IDC: Worldwide outsourcing to hit $151B in 4 years

By Kathleen Ohlson, Computer World |  Career

Companies spent $99 billion in worldwide outsourcing services last year, and that's expected to top $151 billion by 2003, according to a report issued by International Data Corp. (IDC).

The U.S. led the way in outsourcing spending, with companies here spending $51.5 billion last year, which accounts for almost 52% of all outsourcing expenditures, said the U.S. and Worldwide Outsourcing Markets and Trends 1998-2003 report. By 2003, the U.S. will claim almost 54% of all outsourcing expenditures, spending more than $81 billion annually, IDC said.

According to the Framingham, Mass.-based research firm, outsourcing spending in the Asia-Pacific belt will grow at a 15.1% compound annual rate through 2003. The rest of the world's spending should increase 26.9% annually through the same period, the research firm said. IDC attributed that growth rate to small and midsized companies increasing their PC use and a sharp increase in Internet use in some regions.

Other findings:

  • The most popular feature outsourced is processing services, such as payroll, claims and credit-card processing. That accounted for $59.5 billion in outsourcing spending last year, almost 60% worldwide.

  • IS outsourcing -- data center, client/server and help desk applications -- is the fastest growing segment. Spending will increase at a 12.2% compound annual growth rate through 2003.
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