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  Western European Document Outsourcing Market Overview and Outlook

Introduction

InfoTrends/CAP Ventures’ Forecast entitled Western European Document Outsourcing Forecast: 2004-2009 provides an overview of the Western European Document Outsourcing market as it exists today and the analysis necessary to understand its directions. The report outlines the actual and forecasted revenues across four segments (On-Site Contracted Services, Statement Printing, Off-Site Contracted Services, and Document Process Outsourcing) and covers the period between 2004 and 2009.

The Forecast covers the major countries of the European Union (EU) and European Economic Community (EEC), including Spain, Portugal, France, the U.K., Ireland, Germany, Switzerland, the Netherlands, Belgium, Austria, Italy, Denmark, Norway, Sweden, Finland, Poland, Lithuania, Latvia, Estonia, Hungary, Greece, Czech Republic, Slovakia, and Slovenia.

Market Overview 

The forecast reveals that the Western European Document Outsourcing market will surpass €27 billion by 2009, representing a compound annual growth rate (CAGR) of 6.7%.The Document Process Outsourcing (DPO) segment will experience the fastest growth rates, reaching almost €2.2 billion by 2009 and representing an astounding CAGR of 31%, though starting from a very small base compared to the traditional segments.

Figure 1: Western European Document Outsourcing Market Forecast by Environment (€Millions)

DPO has witnessed tremendous adoption in the U.K. and Germany to date and is showing strength in France as well. The document business processes that are being targeted include customer-facing, technical, marketing and communications, regulatory compliance, and financial accounting and invoicing document processes.

DPO may represent the highest growth rate, but nearly 16% of the total market revenues came from On-Site Contracted Services in 2004. InfoTrends/CAP Ventures projects this segment as a percentage of the total document outsourcing market will increase faster than any other non-DPO segment. Providers realizing the value of strategic partnerships, focusing on core enterprise skill sets, reducing the requirement for business process change, and maintaining control over operations are all key reasons for this segment’s growth.

Off-Site Contracted services represented 67% of the total document outsourcing market in 2004. Growth within this area is slightly higher than last year’s projection due to growth in digital production colour output, expanded value-added services, and the evolution to Document Process Outsourcing.

The Statement Printing segment is expected to experience a CAGR of 4.5% over the forecast period. Transaction documents, including bills, statements, trade confirmations, and other forms of business communications are dominating this segment.

Outlook: Western Europe versus Other Geographies

When compared to the U.S. market, Western Europe remains a higher-growth region for document outsourcing, albeit one with a smaller overall revenue base. Europe has begun aggressively embracing outsourcing practices that are traditionally more established in the U.S., and has uncovered new growth opportunities as a result. In addition, more Euro-centric business models within outsourcing have emerged throughout the region, providing economic benefits beyond the traditional labour costs that have marked a majority of the value created within outsourcing in the United States.

Like the Canadian market, the European government (especially in the United Kingdom) has embraced document outsourcing services, ranging from basic on-site and off-site contracted services to highly sophisticated document process outsourcing engagements. For government enterprises throughout Europe, outsourcing represents an opportunity to provide superior constituent services and redeploy assets to more effectively serve the needs of citizens throughout the area.

For more information about the United States and Canadian marketplaces, please visit our online store at https://store.infotrendsresearch.com/.

The preceding is an excerpt from InfoTrends/CAP Ventures’ forecast entitled “Western European Document Outsourcing Forecast: 2004-2009.” The complete document is available immediately. To learn more about the report or to make a purchase, visit our online store or contact Alison Hipp at (781) 616-2100, ext. 126 or alison_hipp@capv.com.

Copyright © 2005 InfoTrends/CAP Ventures. All rights reserved. Reproduction or reuse of InfoTrends/CAP Ventures materials is strictly prohibited without prior written consent. If you are interested in referencing InfoTrends/CAP Ventures’ content, please submit your request to allison_jones@capv.com.

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