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Market Vista: Q4 2012 – Preview Deck



Market Vista




                                       Copyright © 2013, Everest Global, Inc.
                                       EGR-2013-8-PD-0824
Our research offerings for global services



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   The full report is included in   Global services tracking across functions, sourcing models, locations, and
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    – +1-214-451-3110                Custom research capabilities
                                      Benchmarking | Pricing, delivery model, skill portfolio
                                      Peer analysis | Scope, sourcing models, locations
                                      Locations | Cost, skills, sustainability, portfolio
                                      Tracking services | Service providers, locations, risk
                                      Other | Market intelligence, service provider capabilities, technologies



                                              Copyright © 2013, Everest Global, Inc.
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Table of contents



   Product overview

   Illustrative contents




                            Copyright © 2013, Everest Global, Inc.
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The increasing complexity of the outsourcing market has
amplified the risk exposure for companies

Factors driving increased risk                                   Examples of risks

Vendor and model proliferation Multiple                            Regulatory risk
service providers and business models                              Ensuring compliance with regulatory
                                                                   guidelines in source and destination
                                                                   countries across service providers
Large span of functions                                                                          Performance risk
Typically combination of many IT, BPO and                          Business case risk            Managing quality of
some KPO services                                                  Managing wage                 service delivery, attrition,
                                                                   inflation without             knowledge retention
Increasing scope                                                   affecting quality of
Significant proportion of operations now in                        service                  Data security and
low cost locations                                                                          intellectual property risk
                                                                                            Implementing measures to
Global delivery chain                                                                       safeguard data and
Services often delivered from multiple                                                      intellectual property
                                                                   Concentration risk
locations with diverse risk footprint
                                                                                       Business continuity risk
Dynamic economies
Most delivery locations are emerging                                     Currency risk
economies going through rapid change
                                                                   ….

Most large companies have capabilities in global risk management. However, the level and type of risk
exposure that is emerging from the globalization of services is unprecedented

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Sourcing leaders are being asked to manage risks associated
with global sourcing and support the delivery of
transformational results

                                                 Are there                               What is the real
    What are my                                opportunities                            inflation and how
    peers doing?                              to optimize my                           does it compare to
                                                  pricing?                             price increases in
                                                                                          my portfolio?
                                                                                                                 Are there new
           What new service delivery                                                                            govt. incentives
          models/ service providers are                 How can I better                                        that I can avail?
             my peers leveraging?                        manage forex
                                                          changes?


     What new risks are                                                                                    Are their any new
          my service                                                                                       political or macro-
                                     Who are the                       How are the
     providers taking on?                                                                               economic risks I need
                                   emerging service                   relative costs
                                                                                                        to be aware of NOW ?
                                    providers in my                   moving across
                                        areas?                          locations?




                      Key decisions that Sourcing managers need to support
                       Comparison with peers
                       Location risk management
                       service provider selection and optimization
                       Design of new deals
                       Price benchmarking and contract renewals


                                              Copyright © 2013, Everest Global, Inc.
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Market Vista provides continuously updated facts and
analysis every quarter to enable effective management of
global services portfolios

           Each quarterly Market Vista report captures developments across three key areas

1                                   2                                               3
Market overview                     Location trends and risks                       Service provider developments
   Outsourcing transactions           Key location developments                      Key developments among 20
    trends                              – Establishment of new                          leading global service
    – Transaction analysis – By            offshore centers, expansion                  providers
       function, geography, deal           of existing centers, plans of                – Financial performance
       size and duration, etc.             establishment and                            – Transaction activity
    – Transaction analysis by              expansion of centers                         – Changes in delivery
       industry verticals (more        Risk dashboard capturing key                       footprint
       details in Industry Trends       current and emerging risks                      – M&A and alliance activity
       reports)                         – Geo-political / economic
    – Listing of major IT/BPO              changes
       outsourcing deals                – Government initiatives                       Detailed profiles for each
    – Large offshore deals             Quarterly focus – Fact-base on                  player capturing key
   Analysis of GICs                    Asian locations                                 developments across
    – New GIC set-ups,                  – Sustainability of arbitrage                   dimensions
       divestures                       – Operating costs, inflation
    – Plans for GIC set-ups and            rates, and currency trends
       expansion                           across key cities

                                           Copyright © 2013, Everest Global, Inc.
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Additional Market Vista deliverables



Global Location Insights               Breaking Viewpoints on key
newsletter                             developments                                   Market Vista Primers




            4-6 published                       8-10 published                                     4-5 published
              every year                          every year                                         every year


   E-newsletter published every two      Event/theme based e-briefings                 Published every quarter
    months                                Recent topics included                        Recent topics included
   Recent topics included                 – The Risky Side of Offshore                   – Global sourcing trends in U.S.
    – Healthcare BPO in Philippines          Growth: Operational Challenges                 Mortgage industry
    – Service providers’ location-           in the Top five Indian IT Majors             – Contact center service providers
      related plans                        – Perspective on M&A events                      in Latin America
    – China’s offshore maturity              (Atos-Siemens IT, iGate-Patni,               – French language service
    – Buyer’s offshoring plans               Wipro-SAIC’s Oil & Gas IT                      providers in EMEA
                                             Business)


                                             Copyright © 2013, Everest Global, Inc.
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Table of contents



   Product overview

   Illustrative contents




                            Copyright © 2013, Everest Global, Inc.
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Each section of the quarterly report comprises 30+ pages of
insight and data
Illustrative Table of Contents (page 1 of 2)
Topic

Section I A: Trend analysis – Outsourcing, offshoring, and GICs
 Outsourcing transactions analysis
 Outsourcing transaction trends by time period
 Offshore transactions analysis
 GIC developments


Section I B: Data snapshots
 Major deals signed in the quarter
 List of mega deals signed in the quarter
 Examples of very large deals signed in the quarter
 Examples of large deals signed in the quarter
 Analysis of outsourcing transactions by buyer revenue
 List of new GIC announcements in the quarter
 List of GICs with announcements for expansion in the quarter
 List of GIC divestures in the quarter


Section II A: Trend analysis – Risk and opportunity dashboard and analysis
 Risk and opportunity dashboard
 Risk and opportunity analysis


Section II B: Focus geography
 Arbitrage sustainability
 Operating costs
 Operating cost inflation
 Currency trends



                                                      Copyright © 2013, Everest Global, Inc.
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Each section of the quarterly report comprises 30+ pages of
insight and data
Illustrative Table of Contents (page 2 of 2)
Topic

Section II C: Data snapshots
 Market activity: Delivery centers established in the quarter
 Market activity: Delivery centers planned in the quarter
 Market activity: Expansion announcements in the quarter
 Regional developments: Geopolitical, macroeconomic environment
 Regional developments: Leading economic indicators
 Regional developments: Investment environment


Section III A: Trend analysis – Key developments across service providers
 Service provider developments overview
 Analysis of service provider developments


Section III B: Data snapshots – Details of key developments and profiles by service providers
 Recent M&A activity by service providers
 Recent alliances and partnerships forged by service providers
 Locations
 Key market developments




                                                    Copyright © 2013, Everest Global, Inc.
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Section I – Market section | Overview
Captures outsourcing transactions trends, GIC developments with an emphasis on
large size contracts

Market overview | Outsourcing/offshoring market index                                                                                                        GIC set-ups | By region
     Index of outsourcing transactions1                                        Index of offshore captive health1
     Number                                                                    Number                                                                                                  Europe: XX captive set-ups
                                                                                                          2
                                                                                                    Captive set-ups =             New +          Expansion                              XXXX opened its shared business
                                                                                                                                                                                         service center in XXXX                                             Rest of Asia: XX captive set-ups
                                                                                                    Captive divestures =                                                                XXXX opened its new BPO center
                                                                                                                                                                                                                                                             XXXX opened its new R&D facility in

                                 XX                                                                                                                                                      in XXXX                                                              XXXX
                XX                                                                                                                                                                                                                                           XXXX opened an R&D facility in XXXX
                                                     XX                                                   XX                                                                                                                                                 XXXX opened its new center in XXXX

                                                                                                          XX

                                                                                                                                                                                     Middle East and Africa: XX captive set-ups
                                                                                                                                   XX                                                 XXXX opened its first regional support
                                                                                                                                                                                       center in XXXX
                                                                                                                                                                                      XX opened its new customer service
                                                                                 XX                       XX                                                                           center in XXXX

                                                                                                                                  XX
                                                                                 XX
                                                                                                                                                                     Latin America: XX captive set-
                                                                                XX XX                                                       XX                       ups
                                                                                                                                                                      XXXX opened a new shared                                                    India: XXXX captive set-ups
         QX Year Y-1        QX-1 Year Y           QX Year Y                    QX Year Y-1               QX-1 Year Y             QX Year Y                             services center in XXXX                                                      XXXX opened an R&D center in XXXX
                                                                                                                                                                                                                                                    XXXX opened a new R&D center in XXXX
                                                                                                                                                                                                                                                    XXXX opened a new R&D center in XXXX
        Transaction volumes decreased by XX% compared to the previous quarter but increased by XX%
         compared to the previous year
        Captive activity remained similar compared to previous quarters, with XX new announcements


Major deals in the quarter                                                                                                                                   List of mega deals signed in the quarter
Distribution by deal size                            Distribution by industry verticals                    Distribution by source geography
Number of transactions                               Number of transactions                                Number of transactions                            Three-quarter moving average2
                                                                                                                                                              Mega deals (TCV >= US$1 billion)
                     100% = XX                                        100% = XX                                                 100% = XX
                                                                                                                                                              Number
                            XXXX
                                                                                     XXXX                                XXXX
                         XX%                                                                                                                                        XX                XX                 XX                XX            XX
                                                                               XX%                                           XX%
                                                           XXXX
                                       XXXX                        XX%                                                                             XXXX
                               XX%                                                                                                        XX%                   QX Year Y-1 QX+1 Year Y-1 QX+2 Year Y-1 QX+3 Year Y-1                 QX Year Y
                                                                                   XX% XXXX                       XXXX    XX%
         XXXX    XX%                                               XX%                                                                                       List of mega deals signed
                                                            XXXX               XX%
                                                                         XX%                                                       XX%
                                                                                     XXXX                                                                                                                         Deal value      Contrac
                                                                   XXXX                                                          XXXX
                                                                                                                                                                                  Industry            Service     (US$            t        Functiona
                                                                                                                                                              Buyer               vertical            provider    million)        duration l scope   Services
    There were XX major deals (total contract          Apart f rom the XXXX sector, the XXXX and             XXXX and XXXX accounted f or ~XX% of the
     value exceeding US$XX million) reported in          XXXX industry verticals accounted f or around          major deals signed in the quarter             Buyer 1             XXXX                XXXX        XXXX            XXXX     ITO       IT ADM
     QX 20XX, compared to XX in QX 20XX                  XX% of all major deals
                                                                                                                                                              Buyer 2             XXXX                XXXX        XXXX            XXXX    ITOIncludes over 15 pages and
                                                                                                                                                                                                                                                   IT ADM; IT infrastructure – datacenter,
                                                                                                               XXXX and XXXX also reported some major
    XX mega deals (total contract value exceeding      XXXX, XXXX, and XXXX industry verticals                deals in this quarter                                                                                                          of data tables across
                                                                                                                                                                                                                                                   helpdesk
     US$XX billion) were reported in QX, compared        reported mega deals                                                                                  Buyer 3             XXXX                XXXX        XXXX            XXXX    BPO and BPO – HRO, procurement, real estate, and
     to XX in the previous quarter                                                                                                                                                                                                        ITO transactions, GICsIT infrastructure –
                                                                                                                                                                                                                                                   industry-specific; IT ADM; and
 The following pages provide details for mega deals (TCV>US$1 billion), very large deals (TCV - US$200-999 million), and large deals (TCV -
 US$50-199 million)
                                                                                                                                                                                                                                                 financial helpdesk
                                                                                                                                                                                                                                                   network, and
                                                                                                                                                                                                                                                                services

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Outsourcing transactions analysis | By deal type
Profiles the share of renewed/restructured deals compared to the previous quarter
and the same quarter of the previous year

Number of transactions by type                                                       Major outsourcing transactions reaching the end of their
Number of transactions                                                               contract duration over the next few months
100% =                    XX                 XX                 XX
                                                                                     Buyer                Service provider   Function scope
      Renewals/          XX%                XX%               XX%                    Buyer 1              XXXX               XXXX
   restructuring1
                                                                                     Buyer 2              XXXX               XXXX
                                                                                     Buyer 3              XXXX               XXXX
                                                                                     Buyer 4              XXXX               XXXX
                                                                                     Buyer 5              XXXX               XXXX


New transaction          XX%                XX%               XX%
       signings




                    QX Year Y-1        QX-1 Year Y         QX Year Y




     1    Instances where the scope of existing contract was extended or expanded
Source:   Everest Group Transaction Intelligence Database

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Section II – Locations section | Overview
Key developments and emerging risks and opportunities across locations


Locations | Market activity heatmap                                                                                           Locations | Risk and opportunity dashboard
                                                                                                      XXXX         XXXX                                                                                      XXXX
                                                                                                      XXXX         XXXX                                                                                      XXXX
                                                                                                      XXXX
                                                                                                                                                                                                             XXXX




                                                                                                                                                              D
                                                                                                                                                              B
                                                                                                                                                                  XXXX



                                              Czech Republic        Poland
                                                                      Romania
                                                     Hungary                                                                                                                                      C
                                                                                                                                                                                                  C
                                                                      Bulgaria
                                                                                                                                                                                                      XXXX
                                                 Morocco                                   China
                  Mexico                                     Egypt                 India
               El Salvador                                                                           Philippines
                                 Panama
                    Costa Rica                                                     Malaysia   Singapore
                                                                                                                                        A
                                                                                                                                            XXXX                     B
                                                                                                                                                                     B
                                     Brazil                                                                                                                              XXXX



                             Chile                                  South Africa
                                     Argentina




Locations | Focus geography                                                                                                   Locations | Market activity data
  Operating cost per FTE for IT services
  US$’000s/per annum                                                                                                            Asia
                                                            XX                 XX
       XX               XX
                                                                                                    XX                                                            Service
                                                                                                                     XX                                           provider/     Number
                                          XX
                                                                                                                                Country City          Month       captive       of FTEs   Other comments
                                                                                                                                China          XXXX   XXXX        XXXX          XXXX      XXXX
      City 1          City 2            City 3             City 4            City 5                City 6          City 7
                                                                                                                                China          XXXX   XXXX        XXXX          XXXX      XXXX
  Operating cost per FTE for BPO services                                                                                       China          XXXX   XXXX        XXXX          XXXX      XXXX
  US$’000s/per annum
                                                                                                                                India          XXXX   XXXX        XXXX          XXXX      XXXX
                                                            XX                 XX
                                                                                                                                India          XXXX   XXXX        XXXX          XXXX      XXXX
       XX               XX
                                                                                                    XX                                                                               Includes over 20 pages
                                                                                                                     XX         India          XXXX   XXXX        XXXX          XXXX of data tables on market
                                                                                                                                                                                        XXXX
                                          XX
                                                                                                                                India          XXXX   XXXX        XXXX          XXXX    XXXX
                                                                                                                                                                                       activity, costs, wage
      City 1          City 2            City 3             City 4            City 5                City 6          City 7                                                                  inflation, etc.

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Locations | Market activity index
Analyzes trends in activity across regions; also compares activity in tier-1 cities and
tier-2/3 cities

Market activity across geographies                                                     Market activity across Tier-1 and Tier-2/3 locations
Number of service delivery centers set up                                              Number of service delivery centers set up
                                                                                                                  QX-1 Year Y        QX Year Y
                                                                                                                  Year Y-1 Quarterly average

                     XX
                                                                                                     XX      XX       XX
    XX
            XX
                                                                                                                                       XX
                                      XX                                                                                        XX
                                                                                             XX

                                                    XX
                                               XX
                                                                    XX
                               XX
                                                           XX


          Region 1                  Region 2             Region 3                                   Tier-1                  Tier-2/3


   XX delivery centers were set up during the quarter, XXXX than previous quarter
   Although location activity increased significantly in XXXX and XXXX, the number of delivery centers established in XXXX
    decreased to a XX-month low
   Though players set up centers in both tier-1 and tier-2/3 locations, there was XXXX activity in tier-XX locations


Source:    Everest Group analysis

                                                           Copyright © 2013, Everest Global, Inc.
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Section II – Locations section | Illustrative output
Each quarterly report will cover a deep-dive on a specific geography/ theme


Locations | Focus geography                                                                                        Locations | Regional developments
        Projected sustainability of labor arbitrage                                           ITO SERVICES             Region             Key developments
        Number of years                                                                                                Asia                  China –
                                                                                                                                              – XXXX
                                    Base scenario – Most      Pessimistic scenario –   Optimistic scenario –
                                                                                                                                              – XXXX
                                    probable operating cost   higher operating cost    Lower operating cost
                                                                                                                                              – XXXX
        Source/destination          inflation and currency    inflation and currency   inflation and currency
        countries                   appreciation              appreciation             appreciation
                                                                                                                                             India –
        U.S.-XXXX                             XX                        XX                       XX                                           – XXXX
                                                                                                                                              – XXXX
        U.S.-XXXX                             XX                        XX                       XX
                                                                                                                                              – XXXX
        U.S.-XXXX                             XX                        XX                       XX
                                                                                                                                             Thailand –
                                                                                             BPO SERVICES                                     – XXXX
                                                                                                                                              – XXXX
                                                                                                                       Eastern               Estonia –
                                    Base scenario – Most      Pessimistic scenario –   Optimistic scenario –
                                                                                                                       Europe                 – XXXX
                                    probable operating cost   higher operating cost    Lower operating cost
        Source/destination          inflation and currency    inflation and currency   inflation and currency
                                                                                                                                             Hungary –
        countries                   appreciation              appreciation             appreciation
                                                                                                                                              – XXXX
        U.S.-XXXX                             XX                        XX                       XX
                                                                                                                                             Poland –
        U.S.-XXXX                             XX                        XX                       XX
                                                                                                                                              – XXXX
        U.S.-XXXX                             XX                        XX                       XX                                           – XXXX



Locations | Regional developments                                                                                  Locations | Focus geography
                                                                                                                      Annual change in real estate rentals (grade A)
 Region           Key developments                                                                                    Percentage
 Asia                Sri Lanka –
                      – XXXX                                                                                                  -X%         City 1
                      – XXXX                                                                                                                                  XXXX
                                                                                                                                                              XXXX
                     India –
                                                                                                                       -X%                City 2
                      – XXXX
                      – XXXX                                                                                                                                  XXXX
                                                                                                                                                              XXXX
 Africa              Egypt –                                                                                                    City 3       X%
                      – XXXX
                      – XXXX
                      – XXXX                                                                                                     City 4        X%             XXXX
                      – XXXX                                                                                                                                  XXXX


                                                                                                                                 City 5             X%
                                                                                                                                                              XXXX
                                                                                                                                                              XXXX    Includes a deep-dive on
                                                                                                                                -X%       City 6
                                                                                                                                                                          emerging locations
                                                                                                                                                              XXXX
                                                                                                                                                              XXXX    covering costs, inflation,
                                                                                                                                 City 7        X%
                                                                                                                                                                         currency trends, etc.

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Section III – Service provider developments | Overview
Profiles developments across 20 leading service providers, highlighting key
implications for sourcing managers

Service provider developments analysis | Transaction                                                                                           Service provider developments analysis | M&A and
activity                                                                                                                                       alliances
  Transaction announcements activity in QX Year Y and trend over QX-1 Year Y                                     Increased from last quarter     M&A by service provider category                                Alliances by service provider category
                            ITO deals           BPO deals           Both ITO & BPO                               Similar to last quarter
                                                                                                                                                 Number of acquisitions                                          Number of alliances
   Service provider      Number Trend        Number   Trend        Number     Trend                              Decreased from last quarter
   High activity                                                                                                                                                                              XX                                          XX
   Service provider 1      XX                   XX                    XX                                XXXX
   Service provider 2      XX                   XX                    XX
                                                                                                        XXXX
   Service provider 3      XX                   XX                    XX                                                                                                  XX                  XX
   Service provider 4      XX                   XX                    XX                                XXXX                                                                                                    Offshore-centric                                XX
                                                                                                                                                                                                                                          XX
   Service provider 5      XX                   XX                    XX
                                                                                                        XXXX                                                                                                    service providers
   Service provider 6      XX                   XX                    XX                                                                         Offshore-centric
   Service provider 7      XX                   XX                    XX                                                                                                  XX
                                                                                                                                                 service providers                                                                                               XX
   Moderate activity
   Service provider 8      XX                   XX                    XX
   Service provider 9      XX                   XX                    XX
   Service provider 10     XX                   XX                    XX                                                                                                                      XX
   Service provider 11     XX                   XX                    XX                                                                                                                                         Traditional global       XX
                                                                                                                                                 Traditional global
   Service provider 12     XX                   XX                    XX                                                                                                  XX                                     service providers                               XX
   Service provider 13     XX                   XX                    XX
                                                                                                                                                 service providers
   Service provider 14     XX                   XX                    XX
   Service provider 15     XX                   XX                    XX
   Service provider 16     XX                   XX                    XX
   Service provider 17     XX                   XX                    XX
                                                                                                                                                                      QX-1 Year Y          QX Year Y                                  QX-1 Year Y            QX Year Y
   Low activity
   Service provider 18     XX                   XX                    XX                                                                            XXXX
   Service provider 19     XX                   XX                    XX                                                                            XXXX
   Service provider 20     XX                   XX                    XX



Service provider developments | Market Vista Index of                                                                                          Key market developments
service providers                                                                                                                                        Recent transaction activity
                                                                                                                                                                                           Announcement       TCV estimate
  Traditional global service providers                                         Offshore-centric service providers                                        Buyer name                        date               (US$ million)     Duration (years)    Services
                                                                                                                                                         Buyer 1                           XXXX               XXXX              XXXX                AO, FAO, and
                                                                                                                                                                                                                                                    HRO
                                                                                                                                                         Buyer 2                           XXXX               XXXX              XXXX                AO
                                                                                                                                                         Buyer 3                           XXXX               XXXX              XXXX                AO
                                                                                                                                                         Buyer 4                           XXXX               XXXX              XXXX                AO
                                                                                                                                                         Buyer 5                           XXXX               XXXX              XXXX                AO
                                                                                                                                                         Buyer 6                           XXXX               XXXX              XXXX                AO
                                                                                                                                                         Buyer 7                           XXXX               XXXX              XXXX                AO and FAO
                                                                                                                                                         Buyer 8                           XXXX               XXXX              XXXX                IO
                                                                                                                                                         Buyer 9                           XXXX               XXXX              XXXX                AO
                                                                                                                                                         Buyer 10                          XXXX               XXXX              XXXX                CC and industry-
                                                                                                                                                                                                                                                    specific BPO
                                                                                                                                                         Buyer 11                          XXXX               XXXX              XXXX                AO
                                                                                                                                                                                                                            Includes over
                                                                                                                                                         Location footprint
                                                                                                                                                         Location       Status         Employees   Description
                                                                                                                                                                                                                       40 pages of data tables
                                                                                                                                                         XXXX           New center     XXXX           XXXX             on M&A, new delivery
  This section focuses on the key developments of the above service providers across financial                                                                          (Planned)                     XXXX
  performance, recent transactions, major developments in location footprint, mergers, acquisitions,                                                     XXXX           New center     XXXX           XXXX             centers, management
  and alliance activity                                                                                                                                                 (Planned)                     XXXX
                                                                                                                                                                                                                            changes, etc.

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Service provider developments analysis | Ratings summary


                                                                                             Limited activity   Moderate activity     High activity

                                        M&A and                                                                    M&A and
Service                      Location   alliance   Overall            Service                     Location         alliance         Overall
provider       New deals     changes    activity   rating             provider      New deals     changes          activity         rating
Traditional global service providers                                  Offshore-centric service providers
Service                                                               Service
provider 1                                                            provider 12
Service                                                               Service
provider 2                                                            provider 13
Service                                                               Service
provider 3                                                            provider 14
Service                                                               Service
provider 4                                                            provider 15
Service                                                               Service
provider 5                                                            provider 16
Service                                                               Service
provider 6                                                            provider 17
Service                                                               Service
provider 7                                                            provider 18
Service                                                               Service
provider 8                                                            provider 19
Service                                                               Service
provider 9                                                            provider 20
Service
provider 10
Service
provider 11
Source:   Everest Group (2011)

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Market Vista encompasses a suite of offerings
Multiple delivery formats allow Global Sourcing Managers to access information in a
way that supports the decision-making process

                                                                                          Standard subscription   Premium subscription
Market Vista offering   Description                                                       access (annual)         access (annual)

                        Quarterly report with in-depth coverage of transaction,
  Quarterly Report      location, and service provider trends                                                            
                        Quarterly brief of expert perspectives on emerging
       Primer           market trends (e.g., new pricing models)                                                         
                        Annually updated database of location stats (e.g., cost,
 Location database      attrition, inflation rates) for 23 major cities                                                  
                        Flash reports highlighting breaking industry news and
     Breaking
     viewpoint          expert perspectives on key implications                                                          
                        Bi-monthly Global Location Insights e-newsletter
 Locations insights
   e-newsletter         containing detailed country and region info                                                      
                        Exclusive quarterly webinars with stakeholders in the
     Exclusive
     webinars           subscriber organization on key market trends and
                        developments highlighted in Market Vista research
                                                                                                                          
                        10 hours of analyst access per year for personalized
      Analyst
    consultation        insights and additional perspectives                                                              
                                                      Copyright © 2013, Everest Global, Inc.
                                                                                                                                     18
                                                             EGR-2013-8-PD-0824
Trends reports complement Market Vista quarterly reports by
providing in-depth coverage of global sourcing across industry
verticals and regions



      Market Vista Buyer Geography Trends reports                                                                                  Market Vista Industry Trends reports
     Regions tracked                                                                     Industries tracked
      United States and Canada                                                           Banking, Financial                                                                                                                                    Healthcare
      Europe                                                                               Services, & Insurance                                                                                                                                Technology
      Rest of the World (RoW), including Asia Pacific                                      (BFSI)                                                                                                                                               Telecom
       (APAC), Latin America (LATAM), and Middle East &                                   Manufacturing, Distribution,                                                                                                                          Public Sector
       Africa (MEA)                                                                         and Retail (MDR)                                                                                                                                     Travel & Hospitality
                                                                                          Energy & Utilities (E&U)



                                     30+ pages of analysis on each industry vertical/region every quarter

     Outsourcing transaction                GIC set-up and expansion                                                                                                                                                                            Service provider trends and
            activity                                 activity                                           Processes and models                                                                                                                          developments
                                                                                                                                                   Decreased from last quarter      Similar to last quarter   Increased from last quarter

                                                                                                       Current quarter                             Previous year
                                                                                                       ITO by process1                             ITO by process1
                                                                                                       Q2 2011; Frequency of occurrence            2010; Frequency of occurrence                      Change in number of ITO
                                                                                                       Total = 354                                 Total = 1,381                                      transactions, by process1
                                                                                                                                                                                                Q2 10 to Q2 11          Q1 11 to Q2 11

                                                                                       Application
                                                                                     development                             111                                              472

                                                                                      Application
                                                                                                                        90                                              348
                                                                                     maintenance

                                                                                           Systems
                                                                                         integration                   87                                           307


                                                                                         Datacenter               60                                              263


                                                                                           Network                     81                                             339


                                                                                           Desktop           34                                             139


                                                                                          Helpdesk          27                                              138


                                                                                        Transaction activity was higher among IT ADM processes than IT infrastructure
                                                                                        Adoption of ITO processes in Q2 2011 was similar to that in 2010 (yearly average)
                                                                                        Adoption of Desktop process declined compared to the previous quarter




   Trends in transaction volumes,        GIC set-ups, expansions, and                  Process-level and subprocess-                                                                                                                        Service provider performance
    contract values, and momentum          divestures                                     level transaction trends                                                                                                                              (transactions, market shares)
   Events with industry impact           Analysis of buyers, locations,                Emerging opportunity areas                                                                                                                           Significant deals signed by
                                           and scope of work offshored                                                                                                                                                                          leading enterprises

                                                              Copyright © 2013, Everest Global, Inc.
                                                                                                                                                                                                                                                                                19
                                                                     EGR-2013-8-PD-0824
Appendix: Additional research recommendations



The following documents are recommended for additional insight into the topic covered in this report. The recommended
documents either provide additional details on the topic or complementary content that may be of interest:

1. Market Vista: Q3 2012 (EGR-2012-8-R-0776); 2012. This report summarizes the key trends and developments for Q3 2012 in the global
   offshoring and outsourcing market

2. Industry Trends reports: Trends for Q3 2012. These reports provide industry-specific data, developments, and insights that enable
   global sourcing managers to navigate through the complexity, and make clear, effective decisions, contextualized and suited to their
   specific industry. These reports provides a deep-dive into the transaction activity, GIC developments, service provider market share, and
   key outsourcing transactions specific to the industry. Industries covered include: Banking, Financial Services, and Insurance (BFSI);
   Manufacturing, Distribution, and Retail (MDR); Energy and Utilities (E&U); Healthcare; Technology; Telecom; Public Sector; and Travel
   and Hospitality

3. Buyer Geography Trends reports: Trends for Q3 2012. These reports provide data, developments, and insights on outsourcing and
   offshoring trends for a particular buyer geography/region. These reports provide the research and analysis that enable users to navigate
   through complexity and make clear, effective decisions suited to their focus region. These reports provide detailed information on
   transaction activities, Global In-house Center (GIC) developments, service providers’ market shares, and key outsourcing transactions
   specific to particular regions. Regions covered include: U.S. and Canada; Europe; and Rest of the World

                                            For more information on this and other research published by Everest Group, please contact us:

                                            H Karthik, Vice President – Global Sourcing:                   h.karthik@everestgrp.com
                                            Salil Dani, Practice Director:                                 salil.dani@everestgrp.com
                                            Anurag Srivastava, Practice Director:                          anurag.srivastava@everestgrp.com

                                            Everest Group
                                            Two Galleria Tower
                                            13455 Noel Road, Suite 2100                          Phone:    +1-214-451-3110
                                            Dallas, TX 75240                                     E-mail:   info@everestgrp.com

                                                        Copyright © 2013, Everest Global, Inc.
                                                                                                                                           20
                                                               EGR-2013-8-PD-0824
Everest Group
Leading clients from insight to action

Everest Group is an advisor to business leaders on the next generation of global services with a worldwide reputation for helping
Global 1000 firms dramatically improve their performance by optimizing their back- and middle-office business services. With a
fact-based approach driving outcomes, Everest Group counsels organizations with complex challenges related to the use and
delivery of global services in their pursuits to balance short-term needs with long-term goals. Through its practical consulting,
original research, and industry resource services, Everest Group helps clients maximize value from delivery strategies, talent and
sourcing models, technologies, and management approaches. Established in 1991, Everest Group serves users of global
services, providers of services, country organizations, and private equity firms in six continents across all industry categories. For
more information, please visit www.everestgrp.com and research.everestgrp.com.


Dallas (Corporate Headquarters)                          Toronto                                              India / Middle East
info@everestgrp.com                                      canada@everestgrp.com                                india@everestgrp.com
+1-214-451-3000                                          +1-416-865-2033                                      +91-124-496-1000


New York                                                 London
info@everestgrp.com                                      unitedkingdom@everestgrp.com
+1-646-805-4000                                          +44-207-129-1318




Stay connected
Websites                                       Twitter                                         Blogs

www.everestgrp.com                             @EverestGroup                                   www.sherpasinblueshirts.com
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Industry Trends Report - Q4 2012 - Preview Deck

  • 1. Market Vista: Q4 2012 – Preview Deck Market Vista Copyright © 2013, Everest Global, Inc. EGR-2013-8-PD-0824
  • 2. Our research offerings for global services Subscription information Market Vista  The full report is included in Global services tracking across functions, sourcing models, locations, and the following subscription(s) service providers – industry tracking reports also available – Market Vista Banking, financial Healthcare Finance & accounting  In addition to published services, insurance research, a subscription may include analyst inquiry, data Information cuts, and other services Procurement Cloud Vista technology  If you want to learn whether your organization has a Human resources Recruitment process Global sourcing subscription agreement or request information on pricing and subscription options, Service provider Transaction PricePoint please contact us: Intelligence Intelligence – info@everestgrp.com – +1-214-451-3110 Custom research capabilities  Benchmarking | Pricing, delivery model, skill portfolio  Peer analysis | Scope, sourcing models, locations  Locations | Cost, skills, sustainability, portfolio  Tracking services | Service providers, locations, risk  Other | Market intelligence, service provider capabilities, technologies Copyright © 2013, Everest Global, Inc. 2 EGR-2013-8-PD-0824
  • 3. Table of contents  Product overview  Illustrative contents Copyright © 2013, Everest Global, Inc. 3 EGR-2013-8-PD-0824
  • 4. The increasing complexity of the outsourcing market has amplified the risk exposure for companies Factors driving increased risk Examples of risks Vendor and model proliferation Multiple Regulatory risk service providers and business models Ensuring compliance with regulatory guidelines in source and destination countries across service providers Large span of functions Performance risk Typically combination of many IT, BPO and Business case risk Managing quality of some KPO services Managing wage service delivery, attrition, inflation without knowledge retention Increasing scope affecting quality of Significant proportion of operations now in service Data security and low cost locations intellectual property risk Implementing measures to Global delivery chain safeguard data and Services often delivered from multiple intellectual property Concentration risk locations with diverse risk footprint Business continuity risk Dynamic economies Most delivery locations are emerging Currency risk economies going through rapid change …. Most large companies have capabilities in global risk management. However, the level and type of risk exposure that is emerging from the globalization of services is unprecedented Copyright © 2013, Everest Global, Inc. 4 EGR-2013-8-PD-0824
  • 5. Sourcing leaders are being asked to manage risks associated with global sourcing and support the delivery of transformational results Are there What is the real What are my opportunities inflation and how peers doing? to optimize my does it compare to pricing? price increases in my portfolio? Are there new What new service delivery govt. incentives models/ service providers are How can I better that I can avail? my peers leveraging? manage forex changes? What new risks are Are their any new my service political or macro- Who are the How are the providers taking on? economic risks I need emerging service relative costs to be aware of NOW ? providers in my moving across areas? locations? Key decisions that Sourcing managers need to support  Comparison with peers  Location risk management  service provider selection and optimization  Design of new deals  Price benchmarking and contract renewals Copyright © 2013, Everest Global, Inc. 5 EGR-2013-8-PD-0824
  • 6. Market Vista provides continuously updated facts and analysis every quarter to enable effective management of global services portfolios Each quarterly Market Vista report captures developments across three key areas 1 2 3 Market overview Location trends and risks Service provider developments  Outsourcing transactions  Key location developments  Key developments among 20 trends – Establishment of new leading global service – Transaction analysis – By offshore centers, expansion providers function, geography, deal of existing centers, plans of – Financial performance size and duration, etc. establishment and – Transaction activity – Transaction analysis by expansion of centers – Changes in delivery industry verticals (more  Risk dashboard capturing key footprint details in Industry Trends current and emerging risks – M&A and alliance activity reports) – Geo-political / economic – Listing of major IT/BPO changes outsourcing deals – Government initiatives  Detailed profiles for each – Large offshore deals  Quarterly focus – Fact-base on player capturing key  Analysis of GICs Asian locations developments across – New GIC set-ups, – Sustainability of arbitrage dimensions divestures – Operating costs, inflation – Plans for GIC set-ups and rates, and currency trends expansion across key cities Copyright © 2013, Everest Global, Inc. 6 EGR-2013-8-PD-0824
  • 7. Additional Market Vista deliverables Global Location Insights Breaking Viewpoints on key newsletter developments Market Vista Primers 4-6 published 8-10 published 4-5 published every year every year every year  E-newsletter published every two  Event/theme based e-briefings  Published every quarter months  Recent topics included  Recent topics included  Recent topics included – The Risky Side of Offshore – Global sourcing trends in U.S. – Healthcare BPO in Philippines Growth: Operational Challenges Mortgage industry – Service providers’ location- in the Top five Indian IT Majors – Contact center service providers related plans – Perspective on M&A events in Latin America – China’s offshore maturity (Atos-Siemens IT, iGate-Patni, – French language service – Buyer’s offshoring plans Wipro-SAIC’s Oil & Gas IT providers in EMEA Business) Copyright © 2013, Everest Global, Inc. 7 EGR-2013-8-PD-0824
  • 8. Table of contents  Product overview  Illustrative contents Copyright © 2013, Everest Global, Inc. 8 EGR-2013-8-PD-0824
  • 9. Each section of the quarterly report comprises 30+ pages of insight and data Illustrative Table of Contents (page 1 of 2) Topic Section I A: Trend analysis – Outsourcing, offshoring, and GICs  Outsourcing transactions analysis  Outsourcing transaction trends by time period  Offshore transactions analysis  GIC developments Section I B: Data snapshots  Major deals signed in the quarter  List of mega deals signed in the quarter  Examples of very large deals signed in the quarter  Examples of large deals signed in the quarter  Analysis of outsourcing transactions by buyer revenue  List of new GIC announcements in the quarter  List of GICs with announcements for expansion in the quarter  List of GIC divestures in the quarter Section II A: Trend analysis – Risk and opportunity dashboard and analysis  Risk and opportunity dashboard  Risk and opportunity analysis Section II B: Focus geography  Arbitrage sustainability  Operating costs  Operating cost inflation  Currency trends Copyright © 2013, Everest Global, Inc. 9 EGR-2013-8-PD-0824
  • 10. Each section of the quarterly report comprises 30+ pages of insight and data Illustrative Table of Contents (page 2 of 2) Topic Section II C: Data snapshots  Market activity: Delivery centers established in the quarter  Market activity: Delivery centers planned in the quarter  Market activity: Expansion announcements in the quarter  Regional developments: Geopolitical, macroeconomic environment  Regional developments: Leading economic indicators  Regional developments: Investment environment Section III A: Trend analysis – Key developments across service providers  Service provider developments overview  Analysis of service provider developments Section III B: Data snapshots – Details of key developments and profiles by service providers  Recent M&A activity by service providers  Recent alliances and partnerships forged by service providers  Locations  Key market developments Copyright © 2013, Everest Global, Inc. 10 EGR-2013-8-PD-0824
  • 11. Section I – Market section | Overview Captures outsourcing transactions trends, GIC developments with an emphasis on large size contracts Market overview | Outsourcing/offshoring market index GIC set-ups | By region Index of outsourcing transactions1 Index of offshore captive health1 Number Number Europe: XX captive set-ups 2 Captive set-ups = New + Expansion  XXXX opened its shared business service center in XXXX Rest of Asia: XX captive set-ups Captive divestures =  XXXX opened its new BPO center  XXXX opened its new R&D facility in XX in XXXX XXXX XX  XXXX opened an R&D facility in XXXX XX XX  XXXX opened its new center in XXXX XX Middle East and Africa: XX captive set-ups XX  XXXX opened its first regional support center in XXXX  XX opened its new customer service XX XX center in XXXX XX XX Latin America: XX captive set- XX XX XX ups  XXXX opened a new shared India: XXXX captive set-ups QX Year Y-1 QX-1 Year Y QX Year Y QX Year Y-1 QX-1 Year Y QX Year Y services center in XXXX  XXXX opened an R&D center in XXXX  XXXX opened a new R&D center in XXXX  XXXX opened a new R&D center in XXXX  Transaction volumes decreased by XX% compared to the previous quarter but increased by XX% compared to the previous year  Captive activity remained similar compared to previous quarters, with XX new announcements Major deals in the quarter List of mega deals signed in the quarter Distribution by deal size Distribution by industry verticals Distribution by source geography Number of transactions Number of transactions Number of transactions Three-quarter moving average2 Mega deals (TCV >= US$1 billion) 100% = XX 100% = XX 100% = XX Number XXXX XXXX XXXX XX% XX XX XX XX XX XX% XX% XXXX XXXX XX% XXXX XX% XX% QX Year Y-1 QX+1 Year Y-1 QX+2 Year Y-1 QX+3 Year Y-1 QX Year Y XX% XXXX XXXX XX% XXXX XX% XX% List of mega deals signed XXXX XX% XX% XX% XXXX Deal value Contrac XXXX XXXX Industry Service (US$ t Functiona Buyer vertical provider million) duration l scope Services  There were XX major deals (total contract  Apart f rom the XXXX sector, the XXXX and  XXXX and XXXX accounted f or ~XX% of the value exceeding US$XX million) reported in XXXX industry verticals accounted f or around major deals signed in the quarter Buyer 1 XXXX XXXX XXXX XXXX ITO IT ADM QX 20XX, compared to XX in QX 20XX XX% of all major deals Buyer 2 XXXX XXXX XXXX XXXX ITOIncludes over 15 pages and IT ADM; IT infrastructure – datacenter,  XXXX and XXXX also reported some major  XX mega deals (total contract value exceeding  XXXX, XXXX, and XXXX industry verticals deals in this quarter of data tables across helpdesk US$XX billion) were reported in QX, compared reported mega deals Buyer 3 XXXX XXXX XXXX XXXX BPO and BPO – HRO, procurement, real estate, and to XX in the previous quarter ITO transactions, GICsIT infrastructure – industry-specific; IT ADM; and The following pages provide details for mega deals (TCV>US$1 billion), very large deals (TCV - US$200-999 million), and large deals (TCV - US$50-199 million) financial helpdesk network, and services Copyright © 2013, Everest Global, Inc. 11 EGR-2013-8-PD-0824
  • 12. Outsourcing transactions analysis | By deal type Profiles the share of renewed/restructured deals compared to the previous quarter and the same quarter of the previous year Number of transactions by type Major outsourcing transactions reaching the end of their Number of transactions contract duration over the next few months 100% = XX XX XX Buyer Service provider Function scope Renewals/ XX% XX% XX% Buyer 1 XXXX XXXX restructuring1 Buyer 2 XXXX XXXX Buyer 3 XXXX XXXX Buyer 4 XXXX XXXX Buyer 5 XXXX XXXX New transaction XX% XX% XX% signings QX Year Y-1 QX-1 Year Y QX Year Y 1 Instances where the scope of existing contract was extended or expanded Source: Everest Group Transaction Intelligence Database Copyright © 2013, Everest Global, Inc. 12 EGR-2013-8-PD-0824
  • 13. Section II – Locations section | Overview Key developments and emerging risks and opportunities across locations Locations | Market activity heatmap Locations | Risk and opportunity dashboard XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX D B XXXX Czech Republic Poland Romania Hungary C C Bulgaria XXXX Morocco China Mexico Egypt India El Salvador Philippines Panama Costa Rica Malaysia Singapore A XXXX B B Brazil XXXX Chile South Africa Argentina Locations | Focus geography Locations | Market activity data Operating cost per FTE for IT services US$’000s/per annum Asia XX XX XX XX XX Service XX provider/ Number XX Country City Month captive of FTEs Other comments China XXXX XXXX XXXX XXXX XXXX City 1 City 2 City 3 City 4 City 5 City 6 City 7 China XXXX XXXX XXXX XXXX XXXX Operating cost per FTE for BPO services China XXXX XXXX XXXX XXXX XXXX US$’000s/per annum India XXXX XXXX XXXX XXXX XXXX XX XX India XXXX XXXX XXXX XXXX XXXX XX XX XX Includes over 20 pages XX India XXXX XXXX XXXX XXXX of data tables on market XXXX XX India XXXX XXXX XXXX XXXX XXXX activity, costs, wage City 1 City 2 City 3 City 4 City 5 City 6 City 7 inflation, etc. Copyright © 2013, Everest Global, Inc. 13 EGR-2013-8-PD-0824
  • 14. Locations | Market activity index Analyzes trends in activity across regions; also compares activity in tier-1 cities and tier-2/3 cities Market activity across geographies Market activity across Tier-1 and Tier-2/3 locations Number of service delivery centers set up Number of service delivery centers set up QX-1 Year Y QX Year Y Year Y-1 Quarterly average XX XX XX XX XX XX XX XX XX XX XX XX XX XX XX Region 1 Region 2 Region 3 Tier-1 Tier-2/3  XX delivery centers were set up during the quarter, XXXX than previous quarter  Although location activity increased significantly in XXXX and XXXX, the number of delivery centers established in XXXX decreased to a XX-month low  Though players set up centers in both tier-1 and tier-2/3 locations, there was XXXX activity in tier-XX locations Source: Everest Group analysis Copyright © 2013, Everest Global, Inc. 14 EGR-2013-8-PD-0824
  • 15. Section II – Locations section | Illustrative output Each quarterly report will cover a deep-dive on a specific geography/ theme Locations | Focus geography Locations | Regional developments Projected sustainability of labor arbitrage ITO SERVICES Region Key developments Number of years Asia  China – – XXXX Base scenario – Most Pessimistic scenario – Optimistic scenario – – XXXX probable operating cost higher operating cost Lower operating cost – XXXX Source/destination inflation and currency inflation and currency inflation and currency countries appreciation appreciation appreciation  India – U.S.-XXXX XX XX XX – XXXX – XXXX U.S.-XXXX XX XX XX – XXXX U.S.-XXXX XX XX XX  Thailand – BPO SERVICES – XXXX – XXXX Eastern  Estonia – Base scenario – Most Pessimistic scenario – Optimistic scenario – Europe – XXXX probable operating cost higher operating cost Lower operating cost Source/destination inflation and currency inflation and currency inflation and currency  Hungary – countries appreciation appreciation appreciation – XXXX U.S.-XXXX XX XX XX  Poland – U.S.-XXXX XX XX XX – XXXX U.S.-XXXX XX XX XX – XXXX Locations | Regional developments Locations | Focus geography Annual change in real estate rentals (grade A) Region Key developments Percentage Asia  Sri Lanka – – XXXX -X% City 1 – XXXX  XXXX  XXXX  India – -X% City 2 – XXXX – XXXX  XXXX  XXXX Africa  Egypt – City 3 X% – XXXX – XXXX – XXXX City 4 X%  XXXX – XXXX  XXXX City 5 X%  XXXX  XXXX Includes a deep-dive on -X% City 6 emerging locations  XXXX  XXXX covering costs, inflation, City 7 X% currency trends, etc. Copyright © 2013, Everest Global, Inc. 15 EGR-2013-8-PD-0824
  • 16. Section III – Service provider developments | Overview Profiles developments across 20 leading service providers, highlighting key implications for sourcing managers Service provider developments analysis | Transaction Service provider developments analysis | M&A and activity alliances Transaction announcements activity in QX Year Y and trend over QX-1 Year Y Increased from last quarter M&A by service provider category Alliances by service provider category ITO deals BPO deals Both ITO & BPO Similar to last quarter Number of acquisitions Number of alliances Service provider Number Trend Number Trend Number Trend Decreased from last quarter High activity XX XX Service provider 1 XX XX XX  XXXX Service provider 2 XX XX XX  XXXX Service provider 3 XX XX XX XX XX Service provider 4 XX XX XX  XXXX Offshore-centric XX XX Service provider 5 XX XX XX  XXXX service providers Service provider 6 XX XX XX Offshore-centric Service provider 7 XX XX XX XX service providers XX Moderate activity Service provider 8 XX XX XX Service provider 9 XX XX XX Service provider 10 XX XX XX XX Service provider 11 XX XX XX Traditional global XX Traditional global Service provider 12 XX XX XX XX service providers XX Service provider 13 XX XX XX service providers Service provider 14 XX XX XX Service provider 15 XX XX XX Service provider 16 XX XX XX Service provider 17 XX XX XX QX-1 Year Y QX Year Y QX-1 Year Y QX Year Y Low activity Service provider 18 XX XX XX  XXXX Service provider 19 XX XX XX  XXXX Service provider 20 XX XX XX Service provider developments | Market Vista Index of Key market developments service providers Recent transaction activity Announcement TCV estimate Traditional global service providers Offshore-centric service providers Buyer name date (US$ million) Duration (years) Services Buyer 1 XXXX XXXX XXXX AO, FAO, and HRO Buyer 2 XXXX XXXX XXXX AO Buyer 3 XXXX XXXX XXXX AO Buyer 4 XXXX XXXX XXXX AO Buyer 5 XXXX XXXX XXXX AO Buyer 6 XXXX XXXX XXXX AO Buyer 7 XXXX XXXX XXXX AO and FAO Buyer 8 XXXX XXXX XXXX IO Buyer 9 XXXX XXXX XXXX AO Buyer 10 XXXX XXXX XXXX CC and industry- specific BPO Buyer 11 XXXX XXXX XXXX AO Includes over Location footprint Location Status Employees Description 40 pages of data tables XXXX New center XXXX  XXXX on M&A, new delivery This section focuses on the key developments of the above service providers across financial (Planned)  XXXX performance, recent transactions, major developments in location footprint, mergers, acquisitions, XXXX New center XXXX  XXXX centers, management and alliance activity (Planned)  XXXX changes, etc. Copyright © 2013, Everest Global, Inc. 16 EGR-2013-8-PD-0824
  • 17. Service provider developments analysis | Ratings summary Limited activity Moderate activity High activity M&A and M&A and Service Location alliance Overall Service Location alliance Overall provider New deals changes activity rating provider New deals changes activity rating Traditional global service providers Offshore-centric service providers Service Service provider 1 provider 12 Service Service provider 2 provider 13 Service Service provider 3 provider 14 Service Service provider 4 provider 15 Service Service provider 5 provider 16 Service Service provider 6 provider 17 Service Service provider 7 provider 18 Service Service provider 8 provider 19 Service Service provider 9 provider 20 Service provider 10 Service provider 11 Source: Everest Group (2011) Copyright © 2013, Everest Global, Inc. 17 EGR-2013-8-PD-0824
  • 18. Market Vista encompasses a suite of offerings Multiple delivery formats allow Global Sourcing Managers to access information in a way that supports the decision-making process Standard subscription Premium subscription Market Vista offering Description access (annual) access (annual) Quarterly report with in-depth coverage of transaction, Quarterly Report location, and service provider trends   Quarterly brief of expert perspectives on emerging Primer market trends (e.g., new pricing models)   Annually updated database of location stats (e.g., cost, Location database attrition, inflation rates) for 23 major cities   Flash reports highlighting breaking industry news and Breaking viewpoint expert perspectives on key implications   Bi-monthly Global Location Insights e-newsletter Locations insights e-newsletter containing detailed country and region info   Exclusive quarterly webinars with stakeholders in the Exclusive webinars subscriber organization on key market trends and developments highlighted in Market Vista research  10 hours of analyst access per year for personalized Analyst consultation insights and additional perspectives  Copyright © 2013, Everest Global, Inc. 18 EGR-2013-8-PD-0824
  • 19. Trends reports complement Market Vista quarterly reports by providing in-depth coverage of global sourcing across industry verticals and regions Market Vista Buyer Geography Trends reports Market Vista Industry Trends reports Regions tracked Industries tracked  United States and Canada  Banking, Financial  Healthcare  Europe Services, & Insurance  Technology  Rest of the World (RoW), including Asia Pacific (BFSI)  Telecom (APAC), Latin America (LATAM), and Middle East &  Manufacturing, Distribution,  Public Sector Africa (MEA) and Retail (MDR)  Travel & Hospitality  Energy & Utilities (E&U) 30+ pages of analysis on each industry vertical/region every quarter Outsourcing transaction GIC set-up and expansion Service provider trends and activity activity Processes and models developments Decreased from last quarter Similar to last quarter Increased from last quarter Current quarter Previous year ITO by process1 ITO by process1 Q2 2011; Frequency of occurrence 2010; Frequency of occurrence Change in number of ITO Total = 354 Total = 1,381 transactions, by process1 Q2 10 to Q2 11 Q1 11 to Q2 11 Application development 111 472 Application 90 348 maintenance Systems integration 87 307 Datacenter 60 263 Network 81 339 Desktop 34 139 Helpdesk 27 138  Transaction activity was higher among IT ADM processes than IT infrastructure  Adoption of ITO processes in Q2 2011 was similar to that in 2010 (yearly average)  Adoption of Desktop process declined compared to the previous quarter  Trends in transaction volumes,  GIC set-ups, expansions, and  Process-level and subprocess-  Service provider performance contract values, and momentum divestures level transaction trends (transactions, market shares)  Events with industry impact  Analysis of buyers, locations,  Emerging opportunity areas  Significant deals signed by and scope of work offshored leading enterprises Copyright © 2013, Everest Global, Inc. 19 EGR-2013-8-PD-0824
  • 20. Appendix: Additional research recommendations The following documents are recommended for additional insight into the topic covered in this report. The recommended documents either provide additional details on the topic or complementary content that may be of interest: 1. Market Vista: Q3 2012 (EGR-2012-8-R-0776); 2012. This report summarizes the key trends and developments for Q3 2012 in the global offshoring and outsourcing market 2. Industry Trends reports: Trends for Q3 2012. These reports provide industry-specific data, developments, and insights that enable global sourcing managers to navigate through the complexity, and make clear, effective decisions, contextualized and suited to their specific industry. These reports provides a deep-dive into the transaction activity, GIC developments, service provider market share, and key outsourcing transactions specific to the industry. Industries covered include: Banking, Financial Services, and Insurance (BFSI); Manufacturing, Distribution, and Retail (MDR); Energy and Utilities (E&U); Healthcare; Technology; Telecom; Public Sector; and Travel and Hospitality 3. Buyer Geography Trends reports: Trends for Q3 2012. These reports provide data, developments, and insights on outsourcing and offshoring trends for a particular buyer geography/region. These reports provide the research and analysis that enable users to navigate through complexity and make clear, effective decisions suited to their focus region. These reports provide detailed information on transaction activities, Global In-house Center (GIC) developments, service providers’ market shares, and key outsourcing transactions specific to particular regions. Regions covered include: U.S. and Canada; Europe; and Rest of the World For more information on this and other research published by Everest Group, please contact us: H Karthik, Vice President – Global Sourcing: h.karthik@everestgrp.com Salil Dani, Practice Director: salil.dani@everestgrp.com Anurag Srivastava, Practice Director: anurag.srivastava@everestgrp.com Everest Group Two Galleria Tower 13455 Noel Road, Suite 2100 Phone: +1-214-451-3110 Dallas, TX 75240 E-mail: info@everestgrp.com Copyright © 2013, Everest Global, Inc. 20 EGR-2013-8-PD-0824
  • 21. Everest Group Leading clients from insight to action Everest Group is an advisor to business leaders on the next generation of global services with a worldwide reputation for helping Global 1000 firms dramatically improve their performance by optimizing their back- and middle-office business services. With a fact-based approach driving outcomes, Everest Group counsels organizations with complex challenges related to the use and delivery of global services in their pursuits to balance short-term needs with long-term goals. Through its practical consulting, original research, and industry resource services, Everest Group helps clients maximize value from delivery strategies, talent and sourcing models, technologies, and management approaches. Established in 1991, Everest Group serves users of global services, providers of services, country organizations, and private equity firms in six continents across all industry categories. For more information, please visit www.everestgrp.com and research.everestgrp.com. Dallas (Corporate Headquarters) Toronto India / Middle East info@everestgrp.com canada@everestgrp.com india@everestgrp.com +1-214-451-3000 +1-416-865-2033 +91-124-496-1000 New York London info@everestgrp.com unitedkingdom@everestgrp.com +1-646-805-4000 +44-207-129-1318 Stay connected Websites Twitter Blogs www.everestgrp.com @EverestGroup www.sherpasinblueshirts.com research.everestgrp.com @Everest_Cloud www.gainingaltitudeinthecloud.com Copyright © 2013, Everest Global, Inc. 21 EGR-2013-8-PD-0824