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  Two French firms, HP and Accenture complete the top five; industry revenue and employment soared 15% in 2005.
Consulting-Times E-zine

IBM is ranked top global outsourcing company

IBM, a global firm known best for hardware and services ranked number one in The Global Outsourcing 100, the first ever ranking of firms in the fastest growing segment of the world economy. The Global Outsourcing 100 is compiled by The International Association of Outsourcing Professionals (IAOP), an advocate for the outsourcing profession with a global membership of almost 250 organizations.

Scope of Outsourcing

The 100 firms on the list represent 68.9 billion US dollars in 2005 revenues and 1.03 million employees worldwide who provide services to firms like GM, Ford, Citigroup, Bank of America, ExxonMobil and Verizon, representatives of the Fortune 500 and the Financial Times 2500.

Outsourcing revenue and employment grew by 15% in 2005 among the G100 companies. The average outsourcing company now employs 10,000 people at production operations in eight countries and client-facing operations in 13.

The 2006 Global Outsourcing 100 list includes companies from around the world providing the full spectrum of outsourcing services, including information technology and business process outsourcing, as well as areas such as facility services, real estate and capital asset management, manufacturing and logistics.

Rankings were the product of 18 criteria, including number of employees, skills and training of employees, revenue growth, number of technical and business certifications secured, track record of the management team and customer service.

Global Scale Across Industries

In addition to French-owned Sodexho Alliance and Capgemini, Indian firms like Wipro Technologies and GE spin-off Genpact were notable among the Top 20 firms.

The United States dominates ownership of the outsourcing industry with 63 of the G100.

Following at a distance is India with 14, the United Kingdom with 6, Canada and China with 4 each, Russia with 3 and Singapore, the Philippines and France with 2 each.

Outsourcing is taking place in almost every corner of the globe. The range of services and business functions now outsourced by the leading companies extends far beyond IT, human resources and procurement to marketing, food service, real estate, finance, travel, accounting, document management and a range of other specialized services.

Similarly outsourcing is an effective business strategy in a wide range of industries. G100 firms serve clients in banking, insurance, manufacturing, automotive, healthcare, pharmaceuticals, utilities, energy, telecommunications, retail, consumer packaged goods and in the government and public sectors.

The Full Picture is Just Emerging

“Outsourcing is a significant part of the global economy and a business strategy that is being rapidly adapted in many countries and many industries,” Michael Corbett, IAOP Executive Director noted. “This is the first compilation of data about this industry which illuminates the breath of services the number of people employed, the revenues earned and the global impact.

“To some, IBM maybe a surprise leader since they are principally known as a technology innovator. Similarly firms like Sodexho and Aramark, who play substantial roles in outsourcing, aren’t always associated with this industry. Although outsourcing generates a fair amount of emotion and media coverage, the Global 100 ranking is the first three dimensional picture of this powerful and emerging industry.”

Rising Stars Are Dominated by Non-US Firms

Rising Start firms, numbers 66-100 on the list represent the best of emerging companies in the outsourcing space. Offshore firms and firms owned and located in nations where outsourcing is delivered dominate this category. China and India lead this category.

According to Corbett, “The Rising Stars were judged using separate criteria but rolled up into the Global 100 list. These firms represent a multi-national line-up of entrepreneurs relying heavily on advanced and evolving technologies to deliver a broad array of outsourcing services. For the most part, their challenge is to expand their client bases in the US and Europe, the driving geographies in today’s outsourcing environment. We expect the ‘Rising Stars’ to be instrumental in expanding the demand for outsourced services in Asia Pacific and Latin America.”

The complete Global 100 list is below and is available at

Companies were selected based on applications submitted for review by a panel of judges. The Chief Judge was Jag Dalal, a senior executive who has worked extensively in the field of outsourcing at major US corporations including Carrier, Data General, Unisys, and Xerox and is currently principal of JDalal Associates. The panel of judges were: David Barrett, partner, Simmons & Simmons; Michael F. Corbett, Executive Director, IAOP; Dr. Tina Dacin, Queen’s School of Business (Canada); DJ Dalal, country manager (India) for engineering and technology sourcing for United Technology Corporation's Hamilton Sundstrand; Chris Disher, Vice President and head of outsourcing advisory services for Booz Allen Hamilton; Deborah Kops, Managing Director in charge of Global Sourcing Transformation, Deutsche Bank AG, London; Lisa Ross, CEO and Founder of FAO Research, Inc.; and Atul Vashistha, CEO, neoIT.

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