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Gartner Predicts Some BPO Vendors Won't Make it in 2012

by: Karen Cayamanda

Wednesday, October 7, 2009 |

A quarter of service providers today may no longer exist come 2012, according to a recent Gartner research.

Robert Brown, VP for research, said that the current economic crisis, loss-making contracts, and failure to adapt to standardized delivery models are factors that will affect service providers in their efforts to keep the business going. "Some will be acquired and some will exit the market completely to be replaced by dynamic new partners delivering BPO as automated, utility services."

Gartner noted that BPO buyers must take caution before venturing into any new outsourcing contract, and should be aware of these signs: unprofitable outsourcing deals, inability to get new projects, loss of major contracts, inability to get enough capital to bid on new BPO deals, exposure to banking sector, and increasing levels of contract cancellation.


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