August 1, 2003—Recent market research from Cutting Edge Information, a business research firm, indicates that although the outsourcing market has slowed since 2000, it is set to grow at 19% through 2005. Individual deals involving outsourcing leaders such as IBM have topped $5 billion.
Worldwide outsourcing has hit more than $350 billion, with several deals exceeding $1 billion. More than 90% of US companies outsource at least one activity.
“Outsourcing From Strength,” features innovative practices from more than 50 companies across 20 industries. The report profiles several Fortune 500 companies and includes quantitative metrics and strategic practices to support several key outsourcing areas, including vendor screening criteria and typical outsourcing deal structures.
Outsourcing has become a $30 billion business for the pharmaceutical industry, says Cutting Edge. Half of that money is dedicated to outsourced manufacturing. Small pharmaceutical companies have led the way in redefining outsourcing away from a tool to hide weaknesses. These companies no longer outsource manufacturing simply to meet demands their plants cannot handle—they seek to “buy-in” complete processes, eliminating large areas of overhead entirely.
“Outsourcing From Strength” includes metrics and strategic practices in the following areas:
- Vendor screening criteria and requirements
- Outsourcing market statistics related to size and composition
- Percentage of companies that outsource specific activities
- Key reasons why top companies are satisfied with their outsourcing relationships
- Typical outsourcing deal sizes and structures
To view the online summary of this 97-page report, visit Cutting Edge.
