
|
Aditro
|
Britax
|
Supply chain services
|
Source: ValueNotes Outsourcing Dealtracker (BPO)
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