Yankee Group Research Indicates Business Process Outsourcing is One of the Fastest-Growing Segments of IT Services

Business Wire, Dec 19, 2002

Business Editors/High-Tech Writers

BOSTON--(BUSINESS WIRE)--Dec. 19, 2002

Research firm forecasts growth at more than twice the rate of projected overall IT spending--achieving double-digit growth over the

next 5 years (15 to 18 percent annually) to an estimated

$275 to $300 billion by 2007

In an otherwise stagnating technology market, the outlook for business process outsourcing (BPO) shows significant growth potential, according to a new Yankee Group report, "A Business Process Outsourcing Guide for End Users."

"BPO will continue to expand and develop as service providers increasingly migrate from providing infrastructure-driven to providing process-driven services," says report author Carrie Lewis, Yankee Group Technology Management Strategies senior analyst. "Our research indicates Fortune 1000 companies already outsourcing one or more of their business processes will lead the growth of BPO as they seek to outsource more of their non-core business processes over the next 3 years."

The Yankee Group reports that while more than 55 percent of U.S. Fortune 1000 companies have outsourced one or more business processes to BPO providers, most users lack a framework to effectively roll out BPO.

The top three business processes being outsourced by end users today include:

Benefits management (55 percent),

Payroll (47 percent),

Payment/claims processing (40 percent),

NOTE TO EDITORS

For interviews, contact Carrie Lewis calewis@yankeegroup.com.

CORPORATE CONTACT

Kim Vranas, Director of Marketing, 617-880-0214, kvranas@yankeegroup.com.

THE YANKEE GROUP (www.yankeegroup.com)

The Yankee Group is a global leader in technology research and consulting. Our customers, which include technology vendors and users, benefit from our accurate, reliable, and trusted research, consulting, and personalized one-to-one client interaction covering communications and IT products and services. Now in our fourth decade, the company is headquartered in Boston and maintains offices throughout North America, Europe, Latin America, and the Pacific Rim.