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Growth Strategies in Outsourcing: High Value IT Outsourcing Sectors and Vertical Markets

Product Type: Market Research Report
Published by: Business Insights
Published: January 2005
Product Code: R162-618
Description
Growth Strategies in Outsourcing: High value IT outsourcing sectors and vertical markets is a new management report that highlights the outsourcing sectors and vertical industries that will provide IT services providers with significant profit opportunities to 2007 and beyond. This report analyses the key data and market trends that are shaping the outsourcing market and provides insight into how vendors can be used to exploit the opportunities that arise.
Table of Contents
Table of Contents

Growth Strategies in Outsourcing

Executive Summary 9

Introduction 9

Business process outsourcing 9

Human resources outsourcing 10

Offshore/onshore delivery 11

Utility/on-demand delivery 12

Vertical focus: Financial services 12

Vertical focus: Public sector 13

Vertical focus: Retail 14

Vertical focus: Telecoms 15

Chapter 1 Introduction 17

Summary 17

Introduction 17

Definitions 18

BPO 18

Human resources outsourcing 19

Utility/on-demand pricing 20

Offshore delivery 21

Right-shore/near-shore delivery 22

Chapter 2 Business process outsourcing 24

Summary 24

Introduction 25

Drivers 25

ERP 26

iv

Market dynamics 29

Market sizing 30

Competitive dynamics 31

Accenture 32

ACS 33

CGE&Y 33

Capita 34

Cognizant 34

CSC 35

EDS 35

HP Services 36

IBM Global Services 37

Opinion 38

Chapter 3 Human resources outsourcing 41

Summary 41

Introduction 41

Market dynamics 43

Competitive dynamics 45

Accenture 45

ACS 46

Convergys 47

Fidelity Employer Services 48

Hewitt Associates 49

IBM Global Services 50

Opinion 51

Chapter 4 Offshore/onshore outsourcing 55

Summary 55

Introduction 56

Market dynamics 56

Offshore BPO 57

Right shore/near-shore 58

Competitive dynamics 60

Indian service providers 61

Western service providers 63

Barriers and challenges 68

India 68

Offshore 70

Onshore 73

v

Chapter 5 Utility/on-demand delivery 76

Summary 76

Introduction 76

Competitive dynamics 77

Chapter 6 Vertical focus: Financial services 83

Summary 83

Infrastructure outsourcing 84

Europe vs North America 85

Opportunity identification 86

Line of business variations 88

Summary 90

Customer contact centers 91

Offshore 91

Onshore 93

BPO in financial services 96

Insurance 96

Banking 99

Key vendors 102

Cognizant 103

eFunds 103

ICICI OneSource 103

Infosys 103

Sapient 104

Tata Consultancy Services 104

Wipro 104

Chapter 7 Vertical focus: Public sector 107

Summary 107

Introduction 108

Market dynamics 109

The ‘US Government factor’ 110

M&A activity 113

Competitve dynamics 114

Accenture 114

ACS 114

BT Global Services 115

Capita 116

vi

CSC 117

EDS 118

IBM GS 118

Chapter 8 Vertical focus: Retail 120

Summary 120

Introduction 120

Market dynamics 121

BPO in retail 122

Chapter 9 Vertical focus: Telecoms 127

Summary 127

Introduction 127

Market dynamics 128

Competitive dynamics 131

Telecoms turned service provider 133

Conclusion 135

Index 136

List of Figures

Figure 3.2: HR outsourcing contracts by vendor 43

Figure 3.3: HR outsourcing contracts by region 44

Figure 6.3: Infrastructure outsourcing: Europe vs North America 86

Figure 6.4: Infrastructure outsourcing growth by opportunity segment in North American

financial services, 2003-2006 88

Figure 6.5: Line of business infrastructure outsourcing variations 89

Figure 6.6: Offshore outsourcing poses no serious risk to western financial services job markets 93

Figure 6.7: Offshore outsourcing continue to be the primary threat to the onshore contact center

outsourcers' business 94

Figure 6.8: Offshore outsourcing service provider positing 102

Figure 7.9: IT outsourcing deals by vertical sector 1Q04 109

vii

List of Tables

Table 2.2: Major BPO Contracts Involving ERP System Upgrades 28

Table 2.2: The 10 largest IT services contracts awards 1Q04 32

Table 4.4: Top 10 largest BPO firms in India 62

Table 4.5: Growth plans of western software and service providers in India 64

Table 6.6: Infrastructure outsourcing growth by opportunity segment in North American

financial services 2003-2006 88

Table 6.6: Infrastructure outsourcing spend growth by line of business and infrastructure service

2003-2006 90

Table 6.7: Offshore outsourced financial services agent positions as share of total financial

services agent positions, 2004-2007 93

Table 6.8: The BPO strategy of five major insurers 98

Table 6.9: Third-party BPO activities of major banks 101

Table 7.10: The 10 largest IT services M&As in 2003 113

Table 8.11: The 10 largest IT outsourcing deals in retail in last 12 months 121

Table 8.12: Key retail BPO deals signed in last 12 months 123

Table 9.13: Outsourcing strategies of the 10 largest telecoms operators 130

Table 9.14: The 10 largest IT outsourcing deals in telecoms in last 5 years 132

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