I am very interested in outsourcing It services to firms in India. I think it provides huge cost advantages and the service providors, in my opinion, are very capable of handling the increased volume from US companies. The following paragraphs were pulled from a summary of a Forrester report that forecast the growth of this segment.
"Forrester found that while most of the executives it surveyed reported their companies didn't spend much on BPO in 2002, 52 percent said they were considering outsourcing and planned to spend at least $1 million on BPO in 2004. They cited human resources, customer resources, customer service procurement and accounting as the most likely processes for outsourcing.
The largest segment in the BPO market will be simple bulk transactions, Forrester said, predicting the segment will grow to $58 billion in 2008. This segment includes simple tasks like credit card or stock trade processing, and Forrester said the segment is the simplest for vendors to master. The firm added that ACS, Fidelity Investments, State Street and Unisys will likely dominate the market.
The second largest segment will be broad shared services, representing $57 billion by 2008, Forrester said. This segment includes finance and administration, indirect procurement and human resources. Noting the segment requires more understanding by employees than simple bulk transactions, Forrester predicted that ACS and Mellon HR Solutions will expand into the HR side of the segment, while big IT systems integrators will battle over finance and accounting.
High-volume vertical processes will represent a significantly smaller segment, at $6 billion in 2008, Forrester said. The firm predicted that vertical processes, including policy administration, claims and loan process applications, will remain a small piece of the segment. It also suggested that offshore IT providers and large U.S. outsourcers, including the likes of Accenture and CSC, will battle for turf in the segment.
The smallest segment will be niche vertical applications, which Forrester predicted would reach $5 billion in 2006, though it also suggested the segment would surge forward after customers become comfortable with outsourcing these tasks, reaching $24 billion in 2008. Niche vertical applications include complex processes like environmental data reporting and chemical process control monitoring, which Forrester said requires deep specialization. The firm pointed to Ingenero and RMSI as among the small BPO vendors that specialize in the area. " Internet News.com