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IDC Study Presents BPO Contract Figures from 2006 to 2010

by: Karen Cayamanda

Thursday, September 29, 2011 |

BPO Contract Values for 2006 - 2010

“U.S. BPO Contract Analysis 2006-2010 by Vertical” is a report released by global market intelligence firm IDC that summarizes trends of contract values in different industry sectors in the United States. A sample was selected among new and renewed business process outsourcing (BPO) contracts in five primary industries: financial services, manufacturing and resources, infrastructure, services, and public sector. The findings include the following:

  • BPO contract values were highest in 2008, with concentration in the government, manufacturing, and financial services industries. 
  • Recession caused a decrease in the value of new and renewed contracts in 2009-2010. Also, large deals of over $1 billion dropped during this period. 
  • The financial sector is picking up and contract value is beginning to normalize, the industry’s numbers returning to pre-recession ranges. Deals, however, are becoming shorter and smaller in volume. 

Trends in the study are presented per vertical in the report. Ruthbea Yesner Clarke, IDC program manager for Vertical Markets Research, says the government, infrastructure, and services industries have been stable at maintaining contract lengths, unlike the financial services and manufacturing sectors that posed a significant decrease.

The analysis identifies the top 5 outsourcing vendors in the 13 industries covered by the report - this is considering contract value during 2006 - 2010.

  • Banking: TCS
  • Utilities: Accenture
  • Transportation: Xerox/ACS
  • Professional Services: Hewlett-Packard/EDS
  • Retail Trade: IBM

The study took into account the US contracts signed by BPO services, as well as the total number of deals, agreement length, geographical location, and key vendors. Data was acquired from IDC’s BuyerPulse Services Deals Database which has very comprehensive information on market deals. Furthermore, the study includes an analysis of consumer budgets, their buying behavior, and spending trends.

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