India emerge largest market for outsourcing contract for 2007: TPI

Banglore, Aug 8 (UNI) Reinforcing its prime spot as the hottest destination for outsourching businesss, India has emerged as the largest market in the region cornering most global outsourcing contracts during the first half of 2007, ahead of Australia and Japan.

The total value of new (as opposed to renewed or restructured) outsourcing contracts in the 25 million US Dollar plus bracket - where most significant outsourcing activity occurs) was 5.4 billion dollars, an increase of 100 per cent on the first half of 2006, TPI India Managing Director Siddharth Pai told newsmen here today while releasing the Latest TPI Index on outsourcing contracts.

This strong Asia-Pacific performance was in sharp contrast to a modest overall global increase in new business of just six per cent in the first half of 2007, he said adding, ''Traditionally the Asia-Pacific outsourcing market has been seen as relatively immature in contrast to the Americas and European markets and thus prone to peaks and troughs in activity.

''However a strong performance in the region in 2006 has carried on through the first half of 2007 and we have seen three straight half-years of growth in new business demand. There are signs that the Asia-Pacific outsourcing market has steadied. Indeed strong growth in Asia-Pacific and Europe is compensating for a very soft US market, where new outsourcing business is at its lowest level since 1994,'' he said.

The Asia-Pacific performance has been further impacted by an increase in global share of mega relationship volume and value.

Asia-Pacific mega relationships, those transactions with an average annual spend, of USD 100 Million or greater, represented 23 per cent of the global total and 23 per cent of global value, an almost doubling of share by both measures, at the expense of a sharp decline in mega relationship activity in the Americas.

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