New Delhi: The first half of the current calendar year has seen the IT outsourcing industry post its strongest performance in a decade, a leading IT research firm has announced.

With a total of 282 outsourcing contracts valued at $49 billion in total contract value (TCV) and $10 billion in annualised contract value (ACV), or the value of a contract divided by its duration, the IT outsourcing industry notched up record business during the first two quarters of the current calendar year, according to TPI, the largest sourcing data and advisory firm in the world.

The TPI, a division of US-based Information Services Group Inc. (ISG), an industry-leading, information-based services company, announced last Wednesday that according to the latest TPI Index, which tracks commercial contracts valued greater than $25 million, the recently-completed second quarter produced significant market strength and a solid trajectory for growth during the remainder of the year.

In the second quarter, 146 contracts were awarded in the global outsourcing industry, valued at $25.6 billion in TCV, and almost $5 billion in ACV, a TPI statement said.

All three measures indicate noteworthy market strength as this was the strongest second quarter performance since 2000. Additionally, each of the past three quarters has topped the $20 billion TCV mark; this series represents the best three-consecutive quarter performance ever, the statement said.

According to TPI's analysis, the industry has seen the highest number of outsourcing contracts, TCV and ACV during the first half of 2008 in more than 10 years. At the midpoint of the year, TCV in the broader market is on trajectory to eclipse the TCV record of 2004, which has been the most prolific full year to date.