Computer Outsourcing Deals Fall

17 Oct ’05

The WSJ (sub required) reports that computer outsourcing deals are in decline:

Computer outsourcing deals tumbled for the third quarter in a row and are heading for a 10% to 15% drop in value this year, a consulting company is expected to report today.

Technology Partners International Inc., a consulting company that publishes a quarterly index of outsourcing deals, cites declines in contracts of more than $1 billion and a reduction in business-process outsourcing deals for the sharp drop.

Update: Inc. looks at the same report and notes that it highlights more deals, but of lower average value:

Said Peter Allen, partner and managing director at TPI, “Clearly, outsourcing is not falling out of favor. But the value of the outsourcing pie has shrunk in size compared to 2004 as the value of individual transactions is generally getting smaller.”

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