EMEA Outsourcing begins year with strong first quarter

The EMEA’s (Europe, the Middle East and Africa) outsourcing industry has had a stellar performance in the first quarter of 2016, according to the newly released Q1 EMEA ISG Outsourcing Industry Index. The value of the industry rose by 19 percent in the EMEA regions to reach €2.25bn.

Unsurprisingly, ITO (Information Technology Outsourcing) and BPO’s (Business Process Outsourcing) were the frontrunners in terms of value generated for the industry. When compared to the first quarter of last year, the Actual Cash Value (ACV) of ITO contracts rose by 20 percent reaching close to €1.5bn.

With regards to BPO, the service has had its best performance in four years, having risen by 41 percent in ACV when compared to the first quarter of last year. ISG reports that a rise in contact centre and facility management deals has boosted BPOs’ ACV in the first quarter of the year.

As John Keppel, Partner and President of ISG declares, “2016 got off to a strong start in EMEA. The increased ACV and contract activity in the first quarter are a welcome contrast to 2015’s sluggish start and suggest a healthy market flow for the region”.

As for the UK, the country saw a rise in ACV and contract volume of around 10 percent. The performance level is a welcomed change from that of the last two periods which saw UK activity consistently below historical levels.

Whether this rate of growth can be sustained, remains to be seen. As Mr. Keppel forecasts, “ACV levels should remain in positive territory for the year due to the market’s fast start in 2016. We see consistent demand in the UK and pockets of increasing long-term demand across several of the smaller EMEA markets.”

Mauritius, the Indian Ocean Island, which markets itself as a bridge between Africa and Asia, is trying to shift an economy mostly focused on sugar, textiles and tourism towards offshore banking, business outsourcing, luxury real estate and medical tourism. Mauritius expects economic growth to climb to 4.1 percent in 2016/17 as announced in the budget last Friday.

Contact Techmode Outsourcing for more details about BPO services in Mauritius