Topic: Global In-house Center (GIC) Landscape in CostaRica and Trends in Offshore GIC MarketGlobal SourcingMarket Report: ...
Our research offerings for global servicesSubscription information             Market Vista   This report is included in ...
Terminology | Global In-house Center (GIC) replacing “captive”Context                                             What has...
Table of contents                    (page 1 of 2)Topic                                                                   ...
Table of contents                   (page 2 of 2)Topic                                                                    ...
Background and scope of researchBackground of the research The global sourcing market continues to evolve and grow rapidl...
This research leverages Everest Group’s proprietary GICdatabase that tracks offshore GICs of leading companiesEverest Grou...
This report provides an in-depth analysis of the GIC landscapeand trends in Costa RicaDistribution of offshore services he...
The research also covers a detailed analysis of the GIClandscape and trendsNumber of leading offshore GICs                ...
The report analyzes the GIC market across six key industryverticals                           Banking, Financial          ...
This study also provides an analysis of the recent trend (2010to 2012) within the GIC landscapeNumber of offshore GIC dive...
Global Sourcing research calendar                                                                                         ...
Appendix: Additional research recommendationsThe following documents are recommended for additional insight into the topic...
Everest GroupLeading clients from insight to actionEverest Group is an advisor to business leaders on the next generation ...
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Global In-house Center (GIC) Landscape in Costa Rica and Trends in Offshore GIC Market

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This report provides a deep-dive into the GIC landscape in Costa Rica. The research also provides an in-depth analysis of the overall offshore GIC landscape, focused coverage of key industry verticals, and insights into GIC trends seen in the last three years (2010-2012)

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Global In-house Center (GIC) Landscape in Costa Rica and Trends in Offshore GIC Market

  1. 1. Topic: Global In-house Center (GIC) Landscape in CostaRica and Trends in Offshore GIC MarketGlobal SourcingMarket Report: April 2013 – Preview Deck Copyright © 2013, Everest Global, Inc. EGR-2013-2-PD-0863
  2. 2. Our research offerings for global servicesSubscription information Market Vista This report is included in the Global services tracking across functions, sourcing models, locations, and following subscription(s) service providers – industry tracking reports also available – Global Sourcing Banking, Financial Finance & Healthcare In addition to published Services, Insurance Accounting 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 Service Provider Transaction Pricepoint options, 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-2013-2-PD-0863
  3. 3. Terminology | Global In-house Center (GIC) replacing “captive”Context What has changed Historically, the term “captive” has  Everest Group has adopted “Global In-house referred to service delivery operations Center” or “GIC” as the preferred term to in lower cost geographies, which are replace “captive” owned and operated by the same company receiving the services (i.e.,  This will appear in all of our reports and content not third-party outsourcing) beginning in July 2012 Although the term has become widely used, it has a perceived negative tone and is not self-explanatory, causing Growing industry-wide shift confusion for those new to the global Both NASSCOM (India) and BPAP services space (Philippines) are championing the change in terminology Furthermore, many organizations, for which captive is intended to describe, do not use the term themselves Copyright © 2013, Everest Global, Inc. 3 EGR-2013-2-PD-0863
  4. 4. Table of contents (page 1 of 2)Topic Page no.Background and scope 6Summary of key messages 8Section I: Focus geography: GIC landscape in Costa Rica 12 Summary 13 Costa Rica global services market: size, functions, and offshoring models 14 Distribution of offshore GICs in Costa Rica by: – Headcount 19 – Parent revenue 20 – Parent geography 21 – Industry vertical 22 – Functions supported 23 – Locations 24 Deep-dive into key industry verticals 26Section II: Overview of the GIC landscape 30 Summary 31 Global offshore services and GIC market: Size and growth 32 Distribution of the global offshore GIC landscape by: – Parent revenue 35 – Parent geography 36 – Industry vertical 37 – Functions supported 38 – Offshore delivery locations 40 Copyright © 2013, Everest Global, Inc. 4 EGR-2013-2-PD-0863
  5. 5. Table of contents (page 2 of 2)Topic Page no.Section III: Deep-dive into key industry verticals 43 Banking, Financial Services, and Insurance (BFSI) 45 Energy and Utilities (E&U) 48 Healthcare 51 Manufacturing, Distribution, and Retail (MDR) 54 Technology 57 Telecom 60Section IV: Recent trends in the GIC landscape (2010-2012) 63 Summary 64 Recent trends in GIC set-ups and divestures 65 Recent trends in offshore GIC landscape (2010-2012) by: – Parent revenue 66 – Parent geography 67 – Industry verticals 68 – Functions supported 69 – Key GIC locations 70 Overview and list of offshore GIC divestures (2010-2012) 75Appendix 81 Recent offshore GIC set-ups (2012) 82 Glossary of key terms 97 Global Sourcing research calendar 98 Additional research recommendations 99 Copyright © 2013, Everest Global, Inc. 5 EGR-2013-2-PD-0863
  6. 6. Background and scope of researchBackground of the research The global sourcing market continues to evolve and grow rapidly in 2012 to reach a size of ~US$127 billion. While buyers leverage different sourcing models as per their objectives and requirements, the in-house model continues to be an integral component of this evolution The success of the GIC model in India and Philippines led buyers to explore other locations. While India and Philippines continue to lead GIC activity, companies established GICs in other parts of Asia, Central and Eastern Europe, Latin America, and Africa One of the strongest contenders among nearshore locations is Costa Rica, with significant GIC activity over the past two to three years. Due to its unique value proposition (e.g., proximity to North America, low risks, cultural affinity, and multilingual capabilities), Costa Rica is rapidly emerging as a credible location to support voice-based work. The market also diversified into services such as back-office BPO, F&A, IT services, and KPOThe scope and methodology of this report include In the first section of this edition of the biannual GIC report, we analyze the offshore GIC landscape in Costa Rica in terms of market size, historical growth, future growth expectations, landscape of GIC parents, functions supported, and key cities witnessing activity The report also provides an update on the global offshore GIC landscape, along with a view of the recent trends (2010 to 2012) in the GIC landscape This report is based on Everest Group’s proprietary GIC database that is updated quarterly with new set-up activity, expansion/contraction of existing GICs, divestures, and capability additions Copyright © 2013, Everest Global, Inc. 6 EGR-2013-2-PD-0863
  7. 7. This research leverages Everest Group’s proprietary GICdatabase that tracks offshore GICs of leading companiesEverest Group’s proprietary GIC databaseUnique characteristics Key dimensions tracked Industry’s most comprehensive database of  Scale (FTE range) offshore GICs located across India, Rest of Asia, Europe, Latin America, and Africa  Industry verticals Tracks GICs of leading firms (e.g., Forbes  Functions offered (e.g., IT, BP, and ES/R&D) 2000 and Fortune 500 companies)  Parent geographies Database covers more than 1,400 GICs  Parent size (revenue range) Focus on GICs providing offshore delivery of global services – excludes shared services  Location of delivery centers centers serving the domestic market Copyright © 2013, Everest Global, Inc. 7 EGR-2013-2-PD-0863
  8. 8. This report provides an in-depth analysis of the GIC landscapeand trends in Costa RicaDistribution of offshore services headcount in Costa Rica Distribution of leading offshore GICs in Latin Americaacross GICs and service providers Number of GIC set-upsFTEs in ’000s 100% = 100% = GICs / shared service centers Rest of Latin America Service providers Costa Rica 2009 2012 2009 2010 2011 2012Distribution of offshore GICs in Costa Rica by industry vertical Distribution of offshore GICs in Costa Rica by functions2012; Number of GICs and FTEs 2012; Number of GICs 100% = N= Others BP xx% Healthcare BFSI MDR IT xx% Technology ES/R&D xx% GICs FTEsSource: Everest Group (2013) Copyright © 2013, Everest Global, Inc. 8 EGR-2013-2-PD-0863
  9. 9. The research also covers a detailed analysis of the GIClandscape and trendsNumber of leading offshore GICs Distribution of offshore GICs by parent revenue 2012; Percentage 100% = <US$ billion 10% US$ billion 32% 14% US$ billion 9% US$ billion Large firms 35% 2006 2007 2008 2009 2010 2011 2012 US$ billionDistribution of offshore GICs by delivery location GIC activity | Market activity heatmap2012; Percentage No major activity (<10 centers) Emerging location (50-100 centers) 100% = Nascent location (10-50 centers) Mature location (> 100 centers) Middle East and Africa Latin America Estonia Russia Lithuania Ireland UK Poland Ukraine Czech Republic Slovakia Romania Portugal Hungary Turkey Serbia S.Korea China Europe India Morocco Bulgaria Egypt Israel Jordan India Taiwan Mexico Bahrain Hong Kong UAE Thailand Costa Rica Guatemala Philippines Colombia Sri Lanka Ghana Kenya Vietnam Malaysia Peru Brazil Singapore Mauritius Chile Uruguay South Africa Argentina Rest of AsiaSource: Everest Group (2013) Copyright © 2013, Everest Global, Inc. 9 EGR-2013-2-PD-0863
  10. 10. The report analyzes the GIC market across six key industryverticals Banking, Financial Services, and Insurance (BFSI) Energy and Telecom Utilities (E&U) Key industry verticals Technology Healthcare Manufacturing, Distribution, and Retail (MDR) Copyright © 2013, Everest Global, Inc. 10 EGR-2013-2-PD-0863
  11. 11. This study also provides an analysis of the recent trend (2010to 2012) within the GIC landscapeNumber of offshore GIC divestitures Distribution of offshore GICs by parent geography Number of GICs 100% = ROW APAC Rest of Europe UK U.S. Up to 2012 2010 2011 2012 2010 2011 2012 New GIC set-upsDistribution of offshore GICs by industry vertical Distribution of offshore GICs by functionsNumber of GICs Number of GICs100% = Up to 2012 2010 2011 2012 Others N= N= N= N= E&U Healthcare Telecom BFSI IT MDR ES/R&DTechnology Up to 2012 2010 2011 2012 BP New GIC set-upsSource: Everest Group (2013) Copyright © 2013, Everest Global, Inc. 11 EGR-2013-2-PD-0863
  12. 12. Global Sourcing research calendar Published CurrentTopic Release dateGlobal Sourcing Trends in the U.S. Mortgage Industry October-2012Global Locations Compass – Brazil November-2012Eight Habits of Highly Ineffective Contact Center Outsourcing Relationships November-2012Webinar Deck: Market Vista: Global Services Developments in Q4 2012 and 2012 Year in Review February-2013Global In-house Center (GIC) Landscape in Costa Rica and Trends in Offshore GIC Market April-2013Sourcing Model Strategy – GIC (Internal) vs. Third-party (External Service Provider) Q2-2013Global Locations Compass: Poland Q2-2013Viewpoint on “Value Beyond Cost Savings” – Clearing the Air! Q2-2013Outsourcing and Offshoring Trends in Select Verticals Q2-2013Viewpoint on GIC cost competitiveness Q2-2013Outsourcing and Offshoring Trends in Select Verticals Q2-2013Global Locations Compass: Mexico Q3-2013Global In-house Center (GIC) Landscape in Malaysia and Trends in Offshore GIC Market Q3-2013Viewpoint (Hallmarks of mature GICs – Learnings to stay ahead) Q4-2013Viewpoint (Emerging locations in APAC) Q4-2013 Copyright © 2013, Everest Global, Inc. 12 EGR-2013-2-PD-0863
  13. 13. Appendix: Additional research recommendationsThe following documents are recommended for additional insight into the topic covered in this research. The recommendeddocuments either provide additional details on the topic or complementary content that may be of interest1. Global Offshore Global In-house Center (GIC) Landscape and Trends: Focus Geography – Poland (EGR-2012-2-R-0747); 2012: This report analyzes the global offshore GIC landscape and key trends for the last 30 months (2010 – H1 2012). The report also provides a deep-dive analysis on the offshore GIC landscape in Poland covering market size and growth, distribution of GIC landscape, and deep-dives into industry verticals2. Global Offshore Captive Landscape and Trends: Focus Geography – The Philippines (EGR-2012-2-R-0661); 2012. This report analyzes the global offshore GIC landscape and key trends for the last three years (2009-2011). The report also provides a deep-dive analysis of the offshore GIC landscape in the Philippines, covering market size and growth and distribution of GIC landscape. It deep- dives into industry verticals3. Global Offshore Captive Landscape and Trends, Focus Geography – China (EGR-2011-2-R-0601); 2011. This report analyzes the global offshore GIC landscape and key trends for the last 30 months (2009 – H1 2011). The report also provides a deep-dive analysis on the offshore GIC landscape in China covering market size and growth, distribution of GIC landscape, and deep-dives into industry verticals For more information on this and other research published by Everest Group, please contact us: Salil Dani, Practice Director: salil.dani@everestgrp.com Anurag Srivastava, Practice Director: anurag.srivastava@everestgrp.com Ritika Dhingra, Knowledge Associate: ritika.dhingra@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. 13 EGR-2013-2-PD-0863
  14. 14. Everest GroupLeading clients from insight to actionEverest Group is an advisor to business leaders on the next generation of global services with a worldwide reputation for helpingGlobal 1000 firms dramatically improve their performance by optimizing their back- and middle-office business services. With afact-based approach driving outcomes, Everest Group counsels organizations with complex challenges related to the use anddelivery of global services in their pursuits to balance short-term needs with long-term goals. Through its practicalconsulting, original research, and industry resource services, Everest Group helps clients maximize value from deliverystrategies, talent and sourcing models, technologies, and management approaches. Established in 1991, Everest Group servesusers of global services, providers of services, country organizations, and private equity firms in six continents across all industrycategories. For more information, please visit www.everestgrp.com and research.everestgrp.com.Dallas (Corporate Headquarters) Toronto India / Middle Eastinfo@everestgrp.com canada@everestgrp.com india@everestgrp.com+1-214-451-3000 +1-416-865-2033 +91-124-496-1000New York Londoninfo@everestgrp.com unitedkingdom@everestgrp.com+1-646-805-4000 +44-207-129-1318Stay connectedWebsites Twitter Blogswww.everestgrp.com @EverestGroup www.sherpasinblueshirts.comresearch.everestgrp.com @Everest_Cloud www.gainingaltitudeinthecloud.com Copyright © 2013, Everest Global, Inc. 14 EGR-2013-2-PD-0863

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