BusinessProcessOutsourcingattheCrossroadsMarketTrendsPublicationDate:January31,2002©2002Gartner,Inc.NORTHAMERICACorporateHeadquarters56TopGallantRoadStamford,CT06904-2212U.S.A.Tel:+1-203-316-1111Fax:+1-203-316-6300WestCoastHeadquarters251RiverOaksParkwaySanJose,CA95134-1913U.S.A.Tel:+1-408-468-8000Fax:+1-408-954-1780ASIA/PACIFICAsia/PacificHeadquartersLevel740MillerSt.NorthSydney,NSW2060AustraliaTel:+61-2-9459-4600Fax:+61-2-9459-4601JAPANJapanHeadquartersAobadaiHills6F7-7,Aobadai,4-chomeMeguro-kuTokyo153-0042JapanTel:+81-3-3481-3670Fax:+81-3-3481-3644GARTNERWORLDWIDEHEADQUARTERSEUROPEEuropeanHeadquartersTamesisTheGlantyEghamSurrey,TW209AWUnitedKingdomTel:+44-1784-431611Fax:+44-1784-268980PublicationDate:January31,2002BusinessProcessOutsourcingattheCrossroadsMarketTrendsAuthorRebeccaSchollThisdocumenthasbeenpublishedtothefollowingClustercodes:ITOU-WW-MT-0103ITES-WW-MT-0103ForMoreInformation...InNorthAmericaandLatinAmerica:+1-203-316-1111InEurope,theMiddleEastandAfrica:+44-1784-268819InAsia/Pacific:+61-7-3405-2582InJapan:+81-3-3481-3670Worldwideviagartner.com:www.gartner.comEntirecontents©2002Gartner,Inc.Allrightsreserved.Reproductionofthispublicationinanyformwithoutpriorwrittenpermissionisforbidden.Theinformationcontainedhereinhasbeenobtainedfromsourcesbelievedtobereliable.Gartnerdisclaimsallwarrantiesastotheaccuracy,completenessoradequacyofsuchinformation.Gartnershallhavenoliabilityforerrors,omissionsorinadequaciesintheinformationcontainedhereinorforinterpretationsthereof.Thereaderassumessoleresponsibilityfortheselectionofthesematerialstoachieveitsintendedresults.Theopinionsexpressedhereinaresubjecttochangewithoutnotice.©2002Gartner,Inc.Allrightsreserved.103707©2002Gartner,Inc.iiiTableofContentsPage1.ExecutiveSummary..........................................................................................................................................1Introduction...................................................................................................................................................1KeyFindings.................................................................................................................................................1MarketTrends...........................................................................................................................................1DemandTrends........................................................................................................................................1SupplyTrends...........................................................................................................................................2ImplicationsforITProfessionalServicesVendors...................................................................................4RelatedDocuments......................................................................................................................................42.Introduction.......................................................................................................................................................5Definitions.....................................................................................................................................................5BusinessProcessOutsourcing..........................................