It is all happening exactly as we had foreseen. Research figures have abounded this week and thankfully confirmed a few more of our NOA member predictions. It’s always great to be proved right, and even more its better than we predicted, great for the industry.
No sooner had we released our 2010 predictions, did Lancashire County Council kick-off public sector sourcing proceedings with a £1.9bn shared services announcement. Now the trend is continuing with new predictions of growth for the industry and promising signs from India and Chile.
First up, according to TPI, things could be looking up, for outsourcing that is. Though 2009 was torrid for all, TCVs (total contract values) are up by 47 per cent for the last quarter of 2009 to almost $25bn! Though, of course this doesn’t mean massive hikes in contract volumes, their research team was very positive about going forward, stating:
‘Looking ahead, industry pipeline metrics monitored by TPI have strengthened over a year ago, as have anecdotal descriptions of the health of service provider pipelines. The rate of new transactions added to pipelines, which had slowed in 2009, has apparently stabilized, and the level of contracts coming up for renewal is up 29 percent.’
Going along with the NOA’s predictions – this is good news. Others having a good start to the year include Chile, a country we predicted for growth. According to Invest Chile: ‘The report [from A.T. Kearney] found Chile increasingly gaining interest from North American and European companies looking to serve both English and Spanish speaking clients.’
It’s interesting to see an increase in European, rather than US, interest in Chile and Latin America too. Spain is still a very nascent market for outsourcing, especially offshore, so perhaps as EOA Spain continues to grow, countries like Chile and Mexico will reap many rewards.
Outside our predictions, but predictably all the same, India has also had a good 2010 so far, experiencing rapid growth. HSBC’s India Services Purchasing Managers’ Index posted a reading of 59.0 last month – its highest since September 2008, just before the global recession set in.
While stats can sometimes be misleading, such a wealth of positivity is clearly something to celebrate. Confidence is up, the recession is receding and outsourcers seem to be making hay.
Let’s all hope the sun keeps shining and as someone said “the futures bright”!