Business service provider market to reach $8.3 billion

Despite a risk-averse business climate, IDC estimates that business service providers (BSPs) captured approximately $1.1 billion in customer spending in 2001.

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By  Matthew Southwell Published  March 5, 2002

Despite a risk-averse business climate, IDC estimates that business service providers (BSPs) captured approximately $1.1 billion in customer spending in 2001. The analyst house expects this market to grow at a compound annual growth rate (CAGR) of 49% to $8.3 billion by 2006.

Jessica Goepfert, program manager for IDC’s ASP and application management services and business service providers research programs, explains that the bulk of spending has been in the customer care sector.

“Outside of customer care, there have been a few BSPs who have carved out a solid place for themselves in small business accounting, third-party logistics, or procurement. Except for these few areas there has been little activity in the space, yet the opportunities are as rich and varied as the business functions within any company,” she says.

Karen Moser, research manager with IDC’s ASP and application management services and business service providers research programs, adds that in light of this growth old-fashioned ASPs would do well to readdress their offerings.

“ASPs must seriously consider the BSP market as an opportunity for additional growth and a means to establish a clear value proposition vis-à-vis the competition. IT vendors and business services firms that have a well-defined business expertise in-house would be well-suited to this market,” she says.

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