Capstone Initiates Coverage of the Business Process Outsourcing Market

Boston, MA – Capstone Partners LLC, a national, middle-market investment banking firm, has released a research report on the Business Process Outsourcing (BPO) market, citing robust growth driven by globalization and increased focus on operating efficiencies. Capstone expects the BPO market to experience increased consolidation activity over the next 12 to 24 months.

Jeff Baker, Capstone’s business services analyst, remarked, “In today’s competitive global business environment, companies are increasingly interested in outsourcing non-core activities in order to reduce costs and standardize business processes across multiple operating units. Technology advances and infrastructure improvements in foreign countries have enabled firms to more effectively outsource a variety of business processes. This has resulted in the robust growth of the BPO market.”

There have been several large deals in the BPO market this year, including EDS’s acquisition of Mphasis for $382 million and ADP’s sale of its claims service group to Solera for $975 million. Consolidation is being driven by BPO providers seeking to diversify their service offering in order to capitalize on growing customer demand for more complex, full service process outsourcing.

Jim Beakey, Director and head of Capstone’s Business Services Group, expects continued consolidation in the BPO market, saying, “Recent M&A activity in the BPO market has resulted from increasing demand for providers with global reach and broad service offerings. Given the large number of niche BPO providers, we expect this trend to fuel continued consolidation in the space.”

To receive a complimentary copy of the Research Coverage Report on the Business Process Outsourcing market, please contact Justin Ross at 617-619-3310 or at jross@capstonellc.com.