This IDC study presents outsourcing trends and an analysis of the small and medium-sized enterprise (SME) market based on the results of the 2004 outsourcing survey. This study provides a comparative analysis of the different market segments based on the company sizes and presents suggestions to service providers on some strategies needed to succeed in this market.

"With the outsourcing market life cycle maturing at the top end of the market, the major service providers have their eyes set on the midmarket where there is abundant opportunity but poses tough and completely different challenges. A mature and sophisticated channel strategy is likely to succeed in this market as the channel partners have the reach, the brand, the relationship, and an already installed base of customers in this segment", observes Aprajita Sharma, analyst, Australia Outsourcing and BPO, IDC Australia.