This IDC update — using IDC's BuyerPulse Services Deals database, a database containing more than 56,000 deals — provides an in-depth analysis of the top 100 worldwide outsourcing deals in 2014 as well as trending analysis of the top 100 worldwide outsourcing deals for 2012–2014. More specifically, this update provides an analysis of the top 100 deals across both IT outsourcing and BPO services markets as well as by deal size, deal length, geographic scope, cross-industry view, and vendor ranking. Key takeaways from this year's top 100 deals include:
- Worldwide total contract value (TCV). Worldwide TCV of the top 100 deals declined by 10% to $45 billion in 2014, from $50 billion in 2013.
- Top 5 vendors'deal value captured. The top 5 vendors in 2014 captured more than 50% of the total value of top 100 deals in 2014, up from 43% in 2013.
- Share of worldwide TCV captured by India-based outsourcers. India-based outsourcers captured 23% of worldwide TCV of top 100 outsourcing deals in 2014, up from 8% in 2013 and 7% in 2012.
- Average deal size. Average deal size for the top 100 worldwide outsourcing deals has been declining 4.3% annually over the past 10 years.
- Number of megadeals. The number of megadeals in 2014 (9) is at the lowest level for more than a decade, and significantly down from the highs of 2003 (24) and 2006 (25).
- IT outsourcing versus BPO deal making. The share of ITO deal value worldwide has increased to 78% of worldwide TCV in 2014, up from 51% in 2013 and 60% in 2012, while the share of worldwide TCV from BPO deals has declined to 22% in 2014, from 49% in 2013 and 40% in 2012.
- Industry deal value. There has been a significant shift from public sector deals to commercial/private sector deals from 2013 to 2014, with government capturing just 12% of deal value in 2014, down from 48% in 2013, and the remaining 88% captured by the commercial sector, compared with 52% in 2013.
Finally, this update provides essential guidance to outsourcers and service providers looking to optimize potential opportunities in capturing deals that rank at the top of the outsourcing market. These factors involve branding, value propositions, critical investments, new revenue streams, and partnership ecosystems.
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