Large buyers signed the majority of IT outsourcing deals during 2009, according to Everest Group, a global sourcing consulting and research firm.
Based on the Finance & Accounting Outsourcing (FAO)Annual Report 2010, the FAO market in 2010 is expected to resume a growth trajectory more similar to pre-recessionary levels, moving towards 20 percent and reach nearly US$3.7 billion in annual contract volume (ACV). Everest’s Procurement Outsourcing (PO) Annual Report 2010 projects the PO market to grow in excess of 20 percent in 2010 and reach nearly US$1.3 billion in ACV.
The research reports global FAO supplier landscape – leaders major contenders, emerging players, the 2009 star performers and the dynamic PO supplier landscape of evolving end-to-end capabilities. The report which analyzes suppliers of FAO and PO services comprises of supplier evaluations and relative market positions, and draws comparisons between relative market success and capability developments thereby sharing details about the changes in the global supplier landscape in 2009.
“In the FAO and PO markets, we see two stages of evolution, both of which require buyers to have a strong understanding of the evolving dynamics in these markets to make intelligent decisions that fit the strategies of their organizations,” said, Saurabh Gupta, Research Director, Everest Group. “The mature FAO market is getting increasingly competitive with players vying to carve out unique value propositions to differentiate themselves. On the other hand, the nascent PO market is quite dynamic, characterized by new players entering the market, revised value propositions and significant alliance activity”, added Saurabh.
“The studies detail the supplier landscape & preferences to buyer revenue size, industry group, buyer geography, along with information on the supplier trends to give an in-depth analysis of evolving market. As suppliers have sought to establish differentiated competitive positioning, many have built out distinct capabilities along various dimensions. Buyers will increasingly find themselves weighing these supplier strengths against their own business priorities,” said, Mr Gaurav Gupta, Principal & Country Head, India, Everest group.
The FAO market in 2009 saw successful suppliers fine tune capability mixes and position for anticipated growth this year. IBM, Accenture, and Genpact are dominant leaders, but a number of other suppliers are closing the gap. Moving forward, successful suppliers will continue to identify and refine target buyer segments, meet client needs in terms of global delivery capacity & service, bring technology & process solutions that more closely link process operations with business outcomes, and focus on client relationship management.
Source:http://www.expressindia.com/latest-news/Everest-Group-reports-project-growth-of-20–for-FAO/632639/
