The 2Q11 Global TPI Index, which measures commercial outsourcing contracts valued at $25m or more, recorded year-over-year growth in total contract value (TCV) of 13% in Europe, the Middle East and Africa (EMEA) and 55% in Asia Pacific. Restructurings – defined as contracts that are renewed, restructured or renegotiated – saw TCV growth of 30% over the same quarter a year ago.

Overall, total contract value fell to $16.4bn, a decline of 18% over the second quarter of 2010 and 21% over the first quarter of 2011. The results were driven by weakness in the Americas region and an overall drop in the number of large contracts awarded. However, current contract pipelines suggest an improvement in global TCV for the remainder of the year.

Through the first six months of this year, clients have signed just four mega-deals – those awards with a TCV of $1bn or more. The $6bn in mega-deal TCV in the first half of 2011 is down 40% from the first half of 2010 and is its smallest six-month contribution ever to overall TCV. The annualised contract value (ACV) of mega-relationships – those transactions with an average annual value of $100m or more – fell by 62%.


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