Forrester Research Reveals Business Process Outsourcing Expertise Is Overhyped

— High-volume vertical processes will emerge as a $6 billion segment in the market. Vertical processes, including policy administration, claims, and loan process applications, will remain a small piece of the segment. This segment may cause competition between offshore IT providers and large US outsourcers, including Accenture and CSC.

— Niche vertical applications will initially reach $5 billion in 2006. This segment includes complex processes, like environmental data reporting and chemical process control monitoring which require deep specialization. After customers are comfortable with outsourcing these tasks, the growth rate over time will accelerate to reach $24 billion in 2008. Vendors who specialize in these processes include small BPO vendors like Ingenero and RMSI.

The research mentioned in this press release is available to Forrester WholeView(TM) clients and can be found through[2].

About Forrester

Forrester Research enables companies to understand the impact of technology on business. Forrester’s WholeView(TM) Research, Strategic Services, and Events help clients understand how technology change affects their customers, strategy, and technology investment. In February 2003, Giga Information Group became a wholly owned subsidiary of Forrester Research Inc. Giga, through its Giga Advisory(R), Giga Consulting(TM), and Events, provides objective research, pragmatic advice, and personalized consulting to global IT professionals. Established in 1983, Forrester is headquartered in Cambridge, Mass. For additional information, visit[3].


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