Global BPO Market Forecast: ~~~

Transcription

1 Global BPO Market Forecast: ~~~ Market Assessment June 2008

2 GLOBAL BPO MARKET FORECAST: About is a specialist BPO analyst company. provides buy-side and sell-side organizations with deeper research and analyses in front office, mid-office and back office BPO than any other research firm in the world. The company s subscription-based model provides subscribers with robust market analyses, case studies, vendor assessments, contract analyses, market reports and access to a content-rich BPO contracts database. The firm covers a wide range of industries including financial services, government and utilities sectors, and tracks worldwide and regional BPO activity. s home page is The company tracks business services activity. In particular, focuses on the following business services and process areas: Front-office customer management services Middle office industry-specific processing services such as card processing services Back office support services such as HR services and finance & accounting services provides information to its clients in a variety of forms, including within: s BPO subscription services, to assist organizations in identifying the most promising areas of BPO activity Workshops, to assist organizations in identifying the most appropriate areas of BPO for their organization Custom assessments, to assist buy-side organizations in benchmarking individual processes and to assist vendors in successfully taking BPO concepts to market. For more details, contact: In the U.S: Riverside Center 275 Grove Street Suite Newton MA Phone: (617) Fax: (617) In Europe: Atrium Court, The Ring Bracknell RG12 1BW Phone: +44 (0) Fax: +44 (0) helen.neale@nelson-hall.com 2008 by. - i - June 2008

3 GLOBAL BPO MARKET FORECAST: Abstract The purpose of this study is to provide vendors and users with a market forecast of the global BPO market by geography and service type. The study complements the market assessments and analyses that are produced within s BPO Subscription Services, and is designed for: Marketing, sales and business managers developing strategies to target service opportunities within the BPO market Executives in purchasing organizations seeking an understanding of: BPO services offered BPO market development within specific processes Vendor capabilities in each BPO service type. Consultants advising clients on vendor selection Financial analysts specializing in the support services sector. The term business process outsourcing (BPO) is defined as the outsourcing of business functions or processes. In order to qualify under this definition BPO contracts must involve the vendor taking responsibility for operational management of the business activity. For the purposes of this definition, IT services do not count as a business function. Potential BPO activities include: Front-office services Customer management services including billing services Document management services Middle-office administration services Industry-specific processing services e.g. card processing services Back-office support services Finance & accounting services, including purchase-to-pay, order-to-cash, and record-to-report HR Services including payroll services, HR administration services, managed recruitment services and training provision and administration Services for procurement of indirect goods and services Copyright 2008 by. All rights reserved. Printed in the United Kingdom. No part of the publication may be reproduced or distributed in any form, or by any means, or stored in a database or retrieval system, without the prior written permission of the publisher. The information provided in this report shall be used only by the employees of and within the current corporate structure of s clients, and will not be disclosed to any other organization or person including parent, subsidiary, or affiliated organization without prior written consent of. exercises its best efforts in preparation of the information provided in this report and believe the information contained herein to be accurate. However, shall have no liability for any loss or expense that may result from incompleteness or inaccuracy of the information provided by. - ii - June 2008

4 GLOBAL BPO MARKET FORECAST: Table of Contents Chapter 1: Introduction 1 A. Objectives 1 B. Scope and Definitions 2 Geographic Coverage 3 C. Methodology 4 Subcontracting 4 Rounding 4 Estimates 4 Exchange Rates 4 D. Structure of the Report 5 Chapter 2: Executive Summary 6 A. BPO Market to Exceed $450Bn by B. Asia Pacific BPO Market Shows Greatest Potential for Growth to 2012Error! Bookmark not defined.15 Chapter 3: BPO Market Forecast by Region 24 A. Global Overview 24 B. North America 28 C. Europe 40 D. Asia Pacific 64 E. Latin America 68 Chapter 4: BPO Market Forecast by Service Type 72 A. BPO Market Overview 72 B. Front Office BPO 73 B.1. Customer Management Services 86 B.2. Document Management 96 C. Middle Office BPO 102 C.1 Insurance Industry-Specific BPO 114 C.2 Banking Industry-Specific BPO 126 D. Back Office BPO Market Overview 146 D.1 HR Outsourcing 159 D.2 F&A Outsourcing 201 D.3 Procurement Outsourcing by. - iii - June 2008

5 List of Exhibits Global BPO Market Forecast by Service Type: Estimated Global BPO Market Shares: Estimated Global Front Office BPO Market Shares: Estimated Global Middle Office BPO Market Shares: Estimated Global Back Office BPO Market Shares: Global BPO Market Forecast by Region: Estimated North American BPO Market Shares: North American BPO Market Forecast by Service Type: Estimated U.S. BPO Market Shares: European BPO Market Forecast by Service Type: Estimated European BPO Market Shares: Estimated U.K. BPO Market Shares: Global BPO Market Forecast by Service Type: Global BPO Market Forecast by Service Type: Global Front Office Market Forecast by Service Type: Global Middle Office Market Forecast by Service Type: Global Back Office Market Forecast by Service Type: Estimated Global BPO Market Shares: North American BPO Market Forecast by Service Type: North American Front Office Market Forecast by Service Type: North American Middle Office Market Forecast by Service Type: North American Back Office Market Forecast by Service Type: Estimated North American BPO Market Shares: United States BPO Market Forecast by Service Type: United States Front Office Market Forecast by Service Type: United States Middle Office Market Forecast by Service Type: United States Back Office Market Forecast by Service Type: Estimated United States BPO Market Shares: Canadian BPO Market Forecast by Service Type: Canadian Front Office Market Forecast by Service Type: Canadian Middle Office Market Forecast by Service Type: Canadian Back Office Market Forecast by Service Type: Estimated Canadian BPO Market Shares: European BPO Market Forecast by Service Type: European Front Office Market Forecast by Service Type: European Middle Office Market Forecast by Service Type: European Back Office Market Forecast by Service Type: Estimated European BPO Market Shares: by. - iv - June 2008

6 United Kingdom BPO Market Forecast by Service Type: United Kingdom Front Office Market Forecast by Service Type: United Kingdom Middle Office Market Forecast by Service Type: United Kingdom Back Office Market Forecast by Service Type: Estimated United Kingdom BPO Market Shares: French BPO Market Forecast by Service Type: French Front Office Market Forecast by Service Type: French Middle Office Market Forecast by Service Type: French Kingdom Back Office Market Forecast by Service Type: Estimated French BPO Market Shares: German BPO Market Forecast by Service Type: German Front Office Market Forecast by Service Type: German Middle Office Market Forecast by Service Type: German Kingdom Back Office Market Forecast by Service Type: Estimated German BPO Market Shares: Italian BPO Market Forecast by Service Type: Italian Front Office Market Forecast by Service Type: Italian Middle Office Market Forecast by Service Type: Italian Kingdom Back Office Market Forecast by Service Type: Estimated Italian BPO Market Shares: Other European BPO Market Forecast by Service Type: Other European Front Office Market Forecast by Service Type: Other European Middle Office Market Forecast by Service Type: Other European Kingdom Back Office Market Forecast by Service Type: Estimated Other European BPO Market Shares: Asian BPO Market Forecast by Service Type: Asian Front Office Market Forecast by Service Type: Asian Middle Office Market Forecast by Service Type: Asian Kingdom Back Office Market Forecast by Service Type: Estimated Asia Pacific BPO Market Shares: Latin American BPO Market Forecast by Service Type: Latin American Front Office Market Forecast by Service Type: Latin American Middle Office Market Forecast by Service Type: Latin American Kingdom Back Office Market Forecast by Service Type: Estimated Latin American BPO Market Shares: Global BPO Market Forecast by Region: Front Office BPO Market Forecast by Region: Estimated Global Front Office BPO Market Shares: Estimated North American Front Office BPO Market Shares: Estimated U.S. Front Office BPO Market Shares: Estimated Canadian Front Office BPO Market Shares: by. - v - June 2008

7 Estimated EMEA Front Office BPO Market Shares: Estimated U.K. Front Office BPO Market Shares: Estimated French Front Office BPO Market Shares: Estimated German Front Office BPO Market Shares: Estimated Italian Front Office BPO Market Shares: Estimated Other European Front Office BPO Market Shares: Estimated Asia Pacific Front Office BPO Market Shares: Estimated Latin American Front Office BPO Market Shares: Customer Management Services Market Forecast by Region: Estimated Global Customer Management Services Market Shares: Estimated North American Customer Management Services Market Shares: Estimated United States Customer Management Services Market Shares: Estimated Canadian Customer Management Services Market Shares: Estimated EMEA Customer Management Services Market Shares: Estimated United Kingdom Customer Management Services Market Shares: Estimated French Customer Management Services Market Shares: Estimated German Customer Management Services Market Shares: Estimated Italian Customer Management Services Market Shares: Estimated Other European Customer Management Services Market Shares: Estimated Asia Pacific Customer Management Services Market Shares: Estimated Latin American Customer Management Services Market Shares: Document Management Services Market Forecast by Region: Estimated Global Document Management Services Market Shares: Estimated North American Document Management Services Market Shares: Estimated United States Document Management Services Market Shares: Estimated EMEA Document Management Services Market Shares: Estimated United Kingdom Document Management Services Market Shares: Estimated Asia Pacific Document Management Services Market Shares: Middle Office BPO Market Forecast by Region: Estimated Global Middle Office BPO Market Shares: Estimated North American Middle Office BPO Market Shares: Estimated United States Middle BPO Market Shares: Estimated Canadian Middle Office BPO Market Shares: Estimated EMEA Middle Office BPO Market Shares: Estimated United Kingdom Middle Office BPO Market Shares: Estimated French Middle Office BPO Market Shares: Estimated German Middle Office BPO Market Shares: Estimated Other European Middle Office BPO Market Shares: Estimated Asia Pacific Middle Office BPO Market Shares: Estimated Latin American Middle Office BPO Market Shares: Life Insurance BPO Market Forecast by Region: by. - vi - June 2008

8 Estimated Global Life Insurance BPO Market Shares: Estimated North American Life Insurance BPO Market Shares: Estimated United States Life Insurance BPO Market Shares: Estimated EMEA Life Insurance BPO Market Shares: Estimated United Kingdom Life Insurance BPO Market Shares: Property & Casualty BPO Market Forecast by Region: Estimated Global Property &Casualty BPO Market Shares: Estimated North American Property &Casualty BPO Market Shares: Estimated United States Property &Casualty BPO Market Shares: Estimated Canadian Property &Casualty BPO Market Shares: Estimated EMEA Property &Casualty BPO Market Shares: Estimated United Kingdom Property &Casualty BPO Market Shares: Mortgage BPO Market Forecast by Region: Estimated Global Mortgage BPO Market Shares: Estimated United States Mortgage BPO Market Shares: Estimated United Kingdom Mortgage BPO Market Shares: Payment BPO Market Forecast by Region: Estimated Global Payment BPO Market Shares: Estimated North American Payment BPO Market Shares: Estimated United States Payment BPO Market Shares: Estimated Canadian Payment BPO Market Shares: Estimated EMEA Payment BPO Market Shares: Estimated United Kingdom Payment BPO Market Shares: Estimated German Payment BPO Market Shares: Estimated Other European Payment BPO Market Shares: Estimated Asia Pacific Payment BPO Market Shares: Estimated Latin American Payment BPO Market Shares: Estimated Securities Processing Market Forecast by Region: Estimated Global Securities Processing BPO Market Shares: Estimated North American Securities Processing Market Shares: Estimated United States Securities Processing Market Shares: Estimated Canadian Securities Processing Market Shares: Estimated EMEA Securities Processing Market Shares: Estimated United Kingdom Securities Processing Market Shares: Estimated Asia Pacific Securities Processing Market Shares: Estimated Latin American Securities Processing Market Shares: Back Office BPO Market Forecast by Region: Estimated Global Back Office BPO Market Shares: Estimated North American Back Office BPO Market Shares: Estimated United States Back Office BPO Market Shares: Estimated Canadian Back Office BPO Market Shares: by. - vii - June 2008

9 Estimated EMEA Back Office BPO Market Shares: Estimated United Kingdom Back Office BPO Market Shares: Estimated French Back Office BPO Market Shares: Estimated German Back Office BPO Market Shares: Estimated Italian Back Office BPO Market Shares: Estimated Other European Back Office BPO Market Shares: Estimated Asia Pacific Back Office BPO Market Shares: Estimated Latin American Back Office BPO Market Shares: HR BPO Market Forecast by Region: Estimated Global HR BPO Market Shares: Estimated North American HR BPO Market Shares: Estimated United States HR BPO Market Shares: Estimated Canadian HR BPO Market Shares: Estimated EMEA HR BPO Market Shares: Estimated United Kingdom HR BPO Market Shares: Estimated French HR BPO Market Shares: Estimated German HR BPO Market Shares: Estimated Other European HR BPO Market Shares: Estimated Asia Pacific HR BPO Market Shares: Estimated Latin American HR BPO Market Shares: Multi-Process HR BPO Market Forecast by Region: Estimated Global Multi-Process HR BPO Market Shares: Estimated North American Multi-Process HR BPO Market Shares: Estimated United States Multi-Process HR BPO Market Shares: Estimated EMEA Multi-Process HR BPO Market Shares: Estimated United Kingdom Multi-Process HR BPO Market Shares: Benefit Administration BPO Market Forecast by Region: Estimated Global Benefit Administration BPO Market Shares: Estimated North American Benefit Administration BPO Market Shares: Estimated United States Benefit Administration BPO Market Shares: Estimated Canadian Benefit Administration BPO Market Shares: Estimated EMEA Benefit Administration BPO Market Shares: Estimated United Kingdom Benefit Administration BPO Market Shares: Estimated Asia Pacific Benefit Administration BPO Market Shares: Payroll BPO Market Forecast by Region: Estimated Global Payroll BPO Market Shares: Estimated North American Payroll BPO Market Shares: Estimated United States Payroll BPO Market Shares: Estimated EMEA Payroll BPO Market Shares: Estimated United Kingdom Payroll BPO Market Shares: RPO Market Forecast by Region: by. - viii - June 2008

10 Estimated Global RPO Market Shares: Estimated North American RPO Market Shares: Estimated United States RPO Market Shares: Estimated EMEA RPO Market Shares: Estimated United Kingdom RPO Market Shares: Estimated Asia Pacific RPO Market Shares: LBPO Market Forecast by Region: Estimated Global LBPO Market Shares: Estimated United States LBPO Market Shares: Estimated EMEA LBPO Market Shares: Estimated United Kingdom LBPO Market Shares: F&A BPO Market Forecast by Region: Estimated Global F&A BPO Market Shares: Estimated North American F&A BPO Market Shares: Estimated United States F&A BPO Market Shares: Estimated EMEA F&A BPO Market Shares: Estimated United Kingdom F&A BPO Market Shares: Estimated Other Europe F&A BPO Market Shares: Estimated Asia Pacific F&A BPO Market Shares: Multi-Process F&A BPO Market Forecast by Region: Estimated Global Multi-Process F&A BPO Market Shares: Estimated North American Multi-Process F&A BPO Market Shares: Estimated United States Multi-Process F&A BPO Market Shares: Estimated EMEA Multi-Process F&A BPO Market Shares: Estimated United Kingdom Multi-Process F&A BPO Market Shares: Estimated Asia Pacific Multi-Process F&A BPO Market Shares: Purchase-to-Pay BPO Market Forecast by Region: Est Est Estimated Global Purchase-to-Pay BPO Market Shares: Estimated United States Purchase-to-Pay BPO Market Shares: Estimated EMEA Purchase-to-Pay BPO Market Shares: Estimated United Kingdom Purchase-to-Pay BPO Market Shares: Order-to-Cash BPO Market Forecast by Region: Estimated Global Order-to-Cash BPO Market Shares: Estimated North American Order-to-Cash BPO Market Shares: Estimated United States Order-to-Cash BPO Market Shares: Estimated EMEA Order-to-Cash BPO Market Shares: Estimated United Kingdom Order-to-Cash BPO Market Shares: Estimated France Order-to-Cash BPO Market Shares: Estimated German Order-to-Cash BPO Market Shares: Estimated Italian Order-to-Cash BPO Market Shares: Estimated Other European Order-to-Cash BPO Market Shares: by. - ix - June 2008

11 Record-to-Report BPO Market Forecast by Region: Estimated Global Record-to-Report BPO Market Shares: Estimated United States Record-to-Report BPO Market Shares: Estimated United Kingdom Record-to-Report BPO Market Shares: Procurement BPO Market Forecast by Region: Estimated Global Procurement BPO Market Shares: Estimated United States Procurement BPO Market Shares: Estimated EMEA Procurement BPO Market Shares: by. - x - June 2008

12 GLOBAL BPO MARKET FORECAST: Chapter 1 Introduction A Objectives The purpose of this study is to provide vendors and users with a view of the current and future market size across service types and regions within the business process outsourcing marketplace. The study complements the market assessments and analyses that are produced within the BPO & Outsourcing Subscription Service, and is designed for: Marketing, sales and business managers developing strategies to target service opportunities within the BPO market Executives in purchasing organizations seeking an understanding of: BPO services offered BPO market development within specific processes Vendor capabilities in each BPO service type. Consultants advising clients on vendor selection Financial analysts specializing in the support services sector by June 2008

13 B Scope and Definitions This study covers business process outsourcing (BPO) in its entirety, covering both the relatively fast growing market for multi-process BPO as well as many of the more mature and slower growing markets such as payroll services, as well as emerging single-service opportunities and industry-specific BPO services such as payments processing. Business process outsourcing is defined as the outsourcing of business functions or processes. In order to qualify under this definition, BPO contracts must involve the vendor employing those personnel carrying out the business activity. For the purposes of this definition, stand-alone IT services do not count as a business function, though there may be a significant IT services component embedded within a wider business process outsourcing service. This study investigates the market size and forecasts for the wider BPO market. This includes: Back office support services, such as Finance and accounting outsourcing, which has been divided into: Multi-process finance and accounting BPO, which is the outsourcing of multiple finance functions such as accounts payable, accounts receivable, general accounting, etc. Order-to-cash outsourcing, which is the outsourcing of the accounts receivable function or debt collection as a standalone service Purchase-to-Pay, which is the outsourcing of the accounts payable function as a standalone service Record-to-Report, which includes areas such general ledger processing and preparation of accounting reports. HR services, including: Multi-process HR, which is the outsourcing of two or more HR process areas within the same contract, such as employee care (employee call center support), payroll administration and benefits administration Payroll administration Benefits administration Recruitment process outsourcing Learning BPO Other HR Services, such as succession planning, mobility services, and occupational health. Procurement outsourcing, primarily of indirect goods and services. Middle office support services, including Banking specific processing, such as payment processing (covering card processing services, merchant acquirer services, and check processing), mortgage processing, and securities processing Insurance specific processing, such as policy administration and claims processing, and third party administration services Government specific processing, such as revenue and benefits, and Medicaid/Medicare services Utilities and telecoms specific processing, such as billing and provisioning by June 2008

14 Front office support services, which the handling of customer facing activities, such as telemarketing, and customer care and also document management. Geographic Coverage The geographic scope of the research is global, covering all regions: North America United States Canada Europe United Kingdom France Germany Italy Other Europe Asia Pacific Latin America by June 2008

15 C Methodology Market sizing and forecasting for the study has been carried out using s primary and secondary research sources on the global business process outsourcing (BPO) market. Market sizing has been estimated by examining current vendor revenues for BPO services, both by service type and by region. Vendor revenue figures have been estimated using: Detailed interviews with senior level vendor executives Analysis of vendor contract activity Analysis of secondary research sources, including press releases, annual reports, and 10Ks from vendor organizations Analysis of published vendor data, including revenue information, and headcount figures. Estimated vendor market shares have been calculated based on 2007 revenue data. Market forecasts within this study have been estimated from: Analysis of s comprehensive library of both user and vendor based BPO studies Analysis of past contract activity within BPO using s contract database, which can be utilized as a reliable predictor for future market activity Detailed interviews with senior level vendor executives. A key element within this study is s regular briefings with BPO vendor organizations. Within these interviews, ascertains: BPO services that vendors are offering, or planning to offer, including where possible current revenues and expected growth rates for these offerings Targeting of these services, by geography, industry and service type Approach to the provision of these business process outsourcing services. These details, in combination with the further primary and secondary research mentioned above, can be used to estimate the overall shape of the BPO market now and in for the future. Subcontracting Vendor revenues have been quoted including all revenues from contracts, including those where services are subcontracted to other BPO vendor organizations. Rounding Please note that the market size and forecasting figures displayed within all the tables in this report have been rounded to either two or three significant figures. This can result in totals being slightly different. Estimates All vendor revenues quoted within this report are estimates, and have been rounded as appropriate. In addition, all estimates are for the latest published financial year at the time the report data was gathered. Exchange Rates All exchange rates used within this report are $1.5 = 1 and $2 = by June 2008

16 D Structure of the Report The report is structured into the following chapters: Chapter I: Introduction Chapter II: Executive Summary Chapter III: Market Forecasting by Region, including: Global Overview North America Europe Asia Pacific Latin America Chapter IV: Market Forecasting by Service Type, including: BPO Market Overview Front Office BPO Middle Office BPO Back Office BPO, including: F&A Outsourcing Human Resources Outsourcing Procurement Outsourcing by June 2008