by CIO Staff

Consultancy: Outsourcing Revenue Lower in ’06 Than Last Year

Jul 12, 20061 min

The revenue corporations reserve for outsourcing initiatives in 2006 will not equal 2005’s value of $75 billion, regardless of the fact that more deals have been inked in the first half of the year, The Wall Street Journal reports.

The news comes from the Woodlands, Texas-based Technology Partners International (TPI) consultancy, which keeps tabs on outsourcing deals, according to the Journal.

TPI found that there were 92 outsourcing pacts made in the first half of 2006, compared with 58 during 2005’s first half, the Journal reports.

Peter Allen, managing director of global practices with TPI, told the Journal that many companies seeking outsourcing services are signing contracts for five to seven years of service, instead of higher-value, decade-long deals.

IBM, Accenture, EDS, Computer Sciences Corp. and Hewlett-Packard—five of the six biggest outsourcing companies—all signed outsourcing deals worth upward of $1 billion each during the first half of 2006, according to the Journal.

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