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Topic: Overview of Key Developments in Q4 2012

Market Vista: Buyer Geography Trends – Preview Deck

Copyright © 2013, Everest Global, Inc. EGR-2013-8-PD-0851


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Contents

Product overview

Illustrative contents

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Market Vista enables effective decision making Global sourcing managers need research, analysis, and insights to demystify the market as well as direct clear and impactful decisions Overall sourcing market   

Service provider landscape

Detailed analysis of trends by industry vertical and geography Report of transaction volume, size, and momentum Perspective on events with significant industry impact (e.g., M&A) Implications of regulatory changes

Updates on service provider market share, capabilities, and performance Service provider profiles, including data on: – Transactions – Location footprint – M&A activity

Location data and dynamics 

Processes and models

Data on market activity in key offshore geographies – Political – Macroeconomic – Promotion incentives Trends in wage inflation, attrition, and arbitrage

 

Quarterly report

Primer

Location database

Breaking viewpoint

Process-level trends Global In-house Center (GIC) set-ups, divestures, and overall trends Fact-based insights on adoption of emerging pricing models Data and perspectives on new opportunity areas Location insights e-newsletter

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Service provider capability profiles

Industry trends

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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  United States & Canada  Europe  Rest of the World (RoW), including Asia Pacific (APAC), Latin America (LATAM), and Middle East & Africa (MEA)

Industries tracked  Banking, Financial Services, & Insurance (BFSI)  Manufacturing, Distribution, and Retail (MDR)  Energy & Utilities (E&U)

    

Healthcare Technology Telecom Public Sector Travel & Hospitality

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

GIC set-up and expansion activity

Processes and models Decreased from last quarter

Current quarter ITO by process1 Q2 2011; Frequency of occurrence Total = 354

Previous year ITO by process1 2010; Frequency of occurrence Total = 1,381

Similar to last quarter

Increased from last quarter

Change in number of ITO transactions, by process1 Q2 10 to Q2 11

Application development

111

Application maintenance Systems integration

  

Trends in transaction volumes, contract values, and momentum Events with industry impact

 

GIC set-ups, expansions, and divestures Analysis of buyers, locations, and scope of work offshored

348

87

307

60

263 81

Network

Desktop Helpdesk

34 27

Q1 11 to Q2 11

472

90

Datacenter

Service provider trends and developments

339 139 138

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

Process-level and subprocess-level transaction trends Emerging opportunity areas

Copyright © 2013, Everest Global, Inc. EGR-2013-8-PD-0851

 

Service provider performance (transactions, market shares) Significant deals signed by leading enterprises 5


Contents

Product overview

Illustrative contents

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Each Buyer Geography Trends quarterly report comprises 30+ pages of insight and data Illustrative Table of Contents Topic Section I: Outsourcing transaction trends 

Outsourcing transactions overview

Break-up of transactions by function

Break-up of transactions by processes and sub-processes

Transaction renewal/restructuring activity

Section II: GIC analysis 

GIC market analysis overview

GIC market analysis by geography

Section III: Service provider activity and deal information 

Share of service providers in total transaction activity

Notable deals signed by service providers

Major outsourcing-related developments across leading companies

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Section I – Market section | Overview Captures trends in outsourcing transactions in the focus region, including break-ups of transactions by functions, processes, sub-processes, industry verticals, etc. Market overview | Outsourcing/offshoring market index

Market movement and share in overall market Number of transactions

Overall market

XX

U.S. & Canada

200 180

XX

XX

XX

XX XX

40%

120 XX

XX

XX XX%

XX%

XX%

XX%

50%

XX

XX%

140

XX

60%

XX

XX

160 XX

Share in overall market

XX

30%

100 80

20%

60

10%

40

0%

20 QX Year Y-1

QX-3 Year Y

QX-2 Year Y

Sub-process level trends BPO by process QX-1 Year Y; Frequency of occurrence Total number of deals = XX XX XX

XX

XX

BPO by process QX Year Y; Frequency of occurrence Total number of deals = XX

Change in number of BPO transactions, by process QX Year Y-1 QX-1 Year Y to QX Year Y to QX Year Y

QX-3 Year Y

QX-2 Year Y

QX-1 Year Y

QX Year Y

-10%

Renewals/restructuring trends Focus region

Overall market

40% 35%

15%

xx%

xx%

xx%

xx%

xx% xx%

xx%

xx%

xx% xx%

10%

XX

5%

XX XX

Increased

QX Year Y-1

20% XX

XX

Similar

0

25%

XX XX

QX Year Y

30%

XX

XX XX

Decreased

XX XX

XX XX

QX-1 Year Y

XX

0% QX Year Y-1

QX-3 Year Y

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QX-2 Year Y

QX-1 Year Y

QX Year Y

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Section II – GIC analysis Trends in GIC set-ups, expansions, and plans of buyers in the focus region

Index of offshore GIC health

New set-ups and expansions of GICs New set-ups Expansions

Eastern Europe

Divestures

XX XX

XX XX

XX

East Asia

XX

XX XX

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

XX

XX

XX

XX

XX XX

Latin America

XX

Middle East and Africa

XX

XX

XX

QX Year Y-1

QX-1 Year Y

QX Year Y

N3 = XX

N = XX

N = XX

Planned set-ups and expansions of GICs

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

XX XX

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

XX

India

XX

XX

XX

XX

XX

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

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

Details on key set-ups

Eastern Europe XX XX

XX

XX

Rest of Asia XX

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

Latin America XX

XX

XX

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

XX

XX

QX Year QX-1 QX Year Y-1 Year Y Y XX India XX XX

Middle East and Africa XX

XX

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

Company

Functions

Location

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

Comments

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

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Section III – Service provider developments Profiles developments across 20 leading service providers, highlighting key implications for sourcing managers Market Vista Index of service providers

Share of Market Vista Index of service providers Focus region

Traditional global service providers

Offshore-centric service providers

Overall market

40% 35% 30% 25% 20%

xx% xx%

xx% xx%

xx%

xx%

xx%

xx%

xx%

15%

xx%

10% 5% 0% QX Year Y-1

Key service providers and share in transactions 100% =

Service provider 10

XX

44%

Service provider 9 3% 3% 3% Service provider 8 4% Service provider 7 4% 4% Service provider 6 4% 4% Service provider 5 5% Service provider 4 5% Service provider 3 5% Service provider 2 7% Service provider 1 7% Number of transactions

XX

Service provider 10

44%

Service provider 9 3% 3% 3% Service provider 8 4% Service provider 7 4% 4% Service provider 6 4% 4% Service provider 5 5% Service provider 4 5% Service provider 3 5% Service provider 2 7% Service provider 1 7% Number of transactions

QX-3 Year Y

QX-2 Year Y

QX-1 Year Y

QX Year Y

Notable deals signed by leading buyers XXXX Increased offshore adoption: XXXX announced plans to set up its back-office operations in XX by the end of Year Y. The center will support its XXXX expansion and will hire about XX employees XXXX BPO agreement: XXXX

XXXX ITO agreement: XXXX

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Appendix: Additional research references

The following documents are recommended for additional insight on the topic covered in this report. The recommended documents provide either additional details on the topic or complementary content that may be of interest: 1. Global Locations Compass – Brazil (EGR-2012-2-R-0768); 2012. This report provides detailed data and in-depth analysis of the Philippines global services sector and is intended to enable the development of a holistic perspective on the country 2. Europe: Trends for Q3 2012 (EGR-2013-8-R-0814); 2012. This report provide data, developments, and insights on outsourcing and offshoring trends for the Europe 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 3. U.S. & Canada: Trends for Q2 2012 (EGR-2012-2-R-0762); 2012. This report provide data, developments, and insights on outsourcing and offshoring trends for the U.S. & Canada 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 4. Transaction Renewal Analysis – January 2013 to December 2013 (ERI-2011-6-O-0512); 2011. The analysis is aimed at providing a list of outsourcing transactions that are coming up for renewal in the year 2013. The database contains key deal parameters such as names of buyers and service providers, buyer industry, functional and geographic scope of the contract, contract value, the start and end dates, and contract description

For more information on this and other research published by Everest Group, please contact us: H. Karthik, Vice President – Global Sourcing: Salil Dani, Practice Director: Anurag Srivastava, Practice Director: Shyam Sundar Amara, Knowledge Associate:

Everest Group Two Galleria Tower 13455 Noel Road, Suite 2100 Dallas, TX 75240 Copyright © 2013, Everest Global, Inc. EGR-2013-8-PD-0851

h.karthik@everestgrp.com salil.dani@everestgrp.com anurag.srivastava@everestgrp.com shyam.amara@everestgrp.com

Phone: E-mail:

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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.

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Geography Trends Report - Q4 2012 - Preview Deck