BusinessProcessOutsourcingMarketAnalysis,August2002©2002CapGeminiErnst&Young-AllrightsreservedOperateAmericasMarketingBusinessProcessOutsourcing(BPO)MarketAnalysisForInternalUseOnly-August2002IntroductionThepurposeofthisdocumentistoprovideacomprehensiveoverviewoftheBPOMarket.Contentisdesignedtoeducateandinform,andisbasedonexternalresearchandinternalanalysis.Ideasexpressedaredesignedtofacilitatediscussion,provideafoundationformorerefinedresearchandanalysis,andultimatelytoaidinCGE&Y’sabilitytomakebetterdecisionsregardingBPOstrategyandmarketplanning.Thisdocumentisforinternaluseonly.ThisdocumentisbestviewedinSlideShowmodeorprintedformat.DocumenthyperlinksareactiveinSlideShowmodeonly.©2002CapGeminiErnst&Young-AllrightsreservedOperateAmericasMarketingBusinessProcessOutsourcing(BPO)MarketAnalysisForInternalUseOnly-August2002TableofContentsOutsourcingMarketPerspectiveBPOMarketPerspectiveHorizontalPerspectiveVerticalPerspectiveCGE&YPerspectiveCompetitivePerspectiveAppendixA:CompetitorSnapshotsandContractsAppendixB:HorizontalVendorProfilesAppendixC:BPOBackgroundSlides©2002CapGeminiErnst&Young-AllrightsreservedOperateAmericasMarketingBusinessProcessOutsourcing(BPO)MarketAnalysisForInternalUseOnly-August2002OutsourcingSegmentationModelSectorsVerticalPerspectiveOutsourcingServicesHorizontalPerspectiveCPRDMFHTFSITMNEUCHCLSPRODUCTSSERVICESApplicationsManagement(AM)BusinessProcessManagement(BPM)InfrastructureManagement(IM)ThisanalysisdefinesBusinessProcessManagement(BPM)asthecontractualvehiclethatassumesresponsibilityforoneofmoreprocessesinthefollowingsub-segments:BusinessAdministration,CustomerRelationshipManagementandSupplyChainManagement.Withineachsub-segmentareprocessareassuchasF&AandHR(withinBusinessAdministration).ReturntoTableofContents©2002CapGeminiErnst&Young-AllrightsreservedOperateAmericasMarketingBusinessProcessOutsourcing(BPO)MarketAnalysisForInternalUseOnly-August2002OutsourcingMarketPerspectiveSource:Source:2000OutsourcingServices:MarketShareandForecast,GartnerDataquest,March19,2001.AndGartnerGroup.BruceCaldwell,MichelleCantara.ITProfessionalServices:Forecasts,GrowthRatesandMarketShare2001.January31,2002•BPTMincludestransaction-processingservicesthatprovideIToperationalsupportforspecifictypesoftransactions,suchasforcredit/debitcards,payroll,check/bank,andhealthcareclaimsprocessing.BPTMalsoincludesbusinessprocessmanagement(BPM)servicesthatprovidebusinesstransformationknowledgeandexpertiseappliedasapartofaBPOcontract.•BPOisthereal-lifecontractualvehiclesignedbetweenbuyersandusers,andthiscontractsubsumesmultipleITservices(includingconsulting,developmentandintegration,educationandtraining,ITmanagementservices,transactionprocessingandbusinessmanagement).BPOincludesTransactionProcessingServicesandBusinessManagementServices.•IMincludesHardwareMaintenanceandSupportandManagementServices•AMincludesSoftwareMaintenanceandSupportandDevelopmentandIntegration.NorthAmerica:OutsourcingMarketSizeandForecast,2000-2005020,00040,00060,00080,000100,000120,000140,000160,000InfrastructureManagementApplicationsManagementBusinessProcessOutsourcingBPTM20002005CAGR10.11%CAGR14.04%CAGR17.92%CAGR15.00%BPO/BPTMarethelargestgrowingsegments,includingbothknowledge&transaction-basedprocessoutsourcingReturntoTableofContents*AspectsofBPMincludedinBPTM©2002CapGeminiErnst&Young-All...