Outsourcing in the financial service sector fell by almost 25% between January and September 2008, when compared to the corresponding period last year. The number of contracts awarded came down from 132 to 101, while the total value of contracts dropped from $ 17.9 billion to $ 11.0 billion. Uncertainty in financial service institutions delayed decision making in outsourcing, notes TPI.
Though outsourcing has picked up in a few verticals such as manufacturing and telecom, the slump in financial services is in line with the overall industry trend. In the third quarter, 128 outsourcing contracts valued at $14.4 billion were signed. Compared to the second quarter, the number of contracts had dropped by 22 percent and the total value of contracts dropped by 50 percent.
