Figures released by a number of sources show a definite slowdown in number of contracts and the amount of money spent by IT organizations on outsourcing and offshoring deals.
of
The TPI Index, developed by the TPI sourcing data and advisory arm of Information Services Group, found that the number of Q2 contract awards valued at $25 million or more fell by 7.5%.
Annualized contract value (total contract value divided by duration of the contracts) fell 5% from Q1 to $3.6 billion. Compared to the first half of 2008, the previous six months saw 11% fewer contracts, 22% lower total contract values and 28% lower annualized contract values for outsourcing.
If 2009 were to equal 2008 performance, outsourcing vendors would need to sign up $53 billion in total contract value during the next six months. As it stands, contract values are on track to fall to 2001 levels.
India’s largest outsourcing company, Wipro, reported a 3.3% decline in U.S. dollar revenue for IT services last quarter.
Meanwhile, Infosys Technologies reported that its fiscal year ending March 2010 is on track to drop by up to 4.6% over the previous year.
Recent figures from the National Association of Software and Service Companies show revenue growth from offshoring will still hit 10% this year. That’s still far below 29% growth in 2007.
Intel Technology Provider Program
Intel Technology Provider Program (ITP) helps resellers better understand Intel products which power the technology they sell, and enables value-add services such as remote manageability or anti-theft tracking. Learn More
WindowsForDevices.com
WindowsForDevices.com is the comprehensive news site covering Windows embedded technologies. Visitors get news, technical white papers, opinion columns and extensive directories covering the products and companies in the marketplace. Click Here
Channel News and Analysis 
10 Key Ingredients That Have Made Apple So Successful
10 Reasons RIM`s New CEO Won`t Fix the Company
Eight IT Jobs Skills That Win Six-Figure Salaries
Social Media Best Practices to Land that Dream Job
Channel Executives On The Move: 2012
Why SOPA Is Such A Big Issue
See All Slideshows
