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Worldwide and U.S. Business Process Outsourcing (BPO) 2005-2009 Forecast: Market Opportunities by Horizontal Business Functions

Product Type: Market Research Report
Published by: IDC
Published: August 2005
Product Code: R104-20592
Description

This IDC study presents an update to the five-year forecast for the worldwide market for business process outsourcing (BPO) services. The purpose of this document is to analyze the trends and events influencing opportunities in the BPO market, quantify their effects on the five-year forecast, and identify future growth areas within each BPO functional segment.

The document answers the following questions:

What are the key buyer and vendor trends within each BPO functional market, and what impact will they have on the market forecasts? What are the key growth areas and opportunities to expect in each BPO functional market for 2005 and beyond? What can vendors do to position effectively to tap these opportunities?

"The BPO market continues to gain momentum and present growth opportunities for service providers. Companies' expectations and demands continue to escalate, and companies are also becoming more savvy about their options. In this environment where clients are driving vendor strategies, success in clinching and executing on deals will depend on vendors' ability to meet client demand where it's at, empower clients, and present flexible contracting structures. A long-term play in BPO will hinge on the types of investments vendors make today, and the ability for vendors to build and sustain long-term client relationships," said Romala Ravi, director, BPO Services Research.

Table of Contents
Table of Contents
IDC Opinion
In This Study
Methodology
Definitions
Business Outsourcing
Business Process Outsourcing Services
Processing Services
Distinction Between BPO and Processing Services
Key Versus "Other" Horizontal Business Functions
Horizontal Versus Vertical BPO
Horizontal (Functional) BPO
Vertical (Industry-Oriented) BPO
What Has Changed This Year
Procurement
Customer Service and Sales and Marketing
Product Engineering
Presentation of Forecasts
What Forecasts Are Included?
Worldwide Forecasts
U.S. Forecast
Executive Summary
Summary of 2004?2005 Key Trends
Key Buyer Trends
Key Vendor Trends
Forecast and Assumptions
Worldwide BPO Forecast
Drivers
Inhibitors
Worldwide BPO Forecast by Region
Worldwide BPO Forecast by Business Function
Human Resources
2004?2005 Key Trends
Buyer Trends
Vendor Trends
Worldwide and U.S. HR BPO Forecast
What to Expect for HR BPO in 2005
Procurement
2004?2005 Key Trends
Buyer Trends
Vendor Trends
Worldwide and U.S. Procurement BPO Forecast
What to Expect for Procurement BPO in 2005
Finance and Accounting
2004?2005 Key Trends
Buyer Trends
Vendor Trends
Worldwide and U.S. F&A BPO Forecast
What to Expect for F&A BPO in 2005
Customer Service
2004?2005 Key Trends
Buyer Trends
Vendor Trends
Worldwide and U.S. Customer Service BPO Forecast
What to Expect for Customer Service BPO in 2005
Logistics
2004?2005 Key Trends
Worldwide and U.S. Logistics BPO Forecast
What to Expect for Logistics BPO in 2005
Sales and Marketing
2004?2005 Key Trends
Worldwide and U.S. Sales and Marketing BPO Forecast
What to Expect for Sales and Marketing BPO in 2005
Product Engineering
2004?2005 Key Trends
Worldwide and U.S. Product Engineering BPO Forecast
What to Expect for Product Engineering BPO in 2005
Training
2004?2005 Key Trends
Worldwide and U.S. Training BPO Forecast
What to Expect for Training BPO in 2005
Situation Overview
2004/2005 Key Market Trends
Table: Worldwide BPO Market 2003 Trend Recap and 2004/2005 Evolution
Table: Worldwide BPO Market Key Market Trends in 2004/2005 and Implications for Service Providers
Buyer Trends
Three "Anchor" Goals for BPO Adoption with Multiple Offshoots
BPO for Competitive Differentiation and Leadership, Not Just for "Salvage"
BPO at the Forefront of C-Level Thinking
A More In-Depth Due Diligence Process
More Comprehensive Deals Signed
Building Partnerships with BPO Providers
New Deal Clinchers Emerge, While the List of "Must-Haves" Becomes Longer
More Companies Willing to Talk About Their Experiences
Vendor Trends
M&A and Partnerships Continuing to Progress, But Landscape Remaining Fragmented and Heterogeneous
IT Service Providers Experiencing Significant Growth, But Function-Specific Players Still Holding Strong
Incumbency Not a Guarantee to New Engagements
IT Service Providers Working Hard to Develop BPO Capabilities for Key Horizontal Markets
Laying the Groundwork for Multiclient Platforms
Client Demand Directing Vendor Strategies
Vendors Making Linkages Across Processes and Pushing Forward Integrated Offerings
Future Outlook
Forecast and Assumptions
Worldwide BPO Services Forecast by Region
Table: Worldwide BPO Spending by Region, 2004-2009 (US$M)
Table: Key Forecast Assumptions for the Worldwide and U.S. BPO Services Market, 2005-2009
The Americas
Europe, the Middle East, and Africa (EMEA)
Asia/Pacific
Worldwide and U.S. BPO Services Forecast by Business Function
Table: Worldwide BPO Spending by Business Function, 2004-2009 (US$M)
Table: U.S. BPO Spending by Business Function, 2004-2009 (US$M)
Figure: Worldwide BPO Market by Business Function: Relative Sizes and CAGRs
Market Analysis by Business Function
Key Horizontal Business Functions: Human Resources
Definition
Key Market Trends for HR BPO in 2005
Key Buyer Trends
Key Vendor Trends
U.S. HR BPO Forecast
Figure: U.S. Human Resources BPO Spending and Growth, 2003?2009
What to Expect for HR BPO in 2005
Key Takeaways for Vendors
Key Horizontal Business Functions: Procurement
Definition
Key Market Trends for Procurement BPO in 2004
Key Buyer Trends
Key Vendor Trends
U.S. Procurement BPO Forecast
Figure: U.S. Procurement BPO Spending and Growth, 2003?2009
What to Expect for Procurement BPO in 2005
Key Takeaways for Vendors
Key Horizontal Business Functions: Finance and Accounting
Definition
Key Market Trends for F&A BPO in 2004
Key Buyer Trends
Key Vendor Trends
U.S. F&A BPO Forecast
Figure: U.S. Finance and Accounting BPO Spending and Growth, 2003?2009
What to Expect for F&A BPO in 2005
Key Takeaways for Vendors
Key Horizontal Business Functions: Customer Service
Definition
Key Market Trends for Customer Service BPO in 2004
Key Buyer Trends
Key Vendor Trends
U.S. Customer Service BPO Forecast
Figure: U.S. Customer Care BPO Spending and Growth, 2003?2009
What to Expect for Customer Service BPO in 2005
Key Takeaways for Vendors
Other Horizontal Business Functions: Logistics
Definition
Summary of 2004/2005 Market Trends
2005 Outlook
U.S. Logistics BPO Forecast
Figure: U.S. Logistics BPO Spending and Growth, 2003?2009
What to Expect for This Market
Other Horizontal Business Functions: Sales and Marketing
Definition
Summary of 2004 Market Trends
2005 Outlook
U.S. Sales and Marketing BPO Forecast
Figure: U.S. Sales and Marketing BPO Spending and Growth, 2003?2009
What to Expect for This Market
Other Horizontal Business Functions: Product Engineering
Definition
Summary of 2004/2005 Market Trends
2005 Outlook
U.S. Product Engineering BPO Forecast
What to Expect for This Market
Figure: U.S. Product Engineering BPO Spending and Growth, 2003?2009
Other Horizontal Business Functions: Training
Definition
Summary of 2004 Market Trends
2005 Outlook
U.S. Training BPO Forecast
Figure: U.S. Training BPO Spending, 2003?2009
What to Expect for This Market
Table: Market Drivers, Customer Values, and Decision Makers for Training BPO
Conclusion
Essential Guidance
Learn More
Related Research
Synopsis
Ordering and More Information
Price and Delivery Options



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