|
IT Outsourcing Vendors Will Reap $7 Billion in the Next Two Years - Research Report Now Available
The US Enterprise IT Outsourcing Market will grow 20%, from $46.3B to $55.5B in the next two years according to a new research report published by the InterUnity Group http://www.interunitygroup.com. While the On-shore market will grow by 5%, the Off-shore market will grow 11 times faster at 55%. A total of $7.8B will be shifted Off-shore increasing the Off-shore total to $21.7B in 2005. Enterprises will shift $930 Million of this growth to wholly owned Off-shore subsidiaries.
Concord, MA December 17 2003-The US Enterprise IT Outsourcing Market will grow 20%, from $46.3B to $55.5B in the next two years (Figure 1) according to a new research report published by the InterUnity Group http://www.interunitygroup.com. While the On-shore market will grow by 5%, the Off-shore market will grow 11 times faster at 55% (Figure 2). A total of $7.8B will be shifted Off-shore increasing the Off-shore total to $21.7B in 2005. Enterprises will shift $930 Million of this growth to wholly owned Off-shore subsidiaries.
Figure 1: IT Outsourcing Market 2003 - 2005 ($B)(attached)
Overall outsourcing growth will slow from 13% in 2004 to 7% in 2005. The slowdown in IT outsourcing growth is due to rapid market penetration and saturation.
The market for On-shore outsourcing from companies that currently outsource will decline by $3B from 2003 to 2005. This will be off-set by $4.6B growth in On-shore outsourcing from companies that do not currently outsource. Combined net growth will be 5% in the domestic outsourcing market.
Figure 2: IT Outsourcing Market Growth Rates 2003 - 2005 (attached)
The $21.7B growth in Off-shore outsourcing will come from enterprises currently outsourcing in US migrating Off-shore (40%) and from enterprises that do not currently outsource (60%) but plan to in the next 24 months.
Not all of the growth in the Off-shore outsourcing market is available to vendors. About 12% of Off-shore outsourcing will be performed through captive subsidiaries. This $1.7B segment in 2003 will grow to $2.7B by 2005.
Enterprises currently outsourcing have determined their Off-shore outsourcing strategy:
· 40% do not plan to go Off-shore,
· 7% are watching the market and
· 11% have Off-shore trials under way.
Two-thirds of companies doing Off-shore outsourcing have a proactive cost saving focus and one-third have a proactive strategic focus. The combined growth in Off-shore outsourcing from this segment is just over $3.1B over the next two years (Figure 3).
The largest opportunity for Off-shore outsourcing vendors comes from companies who have not yet done any IT outsourcing. The combined growth in Off-shore outsourcing from this segment is $4.7B over the next two years.
Figure 3: Sources of Growth in Off-shore Outsourcing: 2003 - 2005 (attached)
Since two thirds of Off-shore outsourcing is driven by a proactive cost reduction, vendors who can demonstrate significant cost savings to their prospects will win two thirds of the growth. The remainder will go to vendors who can align with prospects strategic enterprise needs for specific skill sets and industry expertise.
Conclusions
Vendors who clearly differentiate their offerings have an opportunity to capture market share. Strategies include:
· Develop high-probability target customer profiles to focus sales and marketing resources on organizations that are developing outsourcing plans
· Demonstrate realizable benefits and cost savings
· Develop solutions that solve business problems specific to industry verticals and company size
To be successful longer term, US based outsourcers must ramp up their Off-shore delivery capabilities, either through alliances or captive Off-shore subsidiaries, to maintain market share.
Definition of the US Enterprise Market
The US Enterprise Market includes the following industries:
· Mining
· Construction
· Manufacturing
· Transportation, communications, and utilities
· Wholesale trade
· Retail trade
· Finance, insurance, and real estate
· Services
Company: InterUnity Group
|
| Related press releases |
IT Outsourcing Vendors Will Reap $7 Billion in the Next Two Years - Research Rep... [2004-09-28 00:00:00]
The US Enterprise IT Outsourcing Market will grow 20%, from $46.3B to $55.5B in the next two years according to a new research report published by the InterUnity Group http://www.interunitygroup.com. ...
|
|
Content Management Analysed [2004-09-05 00:00:00]
May 14, 2004 -- Research and Markets announces the addition of this new report entitled "Content Management" to its offerings.
This report will cover technologies and vendors that support the develo...
|
|
Y2G Associates Reports Over 75 Percent of Software Companies Sales Cycles Increa... [2004-09-06 00:00:00]
Y2G Associates, the premier provider of custom market research and executive outsourcing services for software companies, announces the availability of its newest Software Vendor Sales Management Bes...
|
|
Auriga in the Black Book of Outsourcing [2009-03-13 06:48:39]
---
Auriga, the oldest US-Russian software R&D outsourcing provider, ranks in Top Ten IT Outsourcing Vendors in Eastern and Central Europe, and in Top Ten Global Software QA & Testing Vendors of the ...
|
|
MetaTrieval Software Profiled in Gavilan Research Meta-Data Solutions Report [2004-10-04 00:00:00]
MetaTrieval Software's groundbreaking enterprise-wide, vendor-neutral, natural-language metadata- search/data-discovery product, MetaTrieve, gains recognition of its significance.
LOS ANGELES, CA Oc...
|
|
Software Outsourcing to India - TatvaSoft [2006-01-26 00:00:00]
Also for software outsourcing, India enjoys confidence of multination corporations. According to a survey, 82% US companies mentioned that, India is their first choice for software outsourcing. Bill C...
|
|
Central and Eastern Europe IT Outsourcing Review 2008: Central and Eastern Europ... [2009-07-24 04:47:52]
23 July, 2009 – Kiev – The research “Central and Eastern Europe IT Outsourcing Review 2008” provides an evidence of the rapid development of IT outsourcing services market in the Central and E...
|
|
Saugatuck and CFO Research Launch Business Process Outsourcing Program [2004-09-16 00:00:00]
Joint research program focuses on changing BPO buyer behavior, user expectations and decision factors
Westport, CT February 3, 2004 - Saugatuck Technology and CFO Research Services today announce t...
|
|
Ukrainian company NET Technology Center WEB100 has become a Sponsor of the “Ce... [2009-06-01 11:01:16]
1 June, 2009 – KIEV – Ukrainian company NET Technology Center WEB100 has become a Sponsor of the “Central and Eastern Europe IT Outsourcing Review 2008”
“Central and Eastern Europe IT Ou...
|
|
Revenues from Digital Home Health Services to Top $2.1 Billion in 2010 [2006-03-02 00:00:00]
For Immediate Release
Contact: Jenny Barrett, Chelsey Tyson
Parks Associates
Revenues from Digital Home Health Services to Top $2.1 Billion in 2010 Fastest Growth Areas are Wellness Monitoring and e-...
|
|
|
|
| NET Reports Server PRO |
 NET Reports 2.0 Server - a Internet ready application; Fast Query & Report solution for Ms.Sql Server, Oracle, PostGreSql, MySql, Interbase, Firebird, MS. VFP. Sybase, MS. Access; Free client software from http://www.net-reports.net/downloads.html |
|
| Lotto Cheatah |
 Award-winner. Rated BEST lottery software! Proven over 6 years of real-world lottery player use to improve your chances of winning at least 3-fold! Covers 27 major lotteries in 4 countries. Internet connection required. |
|
|
Latest press releases
