2004 BPO Contracts for Key Horizontal Functions: A U.S. Market Analysis by Vertical

2004 BPO Contracts for Key Horizontal Functions: A U.S. Market Analysis by Vertical Industry

Product Type: Market Research Report
Published by: IDC
Published: March 2005
Product Code: R104-19004

Description

This IDC study is an overview of the major business process outsourcing (BPO) contracts signed in 2004 in the U.S. market for the four key horizontal functions of customer care, human resources, finance and accounting, and procurement. Per IDC observation, these segments have driven the greatest activity and interest in BPO during the past year.

This study presents the vertical distribution of these BPO contracts, with a view to investigating BPO adoption trends and drivers characterizing different industries. The study also has the goal of identifying those vertical markets that are the forefront of BPO adoption in these four horizontal markets.

"IDC has found that a handful of industries drove the lion's share of BPO contract activity in the United States during 2004," said Shruti Yadav, research analyst, BPO Services. "Responding to mounting pressures around cost reduction and greater operational flexibility, companies in the manufacturing, government, and retail sectors led the adoption of the BPO engagement model together accounting for more than 60% of all U.S. deals signed over the past year. IDC expects these drivers, in combination with other BPO goals such as technology access and regulatory compliance, to drive further growth in key verticals."

Table of Contents

Table of Contents
IDC Opinion
In This Study
Methodology
Focus on Key Horizontal Functions
Definitions
Business Outsourcing
Business Process Outsourcing Services
Processing Services
Distinction Between Business Process Outsourcing and Processing Services
Vertical Industry Definitions
Table: Vertical Industry Definitions
Table: SIC Codes by Vertical Market
Situation Overview
Key BPO Deals of 2004: Overarching Trends
Table: Overarching Trends in BPO Deals, 2004
Contract Analysis
Contract Distribution by Business Function
Figure: BPO Contract Distribution by Function
Customer Care
Human Resources
Procurement
Finance and Accounting
Multifunctional Deals
Length of Contracts
Figure: BPO Contracts by Length
New Deals, Renewals, and Extensions
Renewals and Extensions by Function
Figure: New Contracts, Renewals, and Extensions
New Contracts by Function
Contract Distribution by Service Provider Category
Figure: BPO Contracts by Service Provider Category
Key Business Drivers for BPO
Cost Management and a Focus on Core Competencies as Twin Anchor Goals
Risk Management as an Often Unstated, but Implicit Anchor Goal
Other Strategic Drivers as Offshoots of Anchor Goals
Figure: Strategic Goals Driving BPO Adoption
Customer Care
Finance and Accounting
Procurement
Human Resources
A Vertical Analysis of 2004 Contracts
Figure: BPO Contracts by Vertical Industry
Manufacturing
Key Business Issues
Impact on BPO Adoption
Number of Deals and Examples
Table: BPO Deals in the Manufacturing Industry by Service Provider, 2004
Financial Services: Banking, Insurance, and Financial Markets
Key Business Issues
Impact on BPO Adoption
Number of Deals and Examples
Table: BPO Deals in the Financial Services Industry by Service Provider, 2004
Government
Key Business Issues
Impact on BPO Adoption
Number of Deals and Examples
Table: BPO Deals in the Government Sector by Service Provider, 2004
Communications/Media
Key Business Issues
Number of Deals and Examples
Table: BPO Deals in the Communications/Media Industry by Service Provider, 2004
Retail
Key Business Issues
Impact on BPO Adoption
Number of Deals and Examples
Table: BPO Deals in the Retail Industry by Service Provider, 2004
Services
Key Business Issues
Impact on BPO Adoption
Number of Deals and Examples
Table: BPO Deals in the Services Industry by Service Provider, 2004
Energy/Utilities
Key Business Issues
Impact on BPO Adoption
Number of Deals and Examples
Other
Table: BPO Deals in the Energy/Utilities Industry by Service Provider, 2004
Future Outlook
Expectations for U.S. BPO Deals in 2005
Essential Guidance
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Synopsis

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