6
A New Engine of Growth
Business Process Outsourcing
•Business Process Outsourcing (BPO) is the next major source of innovation and competitive advantage. Spending by U.S. organizations on outsourced business services will triple from $100 billion to $318 billion.
•About 14 percent of EDS' annual revenues, or $3 billion, comes from BPO
•In addition to cutting costs, BPO allows companies access to specialist expertise and a better quality of service, while leaving room for focusing on core in-house business responsibilities
•Outsourcing frees up time for managers to address higher-level business needs. Management bandwidth is a scarce resource and CEOs want to free up the time of key managers so they may work on the issues that make a vital competitive difference to the business.
•By 2004, 70 percent of enterprises will selectively outsource applications using a variety of application service providers (ASPs), traditional outsourcers, niche applications vendors and offshore providers.