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Outsourcing Market Posts Second-Best Third Quarter On Record

STAMFORD, Conn., Oct. 16, 2012 /PRNewswire/ --  Information Services Group (ISG) (NASDAQ: III), a leading technology insights, market intelligence and advisory services company, today released data showing the global outsourcing market turned in its second-best third quarter on record but dipped year-over-year and sequentially due to difficult comparisons.

The 3Q12 Global TPI Index, which measures commercial outsourcing contracts with an annual contract value (ACV) of $5 million or more, totaled $4.8 billion, the second-highest third-quarter total on record but a decline of 6 percent from the third quarter of 2011 and 10 percent from the second quarter of 2012. Excluding the Atos-Siemens mega-deal awarded a year ago, third-quarter ACV would have been up 18 percent year-over-year.

Through the first three quarters of 2012, ACV has grown 3 percent to $14.8 billion, led by the ongoing surge of outsourcing activity and contract values in Asia Pacific, a continued climb in the value of contracts for business process outsourcing (BPO) globally, and an increase in large contract activity, especially in emerging markets. The number of mega-relationships, defined as contracts with an ACV of $100 million or more, is up 100 percent year-to-date and has already exceeding the full-year total from 2011.

"These results bear out our prior expectation that the second half of 2012 would improve upon the first," said John Keppel, Partner & President, Research and Managed Services, ISG. "Third quarters are typically the weakest of the year, but the global market continues to build momentum in key segments."

The TPI Index, presented by ISG, provides a quarterly snapshot of the sourcing industry for clients, service providers, analysts and the media. For more than a decade, it has been the industry's authoritative source for marketplace intelligence related to outsourcing transaction structures and terms, industry adoption, geographic prevalence and service provider metrics.

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