Europe surpassed North America for outsourcing spending by Forbes Global 2000 (G2000) companies for the first three quarters of 2009, and is on track to end the year as the highest-spending region for the first time, according to a report released by TPI.
According to the TPI Momentum Market Trends & Insights 3Q09 Geography Report, European G2000 companies outspent their North American counterparts by approximately $1.2bn in average annual contract value (ACV) through the third quarter. North America led the world in outsourcing spending by G2000 companies in 2008 with $29.6 billion in ACV versus $28.7 billion for Europe.
The report showed that North America and Europe dominate the rankings with the US and Canada at Number 1 and 3, respectively and six European countries making the top 10 include the UK, Germany, the Netherlands, France, Switzerland and Denmark.
Other market are also growing slowing by steadily with India at 13th position and China at 21st position. India and China have experienced a rapid rise in spending among their G2000 companies, with China’s market growth appearing to lag India’s by about two years. Both countries were rated among the top 10 on the sourcing environment dimension.
Brazil (24) also made the top 10 for sourcing environment. Latin America has been the home to the fourth-highest market opportunity among the regions with $3bn in additional ACV potential, according to the report.
