GartnerDataquestAlertNovember22,2002©2002Gartner,Inc.1ProcessManagementForecast:November2002GartnerDataquest'sgrowthprospectsforprocessmanagementdidnotvarysignificantlyfromourspringforecast.On15November2002,GartnerDataquestupdateditsforecastfortheworldwideITservicesmarketbysegment,regionandenvironment(seetheGartnerDataquestAlert"WorldwideForecastforITServices:November2002Update"[ITSV-WW-DA-0168]).AsshowninTable1,theworldwidemarketforprocessmanagementisforecasttogrowfrom$71.3billionin2001to$113.9billionin2006.Thisrepresentsacompoundannualgrowthrate(CAGR)from2001to2006of9.8percent.Thisiscomparedwitha2000to2005CAGRof9.4percentfromthespringforecastpublishedinApril2002.Processmanagementisthenewnamefortheformerbusinessprocessandtransactionmanagement(BPTM)forecastcategory.Processmanagementrepresentsthecoreelementofabusinessprocessoutsourcing(BPO)service,namelythetransactionprocessingandbusinessmanagementcomponentsofBPOengagements.AtypicalBPOcontractincludesdiscreteproject-basedITservices(suchasconsulting,developmentandintegration),ongoingITmanagementservicesandprocessmanagement.ToavoiddoublecountingdiscreteITservicesandITmanagement,GartnerDataquestreportsonlyprocessmanagementrevenueandnottotalBPOrevenueinitscoreforecast.TheprocessmanagementcomponentofBPOvariesfromprocesstoprocess,butrepresentsapproximately60percentto70percentoftheBPOmarket.ReaderswillfindthatthegrowthrateforprocessmanagementisindicativeofthegrowthoftheBPOmarketoverall.UpdatedBPOrevenueforecastisplannedforDecember2002.Table1WorldwideProcessManagementForecast,2001-20062000200120022003200420052006CAGR(%)2001-2006ProcessManagement66,34471,31677,08086,01595,701104,266113,926NAGrowthRate(%)-7.58.111.611.38.99.39.8NA=NotapplicableSource:GartnerDataquest(November2002)ProcessManagementForecast:November2002November22,2002©2002Gartner,Inc.2NorthAmericaRemainsLargestMarket,Asia/PacificLeadsGrowthAsshowninTable2andFigure1,NorthAmericarepresentsover60percentofthetotalworldwideprocessmanagementmarketandisgrowingata10.1percentCAGRovertheforecastperiod.Thefastest-growingregionforprocessmanagementisAsia/Pacific,growingata13.4percentgrowthrateover2001-2006,butthetotalsizeofthemarketremainsrelativelysmall.Incontrast,Europeremainsafragmentedregion,withsomecountriesgrowingindoubledigitsandothersgrowinginlowsingledigits.Overall,thegrowthforprocessmanagementinWesternEurope(9.6percent)islaggingslightlybehindthatofNorthAmericaandAsia/Pacific,butprocessmanagementremainsthehighest-growthITservicessegmentsinWesternEurope.Europeangrowthwillbedependentonthemorematuremarkets,suchastheUnitedKingdom,intheshortterm.OthercountriesinEuropehavebeenmorecautiousintheiracceptanceofBPO.AlthoughdealshavebeensignedinmanyEuropeancountries,pure-playprovidershaveyettogainsignificanttractionoutsideoftheUnitedKingdom,withenterpriseschoosingtorelyonknown(oftenIT)providersinmostcases.Table2WorldwideProcessManagementForecastbyGeography,2001-20062000200120022003200420052006CAGR(%)2001-2006Asia/Pacific6,6797,2247,9448,88710,13911,73613,52313.4EasternEurope30030633036139644149610.2Japan7,7017,2927,0417,4427,7988,3279,0104.3LatinAmerica1,6701,7731,8972,0492,2132,4122,6298.2MiddleEastandAfrica2993063203413744094528.1NorthAmerica40,32644,51248,91355,27961,93566,74172,17410.1WesternEurope9,3689,90310,63511,65512,84614,19915,6429.6Total66,34471,31677,08086,01595,7011...
