Outsourcing Research :

According to a recent study by TPI, the total dollar value of the outsourcing contracts signed in 3Q 05, is expected to decrease by 10 to 15 percent to between USD 60 billion to USD 65 billion. The study also claims that the Total Contract Value (TCV) of the deals signed till 3Q 2005 was about USD 43.8 billion while the comparative global total for the same period last year was USD 52 billion. The main reason behind low TCV figures is the improvement in the efficiency of buy-side strategies, reduced capital intensity and increase in number of short term IT outsourcing contracts. It also claims that about 28 percent of contracts were restructured and set at new competitive rates. However, the total number of outsourcing contracts signed year-to-date increased from 172 to 191. In 3Q 2005, a total of 57 contracts valued at USD 13.5 billion were singed as compared to 54 contracts worth USD 15 billion in the preceding quarter. For 3Q 2004, 49 contracts worth USD 19 billion were recorded. As per TPI, the trend of decreasing value of individual transactions and increase in the number of overall transaction is going to persist in the coming period.

A recent study by InfoTrends/CAP Ventures predicts the US document outsourcing market to grow to USD 38.3 billion by 2009. The market is perceived to grow at a slow but steady state for the period between 2004 and 2009 at CAGR of 4 percent. The study foresees a relatively higher growth in the high value added segments involving process like digital color production printing and Document Process Outsourcing. For 2004, the US document outsourcing market was estimated to be around USD 31.5 billion with about 22 percent of the revenues coming from on-site services. Off-site contracted services accounted for 67.3 percent of the total document outsourcing market in 2004 and is expected to grow at a CAGR of 3.8 percent till 2009.