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Outsourcing demand 'on the rise in UK and Europe'

27 July 2011

A growing number of businesses in the UK and Europe are seeking to embrace the potential business benefits of outsourcing operations, according to a report.

Data from the information services company TPI reveals that the total contract value (TCV) for outsourced services in the region during the second quarter of 2011 came to $9.5 billion (£5.8 billion), up by 13 per cent year on year.

This was driven in large part by rising demand for these services in the UK and other nations such as France and the Netherlands, as well as mega-deal activity in Finland.

The growth in Europe came despite an overall downturn in outsourcing activity worldwide, particularly in the Americas, but this trend is expected to reverse itself later this year.

John Keppel, partner and president for information services for TPI, said: "We anticipate stepped-up second-half results that will find the market finishing the year near its 2010 levels."

Last month, a survey from Interserve suggested that the local government sector is one area in which outsourcing will increase over the next three years.

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