Total Contract Value of IT services in Asia Pacific rise 25%

| Updated on: Feb 11, 2011
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An unexpected boom of deal signings in the Asia Pacific IT services space during the fourth quarter of calendar 2010 saw the total contract value during the period rise by 25 per cent to $2.6 billion, according to the advisory firm Ovum.

For the first time since 2005, the fourth quarter did not see a decline in average TCV.

“The services market, though not having such a substantial turnaround when compared to the global (mainly due to the region coming through the financial crisis relatively unscathed) markets, has still managed to put in exceptional figures in the last quarter of 2010 and topping off an exceptionally strong 2010 across the region”, said Mr Jens Butler, Principal Asia Pacific IT Services Analyst.

More than 40 deals signed during the last quarter averaged above $60 million.

Loosening purse strings

“The increase in deal size may be a sign of the releasing of purse strings, but needs to be considered in the context of an ongoing buying cautiousness across the region with deal lengths dropping below 43 months in the first month of 2011,” said Mr Butler.

The final quarter result has driven TCV across the region to over $9.5 billion, the report said.

Published on February 12, 2011

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