TPI, contracts, outsourcing, 2007

TPI Counts 2700+ Outsourcing Contracts

More than 2,700 Active Outsourcing Contracts Under Way as 2007 Concludes

Source: TPI Platform

We’re often asked about the size of the commercial outsourcing market. The best way we’ve found to gauge the current state of the industry is through looking at the universe of active outsourcing contracts underway. For purposes of segmentation, we look at commercial outsourcing contracts valued initially at US$25 million or greater.

As 2007 draws to a close, we count 2,708 active contracts underway — an all-time high. While the pace of new contract awards has slowed during 2007, there remains a net increase in the number of these relationships underway. Terminations are few, and renewals are almost certain. The result? A continually increasing market.

As for the dollar value of those active contracts, we estimate that 2007 will yield almost US$78 billion in economic value through outsourcing. That’s the estimate of the sum of the 2007 revenue of the industry’s service providers through those active contracts. The table below depicts the market in greater detail.

TPI intends to release greater detail on the year-over-year changes in market sizes during the January TPI Index conference call. In the meantime, if you’d like to query them regarding the market activity within a specific industry segment or functional domain, contact them at TPI.