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Document and Business Process Outsourcing – the big are getting bigger down under.
Recent mergers and acquisitions of larger suppliers of document and business process outsourcing services in Australasia follow an apparent worldwide trend for the growing market for outsourcing. The increasing need for organisations, in both the public and private sectors, to reduce costs and gain improved business efficiencies is proving a boon for service providers in this sector - and the big appear to be getting bigger. Two recent examples at the end of last year were the merger of the BPO company Salmat Ltd, and Hermes Precisa Ltd (HPA) a provider of information and image management services, to form Salmat Business Force, and the acquisition by Speedscan, the Australian document outsource service company of Datacap, a leading New Zealand document services and technologies company based in Auckland. On the systems integration and managed services front there are also signs of further market consolidation with second and third tier players beefing up their footprint to win larger projects in both the public and private sectors. The acquisition by Fujitsu of Infinity Solutions, a NZ owned business solutions provider, has doubled their revenue and reach in this sector, enabling them to punch their weight with the larger tier one managed services providers, such as EDS, IBM, Gen-I, Unisys and others. The recent merger of EDS and HP no doubt will provide a shakedown at the top end of the market and there are signs there are fewer megadeals being won in the current economic downturn, with some organisations spreading smaller contracts between several suppliers. One thing seems certain, there are significant opportunities for all in the document outsource service business as further drivers, such as compliance, e-discovery and a lack of skilled labour to manage the complexities of in-house systems, increase the attractiveness for organisations to outsource their document intensive business processes. We also welcome your own perspectives, which can be emailed to john@documentboss.com
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