Breadth of interest in outsourcing increases

01/12/06 - Stifel Nicolaus

NEW YORK, January 12 (newratings.com) - Analysts at Stifel Nicolaus & Company say that the TPI index indicates that the breadth of interest in outsourcing, in terms of the number of deals and clients, are increasing.

In a research note published this morning, the analysts mention that the BPO (Business Process Outsourcing) sector is expected to grow at 10%-15% going forward. Outsourcing companies that are focused on client needs, including technology capability, productivity/process improvement and global delivery, rather than labour arbitrage, are expected to benefit the most from the attractive growth in the BPO sector, the analysts say. Stifel Nicolaus & Company prefers the stocks of Electronic Data Systems, Accenture, Perot Systems at present.