June 13, 2003—In a recently completed CAP Ventures forecast, analysts project that the document outsourcing market will continue to grow over the next five years, but at a much slower rate than originally anticipated by the industry. This lower growth rate is due to a slowdown in economic activity, a focus on reduced costs, and the maturation of the market (many contracts are in their third contract period). 2001 revenues of $28.8 billion will grow to approximately $35 billion in 2006, representing a compound annual growth rate (CAGR) of 4.1%.
The CAP Ventures forecast, Document Outsourcing Market Forecast: 2001-2006, captures growth projections for the document outsourcing market by customer environment, industries served, and services provided. The forecast segments the industry into three environments: facilities management, statement printing, and contracted print services.
Within the overall market, facilities management will grow from just over $6 billion in 2001 to almost $7.6 billion by 2006. Facilities management (FM) is defined as the assignment of specific business functions, sometimes by sale of physical assets such as printers or copiers and the transfer of employees, to a business specializing in those functions or one that offers the service as a complement to other offerings.
The statement printing segment will grow from $2.5 billion in 2001 to just over $2.6 billion in 2006. Statement printing is defined as the design, production, printing, mailing, and database management associated with bills, statements, and other financial documents.
The contracted print services segment refers to long-term contractual relationships, which often last at least five years. Contract print services revenues will grow from just over $19 billion in 2001 to almost $25 billion in 2006.
The complete forecast is available immediately to clients of CAP Ventures’ Production Workflow Solutions Consulting Service. A qualitative abridgement, titled Document Outsourcing in Focus will be available for purchase in the future. For more information contact Stewart MacDonald at 781/871-9000, ext. 175. CAP Ventures is a strategic consulting firm for providers and users of business communication technologies and services.
