bpo market forecast 2008 2012 toc (2)

Global BPO Market

Forecast: 2008 - 2012 ~~~

Market Assessment June 2008

GLOBAL BPO MARKET FORECAST: 2008-2012 NelsonHall

About NelsonHall

NelsonHall is a specialist BPO analyst company. NelsonHall provides buy-side and sell-side organizations with deeper research and analyses in front office, mid-office and back office BPO than any other research firm in the world. The company’s subscription-based model provides subscribers with robust market analyses, case studies, vendor assessments, contract analyses, market reports and access to a content-rich BPO contracts database. The firm covers a wide range of industries including financial services, government and utilities sectors, and tracks worldwide and regional BPO activity. NelsonHall’s home page is www.nelson-hall.com.

The company tracks business services activity. In particular, NelsonHall focuses on the following business services and process areas:

Front-office customer management services

Middle office industry-specific processing services such as card processing services

Back office support services such as HR services and finance & accounting services

NelsonHall provides information to its clients in a variety of forms, including within:

NelsonHall’s BPO subscription services, to assist organizations in identifying the most promising areas of BPO activity

Workshops, to assist organizations in identifying the most appropriate areas of BPO for their organization

Custom assessments, to assist buy-side organizations in benchmarking individual processes and to assist vendors in successfully taking BPO concepts to market.

For more details, contact:

In the U.S: Riverside Center 275 Grove Street Suite 2-400 Newton MA 02466 Phone: (617) 663 5737 Fax: (617) 663 4801 In Europe: Atrium Court, The Ring Bracknell RG12 1BW

Phone: +44 (0)870 770 5967 Fax: +44 (0)870 770 5975

[email protected]

© 2008 by NelsonHall. - i - June 2008

http://www.nelson-hall.com/

mailto:[email protected]


Abstract

The purpose of this study is to provide vendors and users with a market forecast of the global BPO market by geography and service type.

The study complements the market assessments and analyses that are produced within NelsonHall’s BPO Subscription Services, and is designed for:

Marketing, sales and business managers developing strategies to target service opportunities within the BPO market

Executives in purchasing organizations seeking an understanding of:

BPO services offered

BPO market development within specific processes

Vendor capabilities in each BPO service type.

Consultants advising clients on vendor selection

Financial analysts specializing in the support services sector.

The term business process outsourcing (BPO) is defined as the outsourcing of business functions or processes. In order to qualify under this definition BPO contracts must involve the vendor taking responsibility for operational management of the business activity. For the purposes of this definition, IT services do not count as a business function. Potential BPO activities include:

Front-office services

Customer management services including billing services Document management services

Middle-office administration services

Industry-specific processing services e.g. card processing services Back-office support services

Finance & accounting services, including purchase-to-pay, order-to-cash, and record-to-report

HR Services including payroll services, HR administration services, managed recruitment services and training provision and administration

Services for procurement of indirect goods and services

Copyright © 2008 by NelsonHall. All rights reserved. Printed in the United Kingdom. No part of the publication may be reproduced or distributed in any form, or by any means, or stored in a database or retrieval system, without the prior written permission of the publisher. The information provided in this report shall be used only by the employees of and within the current corporate structure of NelsonHall’s clients, and will not be disclosed to any other organization or person including parent, subsidiary, or affiliated organization without prior written consent of NelsonHall. NelsonHall exercises its best efforts in preparation of the information provided in this report and believe the information contained herein to be accurate. However, NelsonHall shall have no liability for any loss or expense that may result from incompleteness or inaccuracy of the information provided.

© 2008 by NelsonHall. - ii - June 2008


© 2008 by NelsonHall. - iii - June 2008

Table of Contents

Chapter 1: Introduction 1 A. Objectives 1 B. Scope and Definitions 2

Geographic Coverage 3 C. Methodology 4

Subcontracting 4 Rounding 4 Estimates 4 Exchange Rates 4

D. Structure of the Report 5

Chapter 2: Executive Summary 6A. BPO Market to Exceed $450Bn by 2012 6 B. Asia Pacific BPO Market Shows Greatest Potential for Growth to 2012Error! Bookmark not defined.15

Chapter 3: BPO Market Forecast by Region 24

A. Global Overview 24 B. North America 28 C. Europe 40 D. Asia Pacific 64 E. Latin America 68

Chapter 4: BPO Market Forecast by Service Type 72

A. BPO Market Overview 72 B. Front Office BPO 73

B.1. Customer Management Services 86 B.2. Document Management 96

C. Middle Office BPO 102 C.1 Insurance Industry-Specific BPO 114 C.2 Banking Industry-Specific BPO 126

D. Back Office BPO Market Overview 146 D.1 HR Outsourcing 159 D.2 F&A Outsourcing 201 D.3 Procurement Outsourcing 230

GLOBAL BPO MARKET FORECASTS: 2008-2012 NelsonHall

© 2008 by NelsonHall. - iv - June 2008

List of Exhibits Global BPO Market Forecast by Service Type: 2007 – 2012 ................................................................ 8 Estimated Global BPO Market Shares: 2007 ....................................................................................... 10 Estimated Global Front Office BPO Market Shares: 2007 ................................................................... 11 Estimated Global Middle Office BPO Market Shares: 2007................................................................. 12 Estimated Global Back Office BPO Market Shares: 2007.................................................................... 13 Global BPO Market Forecast by Region: 2007 – 2012 ........................................................................ 15 Estimated North American BPO Market Shares: 2007 ........................................................................ 16 North American BPO Market Forecast by Service Type: 2007 – 2012................................................ 17 Estimated U.S. BPO Market Shares: 2007 .......................................................................................... 18 European BPO Market Forecast by Service Type: 2007 – 2012 ......................................................... 19 Estimated European BPO Market Shares: 2007.................................................................................. 20 Estimated U.K. BPO Market Shares: 2007 .......................................................................................... 22 Global BPO Market Forecast by Service Type: 2007 – 2012 .............................................................. 24 Global BPO Market Forecast by Service Type: 2007 – 2012 .............................................................. 25 Global Front Office Market Forecast by Service Type: 2007 – 2012 ................................................... 25 Global Middle Office Market Forecast by Service Type: 2007 – 2012 ................................................. 25 Global Back Office Market Forecast by Service Type: 2007 – 2012.................................................... 26 Estimated Global BPO Market Shares: 2007 ....................................................................................... 27 North American BPO Market Forecast by Service Type: 2007 – 2012................................................ 28 North American Front Office Market Forecast by Service Type: 2007 – 2012 .................................... 29 North American Middle Office Market Forecast by Service Type: 2007 – 2012 .................................. 29 North American Back Office Market Forecast by Service Type: 2007 – 2012..................................... 30 Estimated North American BPO Market Shares: 2007 ....................................................................... 31 United States BPO Market Forecast by Service Type: 2007 – 2012 ................................................... 32 United States Front Office Market Forecast by Service Type: 2007 – 2012....................................... 33 United States Middle Office Market Forecast by Service Type: 2007 – 2012..................................... 33 United States Back Office Market Forecast by Service Type: 2007 – 2012 ....................................... 34 Estimated United States BPO Market Shares: 2007........................................................................... 35 Canadian BPO Market Forecast by Service Type: 2007 – 2012 ......................................................... 36 Canadian Front Office Market Forecast by Service Type: 2007 – 2012 ............................................. 37 Canadian Middle Office Market Forecast by Service Type: 2007 – 2012........................................... 37 Canadian Back Office Market Forecast by Service Type: 2007 – 2012.............................................. 38 Estimated Canadian BPO Market Shares: 2007 ................................................................................. 39 European BPO Market Forecast by Service Type: 2007 – 2012 ......................................................... 40 European Front Office Market Forecast by Service Type: 2007 – 2012 .............................................. 41 European Middle Office Market Forecast by Service Type: 2007 – 2012............................................ 41 European Back Office Market Forecast by Service Type: 2007 – 2012 .............................................. 42 Estimated European BPO Market Shares: 2007................................................................................. 43


© 2008 by NelsonHall. - v - June 2008

United Kingdom BPO Market Forecast by Service Type: 2007 – 2012 ............................................... 44 United Kingdom Front Office Market Forecast by Service Type: 2007 – 2012.................................... 45 United Kingdom Middle Office Market Forecast by Service Type: 2007 – 2012.................................. 45 United Kingdom Back Office Market Forecast by Service Type: 2007 – 2012 .................................... 46 Estimated United Kingdom BPO Market Shares: 2007....................................................................... 47 French BPO Market Forecast by Service Type: 2007 – 2012.............................................................. 48 French Front Office Market Forecast by Service Type: 2007 – 2012 .................................................. 49 French Middle Office Market Forecast by Service Type: 2007 – 2012 ................................................ 49 French Kingdom Back Office Market Forecast by Service Type: 2007 – 2012.................................... 50 Estimated French BPO Market Shares: 2007 ..................................................................................... 51 German BPO Market Forecast by Service Type: 2007 – 2012............................................................ 52 German Front Office Market Forecast by Service Type: 2007 – 2012................................................. 53 German Middle Office Market Forecast by Service Type: 2007 – 2012 .............................................. 53 German Kingdom Back Office Market Forecast by Service Type: 2007 – 2012.................................. 54 Estimated German BPO Market Shares: 2007 ................................................................................... 55 Italian BPO Market Forecast by Service Type: 2007 – 2012 ............................................................... 56 Italian Front Office Market Forecast by Service Type: 2007 – 2012 .................................................... 57 Italian Middle Office Market Forecast by Service Type: 2007 – 2012.................................................. 57 Italian Kingdom Back Office Market Forecast by Service Type: 2007 – 2012 ..................................... 58 Estimated Italian BPO Market Shares: 2007....................................................................................... 59 Other European BPO Market Forecast by Service Type: 2007 – 2012 ............................................... 60 Other European Front Office Market Forecast by Service Type: 2007 – 2012.................................... 61 Other European Middle Office Market Forecast by Service Type: 2007 – 2012.................................. 61 Other European Kingdom Back Office Market Forecast by Service Type: 2007 – 2012 ..................... 62 Estimated Other European BPO Market Shares: 2007....................................................................... 63 Asian BPO Market Forecast by Service Type: 2007 – 2012................................................................ 64 Asian Front Office Market Forecast by Service Type: 2007 – 2012..................................................... 65 Asian Middle Office Market Forecast by Service Type: 2007 – 2012 .................................................. 65 Asian Kingdom Back Office Market Forecast by Service Type: 2007 – 2012...................................... 66 Estimated Asia Pacific BPO Market Shares: 2007.............................................................................. 67 Latin American BPO Market Forecast by Service Type: 2007 – 2012................................................. 68 Latin American Front Office Market Forecast by Service Type: 2007 – 2012 ..................................... 69 Latin American Middle Office Market Forecast by Service Type: 2007 – 2012 ................................... 69 Latin American Kingdom Back Office Market Forecast by Service Type: 2007 – 2012....................... 70 Estimated Latin American BPO Market Shares: 2007 ........................................................................ 71 Global BPO Market Forecast by Region: 2007 – 2012 ........................................................................ 72 Front Office BPO Market Forecast by Region: 2007 - 2012 ................................................................ 73 Estimated Global Front Office BPO Market Shares: 2007 ................................................................... 74 Estimated North American Front Office BPO Market Shares: 2007 .................................................... 75 Estimated U.S. Front Office BPO Market Shares: 2007....................................................................... 76 Estimated Canadian Front Office BPO Market Shares: 2007 .............................................................. 77


© 2008 by NelsonHall. - vi - June 2008

Estimated EMEA Front Office BPO Market Shares: 2007 ................................................................... 78 Estimated U.K. Front Office BPO Market Shares: 2007....................................................................... 79 Estimated French Front Office BPO Market Shares: 2007 .................................................................. 80 Estimated German Front Office BPO Market Shares: 2007 ................................................................ 81 Estimated Italian Front Office BPO Market Shares: 2007.................................................................... 82 Estimated Other European Front Office BPO Market Shares: 2007.................................................... 83 Estimated Asia Pacific Front Office BPO Market Shares: 2007........................................................... 84 Estimated Latin American Front Office BPO Market Shares: 2007 ..................................................... 85 Customer Management Services Market Forecast by Region: 2007 – 2012...................................... 86 Estimated Global Customer Management Services Market Shares: 2007.......................................... 87 Estimated North American Customer Management Services Market Shares: 2007 ........................... 88 Estimated United States Customer Management Services Market Shares: 2007............................... 89 Estimated Canadian Customer Management Services Market Shares: 2007..................................... 90 Estimated EMEA Customer Management Services Market Shares: 2007 .......................................... 91 Estimated United Kingdom Customer Management Services Market Shares: 2007........................... 92 Estimated French Customer Management Services Market Shares: 2007 ......................................... 93 Estimated German Customer Management Services Market Shares: 2007 ....................................... 93 Estimated Italian Customer Management Services Market Shares: 2007........................................... 94 Estimated Other European Customer Management Services Market Shares: 2007........................... 94 Estimated Asia Pacific Customer Management Services Market Shares: 2007.................................. 95 Estimated Latin American Customer Management Services Market Shares: 2007 ............................ 95 Document Management Services Market Forecast by Region: 2007 – 2012..................................... 96 Estimated Global Document Management Services Market Shares: 2007 ......................................... 97 Estimated North American Document Management Services Market Shares: 2007 .......................... 98 Estimated United States Document Management Services Market Shares: 2007.............................. 99 Estimated EMEA Document Management Services Market Shares: 2007 ....................................... 100 Estimated United Kingdom Document Management Services Market Shares: 2007........................ 101 Estimated Asia Pacific Document Management Services Market Shares: 2007............................... 101 Middle Office BPO Market Forecast by Region: 2007 – 2012 .......................................................... 102 Estimated Global Middle Office BPO Market Shares: 2007............................................................... 103 Estimated North American Middle Office BPO Market Shares: 2007 ................................................ 104 Estimated United States Middle BPO Market Shares: 2007 .............................................................. 105 Estimated Canadian Middle Office BPO Market Shares: 2007.......................................................... 106 Estimated EMEA Middle Office BPO Market Shares: 2007 ............................................................... 107 Estimated United Kingdom Middle Office BPO Market Shares: 2007................................................ 108 Estimated French Middle Office BPO Market Shares: 2007 .............................................................. 109 Estimated German Middle Office BPO Market Shares: 2007 ............................................................ 110 Estimated Other European Middle Office BPO Market Shares: 2007................................................ 111 Estimated Asia Pacific Middle Office BPO Market Shares: 2007....................................................... 112 Estimated Latin American Middle Office BPO Market Shares: 2007 ................................................. 113 Life Insurance BPO Market Forecast by Region: 2007 – 2012......................................................... 114


© 2008 by NelsonHall. - vii - June 2008

Estimated Global Life Insurance BPO Market Shares: 2007 ............................................................. 115 Estimated North American Life Insurance BPO Market Shares: 2007............................................... 116 Estimated United States Life Insurance BPO Market Shares: 2007 .................................................. 117 Estimated EMEA Life Insurance BPO Market Shares: 2007 ............................................................. 118 Estimated United Kingdom Life Insurance BPO Market Shares: 2007 .............................................. 119 Property & Casualty BPO Market Forecast by Region: 2007 – 2012 ............................................... 120 Estimated Global Property &Casualty BPO Market Shares: 2007..................................................... 121 Estimated North American Property &Casualty BPO Market Shares: 2007 ...................................... 122 Estimated United States Property &Casualty BPO Market Shares: 2007.......................................... 123 Estimated Canadian Property &Casualty BPO Market Shares: 2007................................................ 124 Estimated EMEA Property &Casualty BPO Market Shares: 2007 ..................................................... 124 Estimated United Kingdom Property &Casualty BPO Market Shares: 2007...................................... 125 Mortgage BPO Market Forecast by Region: 2007 – 2012 ................................................................ 126 Estimated Global Mortgage BPO Market Shares: 2007..................................................................... 127 Estimated United States Mortgage BPO Market Shares: 2007 ......................................................... 128 Estimated United Kingdom Mortgage BPO Market Shares: 2007 ..................................................... 128 Payment BPO Market Forecast by Region: 2007 – 2012 ................................................................. 129 Estimated Global Payment BPO Market Shares: 2007...................................................................... 130 Estimated North American Payment BPO Market Shares: 2007 ....................................................... 131 Estimated United States Payment BPO Market Shares: 2007 .......................................................... 132 Estimated Canadian Payment BPO Market Shares: 2007................................................................. 133 Estimated EMEA Payment BPO Market Shares: 2007 ...................................................................... 134 Estimated United Kingdom Payment BPO Market Shares: 2007 ...................................................... 135 Estimated German Payment BPO Market Shares: 2007 ................................................................... 135 Estimated Other European Payment BPO Market Shares: 2007 ...................................................... 136 Estimated Asia Pacific Payment BPO Market Shares: 2007 ............................................................. 137 Estimated Latin American Payment BPO Market Shares: 2007 ........................................................ 137 Estimated Securities Processing Market Forecast by Region: 2007 – 2012 .................................... 138 Estimated Global Securities Processing BPO Market Shares: 2007 ................................................. 139 Estimated North American Securities Processing Market Shares: 2007 ........................................... 140 Estimated United States Securities Processing Market Shares: 2007............................................... 141 Estimated Canadian Securities Processing Market Shares: 2007..................................................... 142 Estimated EMEA Securities Processing Market Shares: 2007 .......................................................... 143 Estimated United Kingdom Securities Processing Market Shares: 2007........................................... 144 Estimated Asia Pacific Securities Processing Market Shares: 2007.................................................. 144 Estimated Latin American Securities Processing Market Shares: 2007 ............................................ 145 Back Office BPO Market Forecast by Region: 2007 – 2012 .............................................................. 146 Estimated Global Back Office BPO Market Shares: 2007.................................................................. 147 Estimated North American Back Office BPO Market Shares: 2007................................................... 148 Estimated United States Back Office BPO Market Shares: 2007 ...................................................... 149 Estimated Canadian Back Office BPO Market Shares: 2007 ............................................................ 150


© 2008 by NelsonHall. - viii - June 2008

Estimated EMEA Back Office BPO Market Shares: 2007.................................................................. 151 Estimated United Kingdom Back Office BPO Market Shares: 2007 .................................................. 152 Estimated French Back Office BPO Market Shares: 2007................................................................. 153 Estimated German Back Office BPO Market Shares: 2007............................................................... 154 Estimated Italian Back Office BPO Market Shares: 2007 .................................................................. 155 Estimated Other European Back Office BPO Market Shares: 2007 .................................................. 156 Estimated Asia Pacific Back Office BPO Market Shares: 2007 ......................................................... 157 Estimated Latin American Back Office BPO Market Shares: 2007.................................................... 158 HR BPO Market Forecast by Region: 2007 – 2012 .......................................................................... 159 Estimated Global HR BPO Market Shares: 2007............................................................................... 160 Estimated North American HR BPO Market Shares: 2007 ................................................................ 161 Estimated United States HR BPO Market Shares: 2007.................................................................... 162 Estimated Canadian HR BPO Market Shares: 2007.......................................................................... 163 Estimated EMEA HR BPO Market Shares: 2007 ............................................................................... 164 Estimated United Kingdom HR BPO Market Shares: 2007................................................................ 165 Estimated French HR BPO Market Shares: 2007 .............................................................................. 166 Estimated German HR BPO Market Shares: 2007 ............................................................................ 167 Estimated Other European HR BPO Market Shares: 2007 ............................................................... 168 Estimated Asia Pacific HR BPO Market Shares: 2007....................................................................... 169 Estimated Latin American HR BPO Market Shares: 2007 ................................................................. 169 Multi-Process HR BPO Market Forecast by Region: 2007 – 2012 ................................................... 170 Estimated Global Multi-Process HR BPO Market Shares: 2007........................................................ 171 Estimated North American Multi-Process HR BPO Market Shares: 2007 ......................................... 172 Estimated United States Multi-Process HR BPO Market Shares: 2007............................................. 173 Estimated EMEA Multi-Process HR BPO Market Shares: 2007 ........................................................ 174 Estimated United Kingdom Multi-Process HR BPO Market Shares: 2007......................................... 175 Benefit Administration BPO Market Forecast by Region: 2007 – 2012 ............................................ 176 Estimated Global Benefit Administration BPO Market Shares: 2007................................................. 177 Estimated North American Benefit Administration BPO Market Shares: 2007 .................................. 178 Estimated United States Benefit Administration BPO Market Shares: 2007...................................... 179 Estimated Canadian Benefit Administration BPO Market Shares: 2007............................................ 180 Estimated EMEA Benefit Administration BPO Market Shares: 2007 ................................................. 181 Estimated United Kingdom Benefit Administration BPO Market Shares: 2007 ................................. 182 Estimated Asia Pacific Benefit Administration BPO Market Shares: 2007......................................... 183 Payroll BPO Market Forecast by Region: 2007 – 2012...................................................................... 184 Estimated Global Payroll BPO Market Shares: 2007 ......................................................................... 185 Estimated North American Payroll BPO Market Shares: 2007 .......................................................... 186 Estimated United States Payroll BPO Market Shares: 2007.............................................................. 187 Estimated EMEA Payroll BPO Market Shares: 2007 ......................................................................... 188 Estimated United Kingdom Payroll BPO Market Shares: 2007.......................................................... 189 RPO Market Forecast by Region: 2007 – 2012 ................................................................................. 190


© 2008 by NelsonHall. - ix - June 2008

Estimated Global RPO Market Shares: 2007..................................................................................... 191 Estimated North American RPO Market Shares: 2007 ...................................................................... 192 Estimated United States RPO Market Shares: 2007.......................................................................... 193 Estimated EMEA RPO Market Shares: 2007 ..................................................................................... 194 Estimated United Kingdom RPO Market Shares: 2007...................................................................... 195 Estimated Asia Pacific RPO Market Shares: 2007............................................................................. 195 LBPO Market Forecast by Region: 2007 – 2012................................................................................ 196 Estimated Global LBPO Market Shares: 2007 ................................................................................... 197 Estimated United States LBPO Market Shares: 2007........................................................................ 198 Estimated EMEA LBPO Market Shares: 2007 ................................................................................... 199 Estimated United Kingdom LBPO Market Shares: 2007.................................................................... 200 F&A BPO Market Forecast by Region: 2007 – 2012.......................................................................... 201 Estimated Global F&A BPO Market Shares: 2007 ............................................................................. 202 Estimated North American F&A BPO Market Shares: 2007 .............................................................. 203 Estimated United States F&A BPO Market Shares: 2007.................................................................. 204 Estimated EMEA F&A BPO Market Shares: 2007 ............................................................................. 205 Estimated United Kingdom F&A BPO Market Shares: 2007.............................................................. 206 Estimated Other Europe F&A BPO Market Shares: 2007.................................................................. 207 Estimated Asia Pacific F&A BPO Market Shares: 2007..................................................................... 207 Multi-Process F&A BPO Market Forecast by Region: 2007 – 2012.................................................. 208 Estimated Global Multi-Process F&A BPO Market Shares: 2007 ...................................................... 209 Estimated North American Multi-Process F&A BPO Market Shares: 2007 ....................................... 210 Estimated United States Multi-Process F&A BPO Market Shares: 2007........................................... 211 Estimated EMEA Multi-Process F&A BPO Market Shares: 2007 ...................................................... 212 Estimated United Kingdom Multi-Process F&A BPO Market Shares: 2007....................................... 213 Estimated Asia Pacific Multi-Process F&A BPO Market Shares: 2007.............................................. 213 Purchase-to-Pay BPO Market Forecast by Region: Est. 2007 – 2012Est. ....................................... 214 Estimated Global Purchase-to-Pay BPO Market Shares: 2007 ......................................................... 215 Estimated United States Purchase-to-Pay BPO Market Shares: 2007.............................................. 216 Estimated EMEA Purchase-to-Pay BPO Market Shares: 2007 ......................................................... 217 Estimated United Kingdom Purchase-to-Pay BPO Market Shares: 2007.......................................... 217 Order-to-Cash BPO Market Forecast by Region: 2007 – 2012 ........................................................ 218 Estimated Global Order-to-Cash BPO Market Shares: 2007............................................................. 219 Estimated North American Order-to-Cash BPO Market Shares: 2007 .............................................. 220 Estimated United States Order-to-Cash BPO Market Shares: 2007.................................................. 221 Estimated EMEA Order-to-Cash BPO Market Shares: 2007 ............................................................. 222 Estimated United Kingdom Order-to-Cash BPO Market Shares: 2007.............................................. 223 Estimated France Order-to-Cash BPO Market Shares: 2007 ............................................................ 224 Estimated German Order-to-Cash BPO Market Shares: 2007 .......................................................... 224 Estimated Italian Order-to-Cash BPO Market Shares: 2007.............................................................. 224 Estimated Other European Order-to-Cash BPO Market Shares: 2007.............................................. 225


© 2008 by NelsonHall. - x - June 2008

Record-to-Report BPO Market Forecast by Region: 2007 – 2012.................................................... 226 Estimated Global Record-to-Report BPO Market Shares: 2007 ........................................................ 227 Estimated United States Record-to-Report BPO Market Shares: 2007............................................. 228 Estimated United Kingdom Record-to-Report BPO Market Shares: 2007......................................... 229 Procurement BPO Market Forecast by Region: 2007 – 2012........................................................... 230 Estimated Global Procurement BPO Market Shares: 2007 ............................................................... 231 Estimated United States Procurement BPO Market Shares: 2007 .................................................... 231 Estimated EMEA Procurement BPO Market Shares: 2007................................................................ 232


© 2008 by NelsonHall. - 1 - June 2008

Chapter

1

Introduction

A Objectives

The purpose of this study is to provide vendors and users with a view of the current and future market size across service types and regions within the business process outsourcing marketplace.

The study complements the market assessments and analyses that are produced within the NelsonHall BPO & Outsourcing Subscription Service, and is designed for:

Marketing, sales and business managers developing strategies to target service opportunities within the BPO market

Executives in purchasing organizations seeking an understanding of:

BPO services offered

BPO market development within specific processes

Vendor capabilities in each BPO service type.

Consultants advising clients on vendor selection

Financial analysts specializing in the support services sector.



B Scope and Definitions

This study covers business process outsourcing (BPO) in its entirety, covering both the relatively fast growing market for multi-process BPO as well as many of the more mature and slower growing markets such as payroll services, as well as emerging single-service opportunities and industry-specific BPO services such as payments processing.

Business process outsourcing is defined as the outsourcing of business functions or processes. In order to qualify under this definition, BPO contracts must involve the vendor employing those personnel carrying out the business activity. For the purposes of this definition, stand-alone IT services do not count as a business function, though there may be a significant IT services component embedded within a wider business process outsourcing service. This study investigates the market size and forecasts for the wider BPO market. This includes:

Back office support services, such as

Finance and accounting outsourcing, which has been divided into:

Multi-process finance and accounting BPO, which is the outsourcing of multiple finance functions such as accounts payable, accounts receivable, general accounting, etc.

Order-to-cash outsourcing, which is the outsourcing of the accounts receivable function or debt collection as a standalone service

Purchase-to-Pay, which is the outsourcing of the accounts payable function as a standalone service

Record-to-Report, which includes areas such general ledger processing and preparation of accounting reports.

HR services, including:

Multi-process HR, which is the outsourcing of two or more HR process areas within the same contract, such as employee care (employee call center support), payroll administration and benefits administration

Payroll administration

Benefits administration

Recruitment process outsourcing

Learning BPO

Other HR Services, such as succession planning, mobility services, and occupational health.

Procurement outsourcing, primarily of indirect goods and services.

Middle office support services, including

Banking specific processing, such as payment processing (covering card processing services, merchant acquirer services, and check processing), mortgage processing, and securities processing

Insurance specific processing, such as policy administration and claims processing, and third party administration services

Government specific processing, such as revenue and benefits, and Medicaid/Medicare services

Utilities and telecoms specific processing, such as billing and provisioning.



Front office support services, which the handling of customer facing activities, such as telemarketing, and customer care and also document management.

Geographic Coverage The geographic scope of the research is global, covering all regions:

North America

United States

Canada

Europe

United Kingdom

France

Germany

Italy

Other Europe

Asia Pacific

Latin America.



C Methodology

Market sizing and forecasting for the study has been carried out using NelsonHall’s primary and secondary research sources on the global business process outsourcing (BPO) market.

Market sizing has been estimated by examining current vendor revenues for BPO services, both by service type and by region.

Vendor revenue figures have been estimated using:

Detailed interviews with senior level vendor executives

Analysis of vendor contract activity

Analysis of secondary research sources, including press releases, annual reports, and 10Ks from vendor organizations

Analysis of published vendor data, including revenue information, and headcount figures.

Estimated vendor market shares have been calculated based on 2007 revenue data.

Market forecasts within this study have been estimated from:

Analysis of NelsonHall’s comprehensive library of both user and vendor based BPO studies

Analysis of past contract activity within BPO using NelsonHall’s contract database, which can be utilized as a reliable predictor for future market activity

Detailed interviews with senior level vendor executives.

A key element within this study is NelsonHall’s regular briefings with BPO vendor organizations. Within these interviews, NelsonHall ascertains:

BPO services that vendors are offering, or planning to offer, including where possible current revenues and expected growth rates for these offerings

Targeting of these services, by geography, industry and service type

Approach to the provision of these business process outsourcing services.

These details, in combination with the further primary and secondary research mentioned above, can be used to estimate the overall shape of the BPO market now and in for the future.

Subcontracting Vendor revenues have been quoted including all revenues from contracts, including those where services are subcontracted to other BPO vendor organizations.

Rounding Please note that the market size and forecasting figures displayed within all the tables in this report have been rounded to either two or three significant figures. This can result in totals being slightly different.

Estimates All vendor revenues quoted within this report are NelsonHall estimates, and have been rounded as appropriate. In addition, all estimates are for the latest published financial year at the time the report data was gathered.

Exchange Rates All exchange rates used within this report are $1.5 = €1 and $2 = £1



D Structure of the Report

The report is structured into the following chapters:

Chapter I: Introduction

Chapter II: Executive Summary

Chapter III: Market Forecasting by Region, including:

Global Overview

North America

Europe

Asia Pacific

Latin America

Chapter IV: Market Forecasting by Service Type, including:

BPO Market Overview

Front Office BPO

Middle Office BPO

Back Office BPO, including:

F&A Outsourcing

Human Resources Outsourcing

Procurement Outsourcing.

bpo market forecast 2008 2012 toc (2)

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