Friday, August 12, 2005

Telecom Industry Leads the Outsourcing Surge

The telecommunications sector will lead all other verticals in outsourcing engagements with a 10.7 percent compounded annual growth rate (CAGR) over the next five years, according to a recent IDC study. IDC's Industry-Based Services Forecasts, a set of studies designed to measure the causes of industry trends among IT services, forecasts the growth rate of outsourcing engagements in 16 vertical industries from 2005 to 2009.
Following the telecom industry's up tick in outsourcing are discrete manufacturing (automotive and aerospace firms), banking, and the government sector, all of which will show a CAGR of 10.5 percent in its outsourcing engagements over the five-year period.
Discrete manufacturing and the government sector continue to utilize outsourcing to handle important, but not critical, business processes. Those industries least utilizing outsourcing include financial services, wholesale, personal services, education, and the resource and construction industries. In general, overall outsourcing is expected to enjoy a 9.3 percent CAGR over the five-year period, with transportation, utilities, retail, banking, healthcare, and government experiencing the highest growth rates. Healthcare will have an above average CAGR, an estimated 9.5 percent from 2005 to 2009. Driving this growth will be the increased need to utilize project-based services to gain advice, education, and implementation solutions to maximize the healthcare industry's investments in new technology and process management, according to the study.
As for the companies providing these services, Spaulding stresses that success will ride on their ability to comprehend how hardware, software, and solutions spending priorities differ by industry, as well as understanding how firms in select industries can deploy and benefit from their services.

For the best outsourcing services, offshore outsourcing and software outsourcing, contact A-1 Technology Inc, an offshore outsourcing company.