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CAPV: U.S. Document Outsourcing Market Growth Will Slow

Tuesday, April 22, 2003

Press release from the issuing company

(Norwell, MA) April 22, 2003 -- In a recently completed CAP Ventures forecast, analysts project that the document outsourcing market will continue to grow over the next five years, but at a much slower rate than originally anticipated by the industry. This lower growth rate is due to a slowdown in economic activity, a focus on reduced costs, and the maturation of the market (many contracts are in their third contract period). 2001 revenues of $28.8 billion will grow to approximately $35 billion in 2006, representing a compound annual growth rate (CAGR) of 4.1%. CAP Ventures forecast entitled Document Outsourcing Market Forecast: 2001-2006 captures growth projections for the document outsourcing market by customer environment, industries served, and services provided. The forecast segments the industry into three environments: facilities management, statement printing, and contracted print services. In addition to the market forecast, the report includes in-depth profiles of 20 industry leaders and case studies of successful implementations. It also investigates topics of growing interest to document outsourcing service providers such as the growth of value-added services, e-enablement, and the Canadian and Western European markets. Within the overall market, facilities management will grow from just over $6 billion in 2001 to almost $7.6 billion by 2006. Facilities management (FM) is the assignment of specific business functions, sometimes by sale of physical assets such as printers or copiers and the transfer of employees, to a business specializing in those functions or one that offers the service as a complement to other offerings. The statement printing segment will grow from $2.5 billion in 2001 to just over $2.6 billion in 2006. Statement printing is defined as the design, production, printing, mailing, and database management associated with bills, statements, and other financial documents. These transaction documents are used to notify, invoice, and summarize activities that occur in the organization and have been captured by the accounting system. The contracted print services segment refers to long-term contractual relationships, which often last at least five years. Print service providers strive to develop deeper, broader relationships with their customers through these contractual arrangements. The printer’s goal is to increase its value for print service buyers. Contract print services revenues will grow from just over $19 billion in 2001 to almost $25 billion in 2006. CAP Ventures believes that an opportunity for higher growth exists, but it is related to higher value-added services around document and content management that are just beginning to be effectively marketed. “A significant change in the document outsourcing landscape has been the growing requirement to provide services beyond print to remain competitive “ states Holly Muscolino, Director of CAP Ventures’ Production Workflow Solutions service. “While these services may not yet drive significant revenue or provide significant impact on the CAGR for our segments, they are emerging technologies that providers should be investigating.” CAP Ventures' Document Outsourcing Market Forecast: 2001 - 2006 is designed to be used as a strategic planning tool by digital document service providers wishing to identify market trends and opportunities, market size, the competitive landscape, and the range of services being offered as they embark upon strategic business planning. The complete forecast is available immediately to clients of CAP Ventures’ Production Workflow Solutions Consulting Service. A qualitative abridgement of the document will also be available for purchase in the future under the title Document Outsourcing in Focus. To learn more about the forecast or to make a purchase, please contact Stewart MacDonald at (781) 871-9000, ext. 175 or via e-mail at stewart_macdonald@capv.com.




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