The outsourcing market in Asia-Pacific grew strongly in 2006, according to TPI, the sourcing advisory firm. In its first, semi-annual TPI Index for the region, the firms reported that the number of deals signed in Asia-Pacific valued at more than $25 million had increased by 43%. The total value of these contracts has increased 67%, representing a five-year high in outsourcing activity.

According to the research, this level of activity contrasts sharply with the global trend. Although the number of contract awards globally increased by three percent, the value of these awards declined by eight percent compared to 2005.

Asia-Pacific is also showing consistent year-on-year growth in annualized revenues, the total revenues available annually to the service provider community. The CAGR for the region stands at 10.5%, more than double the global rate of 4.5%.

At the same time, competition in the region has been heightened. The Big Six — Accenture, ACS, CSC, EDS, HP and IBM — of outsourcing are winning a decreasing proportion of those deals valued at over $25 million. This group won 40% of Asia-Pacific total contract value, compared with a 60% share in 2002.