Outsourcing deal activity august 2011

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Transaction Intelligence (TI) Monthly report for August, 2011. This report provides a brief overview of the overall outsourcing market activity for the month and includes the following:
• Trailing three-month average of outsourcing deals
• Split of outsourcing deals by function and industry vertical
• Geographical split and analysis of the level of deal activity
• Key outsourcing deals signed in August 2011
We would be happy to receive your feedback on this report and/or on the TI offering.

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Outsourcing deal activity august 2011

  1. 1. Transaction IntelligenceMonthly ReportAugust 2011 EGR-2011-6-R-0583
  2. 2. Outsourcing transactions | Trailing three-monthaverage Trailing three-month average of outsourcing transactions1 200 180 160 140 120 100 80 60 40 20 0 May 2011 Mar 2011 Nov 2010 Jan 2011 Jun 2011 Aug 2010 Jul 2011 Aug 2011 Oct 2010 Apr 2011 Sep 2010 Dec 2010 Feb 2011 1 Includes only transaction signings that were publicly disclosedSource: Everest Group Transaction Intelligence Database Proprietary & Confidential. © 2011, Everest Global, Inc. 2
  3. 3. Outsourcing transactions | By function and industryverticalSplit of outsourcing transactions announced by function Split of outsourcing transactions announced by industryNumber of transactions Number of transactions100% = 102 154 146 100% = 102 154 146 Both 4% 2% 3% Others2 15% 15% 19% BPO 24% 27% 29% Technology 2% 3% Energy & utilities 5% 1% 6% 9% Retail 10% Telecom 5% 6% 6% 4% 2% Government 22% 12% 14% Healthcare 10% 13% 12% ITO 73% 71% 68% Defense 2% 2% 3% 6% 2% Travel & transport 4% 12% 14% Manufacturing 10% BFSI1 17% 19% 21% Aug 2010 Jul 2011 Aug 2011 Aug 2010 Jul 2011 Aug 2011 1 BFSI – Banking, Financial Services, and Insurance 2 Others include conglomerates, advertising, media and entertainment, education, etc. Also includes any transactions where buyer name was not disclosedSource: Everest Group Transaction Intelligence Database Proprietary & Confidential. © 2011, Everest Global, Inc. 3
  4. 4. Outsourcing transactions | By key buyer geography1M-o-M change in three-month trailing average of outsourcing transactions Increased Similar Decreased Jul 2011 activity2 activity2 activity2 Aug 2011 Finland Sweden Canada Norway Denmark Germany Netherlands UK Poland Belgium Switzerland Austria France Portugal Spain Italy Japan US China Qatar Saudi Arabia India Brazil AustraliaOutsourcing transactions New Zealand 45 53 45 29 29 38 35 26 North America UK Rest of Europe Others 1 Buyer geography is the buyer location or the signing regions associated with the transaction 2 Increased activity: >10%; Similar activity: (+/-)10%; Decreased activity: <(-)10% 3 Others include Asia-Pacific, Middle East, Africa, Latin America, and deals where the signing region was not publicly disclosedSource: Everest Group Transaction Intelligence Database Proprietary & Confidential. © 2011, Everest Global, Inc. 4
  5. 5. Key outsourcing deals signed in August 2011 Industry Deal value Contract Functional Buyer vertical Signing region Service provider (US$ million) duration scope Australian Department of Healthcare Australia Accenture 498 1 year ITO Health and Aged Care U.S. Citizenship and Government US CSC 291 3 years ITO Immigration Services Pensionsmyndigheten Other financial Sweden Logica 182 5 years ITO services Department for Social Government Ireland Atos 134 7 years Both Development HSH Nordbank Banking Germany Atos 100 5 years ITO Royal Ahold NV Retail Netherlands Logica 99 9 years BPO La Poste Services France Imtech NV 87 N/A ITO US Postal Service Services US CSC 83 7 years Both Centers for Medicare and Healthcare US HP 72 5 years BPO Medicaid Services Royal bank of Scotland Insurance UK The Innovation 65 3 years BPO Insurance GroupSource: Everest Group Transaction Intelligence Database Proprietary & Confidential. © 2011, Everest Global, Inc. 5
  6. 6. The Transaction Intelligence offering can be accessed as asubscription to the on-line database or via a customresearch request The on-line database allows users to:  Search for outsourcing transactions based upon service provider name, buyer name, scope, signing date, and other attributes  Conduct real-time analyses based on industry, geography, key functions  Generate professional, one-page summaries for each outsourcing transaction Online  Export transaction details to MS-Excel spreadsheet format database  Export MS-Excel and PowerPoint friendly editable charts Our custom research can help companies:  Analyze the market trends for a particular geography or buyer industry to validate business assumptions  Study the contract renewal trends of a specific segmentation, enabling identification of potential buyer targets Customized  Customize business development approach to transaction analysis  Perform functional deep-dive to analyze outsourcing deals and related market trends based on publicly available information of publicly announced contracts Proprietary & Confidential. © 2011, Everest Global, Inc. 6
  7. 7. Overview of the TI capabilityTransaction Intelligence (TI) is the largest and most comprehensive database of outsourcingtransactions. TI contains information which is collected and validated from multiple secondarysources. The database structure facilitates easy queries of the information and quick analysis ofthe transactions. The TI database is operated by Everest Research Institute, the research arm ofthe Everest Group. TI contains ~19,000 outsourcing transactions, including ITO and BPO Over 30 data points captured for each transaction More than 95% of the transactions are post 2000 Around 150 deals are added each month The database is not exhaustive because it only includes transactions that are publicly available. Periodic analysis reveals that the TI database tracks approximately 30-35% of the total outsourcing marketTo know more about how to subscribe to Transaction Intelligence database, please write toTIteam@everestgrp.com. Proprietary & Confidential. © 2011, Everest Global, Inc. 7
  8. 8. Appendix: Additional research referencesThe following documents are recommended for additional insight on the topic covered in this Research Report. Therecommended documents either provide additional details on the topic or complementary content that may be of interest1. Market Vista: 2010 in Review (ERI-2011-8-R-0500); 2011. This report summarizes the key trends and developments for 2010 in the global offshoring and outsourcing market2. Market Vista: Q2 2011 (EGR-2011-8-R-0579); 2011. This report summarizes the key trends and developments for Q2 2011 in the global offshoring and outsourcing market3. Transaction Renewal Analysis – January 2012 to December 2012 (ERI-2011-6-O-0511); 2011. The analysis is aimed at providing a list of outsourcing transactions that are coming up for renewal. The database contains key deal parameters like names of buyer and service provider, buyer industry, functional and geographic scope of the contract, contract value, start and end dates, and contract description. The analysis is useful for pursuit teams to strategize entry into or expansion of existing relationships into buyer organizations4. Technology: Trends for Q2 2011 (ERI-2011-8-R-0590); 2011. This report provides technology 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 provide deep-dive into transaction activity, captive developments, service provider market share, and key outsourcing transactions specific to the technology industry For more information on this and other research published by the Everest Research Institute, please contact us: Rahul Kumar, Knowledge Director: rahul.kumar@everestgrp.com Amara Shyam Sundar, Knowledge Associate: shyam.amara@everestgrp.com Everest Research Institute Two Galleria Tower 13455 Noel Road, Suite 2100 Phone: +1-214-451-3110 Dallas, TX 75240 E-mail: info@everestgrp.com Proprietary & Confidential. © 2011, Everest Global, Inc. 8
  9. 9. About Everest GroupEverest Group is an advisor to business leaders on the next generation of globalservices with a worldwide reputation for helping Global 1000 firms dramaticallyimprove their performance by optimizing their back- and middle-office businessservices. With a fact-based approach driving outcomes, Everest Group counselsorganizations with complex challenges related to the use and delivery of globalservices in their pursuits to balance short-term needs with long-term goals. Throughits practical consulting, original research and industry resource services, EverestGroup helps clients maximize value from delivery strategies, talent and sourcingmodels, technologies and management approaches. Established in 1991, EverestGroup serves users of global services, providers of services, country organizationsand private equity firms, in six continents across all industry categories. For moreinformation, please visit www.everestgrp.com and research.everestgrp.com. Proprietary & Confidential. © 2011, Everest Global, Inc. 9
  10. 10. Everest Group leads clients from insight to actionContact us for more information about our consulting, research, and industry resources. Dallas (Corporate Headquarters) Canada info@everestgrp.com canada@everestgrp.com +1-214-451-3000 +1-416-865-2033 +1-214-451-3110 New York India/Middle East info@everestgrp.com india@everestgrp.com +1-646-805-4000 +91-124-496-1000 +91-124-496-1100 United Kingdom Netherlands & Continental Europe unitedkingdom@everestgrp.com benelux@everestgrp.com +44-870-770-0270 +31-20-301-2138 www.everestgrp.com | research.everestgrp.com | www.sherpasinblueshirts.com Proprietary & Confidential. © 2011, Everest Global, Inc. 10

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