• In 2Q08, 146 contracts were awarded, valued at approximately US$ 25.6 billion in total contract value (TCV) and almost US$5 billion in annualized contract value (ACV). All three of these measures indicate considerable market strength
• Each of the past three quarters has topped the US$20 billion TCV mark. We have not witnessed three consecutive quarters of US$20 billion plus in TCV since mid-2004
• For the first half of 2008, compared with previous first half-years witnessed the greatest number of contracts, TCV and ACV in more than 10 years
• New scope added boosted this first-half milestone, signaling that the growth is truly incremental to the market
• At the midpoint of the year, the TCV in the broader market is on a trajectory to eclipse the TCV record of the most prolific year, 2004
  
  

2Q08 Europe, the Middle East and Africa (EMEA) TPI Index
Notable Market Growth Taking Place Predominantly in EMEA

• EMEA’s robust performance supported the first-half record, with dramatic year-on-year increases in TCV and ACV, caused mainly by EMEA’s large share of mega deals
• EMEA saw continued strength in the second quarter, contributing to an overall first-half TCV of €25.5 billion – an increase of 58 percent year over year
• The 114 contracts signed in EMEA in the first half of 2008 had a TCV of almost €22 billion and an ACV of over €4 billion, a year over year increase of 65 percent
• EMEA accounted for 10 of the 13 mega deals signed and 16 of the 24 mega relationships
• EMEA brought in a year-on-year increase of more than 10 percent in the number of contracts awards
  
  

1H08 Asia Pacific TPI Index
Asia Pacific is Contributing Strongly to Record-Setting Global Growth by Number of Contracts Awarded

• The number of contracts in Asia Pacific rose nearly 10 percent year over year
• The region’s TCV declined by 44 percent year over year
• To date, the average contract value in Asia Pacific has declined by US$65 million compared to the same time last year 
• Drop in the number of mega deals and mega relationships was the primary contributor to the decreases in TCV and ACV
• Telecom TCV in Asia Pacific accounts for a robust 51 percent of the region’s TCV

New White Paper: Mitigate the Risk of Value Leakage — Choosing the Best Path Forward in a Divested ITO Relationship
by Fred Croxton, Director, TPI; and Paul Duckham, Senior Advisor, TPI

Learn about typical questions that arise in these situations and how CIOs can plan ahead to be better positioned to retain the value of contractual and service provider relationships in the face of future equity events.

Professional Development



Carnegie Mellon University’s School of Computer Science Creates: The Master of Science in Information Technology in IT Service Management (MSIT-ITSM)




TPI News

Information Services Group Announces Second Quarter 2008 Financial Results

TPI Expands Team in Germany

Outsourcing Takes a Hit




TPI Events

India Sourcing Industry Conference
Leela Palace Hotel
Bangalore, India
September 24, 2008

This year’s agenda includes:

TPI’s analysis of global and regional outsourcing markets — insights that serve to give context to the sourcing industry

Perspective on trends in global service delivery, focusing on emerging buyer themes driving successful service provider relationships

Skills development practices for sourcing management professionals that help prevent value loss

Account remediation case study, providing insights into what worked and what didn’t work

REMINDER: Completed registration forms are due to Alison Emery by Friday, September 12. For more information, contact Alison Emery.

European Sourcing Industry Conference
The Cumberland Hotel
London, United Kingdom
October 6 - 7, 2008

Details to be provided shortly. For more information, contact Denise Colgan.





WARNING: Computer viruses can be transmitted via e-mail. The recipient should check this e-mail and any attachments for the presence of viruses. The company accepts no liability for any damage caused by any virus transmitted by this e-mail.

The most important factor influencing success for a buyer of outsourcing services is the “leverage” that it is able to accrue and preserve throughout the service provider negotiations process. Leverage is hard to earn, and once earned, it is easy to lose, so it’s important as you enter into these discussions that you have a plan to build your leverage and preserve it as you move through the transaction.

Learn from TPI’s experts how to begin negotiations in the most advantageous position and avoid pitfalls throughout the process that can erode buyer leverage to the detriment of your business.

During the past two years, merger and acquisition (M&A) activity in the outsourcing marketplace has witnessed an interesting wave of transactions emanating from the sale of captive centers. The most recent was the sale of the captive belonging to Aviva, the fifth largest insurance company in the world and the largest in the United Kingdom, to third-party service provider WNS.

Aviva’s sale of its large scale, offshore captive operations to third-party service provider WNS is a case study for how parent companies can “monetize” their captive units to raise cash during challenging economic times. This point of view recaps the thought process behind this growing trend in the business process outsourcing (BPO) market, explains how parent companies and service providers can both benefit from monetizing strategies, and offers TPI’s view of the future for this movement.

In a highly competitive and regulated insurance market in Japan, there is no margin for substandard business operations. A global AAA-rated insurance carrier seeking to improve business operations at its Japanese subsidiary asked TPI to help its team restructure and optimize its information technology (IT) and business processes.

Across professions and industries, those of us who provide services to paying customers strive to obtain a position of recognition best evidenced by the difference made to those who hire us for our expertise.  It’s human nature. 

Unless we’re truly in the business of providing non-differentiated (a.k.a. commodity) services to our customers, we want to be recognized and compensated for being better at what we do than others in our field of work. We also want to recover our investments and the risks we take in building an offering to serve a market need.