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Report on 2009 Global Services Outsourcing Development

Well known international economic organization—Asia Pacific CEO Association together with Professional outsourcing institution International Outsourcing Center launched Report on 2009 Global Services Outsourcing Development in 2009.


1. The current developing condition of the Global Service Outsourcing

1)The first half year of 2009 overall situation of the Global service outsourcing market

Influenced by the global financial crisis, the developing speed of the first half year of 2009 global service outsourcing market has decreased compared with that of 2008.


Taking the service outsourcing contract with $25 million and $25 million above for example, the outsourcing contracts are only 135 in the second quarter of this year, which has dropped 7.5% compared with the last quarter. The reasons for the drop of these data are European huge volume of deal and the reduction of Global business process outsourcing costs.


2)The situation of the 2009 Global service outsourcing market structure

From the contract out market distribution of global BPO: In 2009 the north American BPO market takes a dominant position, some British companies develops rapidly in adopting BPO; as an emerging BPO market, the Asia-pacific region grows the fastest.


In the first half year of 2009, Global service outsourcing contract market will still mainly concentrated in North America, Western Europe and Japan, the outsourcing volume of these three regions takes 95%.of the world


2. Characteristics of Current global service outsourcing market

1)The business services of BPO decrease dramatically, while the business of ITO come to support the whole market developments

In the winter brought by financial crisis, Global BPO business plunged 47% and covered various regions, however, information technology outsourcing (ITO) remains stable development. The contract of outsourcing market segments during the first half of 2009 is the same as the amount of the first half of 2007, while increased 1 times than that half of 2008,


2)More and more industries come to apply the service outsourcing to cut costs

During the first half year of 2009, many industries have reduced their outsourcing, including the banking industry largely affected by financial crisis, which reduced outsourcing business in great deal since the crisis of 2008. Meanwhile oil and gas, food and beverage and durable consumer goods, etc in 2009 also reduced their outsourcing scale.


However, diversified financial, transportation, retail and telecom departments are prone to carry out more and more global outsourcing activities.


Four world top contracting departments during the first half of 2009  ( ranking by the total contract amounts )
Diversified financeTransportationRetailTelecom
ITO:BPO=3:1ITO:BPO=5:1ITO:BPO=10:1ITO:BPO=6:1

IBM

TCS

CSC

EDB Business partner

IBM

Logica

RR Donnelly

T-Systems

Unisys

CSC

IBM

TCS

Alcatel-Lucent

Convergys

Ericsson

HP/EDS

IBM

Infosys

Logica

Nokia Siemens


3)Outsourcing service in Asia-pacific region develops rapidly

Second quarter index of TPI shows great differences between different regions. Europe, the Middle East and Africa outsourcing market only won $88 product for 53 contracts, dragging the outsourcing market.


3. Analysis on the trend of global outsourcing service

1)  Service contractors will keep on moving to Asia-pacific region

2)  Service outsourcing dominated by information technology will development on a large scale

3)Vertical markets in global service outsourcing are getting more attention

4)Acquisition in service outsourcing field meets new situation and new opportunities


4. Prediction of the service outsourcing industry development scale

1)  Global service outsourcing has rebound,but the short-term rate is still not so fast

2)The service outsourcing sees a great potential in long term


5. Service outsourcing in China

1)The current developing condition of Chinese Service Outsourcing

2)Prediction on the prospect of Chinese Service Outsourcing development

3)Problems in Chinese Service Outsourcing development

4)Chinese measures of accelerating the service outsourcing development

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