May 24, 2016
Global outsourcing deals drop in 2015
The average deal size of the top 100 outsourcing deals globally dropped to USD392m in 2015 from USD680m a decade earlier, according to David Tapper, vice president of outsourcing and offshoring services at IDC. In an interview with CIO Journal, Tapper said all outsourcing deal sizes are declining, a trend that is happening across all outsourcing contracts. IDC has tracked the outsourcing market for more than 20 years and keeps a database of more than 60,000 deals. Part of the decrease in global outsourcing deal size was due to increasing competition from global providers based in India and elsewhere. According to Transparency Market Research, outsourcing firms have also begun using software to automate repetitive tasks. The IT robotic process automation market is expected to hit USD4.98bn by 2020 from USD183m in 2013.