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TPI recently completed its quarterly review of the state of the global commercial outsourcing market, the TPI Index. During this conference call, we discussed the following highlights:

1Q09 Global TPI Index

Outsourcing Market Shows Continued Softness in First Quarter of 2009

Total contract values (TCVs) for the first quarter of 2009 was the lowest for a first quarter since 2001, and the annualized contract value (ACV) — the TCV divided by the duration of the contract — was the lowest for a first quarter since 2003.
Looking back over the past twelve quarters, we see that there was a notable surge in outsourcing contracts from 4Q07 thru 2Q08. The pace of outsourcing contract awards more recently has returned to the levels seen prior to that surge.
During the past three quarters, companies in Europe, the Middle East and Africa (EMEA) have not awarded as many of the largest contracts as they had during the surge of activity of last year. The TCV profile in the Americas, by contrast, has fallen within a tight range of TCV during the past five quarters.
The information technology outsourcing (ITO) market has delivered a steady flow of contract awards during the past three quarters. ITO transactions tend to make the most significant near-term cost impact for buyers of outsourcing.
Certain industries notably the media, retail, utilities and telecom sectors — are adopting outsourcing to a greater degree than they had previously. They have especially stepped up their outsourcing activity during the recent economic downturn.

Click to view presentation

1Q09 Europe, the Middle East and Africa TPI Index

Smaller-Valued Contracts Drives Softer European Outsourcing Market in First Quarter

EMEA total contract value down 14 percent from fourth quarter, 44 percent from year ago.
While the number of awards in the region increased on both a sequential and annual basis, the average TCV of those awards declined 29 percent.
By number of contracts and TCV, EMEA accounted for nearly 50 percent of the global market in the first quarter of 2009.
The pace of outsourcing over the most recent three quarters returned to more normal levels following a surge of EMEA-led activity in the first half of 2008.
There has been a significant increase in outsourcing activity within the telecoms and consumer durables markets in EMEA in the midst of the current economic downturn. The TCV of telecoms contracts awarded in the last 12 months in EMEA was 30 percent higher than any other 12-month period since 2001.

Click to view presentation

Podcast: TPI’s Peter Allen Discusses the Future of Offshoring in the Face of a Deepening Global Recession

Speaking with Shared Services & Outsourcing Network’s Sarah Clayton at the 13th Annual Shared Services Week 2009 in Orlando, TPI Partner, Peter Allen describes theeffect the global economy is having on U.S. businesses' decision to offshore.

To listen to the podcast of this interview, click here

TPI White Paper: A Peak Time for Contact Center Outsourcing
by Mike McMenamin, Associate Partner & Director, Contact Center Services, TPI

The majority of contact center operations are still performed in-house, but the momentum is behind outsourcing. Contact center outsourcing has seen significant growth over the past four years as more and more companies have elected to turn the work over to third parties that specialize in contact center services (CCS).

This white paper presents a current view of the CSS industry and identifies the major developments of the past several years that are driving the surge in outsourcing. It also gives guidance on how companies can evaluate whether contact center outsourcing would be beneficial for their business, profiles the current service provider landscape and presents some tactical advice on how to assess outsourcing as an effective service delivery strategy.

Industry News

New Report from Talent Management Thought Leaders Finds Recruiting Remains Top Concern for Leading Organizations

Demise of the Outsourcing
Mega-Deal?
CIO.com

Investor Uncertainty Concerns Satyam Outsourcing Customers
CIO.com

TPI Expands Swiss Operations

Offshore Angst on the Rise
IT Business Edge

TCS, Infosys, Wipro Eye Woolworth’s US$100 Million Deal
The Economic Times

Information Services Group Launches TPI Into China

TPI Co-Chaired and Sponsored Events

Americas IACCM 2009 Conference
Omni Orlando Resort
Champions Gate, FL
April 22 – 24, 2009

The CIO Forum
The Norwegian Dawn Ocean Liner
New York, NY
April 27 – 30, 2009

NY HR Week
The Hilton New York
New York, New York
May 4 – 6, 2009

HROA’s 5th Annual Awards Gala
The Russian Tea Room
New York, New York
May 5, 2009

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TPI Point of View

TARP Participation and Rising Unemployment: Implications for Outsourcing and Offshoring in the Global Economy
by Paul Duckham, Director, Financial Services, TPI

The Troubled Asset Relief Program that went into effect in the United States in late 2008 has U.S.-based businesses and market watchers around the world wondering about the effect TARP will have on offshore outsourcing. This Point Of View by TPI Financial Services expert Paul Duckham recaps indications of note from business and government during the past several months and offers advice for companies wishing to review their outsourcing strategies to meet the challenges posed by global economic conditions.

Read the Point of View

Success Factors in Executing Effective Customer Satisfaction Surveys

Ask senior executives what keeps them up at night — particularly those focused on driving business performance improvement in the immediate term through sourcing — and you'll likely hear worries about their initiatives’ targeting, cost and ultimate effectiveness. They regularly wonder: “Are our sourcing providers achieving the measurable improvements that are critical to our end-customers? On a continuous basis, are we all focused on the right things and getting 'the most bang for our buck?' How will we know when we've really succeeded?”

Surveying end-customers is an absolutely critical tool in answering these questions and in executing performance improvement initiatives for maximum value. Robust survey processes will:

Ensure the participation of a group of respondents mirroring the diversity of the customer base
Structure clear, succinct questions that account for the history of customer and partner relationships
Design response templates to not only gauge clients' satisfaction, but also to learn what's most important to them
Effectively translate complex, granulated data points into actionable executive information
Follow up as part of a continuous improvement process

TPI Momentum 2009 Vertical Industry Report

Stay tuned for the May release of the TPI Momentum Vertical Industry Report, which offers observations and insights for 26 vertical industry segments. In the report, TPI advisors weigh in with their analysis of what is happening within each vertical, including how market drivers are changing, who is initiating new outsourcing projects, and what clients are seeking from their service providers.

Each chapter presents extensive market data to address critical questions service providers have as they refine their go-to-market strategies, such as which verticals are best poised for growth, how market spending is changing within each vertical and which service providers have the greatest penetration within each vertical. This comprehensive report includes 225 pages of market intelligence designed specifically to provide actionable guidance that service providers can apply to their vertical strategies and market watchers can use to support their decision-making.

For more information, please contact Melany Williams, Partner & Managing Director, TPI Momentum.

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