Worldwide BPO Market to Reach $682.5 Billion by 2008, IDC Reveals
FRAMINGHAM, MA – MAY 5, 2004 – Worldwide spending on Business Process Outsourcing (BPO) services totaled approximately $405 billion in 2003, a growth of about 8% over 2002. According to a new report from IDC, this market (comprising 9 business functions of human resources, procurement, finance & accounting, customer care, logistics, engineering/R&D, sales & marketing, facilities operations & management, and training) will increase to $682.5 billion in 2008, with a compound annual growth rate (CAGR) of 11%.
IDC’s research points to a BPO market that is exciting, brimming with opportunities, and yet, complex and challenging. "There is a definite surge in interest for BPO in today's economic climate,” said Romala Ravi, program manager, BPO Services. “At the same time, companies' expectations and demands of BPO providers have escalated, and the lens through which BPO engagements are being evaluated has become much more sharply focused. Though the rewards are potentially substantial, the path to success in the BPO market will be fraught with challenges, necessitating focus and long-term commitment on the part of BPO providers.”
The BPO market is really made up of many individual markets, each with its own nuances, unique opportunities and challenges. For service providers looking to play in BPO, IDC believes it is imperative to examine each function independently, analyze its characteristics, match the buyer needs and expectations within each function with their own strengths and capabilities, and make strategic decisions on where to focus. Making a play as a BPO provider entails risks and takes time, resources, and patience. There is no fast track or silver bullet to this market, and focus is critical.
This IDC study, Worldwide and U.S. Business Process Outsourcing (BPO) 2004-2008 Forecast and Analysis (IDC #31095), presents an update to the five-year forecast for the worldwide market for Business Process Outsourcing (BPO) services. The purpose of this document is to analyze the trends and events influencing opportunities in the BPO market, quantify their impact on the five-year forecast, and identify future growth areas within each BPO functional segment.
The document answers the following questions:
• What are the key buyer and vendor trends within each BPO market and what impact will they have on the market forecasts?
• What are the key growth areas and opportunities to expect in each BPO market for 2004 and beyond?
• What can vendors do to position effectively to tap the opportunities within each BPO functional market.
For additional information about IDC’s BPO research, please contact Anne-Sophie Dankens at 508-935-4313 or email email@example.com.
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IDC is the premier global market intelligence and advisory firm in the information technology and telecommunications industries. We analyze and predict technology trends so that our clients can make strategic, fact-based decisions on IT purchases and business strategy. Over 700 IDC analysts in 50 countries provide local expertise and insights on technology markets. Business executives and IT managers have relied for 40 years on our advice to make decisions that contribute to the success of their organizations.
IDC is a subsidiary of IDG, the world’s leading technology media, research, and events company. Additional information can be found at www.idc.com.
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