Outsourcing remains strong but continues to flatten: Pulse Surveys

Filed in archive Outsourcing News on April 20, 2006

Advisory firm EquaTerra has released the results of its quarterly "Outsourcing Pulse Surveys". The survey for the first quarter of 2006 covers outsourcing trends in HR, IT, finance and accounting, procurement and call center/customer care/CRM processes.

Key findings of the survey include: HRO remains to be the leading market segment, followed by ITO and FAO; increased contract value was at their lowest levels in over a year; sales cycles are lengthening; and service provider sales pursuit and delivery capacity are improving.

Stan Lepeak, EquaTerra's Managing Director of Research, said, "While levels of both ITO and BPO remain strong, there is an ongoing slowing in market growth rates. This is a function of a slowing in demand, a constraint in supply, and a more thorough sourcing process being employed by buyer organizations. Scope and contract value levels are also increasing at a slower rate."