Product Type: Market Research Report
Published by: Business Insights
Published: August 2006
Product Code: R162-730Description Business Process Outsourcing (BPO) is the fastest growing segment of IT outsourcing, as organizations see the opportunity it offers to outsource business processes with the following benefits: the ability to focus on core competencies; cost savings; improved business process quality; flexibility in terms of technology; and reduced time to market. ‘The BPO Market Outlook’ is a new management report that provides an introduction to horizontal BPO - such as CRM, human resources, finance and accounting, and procurement - profiling the major players, analysing market trends and outlining best practices to provide organizations with a platform for making the right BPO decisions. This new report will enable you to assess the BPO market and develop specific competitive strategies to increase efficiency and productivity whilst reducing costs.
Key questions answered in this report:
- Which are the fastest growing BPO sub-sectors, and why ?
- Should outsourcing be based on financial or strategic considerations?
- What are the real risks surrounding finance and accounting BPO?
- Which business processes should be outsourced?
- How mature is each BPO sub-sector?
- When choosing a BPO provider, what are the most important factors to consider ?
- Which location to choose for offshore BPO?
- What type of BPO contract is most suited to your organization?
- Why is recruitment outsourcing making waves in the BPO industry?
- Which are the most established service providers in each BPO sub-sector?
Some key findings from this report:
- The market for F&A BPO is set to grow from $13.9 billion in 2005, to over $18.5 billion in 2008, at a CAGR of 10%.
- BPO can lead to savings of up to 30%, which can increase to 50% if the outsourced work is offshored.
- The BPO market is the single fastest growing area of the IT services sector. Growing 8% annually, spending on BPO services is expected to grow from $112.1 billion in 2005 to $144 billion in 2008, an increase of 40%.
- F&A BPO is mainly a labor arbitrage play, which means the barriers to entry are lower and Indian offshore providers have been able to gain a strong foothold in the market.
- The HRO market is predicted to grow from just under $23 billion in 2004 to over $30 billion in 2008, at a CAGR of 7%.
- Procurement outsourcing (PO) is starting to gain market traction.
- India remains the largest provider of offshore BPO services, accounting for nearly half of the global offshore BPO market. However, China is expected to grow rapidly.
Table of Contents - Executive Summary
- An introduction to business process outsourcing (BPO)
- Customer relationship management BPO (CRM BPO)
- Finance and accounting BPO (FAO)
- Human resources BPO (HRO)
- Procurement BPO (PO)
- Offshore BPO
- BPO best practice
- Chapter 1 An introduction to Business Process Outsourcing
- Summary
- Purpose of this report
- Introduction to outsourcing
- Business process outsourcing
- Benefits
- Risks
- Introduction to horizontal BPO
- Customer relationship management (CRM) BPO
- Human resources BPO (HRO)
- Finance and accounting BPO (FAO)
- Procurement BPO (PO)
- Offshore BPO
- Market dynamics
- Market sizing
- BPO market conclusions
- Chapter 2 Customer relationship management BPO
- Summary
- Introduction to CRM BPO
- Drivers
- Inhibitors
- Market dynamics
- Market background
- Market sizing
- Major contracts
- Competitive dynamics
- Accenture
- Affiliated Computer Services (ACS)
- Agilsys
- Atos Worldline
- beCogent
- Capita Group
- Convergys
- EDS
- IBM Global Services
- ICICI OneSource
- Minacs Worldwide
- Perot Systems
- Xansa
- Recommendations
- Chapter 3 Finance and accounting BPO
- Summary
- Introduction
- Market overview
- Market sizing
- Major contracts
- Competitive analysis
- Accenture
- Affiliated Computer Services
- Agilisys
- Capgemini
- CGI Group
- Convergys
- EDS
- Genpact
- HP Services
- IBM GS
- v Infosys
- Tier Technologies
- Vertex
- Unisys
- WNS Global Services
- Xansa
- Recommendations and FAO best practice
- Vendor selection (minimizing risk)
- Chapter 4 Human resources BPO
- Summary
- Introduction to HRO
- Market overview
- Hot topics
- Capacity and pricing
- Rise of multi-service deals, and offshore delivery
- Mid-market moves
- M&A not as expected
- Rise of recruitment BPO (RPO)
- Market dynamics
- Market sizing
- Major contracts
- Competitive dynamics
- Accenture HR Services
- Affiliated Computer Services (ACS)
- ADP (Employer Services)
- Capita Group
- Capgemini
- Ceridian Corp
- Convergys
- EDS (ExcellerateHRO)
- Fujitsu Services
- Hewitt Associates
- HP Services
- IBM GS
- SAP
- Other
- Recommendations and HRO best practice
- Change management
- When is HRO right for the organization?
- Overcoming reluctance to outsource
- Chapter 5 Procurement BPO
- Summary
- Introduction to Procurement BPO
- Benefits
- Market dynamics
- Competitive analysis
- Accenture
- Ariba
- IBM GS
- ICG Commerce
- Recommendations and PO best practice
- Chapter 6 Offshore BPO
- Summary
- Introduction Offshore BPO
- Market context
- Indian services providers
- Competitive analysis
- Accenture
- Cognizant Technology Solutions
- EDS (Mphasis)
- Genpact
- HCL Technologies
- ICICI One Source
- IBM (Daksh)
- Infosys Technologies
- Tata Consultancy Services
- Transworks Information Services
- Wipro Technologies
- WNS Global Services
- Xansa
- Recommendations and offshore BPO best practice
- Vendor selection
- Pick the Country First
- Recommendation
- Domain & Technical Filtering
- Preparation and execution
- Engagement issues
- Chapter 7 Best practice BPO
- Summary
- Introduction
- The three basic value propositions of BPO
- Cost reduction
- Core competency
- Transformation
- Key business and technological issues in BPO
- Transformation: who, how and when?
- How does application infrastructure need to evolve to enable BPO?
- The vertical credibility challenge
- The BPO maturity model
- Pre-BPO
- Lift-out stage
- Shared services stage
- Utility stage
- BPO contracts
- BPO benefits
- BPO market segments
- Glossary
- Index
- List of Figures
- Figure 1.1: BPO market sizing ($m), 2004-2008
- Figure 2.2: Accenture’s customer contact value proposition
- Figure 3.3: Finance and accounting outsourcing
- Figure 5.4: Procurement outsourcing
- Figure 6.5: Indian BPO revenues and headcount, 2004-2006
- Figure 6.6: Horizontal BPO in India in 2005
- Figure 6.7: Accenture global delivery network, 2005
- Figure 7.8: The three underlying value propositions of BPO
- Figure 7.9: Market maturity model for BPO
- List of Tables
- Table 1.1: Top 10 fastest growing IT services providers, 2005
- Table 1.2: Top 10 services providers by profit margin, 2005
- Table 1.3: Largest BPO contracts in last 12 months, (to 30 June 2006)
- Table 1.4: BPO market sizing ($m), 2004-2008
- Table 2.5: Customer care BPO market sizing ($m), 2004-2008
- Table 2.6: Major CRM BPO contracts in last 12 months (to 30 June 2006)
- Table 3.7: Finance & accounting BPO market sizing ($m), 2004-2008
- Table 3.8: Major FAO contracts in the last 12 months (to 30 June 2006)
- Table 4.9: Major contracts in the development of HRO, 1999-2005
- Table 4.10: HRO market sizing ($m), 2004-2008
- Table 4.11: Major HRO contracts, 2005-2006 (to 30 June 2006)
- Table 5.12: Key contracts in procurement BPO
- Table 6.13: Top 10 services providers by profit margin, 2005
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