Abstract
This IDC study provides a five-year worldwide overview for the period
2002-2006, as well as for the first 10 months of 2007, of the success rate of
offshore providers in the space of deal making in the IT outsourcing (ITO) and
business process outsourcing (BPO) services markets. This analysis is based on
the outsourcing contracts view of IDC' s proprietary Worldwide Services
Contracts Analysis database. The study examines the trends and characteristics
of outsourcing contracts signed over this five-year+ time frame and provides
guidance on key characteristics that offshore providers must adhere to as a
means of increasing market share and mindshare.
"While not yet capturing a significant share of total outsourcing deals and
deal value, offshore providers are beginning to make some significant gains in
the BPO and IT outsourcing services markets with significant signings including
the first billion-plus-dollar deal," said David Tapper, program VP, Outsourcing
Services research at IDC. "Enabling offshore providers to make a much greater
impact on the outsourcing market is their willingness to take on greater risks,
whether that be via innovative delivery models involving partnerships for
host-based delivery or making strategic acquisitions in local markets such as
the United States, to build out datacenter capacity. Success in the future for
these players will require them to build strong brand recognition as strategic
outsourcers and align their outsourcing business models with the increased
shift toward newer service options involving utility computing, platform-based
BPO and SaaS (software as a service), a shift with which all outsourcers will
have to contend."
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