The recent TPI Index from TPI highlighted an interesting trend where a few very large telco-to-telco contracts--instances where one telecommunications carrier outsources its network operations requirements to another telecommunications service provider--accounted for more than 30 percent of the Broader Market's total contract value (TCV).
Given that in 2008, the telecommunications vertical was #1 in terms of ACV (annual contract value) we have two successive years where that industry is having a significant impact on the global sourcing industry.
I should note that the telecoms vertical ACV was less than 75 percent of the ACV for entire financial services verticals (banking, diversified financials and insurance) but did exceed any individual one of the financial services verticals.
What could be driving this?
Tags: Asia-Pacific, telecommunications carrier outsource, telecommunications service provider, Outsource, telecommunications, outsourcing, financial, Network, sourcing, industry
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