TPI Debuts Report on 20 Outsourcing and BPO Functions in 26 Vertical Markets

TPI, a unit of Information Services Group, Inc. (NASDAQ:III) (NASDAQ: IIIIU) (NASDAQ:IIIIW) , has released the TPI Momentum 2009 Market Trends and Insights Vertical Industries Report, which presents a comprehensive look at 20 different outsourcing activities in 26 key sectors of the economy worldwide. The report leverages a new TPI research program aggregating nearly 20 years worth of data and trends for sourcing engagements involving the Forbes(R) Global 2000 companies.

The report combines proprietary market data with commentary from TPI's expert advisors and is designed to help service providers and market watchers identify the latest critical market trends and opportunities. It identifies the vertical markets that are increasing spending on outsourcing, the types of services that are in demand and the events that will influence future buying behavior.

"With our global footprint and 360-degree view of the outsourcing industry, TPI is offering objective and concise intelligence that isn't available anywhere else," said Melany Williams, Partner and Managing Director, TPI Momentum. "This Report will help all participants in the sourcing industry to uncover pockets of opportunity and align business development efforts with real-world market demand. If you're trying to decide where to focus your sales resources, you need this Report."

The sectors covered in the Report correspond to the widely used Forbes(R) categories, making it easy for service providers and market watchers to match the data with existing segmentation efforts. For each vertical, the Report documents information on 20 different IT outsourcing (ITO) and business process outsourcing (BPO) functions and provides analysis gleaned from the TPI experience of providing expert advisory services in more than 3,000 transactions. Within and across these segments, it shows how client buying patterns have shifted over time, by region, scope and service provider.

Among the findings:

• Of the 26 industries studied, nine are identified as being strong verticals for prospecting activities. Among these, the Media industry has recently seen strong adoption of outsourcing among mid-market companies as well as increasing spending levels among companies with active ITO / BPO contracts. This recent increase in outsourcing activity is likely to continue as Media companies face significant market pressure and seek opportunities for short-term cost savings.
• In terms of the number of companies represented, the Aerospace & Defense sector is the smallest of the 26 industries classified by Forbes(R), yet it remains a strong market for outsourcing. In fact, 68 percent of the companies within this space have an active outsourcing contract with a total contract value (TCV) of $25 million or more -- the highest percentage of all verticals studied. Outsourcing activity is likely to be affected in the coming months due to a variety of changes in the sector including acquisition reform, an expected labor shortage and forecasted 2010 U.S. government budget cuts.
• TPI has observed that the larger companies in the Consumer Durables space tend to be experienced outsourcers. Because these companies have been hit particularly hard by the reduction in consumer spending, they are likely to seek outsourcing opportunities in areas they have not strongly considered in the past. When making outsourcing decisions, TPI has observed that Consumer Durables companies are increasingly focused on the long-term financial viability of the service providers considered, adding another layer of complexity to the selling process.

The Report leverages TPI Momentum Pervasiveness Research, a new research program which aggregates nearly 20 years worth of data and trends for sourcing engagements involving the Forbes(R) Global 2000 companies. The result is a powerful tool for analyzing at the most granular level possible current and historical outsourcing penetration rates, spending patterns and market shares. In addition, TPI Momentum members who subscribe to the TPI Momentum Contract KnowledgeBase can search the database to confirm which sourcing related contracts greater than $25 million in total contract value are set to expire between now and 2011.