TPI Index Reveals Outsourcing Demand in Asia Pacific Contributing to Record-Setting...

TPI Index Reveals Outsourcing Demand in Asia Pacific Contributing to Record-Setting Global Growth

Asia Pacific Sees Nearly 10 Percent Increase in the Number of
Outsourcing Contracts
HOUSTON--(Business Wire)--
TPI, the largest sourcing data and advisory firm in the world and
a unit of Information Services Group Inc. (ISG) (NASDAQ:III)
(NASDAQ:IIIIU) (NASDAQ:IIIIW), an industry-leading, information-based
services company, released the latest TPI Index, which tracks
commercial outsourcing contracts valued greater than $25 million. The
Index reveals a continued growth in the number of outsourcing
contracts in Asia Pacific, driven by telecommunications and financial
services contracts signed in India, despite a sharp decline in the
value of these contacts as compared to those signed in 2007.

For the first half of 2008, Asia Pacific saw a 9 percent increase
in the number of contracts signed. However, in a year-over-year
comparison, the region also saw a 44 percent decline in total contract
value (TCV), and a 49 percent decline in annualized contract value
(ACV), or the value of a contract divided by its duration. According
to TPI's analysis, the decline in the value of contracts in Asia
Pacific is the result of the lack of mega deals - contracts in which
the TCV is $1 billion or greater - and limited number of mega
relationships - contracts with an ACV of $100 million or more - during
the first half of 2008. In comparison, Asia Pacific signed nine mega
relationships in 2007, which assisted in producing the robust TCV and
ACV for that year.

TPI's analysis also shows that the decline in the number of mega
relationships is a return to the historical norm for the region,
suggesting that the nine signed in 2007 represented an anomaly in the
region. Asia Pacific will need a surge of mega deals and mega
relationships in the second half of 2008 to reach 2006 levels or the
high-water mark in 2007, as well as to continue year-over-year growth
in TCV and ACV for the region.

Looking at market trends on a global scale, the market momentum in
new contract awards is unprecedented. The first half of 2008 finished
as one of the strongest in more than a decade with 282 contracts,
valued at over $49 billion in TCV and nearly $10 billion in ACV
awarded. The market trends seen in Asia Pacific were similar to those
in the Americas, which also showed a decline in TCV and ACV due to a
decrease in mega deals. Europe, the Middle East and Africa (EMEA),
however, saw a 58 percent surge in TCV, which can be attributed to the
10 mega deals it has seen to date in 2008.

"The growth in the number of contracts we've seen this year in
Asia Pacific and worldwide is a direct response to today's softening
business climate," said Arno Franz, partner and managing director,
Asia Pacific, TPI. "As companies take steps to reduce operational
costs, they rely on outsourcing to help them achieve this goal.
Outsourcing demand has been strongest in times of economic contraction
as well as in periods of economic expansion, when companies look to
increase capacity and capability most effectively."

Looking at the performance of specific industries, telecom and
financial services retain the largest combined percentage of the Asia
Pacific market with 76 percent of the activity, driven by a strong
performance in India. Despite the decline in TCV and ACV in the
region, telecom is still notably strong, accounting for more than 50
percent of TCV in Asia Pacific compared with 35 percent of the global
TCV. However, while telecom and financial services maintained a large
portion of the market share for the first half of 2008, the number and
TCV of these contracts was down in Asia Pacific compared to 2006 and
2007. The number and value of financial services contracts were also
down in EMEA and the Americas.

BPO contracts accounted for 24 percent of the work done in Asia
Pacific; however, the region is still relatively focused on ITO, which
represented approximately three quarters of the number of contracts
and 83 percent of the TCV. While the BPO market in Asia Pacific is
smaller relative to BPO's performance in other regions, the region did
see a continued momentum in contact center services. In addition,
India continued to drive growth in the region, occupying the largest
portion of the market share, with Australia having the second largest.

For more information on the latest Index findings, visit
www.tpi.net.

About TPI

TPI, a unit of Information Services Group, Inc. (ISG) (NASDAQ:III)
(NASDAQ:IIIIU) (NASDAQ:IIIIW) is the founder and innovator of the
sourcing advisory industry, and the largest 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, TPI's
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. For additional information, visit www.tpi.net.

About Information Services Group, Inc.

Information Services Group, Inc. (ISG) (NASDAQ:III) (NASDAQ:IIIIU)
(NASDAQ:IIIIW) was founded in 2006 to build an industry-leading,
high-growth, information-based services company by acquiring and
growing businesses in advisory, data, business and media information
services. In November 2007, the company acquired TPI, the largest
independent sourcing advisory firm in the world. 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. For more, visit
www.informationsg.com.

TPI
Todd Miller, +1-480-235-7018 (Market Communications)
todd.miller@tpi.net
or
Peppercom
Laura Bower, +1-212-931-6127
lbower@peppercom.com

Copyright Business Wire 2008