FRAMINGHAM, Mass.--(BUSINESS WIRE)--International Data Corporation (IDC) announced today the availability of a new study, U.S. BPO Contract Analysis 2006-2010 by Vertical (Doc #230075), that reveals long-term, year-over-year business process outsourcing (BPO) trends in U.S. industry sectors, including total and average contract values, contract lengths, and sourcing trends. During the five year period, total BPO contract values peaked in 2008 in most industries, especially government, manufacturing and financial services. There was a decline in total contract value of new and renewed contracts in 2009 and 2010 due to the economic recession. Underlying the decline is a significant reduction in "mega deals" of more than $1 billion in 2009 and 2010 compared to the prior years covered in the study. The financial services sector, which had two significant mega deals in 2008, appears to be returning to pre-recession contract activity levels, though deals are trending shorter and smaller in size.
"Our analysis highlights that trends in BPO vary significantly by vertical. Many industries, like government, infrastructure and services, for example, have maintained steady average contract lengths over time while lengths decreased in financial services and manufacturing," stated Ruthbea Yesner Clarke, program manager for IDC's Worldwide Vertical Markets research group. "Even though a rebound of economic activity is occurring, companies are proceeding with caution and signing single tower, or process, deals."
This unique study examines a representative sample of new and renewed U.S. BPO contracts between 2006 and 2010, revealing activities and trends in five industry sectors: financial services, manufacturing and resources, infrastructure, services and distribution, and public sector.
Another feature of the study is the identification of the top five outsourcing vendors in each of 13 industries. The top U.S. BPO vendors by contract value during the 2006-2010 period for five of the 13 industries are:
- Banking: TCS
- Utilities: Accenture
- Transportation: Xerox/ACS
- Professional Services: Hewlett-Packard/EDS
- Retail Trade: IBM
The study, presented in PowerPoint format, provides an overview of U.S. BPO metrics and a comprehensive look at BPO services contracts signed in the U.S. including number of deals, contract value, length of contract, key vendors, and geographic scope. The study draws on IDC's BuyerPulse Services Deals Database, which is the largest and most comprehensive offering of services deals information on the market. The study was delivered in IDC's Worldwide BPO Services Market Forecaster: Vertical Markets research advisory service, which provides analysis of end users' budgets, spending trends, and priorities within 17 industries and seven company sizes for the United States and worldwide. Combined with IDC's Vertical Markets Research Group's annual IT Spending survey, the subscription service offers a comprehensive view of the BPO market's end user buying behavior.
For additional information about this research, or to arrange a one-on-one briefing with Ruthbea Yesner Clarke or Xiao-Fei Zhang, please contact Sarah Murray at 781-378-2674 or sarahbethmurray@gmail.com. To request information on custom data cuts or subscription services, contact insights@idc.com.
About IDC
International Data Corporation (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 to make fact-based decisions on technology purchases and business strategy. More than 1000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries worldwide. For more than 47 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. For more information, please visit www.idc.com, email insights@idc.com, or call 508-872-8200.