Europe inked 41 percent of the outsourcing contracts during the second quarter and offshore captive growth continued to surge during the period, according to the Everest Research Institute’s quarterly report on global outsourcing and offshoring activity.
According to the Institute’s newly released Market Vista: Q2 2008 report, there is a 3% increase in transactions over Q1 with 417 outsourcing contracts signed in the first quarter worth $2.6bn in annual revenues.
70% of the contracts were for IT Outsourcing (ITO) and 28% for Business Processing Outsourcing (BPO) engagements and the Philippines and China are becoming more popular due to skills shortages and inflation in India.
Europe, including the United Kingdom, has gained considerable momentum in outsourcing activity over previous few quarters, signing 41 percent of outsourcing transactions in Q2, up from 36% the quarter before.
Meanwhile Philippine software exports are expected to reach almost $1 billion by 2010, more than twice the $423 million earned in 2007, an industry association said Wednesday.
Cristina Coronel, president of the Philippine Software Industry Association (PSIA), said this was based on the robust annual growth of 30 percent the industry has been enjoying in recent years.
Software services account for nine percent of the total business processes outsourced to the Philippines, a far cry from call centers, which account for 74 percent.
One specific example of an American outsourcing company currently expanding is Western Watts who wants to increase its call center seats to 600 by next year in Davao city in the Philippines as it takes advantage of the increasing number of clients abroad.
Author: Kim G.