Top 100 Western European outsourcing deals generated $40.5 bln in 2005

The total value of the top 100 Western European outsourcing deals reached $40.5 bln in 2005, according to IDC. This compares with $42.1 bln in 2004. In 2005, however, the largest deals got bigger, with nine megadeals signed for a total of $20.5 bln. IS outsourcing and network and desktop outsourcing (NDOS) account for the lion’s share of the aggregate value of the top 100 deals, at a combined $32.7 bln. BPO adoption continues to provide encouraging signs, but adoption has not met expectations. Growth rates in BPO across Western Europe still make this one of the most attractive markets in pure growth terms, but outside of the UK the net value of the market is very small. IBM has lost pole position in the Western European top 100 outsourcing deals regarding aggregate value of deals. While IBM signed 14 deals in 2005, more than any other vendor, the aggregate value was not enough to offset larger-scale wins by BT Global Services and EDS.