Outsourcing to grow 8.1% in 2008

The global outsourcing market continues to grow at a steady pace, with a forecast growth rate of 8.1% in 2008. Publicly reported IT outsourcing (ITO) and business process outsourcing (BPO) contract values decreased overall by 50% in 2007, Gartner reports. Indian providers are growing approximately 40% annually in the US and 60% annually in Europe.

New Asia-Pacific outsourcing contracts command $25 mln

The total value of new (as opposed to renewed or restructured) outsourcing contracts to Asia-Pacific in the $25 mln plus bracket – where most significant outsourcing activity occurs – is $5.4B, an increase of 100% on the first half of 2006. Eight BPO contracts, in the $25 mln or greater category, with a total contract value of $700 mln were signed in Asia-Pacific in the first half of 2007, representing growth of 33% by volume and 133% by value compared to the first half of 2006, TPI says.

HR services up 8% in 2006

In 2006, HR services spending started to level off and grew 8% worldwide over 2005, according to IDC. The worldwide market for HR services in 2006 showed an increase of 8% over 2005. In the United States, HR services grew 8.7%.

Small business who outsource IT end up spending less than 5% on maintenance and upgrades

The majority of SMBs that outsource (54%) spend less than 5% of annual revenues on maintaining and upgrading IT infrastructure, while 64% of non-hosting companies spend more than 10% of revenues on IT. Companies that outsource (68%) are much more aggressive about using IT assets to engage in e-commerce than companies that manage technology infrastructures internally (29%). By more than 85%, outsourcers report that their IT organizations play an important role in remaining competitive in their respective industries than those that do not outsource, ThePlanet reports.