(Weymouth, MA) October 07, 2005…InfoTrends/CAP Ventures projects that the U.S. document outsourcing market will continue to grow at a slow but steady pace. Between 2004 and 2009, the market is expected to experience a compound annual growth rate (CAGR) of 4.0%, reaching $38.3 billion by 2009. Opportunities for higher growth exist within higher value-added services concerning digital color production printing and document process outsourcing.
Figure 1: United States Document Outsourcing Market Forecast
“Our seventh annual Forecast provides the strategic, financial, and statistical information that service providers, customers, and companies considering outsourcing engagements need as part of their document outsourcing planning processes in the U.S. marketplace,” commented Holly Muscolino, a Director at InfoTrends/CAP Ventures. “A comprehensive section about service providers and their offerings, as well as market sizing and opportunity analysis, is included to reveal a number of compelling opportunities for service providers and customers.”
The document outsourcing market was valued at approximately $31.5 billion in 2004, and approximately 22% of these revenues came from on-site contracted services. On-site contracted service agreements have benefited from newer offerings that incorporate document management services and more powerful digital color printers. This is reducing the demand for some categories of off-site contracted services because these projects can now be completed on-site.
Statement printing is expected to experience a CAGR of less than 1% through 2009. Basic statement printing services are under substantial pricing pressure as fierce competition reduces commodity print pricing. Print revenue growth will also slowly disappear from the revenue stream as the migration to online delivery continues over the next decade.
Off-site contracted services accounted for 67.3% of the total document outsourcing market in 2004. This segment is expected to achieve a CAGR of 3.8% between 2004 and 2009. While overall segment growth continues to be slow, a careful look at some of the subsegments reveals healthier growth in value-added service areas like data/content services, document consulting services, scanning, and inventory & fulfillment services.
Document process outsourcing (DPO) represents a relatively new, customer-centric category of document outsourcing. InfoTrends/CAP Ventures projects that DPO revenues will increase at a much faster rate then the three traditional segments, surpassing $1.5 billion and accounting for about 4% of total market revenues in 2009. At the same time, however, it is important to remember that this growth is occurring from a very small base.
InfoTrends/CAP Ventures’ Forecast entitled U.S. Document Outsourcing Market Forecast: 2004-2009 provides an overview of the document outsourcing market as it exists today and the analysis and insight needed to understand the direction of the market in the future. This 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 is available immediately to clients of InfoTrends/CAP Ventures’ North American Production Workflow Solutions Consulting Service. For more information about the report or to make a purchase, visit our online store or contact Alison Hipp at , ext. 126 or .
InfoTrends/CAP Ventures is the leading worldwide market research and strategic consulting firm for the digital imaging and document solutions industry. We provide research, analysis, forecasts, and advice to help clients understand market trends, identify opportunities, and develop strategies to grow their businesses. Additional information about InfoTrends/CAP Ventures is available on the Web at www.infotrendsresearch.com.