Thursday, August 11 2005 10:28 Hrs (IST) - World Time -

Bangalore: Global sourcing advisory firm TPI has in its report on the state of the commercial outsourcing industry reported a modest 11 per cent increase in global contract award values in Q2 of calendar year 2005 compared to the first quarter.

However, the performance in Q2 (April-May-June 2005) is down in both number of contracts and total value compared to the same quarter a year ago, TPI executives told a news conference in Bangalore today (Aug 10, 2005) while releasing this quarter's TPI Index.

TPI forecast a slower overall outlook for global commercial outsourcing industry for 2005.

According to the report, the second quarter witnessed a total of 54 signed, commercial transactions, each worth at least $50 million, valued collectively at almost $15 billion.

For the first half of 2005, the industry concluded 112 transactions valued at $28.5 billion, representing a 13 per cent decrease in value from the same half-year period in 2004, said Siddharth Pai, partner and head of TPI's India operation.

Furthermore, industry-wide average total contract value (TCV) in the broader market has declined considerably since 2004, for both business process outsourcing (BPO) and information technology-outsourcing (ITO) transactions.

According to Peter Allen, partner and managing director, Global Practices, TPI, "Overall, it will take a second half stronger than 2004 for 2005 to be on a par with recent years in terms of TCV awarded. Based on the strength of the market we see now, this is possible but not a sure thing".