IT outsourcing contracts among UK firms have seen a major spike in value over the past year, as shown by fresh figures from ISG.
According to a Computer Weekly report, the value of UK outsourcing contracts with businesses in EMEA rose by almost two thirds (60 percent) in Q3, compared to the same quarter the previous year.
Breaking the figures down, ISG said the value of UK managed services contracts hit $1 billion, with the average contract 10 percent more expensive than last year.
IT infrastructure and operations management (ITO) contracts grew in price by more than a third (36 percent) to $2.01bn, while ITO and business process outsourcing (BPO) contracts rose by double digits.
According to ISG, pharma, tech and utility firms are heavy investors in digital solutions and core technology operations such as cloud and data infrastructures, all with the end goal of supporting their artificial intelligence (AI) and machine learning (ML) solutions.
“We noted a sharp rise in contract restructurings, up nearly 40 percent from last year and 85 percent quarter on quarter," said Steve Hall, President at ISG EMEA.
The report also states that the number of contracts was up by more than 20 percent, although the value of each was down somewhat.