STAMFORD, Conn., April 19, 2011 /PRNewswire/ -- TPI, an Information Services Group company (ISG) (NASDAQ:III) and the leading independent sourcing data and advisory firm in the world, today released global outsourcing market data for the first quarter of 2011 showing that restructuring activity returned to historical norms following last year’s record spike, but the value of new scope awarded in the market remained steady.

The Global TPI Index, which measures commercial outsourcing contracts valued at $25 million or more, recorded total contract value (TCV) of $17.5 billion during the first quarter of 2011. TCV dropped 25 percent over the fourth quarter of 2010 and 28 percent over the first quarter of 2010.

However, restructurings, defined as contracts that are renewed, renegotiated or restructured, accounted for nearly all of the decline. New scope TCV of $14.9 billion was unchanged year-over-year and declined just 7 percent sequentially.

"In recent quarters, unprecedented shares of global TCV involved restructurings," said John Keppel, Partner & President-Information Services and Chief Marketing Officer, TPI. "That trend reversed itself in the first quarter, as we forecasted it would, but new scope values were right in line with previous periods."

Now in its 34th consecutive quarter, the TPI Index provides a quarterly snapshot of the sourcing industry for clients, service providers, analysts and the media. It is the industry's authoritative source for marketplace intelligence related to outsourcing transaction structures and terms, industry adoption, geographic prevalence and service provider metrics.

Among the highlights of the 1Q11 Global TPI Index was business process outsourcing (BPO), which recorded its second-best quarterly performance in the last two years. Clients awarded BPO contracts with a TCV of $6.6 billion, up 66 percent over the same period a year ago and more than twice the prior quarter's tally. The number of contracts awarded also reached its second-highest level since the first quarter of 2009.

By contrast, IT outsourcing (ITO) contract values dropped significantly, driven by the decline in restructurings. However, as with the broader market, new scope of nearly $10 billion in the segment was well within range of first quarters historically.

Among the regions of the world, Europe, the Middle East and Africa and Asia Pacific turned in steady performances. Meanwhile, the Americas suffered its third straight quarterly decline, with TCV falling 56 percent year-over-year, but up 17 percent sequentially.

"The outlook for the rest of 2011 suggests an industry upswing based on healthy contracting activity and a modest amount of restructuring in the mix," Keppel said. "Overall, we are cautiously optimistic about next quarter and more bullish about the second half of 2011."

TPI will present the 1Q11 Global TPI Index, which will also include an in-depth discussion of the potential emergence of Chinese service providers in the outsourcing market, during a conference call today at 11 a.m. Eastern. For more information, please visit http://www.tpi.net/knowledgecenter/tpiindex/.

About TPI

TPI, an Information Services Group company, is the founder and innovator of the sourcing advisory industry and the leading independent sourcing data and advisory firm in the world. We are expert at a broad range of business support functions and related research methodologies. Utilizing deep functional domain expertise and extensive practical experience, our accomplished industry experts collaborate with organizations to help them advance their business operations through the best combination of business process improvement, shared services, outsourcing and offshoring. In 2010, the International Association of Outsourcing Professionals ranked TPI no. 1 in its Global Outsourcing 100: World's Best Outsourcing Advisors. For additional information, visit www.tpi.net.

About Information Services Group

Information Services Group (ISG), founded in 2006, is a leading technology insights, market intelligence and advisory services company. ISG has three go-to-market brands: TPI, the leading independent data and sourcing advisory firm in the world; Compass, the premier independent global provider of business and information technology benchmarking, performance improvement, data and analytics services; and STA Consulting, a premier independent information technology advisor serving the public sector. The company has nearly 700 employees and operates in 21 countries. Based in Stamford, Conn., ISG has a proven leadership team with global experience in information-based services and a track record of creating significant value for shareowners, clients and employees.

SOURCE TPI