state of outsourcing 2013 exec findings hfs

8/10/2019 State of Outsourcing 2013 Exec Findings Hfs

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for Global Business & IT Services

The Knowledge Community

April 2013

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity.

Phil FershtFounder and CEO

HfS Research

Jamie SnowdonVice President, Market Forecasting and Data Products

HfS Research


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Conducted with the support of KPMGs Shared Services and Outsourcing Advisory Practice



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Q. Based on your recent experiences, will your clients seek to increase / reduce their reliance on thefollowing operating models for their general and administrative functions, over the next 2 years?

4%

9%

21%

30%

14%

47%

64%

50%

36%

32%

11%

17%

37%

12%

4%

2%

9%In-house delivery, no Shared Services

In-house Shared Services (LimitedOutsourcing)

Outsourcing with service providers(Limited Shared Services)

Hybrid Outsourcing & Shared Services(Global Business Services)

Increase significantly Increase moderately No change expected Reduce moderately Reduce significantly

Source: HfS Research 2013 2013 State of Outsourcing Study, n = 495 Service Provider Executives

Conducted with the support of KPMG Shared Services & Outsourcing Adv isory


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Q. How important are the following business DRIVERS behind your company's IT outsourcingand BPO decision making in today's business environment?

17%

20%

21%

22%

24%

29%

33%

34%

35%

37%

43%

43%

45%

41%

40%

46%

39%

36%

34%

39%

45%

44%

29%

27%

27%

32%

28%

27%

16%

21%

22%

12%

10%

11%

9%

11%

6%

3%

5%

15%

11%

5%

6%

3%

Force change into our business operations

Proven / mature offerings from serviceproviders

Improve analytical capabilities

Gain access to new technology

Gain access to talent

Transform / re-engineer processes

More effective operations at a global level

Meet compliance / regulatory requirements

Standardize processes

Greater flexibility to scale operations

Reduce Operating Costs

Mission critical Important, but not critical Somewhat Important Not Important at all



Meet compliance / regulatory requirements



educe perating osts

Force change into our business operations

Proven mature o erings rom serviceproviders




O

perational

Strategic

Source: HfS Research 2013,n = 399 Buy-side Enterprises

2013 State of Outsourcing StudyConducted with the suppor t of KPMG Shared Services & Outsourcing Adv isory


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Q. How important are the following business DRIVERS behind your company's IT outsourcingand BPO decision making in today's business environment? (Mission-critical only)

27%

16%

19%

26%

27%

29%

33%

28%

33%

41%

32%

18%

20%

22%

22%

23%

28%

34%

38%

38%

42%

54%

0% 20% 40% 60%

Proven / mature offerings from serviceproviders

Force change into our businessoperations





Meet compliance / regulatoryrequirements




Reduce Operating Costs

High-end Enterprises

($5bn+)

Mid-Market Enterprises($1bn-$5bn)

32%54%

7%18%




8/76

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Q. Are you likely to increase or decrease your outsourcing activity across the followingbusiness operations areas in the next 12 months?

5%

3%

4%

6%

8%

4%

9%

10%

10%

10%

8%

9%

11%

13%

15%

15%

16%

17%

17%

19%

21%

29%

32%

39%

31%

31%

36%

26%

26%

30%

30%

47%

34%

40%

25%

37%

4%

3%

2%

1%

2%

4%

5%

3%

5%

6%

5%

6%

50%

50%

43%

52%

48%

45%

39%

21%

30%

15%

29%

9%

Marketing Operations Outsourcing

Customer Relationship Management

Legal Process Outsourcing

Knowledge Process Outsourcing

Analytics

Industry Specific Processes

Procurement & Sourcing Outsourcing

Document & Print Operations Outsourcing

Human Resources Outsourcing

IT Infrastructure Outsourcing

Finance & Accounting Outsourcing

Application Development & Maintenance

Will start outsourcing for the 1st time Increase scope Stay the same Decrease scope No plans

8%

9%

32%

39%

25%

37%

5%

6%

29%

9%

Finance Accounting utsourcing

pp ication Development Maintenance




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Q. How effective have your current BPO / IT outsourcing initiatives been for achieving the following

business benefits to date?

9%

13%

18%

15%

17%

20%

23%

29%

29%

35%

53%

56%

55%

63%

61%

61%

63%

56%

53%

52%

38%

31%

27%

21%

22%

19%

15%

16%

18%

12%

Providing innovation

Gaining access to analyticalcapabilities

Gaining access to new technology

Transforming processes

Forcing change into our businessoperations

Gaining access to capable talent

Meeting regulatory requirements

Standardizing processes

Supporting more effective ops at aglobal level

Reducing operating Costs

Very Effective Somewhat Effective Not Effective

9%

13%

18%

53%

56%

55%

38%

31%

27%

Providing innovation

Gaining access to analyticalcapabilities


Good

Performance

Averag

e

Performance

Poor

Performan

ce


2013 State of Outsourcing Study Conducted with KPMG

Conducted with the suppor t of KPMG Shared Services & Outsourcing Adv isory


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Q. How effective have your current BPO/ IT outsourcing initiatives been for achieving thefollowing business benefits to date? (very effective responses only)

7%

11%

16%

18%

17%

21%

19%

27%

31%

41%

7%

12%

14%

17%

17%

20%

21%

29%

32%

44%

Providing new and creative methods ofachieving business value (innovation)

Gaining access to analytical capabilities



Transforming / re-engineering processes

Meeting compliance / regulatoryrequirements



Supporting more effective operations at aglobal level


High-end Enterprises($5bn+)


Source: HfS Research 2013,n = 399 Buy-side Enterpr ises



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Q. How effective have your current IT outsourcing initiatives been for achieving the followingbusiness benefits to date?

7%

9%

13%

14%

19%

20%

20%

22%

29%

31%

55%

57%

62%

63%

61%

55%

67%

58%

52%

55%

39%

34%

26%

23%

19%

25%

13%

19%

19%

15%







Meeting compliance / regulatory

requirements





7%

%

13%




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Q. How effective have your current IT outsourcing initiatives been for achieving the followingbusiness benefits to date? (very effective responses only)

4%

7%

17%

23%

11%

17%

17%

17%

33%

31%

3%

6%

7%

15%

15%

15%

16%

22%

29%

40%


Meeting compliance / regulatoryrequirements











17%

23%

7%

15%




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Q. How effective have your current BPO initiatives been for achieving the following businessbenefits to date?

12%

16%

17%

18%

20%

21%

25%

29%

35%

40%

51%

55%

55%

65%

58%

61%

59%

53%

54%

50%

38%

29%

28%

17%

21%

18%

16%

18%

12%

10%




Transforming / re-engineeringprocesses




requirements

Supporting more effective operations ata global level




29%

35%

0%

upporting more e ective operations ata global level

tandardizing processes

educing operating osts




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0%

10%

20%

30%

40%

EnterpriseBuy

ersExperiencing

VeryEffectiv

ePerformance

Tactical Measures

Strategic Measures

Q. How effective have your current outsourcing initiatives been for achieving the followingbusiness benefits to date? (Very Effective responses only)


2013 State of Outsourcing Study Conducted with KPMG


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Q. How effective have your current BPO initiatives been for achieving the following businessbenefits to date? (very effective responses only)

11%

21%

14%

22%

24%

21%

15%

24%

33%

43%

11%

12%

17%

19%

24%

26%

27%

35%

36%

48%




requirements










27%

35%


educing operating Costs


2013 State of Outsourcing Study

Conducted with the suppor t of KPMG Shared Services & Outsourcing Adv isory


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Q. How important are the following business DRIVERS behind your company's IT outsourcingand BPO decision making in today's business environment? (Mission-critical only)

47%

32%30% 31%

26%

15%

21%

13%

7%

11% 11%

41%

37%

32%35% 36%

32%

23% 24%26%

24%

17%

29%

46%

54%

18%

38% 38%

15%

8%

15%

8%

25%

Reduce

OperatingCosts

Greater

flexibility toscale

operations

Standardize

processes

Meet

compliance /regulatory

requirements

More effective

operations ata global level

Transform /

re-engineerprocesses

Gain access

to talent

Gain access

to newtechnology

Improve

analyticalcapabilities

Proven /

matureofferings from

serviceproviders

Force change

into ourbusiness

operations

Europe North America Asia Pacific

24%26

24%

30%32

4

15

2

38%

Source: HfS Research 2013 2013 State of Outsourc ing Study, n = 399 Buy-side Enterprises

Conducted with the support of KPMG Shared Services & Outsourcing Adviso ry


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79%

78%

76%

73%69%

73%

71%

60%

55%

52%

56%

44%

46%

42%

45%

42%

40%

38%

14%

13%

14%

15%19%

13%

16%

19%

23%

22%

19%

25%

21%

17%

18%

20%

23%

18%

2%

3%

5%

3%3%

4%

2%

6%

5%

7%

6%

8%

4%

10%

6%

6%

4%

6%

5%

5%

5%

9%10%

10%

11%

15%

17%

19%

19%

23%

30%

31%

32%

33%

33%

38%

Strategic Sourcing: Direct Procurement

Financial Planning & Analysis

Logistics/Supply Chain Management

Workforce data management / analyticsManagement Reporting

Strategic Sourcing: Indirect Procurement

Recruitment / Staffing

Employee contact center

General Accounting / GL

Accounts Receivable

Purchase-to-pay/Transactional Purchasing

Accounts Payable

Benefits Administration

Application Development

IT Infrastructure Management

Ongoing ERP Maintenance

Payroll

IT Help Desk

Inhouse Shared Services Offshore captive Outsourced

Q. Which delivery model do you predominantly use for managing the following processes?


Conducted with the support of KPMG Shared Services & Outsourcing Advisory


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78%

78%

74%

73%66%

65%

62%

59%

54%

56%

53%

45%

39%

45%

40%

37%

37%

36%

17%

15%

16%

15%17%

21%

21%

21%

23%

22%

22%

25%

19%

14%

22%

17%

20%

16%

1%

4%6%

3%

4%

6%

8%

5%

6%

8%

8%

7%

3%

11%

5%

9%

4%

4%

6%

7%12%

12%

13%

14%

14%

17%

18%

21%

33%

34%

35%

35%

39%

39%




Financial Planning & AnalysisWorkforce data management / analytics

Management Reporting





Accounts Receivable

Accounts Payable





Payroll

IT Help Desk






21/76

.

80%

73%

76%

77%73%

65%

70%

74%

61%

60%

61%

58%

50%

50%

47%

46%

46%

39%

11%

16%

12%

15%11%

18%

14%

13%

19%

16%

14%

17%

22%

17%

23%

23%

21%

24%

6%

6%

7%

3%9%

9%

6%

4%

7%

11%

9%

9%

5%

9%

5%

6%

7%

9%

3%

5%

5%7%

8%

9%

10%

13%

14%

16%

16%

23%

24%

25%

26%

26%

28%




Strategic Sourcing: Direct ProcurementStrategic Sourcing: Indirect Procurement


Workforce data management / analytics



Accounts Receivable


Accounts Payable




IT Help Desk

Payroll







22/76

.

81%

84%

75%

66%66%

73%

42%

68%

40%

50%

40%

26%

35%

39%

44%

27%

28%

35%

12%

10%

15%

22%15%

10%

33%

9%

28%

21%

29%

36%

16%

19%

12%

32%

22%

15%

4%

4%

1%

5%

11%

3%

13%

5%

6%

6%

5%

8%

10%15%

15%

18%

18%

21%

27%

28%

29%

36%

38%

39%

39%

44%

44%









Accounts Receivable



Accounts Payable




Payroll

IT Help Desk







23/76

.

86%

79%

78%

80%

66%

73%

62%

72%

49%

55%

47%

50%

30%

47%

33%

40%

40%

32%

11%

12%

10%

10%

21%

13%

18%

14%

28%

21%

29%

24%

33%

11%

29%

23%

19%

19%

4%

6%

4%

4%

6%

1%

7%

6%

5%

10%

11%

6%

6%

7%

5%

6%

8%

9%

10%

14%

14%

16%

18%

18%

22%

26%

30%

32%

34%

35%

42%











Accounts Receivable


Accounts Payable


Payroll



IT Help Desk






24/76

.

81%

77%

75%

72%

78%

73%

73%

59%

59%

53%

52%

41%

52%

44%

41%

39%

38%

27%

11%

15%

11%

18%

11%

16%

16%

21%

18%

23%

24%

28%

19%

20%

24%

21%

18%

22%

1%

1%

7%

7%

7%

9%

9%

9%

9%

13%

20%

21%

21%

27%

27%

31%

33%

37%

41%

48%










Accounts Receivable


Accounts Payable



Payroll



IT Help Desk






25/76

.

87%

81%

77%

76%

78%

68%

68%

64%

62%

55%

50%

54%

49%

59%

45%

48%

43%

40%

7%

15%

12%

12%

20%

18%

19%

14%

14%

23%

13%

19%

9%

20%

13%

15%

2%

8%

3%

9%

7%

7%

7%

7%

7%

7%

8%

9%

13%

14%

21%

23%

24%

24%

25%

25%

31%

31%

35%

42%













Accounts Receivable


Accounts Payable

IT Help Desk


Payroll






26/76

.

86%

78%

76%

72%

73%

64%

68%

52%

61%

47%

52%

40%

51%

39%

35%

33%

33%

30%

10%

16%

13%

18%

14%

21%

17%

23%

13%

23%

21%

24%

17%

14%

24%

23%

19%

20%

2%

6%

2%

11%

5%

6%

8%

12%

14%

14%

22%

23%

24%

24%

29%

31%

36%

38%

41%

44%

47%










Accounts Receivable


Accounts Payable



Payroll



IT Help Desk






27/76

.

89%

79%

88%

77%

85%

86%

85%

80%

67%

66%

78%

62%

51%

60%

48%

52%

51%

39%

7%

17%

7%

17%

9%

7%

8%

9%

22%

21%

10%

23%

28%

22%

27%

19%

20%

9%

1%

2%

2%

1%

1%

2%

1%

3%

3%

4%

3%

4%

5%

2%

2%

3%

3%

13%

2%

3%

3%

5%

5%

5%

5%

8%

8%

9%

9%

12%

16%

17%

23%

26%

26%

39%










Accounts Receivable


Accounts Payable


Payroll




IT Help Desk






28/76

.

71%

63%

74%

74%

55%

68%

70%

70%

52%

48%

47%

39%

33%

46%

40%

42%

44%

41%

26%

32%

19%

17%

34%

21%

19%

18%

32%

33%

35%

35%

40%

18%

32%

24%

19%

20%

10%

8%

9%

10%

10%

13%

15%

16%

23%

25%

26%

27%

31%

34%

36%










Accounts Receivable


Accounts Payable



Payroll


IT Help Desk







29/76

.

78%

65%

80%

73%

73%

70%

56%

52%

60%

49%

50%

48%

44%

40%

44%

53%

39%

39%

16%

20%

13%

18%

17%

16%

20%

25%

15%

17%

21%

18%

14%

26%

17%

17%

23%

20%

4%

10%

4%

8%

5%

7%

12%

6%

8%

15%

12%

2%

7%

6%

5%

5%

8%

8%

11%

16%

17%

18%

21%

24%

26%

27%

27%

28%

28%

31%

35%











Accounts Receivable



Accounts Payable



Payroll

IT Help Desk


Q. Which delivery model do you predominantly use for managing the followingprocesses?




30/76

.

82%

89%

81%

87%

77%

79%

56%

73%

55%

59%

40%

51%

36%

48%

31%

47%

28%

28%

7%

16%

14%

22%

16%

25%

18%

20%

17%

15%

17%

15%

8%

2%

10%

1%

1%

9%

18%

8%

18%

8%

22%

9%

10%

12%

14%

16%

16%

23%

26%

27%

31%

35%

45%

51%











Accounts Receivable

Payroll

Accounts Payable


IT Help Desk









31/76

.

79%

72%

74%

65%

67%

73%

65%

63%

42%

45%

43%

49%

47%

35%

40%

38%

30%

27%

13%

19%

17%

16%

21%

13%

21%

19%

30%

27%

31%

16%

18%

31%

19%

17%

22%

21%

4%

2%

2%

8%

2%

4%

2%

6%

6%

4%

2%

8%

6%

4%

6%

8%

6%

6%

4%

6%

6%

10%

10%

10%

13%

13%

22%

24%

24%

27%

29%

29%

34%

38%

42%

46%










Accounts Receivable




Accounts Payable



Payroll

IT Help Desk






32/76

.

67%

78%

73%

71%68%

60%

64%

42%

42%

43%

35%

24%

31%

38%

38%

35%

34%

31%

18%

16%

15%

16%12%

23%

17%

27%

27%

23%

26%

30%

29%

22%

19%

20%

18%

21%

10%

1%

5%

2%7%

3%

2%

10%

8%

10%

12%

13%

5%

5%

6%

7%

9%

6%

5%

5%

8%

11%12%

13%

16%

21%

23%

24%

27%

33%

34%

35%

36%

38%

39%

43%











Accounts Receivable

Accounts Payable

Payroll





IT Help Desk






33/76

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34/76

.

Q. How important are the following service provider attributes your organization today?

6%

14%

17%

17%

19%

23%

28%

29%

30%

35%

35%

36%

40%

35%

39%

40%

48%

43%

47%

42%

48%

42%

44%

29%

34%

43%

40%

34%

37%

27%

30%

25%

26%

20%

23%

18%

21%

25%

16%

19%

13%

7%

7%

8%

6%

5%

3%

5%

3%

15%

6%

2%

Brand

Ability to guarantee gainsharing incentives forproductivity / growth improvements

Ability to provide analytical insight

Ability to support business-outcome initiatives, asopposed to solely effort-based pricing

Ability to provide innovation - new sources ofproductivity / growth

Ability to transform / reengineer existing processes

Culture of the provider's delivery organization

Capability of delivery talent to add value beyondstandard operations

Ability to support change management andgovernance needs

Track record to deliver standard operational services

Global delivery scale and flexibility

Knowledge of specific industry processes

Financial stability

Mission critical Important, but not critical Somewhat Important Not Important




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Q. How important are the following service provider attributes your organization today?Q. Based on your experience, how important are the following service provider attributes to your clients todayfor IT/BPO services? (Mission Critical responses only)

Source: HfS Research 2013 2013 State of Outsourcing Study, n = 399 Buy-side Enterprises

n = 495 Service Provider Executi ves

6%

14%

17%

17%

19%

23%

28%

29%

30%

35%

35%

36%

40%

11%

19%

24%

22%

30%

34%

21%

45%

32%

50%

35%

45%

33%

0% 20% 40% 60%

Brand

Ability to guarantee gainsharing incentives forproductivity / growth improvements

Ability to provide analytical insight

Ability to support business-outcome initiatives,as opposed to solely effort-based pricing

Ability to provide innovation - new sources ofproductivity / growth

Ability to transform / reengineer existingprocesses

Culture of the provider's delivery organization

Capability of delivery talent to add valuebeyond standard operations

Ability to support change management andgovernance needs

Track record to deliver standard operationalservices

Global delivery scale and flexibility

Knowledge of specific industry processes

Financial stability

What Providersthink Buyers viewas Mission Critical

Buyers view ofMission Critical


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Q. Are you likely to increase or decrease your outsourcing activity across the followingbusiness operations areas in the next 12 months? (Will look to start outsourcing for the first

time only) Top 3 responses by industry

Insurance Manufacturing Banking CPG

Document & Print OperationsOutsourcing 17%

Analytics 15%Document & Print Operations

Outsourcing 10%Application Development &

Maintenance Outsourcing 13%

Analytics 8% Human ResourcesOutsourcing 14%

IT Infrastructure Outsourcing10%


Application Development &Maintenance Outsourcing 8%

Knowledge ProcessOutsourcing 8%

Finance & AccountingOutsourcing 7%


Energy & Utilities EntertainmentPharma, Life Sciences &

HealthcarePublic Sector



Procurement & SourcingOutsourcing 20%





Customer RelationshipManagement Outsourcing 20%

Marketing OperationsOutsourcing 18%

Analytics 10% Analytics 13%Industry Specific Processes

20%


RetailSoftware, Hi-Tech and

TelecomsTransportation & Logistics Other industries


25%

Human Resources

Outsourcing 15%

Human Resources

Outsourcing 44%Analytics 24%



Procurement & SourcingOutsourcing 38%





Knowledge ProcessOutsourcing 18%



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Q. Are you likely to increase or decrease your outsourcing activity across the following businessoperations areas in the next 12 months? (Will look to start outsourcing for the first time only)

3%

3%

4%

6%

7%

8%

9%

9%

10%

10%

10%

13%

2%

6%

2%

15%

13%

4%

2%

6%

7%

9%

9%

6%

2%

4%

4%

6%

4%

4%

2%

11%

15%

8%

6%

13%

0% 20%

Customer Relationship ManagementOutsourcing

Legal Process Outsourcing

Industry Specific Processes

Document & Print Operations Outsourcing

Finance & Accounting Outsourcing

Knowledge Process Outsourcing

Marketing Operations Outsourcing

Analytics

Human Resources Outsourcing

Application Development & MaintenanceOutsourcing

Procurement & Sourcing Outsourcing


Small Enterprises ($5b >$1b


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Q. To help us with our research, how important are the following topics/issues to yourorganization's outsourcing strategy going into 2013? (Mission Critical only)

18% 18% 20% 20%

25%

39%

17% 17%

33%

28%

8%13%

17%

29% 29%

17%

12%

17%

33%

17%15%

31% 31% 31%

58%

10% 9%11%

-20%

0%

20%

40%

60%

Creating a globalbusiness services

framework

Improving our analyticalcapabilities

Accomplishing innovationwith operational

processes

Change management Altering the mindset ofleadership from one of

cost to value-creation

Banking CPG

Insurance Manufacturing

Energy & Utilities Entertainment




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Q. To help us with our research, how important are the following topics/issues to yourorganization's outsourcing strategy going into 2013? (Mission Critical only)

30%26%

35%

15% 15%

40% 40%

20%20%

10%

45%

10%

44%

33%

53%50%

44%

22% 22%

33%

22%

44%

17%

35%

24% 24%

35%

-20%

0%

20%

40%

60%

Creating a global businessservices framework

Improving our analyticalcapabilities

Accomplishing innovationwith operational processes

Change management Altering the mindset ofleadership from one of cost

to value-creation

Pharma, Life Sciences & Healthcare Public Sector

Retail Software, Hi-Tech & Telecoms

Transport & Logistics Other Industries


Conducted with the support of KPMG Shared Services & Outsourc ing Advisory


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Q. To help us with our research, how important are the following topics/issues to yourorganization's strategy going into 2013?

8%

9%

19%

19%

20%

22%

23%

28%28%

28%

32%

33%

39%

41%

46%

38%

33%

41%

47%

38%

44%

48%

42%42%

41%

39%

50%

38%

42%

36%

37%

38%

34%

27%

27%

27%

25%

25%25%

25%

27%

15%

18%

14%

17%

17%

20%

7%

7%

15%

7%

4%

5%5%

6%

2%

2%

5%

3%

1%

Making better use of social media to improve client collaboration

Making better use of social media to improve internal collaboration

Accessing price benchmarks

Understanding the opportunities in the middle-market

Helping clients create a global business services framework

Improving our clients' analytical capabilities

Improving our account management talent

Helping clients with change management

Accessing performance benchmarks

Improving our marketing capabilities

Improving the perception of outsourcing within our clients' organization

Helping clients accomplish innovation with operational processes

Getting more visibility in the market

Moving our services up the operational value chain

Altering the mindset of clients' leadership from cost to value-creation

Mission critical Important, but not critical Somewhat Important Not Important at all


Conducted with the support of KPMG Shared Services & Outsourc ing Advisory


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Q. Are you primarily a buyer (customer), advisor or provider of outsourcing services?

Buyer ofoutsourcing

services /

currentlyevaluating

30%

Outsourcingadvisor /

consultant /analyst

30%

Provider ofoutsourcing

services40%

Source: HfS Research 2013 2013 State of Outsourc ingStudy, n = 1355 Enterprises


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Q. Please specify your company's industry?


Banking21%

Insurance12%

Pharma, LifeSciences &Healthcare

9%CPG9%

Manufacturing9%

Software, Hi-Tech andTelecoms

8%

Energy andUtilities

6%

Retail6%

Entertainment5%

Transportation& Logistics

4%

Public Sector2% Other

9%


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Q. Where are you located?

Asia Pacific7%

Europe23%

North America

65%

Other5%



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Q. What are your company's annual revenues?

Less than $500M15%

Between $500Mand $1B

11%

Between $1B and$3B16%



Greater than $10B32%

Non-profit3%

Source: HfS Research 2013 2013 State of OutsourcingStudy, n = 1355 Enterprises


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-

-

-

-

-


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F&A BPO , $25,

3%

CRM BPO , $52,5%

HR BPO , $42,4%

IndustrySpecific , $185,

20%

IT InfrastructureMgmt, $143,

15%

ADM, $70, 7%

IT Prof Services,$309, 33%

Other ITServices, $126,

13%

2013 Total Market Size:$952 Bill ion

IT Services: $648 bnBPO: $304 bn

Source: HfS Research, 2013


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7.8%

4.1%

5.6%

5.0%

3.8%

4.8%

3.1%

3.3%

F&A BPOCRM BPO

HR BPO

Industry Specific BPO

IT Infrastructure Mgmt

ADM

IT Prof Services

Other IT Services

% Growth 2012-13


ITOMarkets

BPOMarkets


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-

250

500

750

1,000

1,250

2012 2013 2014 2015 2016 2017

AnnualExpe

nditure($Bi

llions)

Other IT Services

IT Prof Services

ADMIT Infrastructure Mgmt

Industry Specific

HR BPO

CRM BPO

F&A BPO



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North

America,$398, 42%

LatinAmerica,$44, 5%

EMEA,$319, 34%

APexJ,

$88, 9%

Japan,$101, 10%

2013 Total Market Size:$952 Bil lion


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0

100

200

300

400

2012 2013 2014 2015 2016 2017

AnnualExpend

iture($Billions)

Japan

APexJ

EMEA

Latin America

North America



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0

100

200

300

400

500

600

700

800

900

2012 2013 2014 2015 2016 2017

AnnualExpenditure($Billions) Japan

APexJ

EMEA

Latin America

North America



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-

-

-

-

-

-

-

-

-

-

-

-


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IT Services: $204bnBPO: $97bn


CRM BPO,$18, 6%

F&A BPO,$10, 3%

HR BPO,$11, 3%

IndustrySpecific, $58,

19%

ADM, $25,8%

ITInfrastructureMgmt, $49,

16%

Other ITServices,$39, 13%

IT ProfServices,$98, 32%


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8.1%

3.1%

6.0%

5.3%

3.1%

5.3%

-1.2%

2.0%

F&A BPO

CRM BPO

HR BPO



ADM

IT Prof Services

Other IT Services

% Growth 2012-13

.1%


ITOMarkets

BPOMarkets


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Benelux,$23, 8%

CentralEurope,

$65, 21%

EasternEurope,$13, 4%

France,$47, 15%

Nordic,$31, 10%

ROE, $6,2%

SouthernEurope,

$39, 13%

UK, $85,27%


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-

-

-

-

-

-

-

-

-


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IT Services: $154bnBPO: $34bn


CRM BPO,

$7, 4%

F&A BPO,$2, 1%

HR BPO, $3,

1%

IndustrySpecific, $23,

12%ADM, $15,

8%

IT

InfrastructureMgmt, $37,

19%

Other ITServices,$32, 17%

IT ProfServices,$71, 38%


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8.7%

5.8%

8.2%

6.0%

4.0%

4.4%

7.3%

3.0%

F&A BPO

CRM BPO

HR BPO



ADM

IT Prof Services

Other IT Services

% Growth 2012-13


ITOMarkets

BPOMarkets


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Japan, $90,51%

Australia &

NZ, $31,17%China, $16,

9%

India, $15,8%

Rest of Asia/Pacific, $27,

15%


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-

-

-

-

-

-

-

-

-

-

[email protected]


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-

-

-

-

-

-

[email protected]


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20 dedicated analysts across US, Europe and Asia/Pac

Industry leading focus on demand-side trends, market landscapes, competitive evaluations, pricing

dynamics, market sizing and forecasting

Educates and facilitates discussion among the worlds largest knowledge community of servicesand operations executives, currently comprising 120,000 subscribers. 19,000 LinkedIn Group

members; leading blog and research portal in the services industry

The largest web and social media presence in the sourcing industry

A major following from the buy-side: 40% of readership comes from sourcing buyers

We leverage our vast community of sourcing professionals to deliver rapid insights on global

sourcing industry trends & developments - Surveyed over 15,000 organizations in 2011-12 on

their sourcing intentions and dynamics


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KPMG is a leading provider of global sourcing advisory services, has the ability to help member firms clientstransform enterprise services to help improve value, increase agility, and create sustainable businessperformance.

Who we are: Shared Services and Outsourcing Advisory brings a specialized global team of more than 400

professionals within KPMGs global network of independent member firms operating in 152 countries.

What we do: We help clients align their business strategy, organization, and execution to enable them to managethe entire IT and business process life-cycle, improving business performance, and laying the groundwork forgenuine business transformation..

How we do it: We apply focused research, automating tools, proprietary data, clear business acumen, and a

forward-thinking mind-set to provide timely, objective, actionable advice and practical approaches for clients.

Get Your Free Copy of the Report


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