Executive Summary (This is a document excerpt)

While 2008 proved to be a tumultuous year in the world economy, IT outsourcers were well positioned to take advantage as companies looked to cut costs and potentially headcount. Despite the fact that Forrester recorded, remarkably, the same number of deals closed in 2008 as in 2007, we also noted a rapid increase in deal activity toward the end of last year. However, overall spending was significantly down, partly caused by the increased preference for smaller and shorter contracts, and the decline in the number of megadeals closed. The government and public sector returned to the top of the list in signing the most deals as it had done in 2006, but manufacturing topped the list with regard to the amount spent. UK firms confirmed their importance to the EMEA outsourcing market, signing nearly double the number of deals as their nearest competitor.

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