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Offshore Business Process OutsourcingProduct Type: Market Research ReportPublished by: eMarketer Published: September 2004 Product Code: R203-368 Description Attention: Chief Executive Officers, Business Process Managers and Companies Currently Conducting or Considering Offshoring The Offshore Business Process Outsourcing spotlight report surveys the literally expanding world of offshore business process outsourcing (BPO). Of course, outsourcing is nothing new. "It's the classic 'make vs. buy' question," says Morris Cohen of the Wharton School. What has changed is that more companies are engaged in more outsourcing than before—and they are doing it in novel ways. BPO is a special class of outsourcing that deals with business functions that are more central to the client's business than those that are traditionally outsourced. It includes strategic processes that have—up to now—been kept in-house. In the future, companies will be looking ever further to capture global advantage, BPO may even extend out to encompass R&D, which means tapping into talent pools from Mexico and Eastern Europe to China and India. Questions Addressed by the Report:
eMarketer Reports—On-Target and Up-to-Date Drawing on aggregated data from leading marketing research, investment banking and technology research firms, in combination with eMarketer's proprietary projections and analysis, the Offshore Business Processing Outsourcing spotlight report gives you the intelligence you need to thrive in an expanding, borderless world. Excerpt BPO Market Size Gartner Dataquest estimates that this year the worldwide BPO market will exceed $131 billion. The market is forecast to grow at a 9.5% compounded annual rate over the 2002 to 2007 time period. Another way to measure market growth is to track the number of jobs going offshore over time. This is the approach Forrester Research has taken, as shown below. Forrester predicts that the BPO market won't begin to takeoff in the US until after 2008. Interestingly, Forrester revised its figures, but in an upward direction. It initially published data in November 2002 that did not anticipate the speed at which white-collar jobs were moving overseas in the short term. In the earlier report, Forrester predicted that in 2005, 600,000 white-collar jobs would move overseas compared to the latest projection of 830,000. Forrester also slightly raised its 2015 projection from 3.3 million to 3.4 million. John McCarthy, author of both Forrester reports, said that heavy media coverage of the subject had encouraged companies to experiment with offshore outsourcing. Table of Contents
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