According to new report, first time, UK has become leading market for outsourcing. The UK has overtaken US to become the top national market for new outsourcing contracts. According to TPI, UK represented 37% of the market for major outsourcing contracts awarded worldwide in this year. UK is followed by US - 25% and Asia-Pacific with 4%. However, it is understood that, UK will not continue its leading position as majority of the outsourcing chunk is because of deals by Reuters and BT. Even in this quarter, without Reuters and BT, UK would have been second largest national market.
However, Europe still dominates market and accounted for over 50% of the new contracts worldwide. According to Duncan Aitcheson, Tip�s Managing Director, International:
�While some may argue that Europe�s �2.4 billion mega deal � the Reuters/BT contract � skews the results for this first quarter, Europe still accounted for well over half (57%) of new contracts worldwide � a high point for European outsourcing.�
Also, so-called big six suppliers in the outsourcing market which are - Accenture, ACS, CSC, EDS, HP and IBM have seen their combined market share to fall by 57% in the first quarter of 2005. 60% of the senior management in UK companies are looking at big Indian outsourcing providers who are providing outsourcing services like their western counterparts but at low cost. This growing confidence in Indian outsourcing companies will further allow increase in their market share and decrease in the market share of big six and other western consulting companies. This also gives a wider choice for clients.