2010 is primed to be a very strong year for outsourcing adoption, with the middle-market ($750 million to $3000 million annual revenues) poised to be the most active, according to the debut outsourcing market forecast and analysis by Horses for Sources. Free report, as of this posting.

The report analyzes the adoption intentions and experiences of 1,055 senior executives involved in the buying and selling of both IT and business process outsourcing services.  Additional highlights from the report, entitled “Straight from the Horse’s Mouth: The IT Outsourcing and Business Process Outsourcing Industry Landscape in 2010”, include:  

The key areas of increased outsourcing scope are expected to be in areas with heavy low-cost labor arbitrage support (nearshore and offshore) – software applications, call center, engineering management, finance & accounting, analytics and human resources. In some cases, half companies interviewed will be increasing outsourcing scope

• The principal drivers behind outsourcing are cost reduction, desire to globalize business operations and to transform/re-engineer business processes
• The main Inhibitors are other priorities brought on by the economic crisis and internal politics/resistance to change
• When evaluating vendors, global scale, financial stability and operational excellence are the tablestakes. Business transformation capabilities are the differentiators
• Customer-willingness to evaluate cloud-based “business utility” offerings is strong as they increasingly look at hybrid IT/BPO solutions
• There are strong signs of increased adoption of industry-specific BPO solutions, most notably in the Financial Services and Life Sciences sectors

"As the recession slowly lifts, many businesses, secure in the knowledge that their financial performance is on safer ground, start to act on their more transformative planning to increase productivity and source new avenues for revenue," said Phil Fersht, founder and CEO of Horses for Sources, and author of the report. "This is exactly the state of play for most industries in 2010, with an unprecedented number of new firms moving into outsourcing engagements, with the objective of driving down operational cost, but also to globalize processes and force change into jaded business models of yesteryear."

According to Fersht, evolving into a global outsourced business-support environment is one of the most impactful and culture-changing experiences most companies ever have to experience.  "While the intent to adopt new outsourcing models is strong, the capability of many services vendors to deliver on this upswing in demand is questionable. 2010 will definitely be a banner year regarding which buyers are going to take the plunge, and which vendors will step up to deliver," concluded Fersht.

About this market research study

For the report "Straight from the Horse’s Mouth: The IT Outsourcing and Business Process Outsourcing Industry Landscape in 2010”, Horses for Sources leveraged its vast social media presence to partner with the buyer communities at SSON and Global Services media to deliver the survey in rapid fashion. Horses is offering its debut report to the industry at no cost at the link below.

About Horses for Sources

The mission of Horses for Sources is to bridge the world of research and social media to deliver truly unique analyst services to market.

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