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Organisations still wary of long-term commitments with business process outsourcing

  • 07 March, 2008 10:00

<p>NORTH SYDNEY, 7 March 2008, A new IDC study has revealed that Australian organisations are cautious about the considerable compliance risks related to BPO, including privacy and data protection, intellectual property rights and executive accountability.</p>
<p>The study revealed this finding, even though Australian organisations believe BPO can be used as a vehicle to cut back office costs and in many cases, improve a process.</p>
<p>This IDC report titled, Australia Customer Priorities for Business Process Outsourcing Services, presents the perceptions and buying intentions of Australian buyers for business process outsourcing (BPO) services.</p>
<p>"BPO pilots will drive more new deals in the Australian region and become an important inroad for a BPO go-to-market strategy, as clients are more receptive to pilots before signing long-term, full-scale BPO contracts. This will happen primarily in areas that are considered ripe for outsourcing such as benefits administration or areas within human capital management," said Aprajita Sharma, Research Manager Outsourcing and BPO at IDC.</p>
<p>“In North America and Europe, the Middle East and Africa (EMEA) where BPO engagements tend to be more mid to long-term (5-10 years) contracts are normally signed at the start. However, Australia is seeing a shift toward trial/pilot BPO projects taking precedence," adds Sharma.</p>
<p>In 2008, IDC sees finance and accounting as the drivers of BPO in Australia with cheque, credit card and billing processing as the main forms of business. HR will be another driver and consequently, more companies will embark on payroll outsourcing and will most likely combine that with the underlying implementation of the technology component.</p>
<p>On IDC’s website,, this media release relates to document: #AU223105Q, Australia Customer Priorities for Business Process Outsourcing Services.</p>
<p>To request a briefing about this topic or to purchase the report, please contact Gary Clarke on +61 2 9925 2226 or e-mail</p>
<p>For more information or to arrange an interview with Aprajita Sharma, please contact Sally Taylor-Phillips, Marketing Communications Manager at IDC on +61 2 9925 2234 or e-mail</p>
<p>About IDC
IDC is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community make fact-based decisions on technology purchases and business strategy. More than 900 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 90 countries worldwide. For more than 43 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting or</p>

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