IDC Releases a Series of End User Studies with Horizontal BPO Market Views for Human Resources, Customer Care, Procurement, and Finance and Accounting

FRAMINGHAM, Mass. – February 18, 2009 – A recent series of IDC studies combine a demand-side view of the overall business process outsourcing (BPO) market along with specific findings for four key horizontal markets – HR, customer care, procurement, and finance and accounting. These studies include analysis on BPO usage, spending, and future plans as well as technology and platform approach and provide key customer messages for each of the horizontals.

"While end users indicate their likelihood to increase BPO spend, their need to drive down costs via outsourcing, coupled with other factors, will likely offset overall spend and slow the growth rate of the BPO market for the next 12-24 months," stated David Tapper, vice president, Outsourcing and Offshore Services. "Additionally, high interest in having providers that can transform customer environments to new technologies and delivery models will place increased pressure on traditional BPO providers to shift their models while allowing newer entrants into the market."

Key customer messages from this series of studies include:

* Among the four key horizontals surveyed, HR and customer care are most highly selected to be outsourced, followed by finance and accounting.

* Sourcing preferences are centered on using best-in-class providers with the majority willing to use global sourcing/offshore resources, though with healthcare and public sector the least interested in offshore and a significant minority still looking for US-based only delivery.

* The vast majority of end users want to manage their own applications and have the vendor work closely with their own technology as well as with their suppliers.

The four IDC studies included in this series are:

* 2009 Finance & Accounting BPO Services Needs with Market Overview (IDC #216466)

* 2009 HR BPO Services Needs with Market Overview (IDC #216219)

* 2009 Customer Care BPO Services Needs with Market Overview (IDC #216186)

* 2009 Procurement BPO Services Needs with Market Overview (IDC #216666)

Each study includes a demand-side results section that provides feedback and analysis based on the more than 400 survey responses across all four BPO functional areas (HR, customer care, procurement, finance and accounting), as well as a section based on the respondents by functional area. Essential guidance for vendors in the specific horizontal is also provided.

About IDC

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 make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 100 countries. For more than 45 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. You can learn more about IDC by visiting www.idc.com.

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