IDC Investigates Emerging Contest for the Procurement BPO Market Opportunity

Business Wire, Oct 13, 2005

FRAMINGHAM, Mass. -- A newly released IDC study provides the first comprehensive view of the competitive landscape for the rapidly evolving United States procurement BPO market. This study finds that increasing vendor investment and buyer interest in outsourced procurement services have propelled the vibrant procurement BPO market well beyond the early stages of infancy.

"To fully capitalize on the growing procurement BPO market opportunity, vendors need to exhibit depth of procurement domain expertise, experience in managing outsourcing relationships, and a demonstrable impact on the client's business," said Shruti Yadav, research analyst, BPO Services. "With this study, IDC has produced the first ever in-depth examination of comparative vendor capabilities, strategies, and competitive positioning in this increasingly lucrative market."

The report identifies and evaluates the three broad categories of players vying for a share in this market: IT service providers, procurement process specialists, and boutique firms providing commodity-specific procurement BPO solutions. While leadership positions are not yet fully crystallized, the lion's share of this market is currently concentrated in the hands of a few global IT services vendors and large procurement software and services specialists.

The study also culminated with the following key findings:

--The direct goods procurement segment still eludes penetration by the majority of players

--Market players represent a diversity of business models and strategies

--Actual market activity is very concentrated in North America and Europe

--Partnerships are a common vehicle for delivery and growth

--Large manufacturing firms are clearly a top target segment for the majority of players

The IDC report, Procurement BPO Competitive Landscape (IDC #33947), provides a comprehensive view of the evolving procurement BPO services landscape. The study identifies and evaluates key U.S.-based players, analyzes their procurement BPO offerings, value proposition, market messaging and strategies, and assesses each vendor's positioning within the procurement BPO market. The information presented equips existing and emerging procurement BPO service players and investors with knowledge of unfolding competitive activity, analysis of current procurement BPO projects, and essential guidance regarding strategy and market opportunity.

To purchase this document, call IDC's Sales hotline at 508-988-7988 or email sales@idc.com.

About IDC

IDC is the premier global market intelligence and advisory firm in the information technology and telecommunications industries. We analyze and predict technology trends so that our clients can make strategic, fact-based decisions on IT purchases and business strategy. Over 700 IDC analysts in 50 countries provide local expertise and insights on technology markets. Business executives and IT managers have relied for 40 years on our advice to make decisions that contribute to the success of their organizations.

IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. Additional information can be found at www.idc.com

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