Figures released by the Information Services Group (ISG) have revealed a decline in ITO, reaching a five year low while the BPO market continues to expand.

The ISG TPI Index revealed that BPO has risen significantly, up 35 percent in 2012, as businesses shift from a ITO focus.

The annual value of contracts fell by 12 percent from 2011, with a 21 percent decrease in the numbers of contracts awarded, however overall contracts in Europe, the Middle East and Africa have doubled since 2007.

While global outsourcing fell, the UK remained a buoyant market despite a reduction in the numbers of contracts up for tender, with the annual value of contracts rising by 20 percent to €3.7 billion. The UK’s success was helped by several large financial services contracts.