Growth Opportunities And Markets For It Outsourcing: New Possibilities For Contact Center, Infrastructure, Applications And Business Process Outsourcing

Published Date: October 2007 Published By: Business Insights Page Count: 168 Order Code: R162-807 $1,910.00   Online Download $16,000.00   Global Site License   Questions About This Report E-mail a Colleague Printable Page Fax Your Order Description Table of Contents Search Inside this Report Similar Products Growth opportunities and markets for IT outsourcing Executive Summary Market outlook Market opportunities Contact center outsourcing Developments in infrastructure outsourcing Developments in application outsourcing Developments in business process outsourcing The SMB outsourcing opportunity Offshoring Chapter 1 Introduction What is this report about? Who is this report for? Definitions Application development Application hosting Application integration and collaboration Application management Application testing Back-up services CRM (customer relationship management) BPO Desktop server management services Desktop software management services Finance and Accounting (F&A) BPO HR BPO IT security management services Knowledge processes (knowledge management) Managed LAN services Managed mainframe services Managed messaging services Network security services Managed server services Managed storage services Managed WAN services Mobile desktop services Outsourced agent position (AP) Outsourcing Payments and billing Secure communications services Secure content services Service desk Site support SMBs (small and medium-sized businesses) Thin client management services Threat and vulnerability management services Web hosting services Chapter 2 Market outlook Summary Introduction Why IT outsourcing still represents a valuable market opportunity What barriers remain Chapter 3 Market opportunities Summary Introduction Sales and marketing - is there a future for outsourced outbound calling? Consumer hostility Legislative challenges High costs Poor quality perception Looking ahead: outsourced outbound calling is set to increase Regional analysis Drivers of outsourced outbound contact center services Cost savings Professional approach Increased commercial opportunities Outsourcers can leverage a number of strategies to increase outbound revenues Emphasize professional nature of services to prospective investors Show real cost savings Emphasize abilities in value-added services Outsourcing to improve customer service and reduce cost-to-serve In contested mass consumer markets, managing cost-to-serve is a challenge The UK energy utilities have managed cost-to-serve to differing degrees of success Infrastructure spending can deliver significant cost-to-serve improvements Effectively designed infrastructure further facilitates outsourcing Technology will determine by how much further the cost-to-serve can fall Ongoing cost improvements will be technology driven, though regulatory requirements will also impact Outsourced voice services Market outlook Vendor strategies Cost Market awareness Expertise Selling the solution Partners The proof will be in the pudding General vendor strategy points Chapter 4 Contact center outsourcing Summary Introduction What’s driving contact center outsourcing? Reduced costs Technology costs Cost management Quality of labor Ample labor Contact center outsourcing trends Slowing growth in traditional offshore locations Exclusive nearshoring - closer proximity but higher prices? Profiting from ‘bestshoring’ New trends and developments Hosted contact centers Selling hosted contact centers Video contact centers Who is likely to purchase video contact centers? Virtual contact centers The customer-centric enterprise Remote working IP telephony Small and Greenfield contact centers Hosted IP contact centers Implications for vendors Chapter 5 Developments in infrastructure outsourcing Summary Introduction Infrastructure outsourcing is the most mature IT outsourcing domain New trends and developments Managed and outsourced network services represent a large but slow-growing market Network, voice/data convergence and security services are the highest growth markets Trends in mobility, security and applications are influencing networking contracts Security is now permeating most networking services contracts 86 Security and privacy managed services is the fastest growing infrastructure services market Enterprises are looking for dedicated third-party security services expertise Embedded security in other infrastructure services may negatively impact demand There is good growth in all the S&P managed services sub markets Banking is the largest target market for security services providers German and UK enterprises’ stricter security approaches provide good opportunities The hosting services market Cost control and a need to manage infrastructure complexity are driving hosting services demand Capacity and power supply are the two main inhibitors to market growth The hosting services market has now fully rebounded from its problems earlier in the decade Financial services and government are the most prominent vertical markets Large enterprises have the most pronounced hosting requirements Storage services revenue growth is strong, relative to other infrastructure services Back-up is growing strongest but the managed storage services market represents the cash cow Managed and outsourced desktop services is a mature infrastructure services market Desktop services will increasingly be positioned as part of wider infrastructure outsourcing contracts Demand for desktop services is always positively impacted by the release of new operating systems Desktop maintenance is a low-growth market opportunity Remote management is driving the market for service desk Site support market growth is set to be low Chapter 6 Developments in application outsourcing Summary Introduction Access to expertise and the latest technologies are primary motivators New trends and developments Integration and packaged applications are end-user priorities Service orientated architectures Outsourcing packaged applications is most likely amongst verticals with less in-house IT Total application outsourcing: a new trend? The offshore impact Overcoming the roadblocks Vendor recommendations Help clients reduce IT complexity to improve efficiency and reduce cost Package professional services as part of the deal Assume the position of trusted advisor Provision low cost service centers to provide the best mix of offerings Position services to take advantage of growing SMB adoption and complete outsourcing contracts Flexibility through range of offering and pricing creates the most opportunity for vendors Regional and industry specific knowledge is required Demand for ‘global sourcing’ Chapter 7 Developments in business process outsourcing Summary Introduction BPO deals shrink in scope in spite of growth in signings New trends and developments Investment priorities in BPO are shifting toward non-traditional services Newer, high-margin BPO services are a growing priority for customers Risk and proximity are strong factors in the offshore decision process Retail banks fear the classic inhibitors to offshore BPO Offshore BPO slowdown expected as voice BPO becomes a commodity Evolution in the BPO offshoring market Further vendor recommendations Expand their portfolio to create flexibility and insulate against commoditization Don’t disregard CRM outsourcing BPO services appeal to a broad spectrum of adopters for a variety of reasons Offshoring is an important part of the BPO market but there is still a strong need for market education Vendors are less likely to risk larger, more complex deals European BPO is far from a developed market There is significant scope for consolidation amongst vendors in this market Vendors should manage the sales process Multi-process deals a likely feature of the BPO market for some time to come Chapter 8 The SMB outsourcing opportunity Summary Introduction SMBs show traditional attitudes to selecting IT vendors SMBs are more likely to trust a national telecoms provider or a national ISP for managed services Many different vendors are supplying the UK SMB market SMBs are generally happy with their service providers A relatively low proportion of SMBs currently oursource their IT services The majority of SMBs manage their firewalls in house Security is a key consideration in IT outsourcing decisions The area that is most outsourced is security updates and patching The most pressing technical requirement for SMBs is security SMBs look to vendors to provide security and Internet connectivity The majority of SMBs have some form of risk mitigation in place Barriers to outsourcing Cost and loss of control A small proportion of SMBs can foresee a time when their IT function is fully managed externally Conclusions: outsourcing is still a relatively low priority for SMBs in the UK Chapter 9 Offshoring Summary Introduction The benefits of offshore outsourcing Industry difficulties that can be addressed through offshore outsourcing Offshore outsourcing can lead to significant cost savings While cost savings is the main advantage to offshore outsourcing, relatively higher quality labor is also a primary driver But not all companies are ready for offshore Some processes are more conducive to offshore outsourcing than others Different offshore locations offer distinct advantages New trends and developments Vertical expertise will become an important competitive differentiator in offshore outsourcing India’s offshore outsourcing market India’s domestic market presents real revenue opportunities India still offers investors a very low-cost business environment in the medium term That said, beware of potential erosion of India’s value proposition over long term Contact center offshore outsourcing in Central and Eastern Europe is projected to grow through 2010 Why Central and Eastern Europe is a logical location for Western European customer service However, outsourcing to the CEE could prove limited over the long-term Vendor recommendations Contact center outsourcing in North Africa is growing fuelled by offshore demand North Africa is attractive for Western customer care investors There are still certain risks of which investors should be aware Vendor recommendations CALA: Looking beyond Mexico Brazil’s domestic market offers outsourcers opportunities to profit Outsourcers should look to Argentina and Chile for bilingual customer service Vendor recommendations Index List of Figures Figure 2.1: Enterprise outsourcing and managed services market conceptualization Figure 3.2: Global APs in outbound sales and marketing functions, 2006 - 2012 Figure 4.3: Which functions are you likely to outsource in the next year? Figure 4.4: Whether you do or do not outsource please rate the importance of these criteria inchoosing an outsourcer? Figure 4.5: Indian and Philippine outsourced AP growth, 2005 - 2010 Figure 4.6: Customer service silos Figure 4.7: Remote workers as a percentage of total APs globally, 2005-2010 Figure 4.8: Total IP APs and IP APs as a % of total Figure 5.9: Solid, if unspectacular, growth is forecast in infrastructure outsourcing and managedservices Figure 6.10: Investment priorities in applications Figure 7.11: BPO services globally, 2006-2008 Figure 7.12: Investment priorities in BPO Figure 8.13: When selecting an IT vendor the most important factors are the standard of customerservice and SLAs Figure 8.14: Only a small proportion of SMBs choose to outsource the management of theirfirewalls Figure 8.15: SMBs expect vendors to provide security and Internet connectivity services Figure 8.16: 40% of SMBs state cost as the strongest reason preventing them from outsourcing Figure 9.17: Indian offshore outsourced demand, 2005 - 2010 List of Tables Table 4.1: Global hosted APs, 2006 - 2010 Table 5.2: Global managed and outsourced network services market revenues 2005 to 2009 ($m) Table 5.3: Security & privacy managed services market revenues 2005 to 2009 ($m) Table 9.4: Indian outsourced APs, 2005 - 2010 Table 9.5: CEE outsourced APs (000s), 2005-2010 Table 9.6: Key themes for evaluating emerging CALA offshore locations Similar Products • MarketWatch: Technology Published Nov 2008 by Datamonitor • Worldwide Contact Center Applications 2008 Vendor Profiles: Bringing Business Process to Unified Communications Published Nov 2008 by IDC • Survey Says! 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