WHAT THIS MARKET ANALYSIS REPORT COVERS
This is HFS Research’s first-ever IT/BPO outsourcing contract renewal report. In this report, we analyze outsourcing contracts that are up for renewal in 2020. The report provides details on contracts by renewal value, sectors, IT-BPO service segmentation, expiry, and digital vs. non digital segmentation in 2020.
WHAT YOU’LL KNOW AFTER READING
Readers will gain insight into: How much ITMS/BPO Contracts up for renewal in each region, Service Type, and Key verticals.
KEY MARKET DYNAMICS
$36 billion in IT, BPO, and ER&D contracts is up for renewal: TCV and ACV for IT, BPO, and ER&D outsourcing contracts up for renewal in 2020 are $36 billion and $8 billion, respectively. The TCV increased by 8% and ACV decreased by 11% compared to the previous year.
Once again, the US has the highest value of contracts expiring this year: As usual, the US has the highest value of IT/BPO/ER&D contracts expiring this year, compared to other countries. US (53%), France (9%), and UK (8%) are the top three countries that are going to witness highest contract value renewals in 2020. $26.4 billion in IT outsourcing contracts is up for renewal in 2020: Like previous years, IT service contracts have led the outsourcing space this time too with almost 73% of total contract value share. In 2020, more than half of total IT outsourcing contract value i.e. $14.5 billion is up for renewal from the US alone.
Opportunity for digital contracts: $23 billion of the contracts expiring in 2020 are non-digital contracts. These contracts have the potential to convert into either partially or fully digital services or digital transformation contracts.
High-value, public sector contract expirations in 2020: Around $15.7 billion in public sector contracts are up for renewal this year, followed by BFS ($4.8 billion), manufacturing ($1.6 billion), telecom ($1.5 billion), and life sciences and pharma ($1.4 billion).
WHO SHOULD READ THIS REPORT
Executive leaders and business unit leaders, technology leaders, advisors and outsourcing managers in the ITMS and BPO industry.
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