IDC Study Examines Outsourcing's Growth

A new study published by International Data Corp.'s (IDC) consulting research program, Framingham, Mass., says the outsourcing consulting business is experiencing a boom as it becomes an option for cost-cutting, operational efficiency, and addressing IT skills shortages.

The new IDC report, The Increasing Use and Importance of Consultants in Outsourcing, says companies that use outsourcing contracts rely on external consultants and/or legal firms for advice on issues such as what to outsource, who to choose as a vendor, how to price the contract, how to manage the relationship, and when to renegotiate. The IDC report projects a growth rate of almost 40% between 1997 and 2002 for outsource consulting in the U.S. due to the growing use of outsourcing by medium-sized companies with annual sales of $200 million to $1 billion.

The IDC report examines and compares niche outsourcing consulting companies, the major consulting firms, strategy firms, research companies, and legal organizations. The new report also estimates the size and growth of the outsourcing consulting market in the U.S. and other major regions of the world.

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