U.S. BPO Customers Rank Providers on Transformation, Integration, Innovation and Cost Optimization, IDC Finds Clear Winner Across Value Categories

FRAMINGHAM, Mass. – February 11, 2009 – In a recent IDC survey, more than 400 users (both buyers and non-buyers) were asked their perceptions of Business Process Outsourcing (BPO) providers across four value categories – innovation, transformation, integration, and cost optimization. Results show that end users selected IBM, HP-EDS, Unisys, Accenture, Infosys, ADP and Fidelity among the overall top ranked providers across these four value categories.

"Success as a BPO provider in today's market will require players to drive a brand image of providing low-cost services, but with the focus on delivering value that can support more immediate needs, which increasingly requires the implementation of newer technologies and value-added services," said David Tapper, vice president, Outsourcing and Offshore Services. "However, the long-term market direction and customer demands will require that providers also take a strategic approach with attention to providing innovation and transformation, investing in host-based and platform-centric service delivery, and establishing unique partnerships."

The four value categories considered as part of this study include the ability of BPO vendors to strategically transform business processes; support integration of BPO and ITO effectively; enable innovation to new technology-based processes and delivery models (e.g. SaaS, cloud computing); and enable cost savings. The study also looks at results by four key BPO horizontals and three customer-size segments.

Additional key findings from the study include:

* IBM clearly dominates all four value categories of transformation, integration, innovation, and cost optimization across all eight market segments ranked

* HP-EDS, Unisys, Accenture, Infosys, ADP, and Fidelity exhibit strong leading positions across all or different combinations of these four value categories

* Technology-led firms appear to have a competitive advantage over pure-play BPO providers or BPO-centric providers

* Process-centric providers including Convergys, 24/7 Customer, Ceridian, Hewitt, and Cambridge Solutions show top recognition in select key value categories and market segments

This IDC study, U.S. BPO Customers Select IBM, HP-EDS, Unisys, Accenture, Infosys, ADP, and Fidelity as Top 5 Ranked BPO Vendors for Transformation, Integration, Innovation and Cost Optimization (IDC #216191) highlights demand-side results of customer perception of top ranked BPO providers across four key value areas including transformation of business processes; integration of ITO and BPO; optimization of cost savings; and innovation to new technologies and service delivery models. The results of this study provide BPO providers with a framework of those players that not only appear to have competitive advantage as related to customer perception across these categories, but also key characteristics of providers that enable such advantage. Further, this report will provide IDC insight into what are key areas of focus that BPO providers need to address to ensure both short-term and long-term success based on customer need and market directions.

About IDC

IDC is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 100 countries. For more than 45 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com.