Introduction

The outsourcing market will see an estimated US$88 billion renewal event between 2006 to 2008, which will fundamentally alter today's market landscape. At the conclusion of the renewal event, there will be a different set of leading suppliers and advantaged buyers. This report discusses the renewal event in detail, providing insights, analyses and implications for stakeholders. It will both inform buyers of the anticipated changes and provide recommendations on how to best capitalize on these changes to the benefit of their companies.

Scope

• Analysis includes all IT outsourcing contracts with a Total Contract Value (TCV) of US$20 million or greater
• Analysis includes all BPO contracts, regardless of size
• This report is applicable to all geographies and industries
• This report is applicable to both buyer and supplier organizations

Contents

This report summarizes key market trends and provides estimates on the size and scope of today's outsourcing market (geography, industry, transaction type). This context is important for management to understand the implications of the pending contract renewal event. The renewal event will fundamentally change the outsourcing market due to four key factors:

• Global sourcing will see rampant growth across all outsourcing areas
• Functions will be bundled differently, unlocking additional value from outsourcing
• Process-technology integration will gain ground rapidly, allowing for significant cost reduction
• Outsourcing locations and suppliers will proliferate, creating huge risks and opportunities

This report discusses each of the above factors in detail, providing supporting analyses and charts. Additionally, the report will reveal strategic and implementation tips to both buyers and suppliers on how to best capture additional value and mitigate risks associated with this renewal event.