European IT Outsourcing Deals In The Government And Public Sector: 2004 To 2006

With 178 deals closed between 2004 and 2006, the government and public sector has been the hottest sector for IT outsourcing deal activity in Europe. Although UK organizations continue to drive most of this business, those in other countries, such as Germany, Italy, and Belgium, are also increasing their share. For government and public sector agencies, as in other industries, infrastructure is still the most popular IT area to outsource, but application management and maintenance are solid runners-up. BPO and offshore outsourcing, on the other hand, had a hard time proving themselves in this sector and still gain little traction. Although there was some variation, the most prevalent deal size was between €10 million and €20 million, while the favored deal length was five years. We saw an increase in the uptake of deals with a single-service focus. EDS is the big winner among the providers in this sector, in number of deals closed as well as in total contract value closed.