Wednesday, January 16, 2008

Merger & Acquisition Trends in the BPO and Litigation Support Markets

This report, published by VRA Partners in late 2007, provides details about the increased M&A activity in the litigation support sector, along with a list of the transactions (listing target and acquiring companies) dating back to January 2005.

ATLANTA, September 1, 2007 – Business process outsourcing (“BPO”), or the use of external providers to deliver some portion of a company’s typically non-core business functions, has continually been heralded as an industry of significant growth and growth potential. The statistics from the first half of 2007 and current market forecasts support the industry’s reputation. The market research firm Gartner estimates that BPO was a $128.8 billion dollar market in 2005 and will become a $191.3 billion dollar market by 2010, generating a compound annual growth rate, (“CAGR”), of 8.2% over the period. The value of global BPO contracts rose 9% in the first half of 2007, and the global demand for outsourcing rose 37% over the second quarter alone, according to BPO research firm NelsonHall and BPO provider EquaTerra.

There are several factors driving the increased acceptance and use of outsourcing. The historical driver of outsourcing has been the desire of companies to utilize BPO firms to reduce costs through synergies, efficiencies and best practices by delivering services across a large customer base. In doing so, a company avoids the management headaches and investment dollars necessary to perform a function internally that can be better performed by someone whose business is focused on delivering the same service.

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