According to a newly released IDC study, the business outsourcing market progressed positively in 2005, experiencing a 33 percent increase in the volume of deals signed. The IDC study, which provides an in-depth comparison of 2005 and 2004 business outsourcing deal activity, finds market adoption expanding and becoming more mainstream, as large, midsize, and small companies from a variety of industries embrace the business outsourcing model.

"The business outsourcing market saw healthy growth in 2005," said Romala Ravi, director of IDC's BPO Services research. "While the small number of megadeals signed caused overall contract values to slightly decline, the rest of the market pushed forward strongly. Megadeals can cause wild swings in the total contract values each year, but the reality is that these deals only represent a mere 3 percent of business outsourcing deal activity. The majority of this market, comprising deals under $1 billion in value, continued to see vibrant activity with adoption spread out across a wide range of company sizes, industries, and geographies."

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