On February 6, Everest Group hosted a webinar that covered facts and insights on outsourcing transaction trends, financial performance of leading service providers, and Global In-house Center (GIC) adoption across verticals and geographies. How has the global services industry been impacted by the economic slowdown? Is the worst behind us or is there more to come? Why has global services delivery continue to increase in Asia despite inflationary pressures? And what about Latin America? Don’t Miss the Special Guest Speaker… Peter Bendor-Samuel, Founder and Chief Executive Officer of Everest Group. An industry veteran, Peter will share his unique perspectives on the state of the global services industry in 2012 and outlook for 2013.

1. Global Services Developments in Q4 2012
and 2012 Year in Review: Market Vista
Briefing
February 6, 2013
Live Tweeting #MarketVista

2. Introductions
Peter Bendor-Samuel
CEO and Founder
peter.bendorsamuel@everestgrp.com
Eric Simonson
Managing Partner – Research
eric.simonson@everestgrp.com
H. Karthik
Vice President
h.karthik@everestgrp.com
Proprietary & Confidential. © 2013, Everest Global, Inc. 2

3. Context setting
Focus of this webinar
 Present key global services developments in 2012
 Describe outlook on global sourcing locations for 2013
Sources for today’s webinar
 Summary from a
Location Optimization 200+ page report
+ IT and Business
 Fact-based
research covering
Services research global services
Proprietary & Confidential. © 2013, Everest Global, Inc. 3

4. 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
not third-party outsourcing) content beginning in July 2012
 Although the term has become widely
used, it has a perceived negative tone
and is not self-explanatory, causing
confusion for those new to the global Growing industry-wide shift
services space Both NASSCOM (India) and BPAP (Philippines)
are championing the change in terminology
 Furthermore, many organizations, for
which captive is intended to describe,
do not use the term themselves
Proprietary & Confidential. © 2013, Everest Global, Inc. 4

5. Highlights of 2012
 Outsourcing transactions
Global services market maturing in  Service provider performance
multiple ways  Location activity
 GIC trends
Increase in new location set-ups;  Top 3 locations across regions
significant uptick in LATAM  Drivers of growth
GIC set-ups steady; increasing  GIC set-up activity
sophistication in leverage  Changing parent expectations
Proprietary & Confidential. © 2013, Everest Global, Inc. 5

6. Presentation topics
Special topic |
Key market
Global sourcing
developments in Wrap up and Q&A
locations: outlook
2012
for 2013
 Outsourcing transactions
 Service providers
 Locations
 GICs
Proprietary & Confidential. © 2013, Everest Global, Inc. 6

7. 7
What is your growth outlook for
the global services market in 2013
compared to 2012?
Significantly faster 13%
Marginally faster 58%
Similar 19%
Marginally slower 11%
Significantly slower 0%
Source: Live polling conducted during the “Market Vista: Global Services Developments in Q4 2012 and 2012 Year in Review” webinar on
Proprietary & Confidential. © 2013, Everest Global, Inc. 7
February 6, 2013

8. Outsourcing transactions decreased in 2012 as compared to
previous years; Q4 showed a marginal uptick
Index of outsourcing transactions Index of outsourcing transactions
2010-2012; Number Q1-Q4 2012; Number
441
411 401
1,978 1,929 380
1,633
2010 2011 2012 Q1 2012 Q2 2012 Q3 2012 Q4 2012
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9. Broad-based decline in transactions across regions and
verticals, except in continental Europe
Outsourcing deals announced
Number of transactions
1,978 1,929 2012 performance compared to 2011
2 Public Health
Rest of World 440 382 1,633 BFSI MDR sector care Others
317
Rest of Europe 522 475
473
UK 283 373
302
1
North America 733 699
541
2010 2011 2012
1 Excludes Mexico
2 Includes Asia-Pacific, Latin America, and Africa
Proprietary & Confidential. © 2013, Everest Global, Inc. 9

10. Market Vista Index service providers yet to meaningfully
penetrate small- to mid-market segment
Share of Market Vista Index providers1 ITO
Percentage BPO
50%
43% 41%
40%
30%
21%
19%
20% 22%
20%
12%
10% 14%
5% 6%
0%
<US$0.25 US$0.25- US$1.5-5 US$5-10 >US$10
billion 1.5 billion billion billion billion
1 Share of deals involving Market Vista Index service providers as a share of all deals signed in a buyer revenue category
Proprietary & Confidential. © 2013, Everest Global, Inc. 10

11. Sluggish demand in 2012 impacted provider revenue growth
Revenue growth rate (year-on-year basis) for Operating margin (quarterly) for Market Vista
Market Vista Index service providers Index service providers
Percentage Percentage
Offshore-centric service providers Offshore-centric service providers
Traditional global service providers Traditional global service providers
40% 30%
25% 23.3% 22.6% 22.9%
30% 22.2%
20%
20% 18.0%
15.0%
11.2% 15%
9.7%
10% 13.2% 13.7%
10% 11.5%
7.3% 10.9%
5.1%
0% 5%
1.5%
-3.3%
-10% 0%
Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2011 Q1 2012 Q2 2012 Q3 2012
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12. Latin America witnessed significant uptick in activity; some
“dark horses” emerged
Number of service delivery centers set up 2010 2011 2012
Significant surge in activity in country in 2012
93 90
84
37 32 32
27 29
22
Asia Pacific Latin America Europe
 India  Costa Rica  Poland
Top-3 locations by
 China  Mexico  Romania
activity (2012)
 Singapore  Colombia  Ireland
Share of GICs in
~40% ~25% ~50%
centers set up (2012)
Prominent functional
ES/R&D Bilingual voice and Mix of IT, BPO,
spikes (2012)
non-voice BPO and ES/R&D
Proprietary & Confidential. © 2013, Everest Global, Inc. 12

13. GIC set-up activity remained steady; there were a few key
divestures
Index of offshore GIC health GIC set-ups and expansions
2010-2012; Number GIC divestures
89  Sustained shift towards more complex
work: ~60% of new GICs set up in 2012
supported ES/R&D
70
62  India continues to be nerve center for
ES/R&D
 LATAM dominated new GIC set-ups
focused on BPO (close to 50% of BPO
GIC set-ups in 2012 were in LATAM)
2 5  Some increase in number of divestitures,
1
reflective of sourcing model strategy
2010 2011 2012 maturation
Proprietary & Confidential. © 2013, Everest Global, Inc. 13

14. Stronger permission for GICs to deliver value, but not at the
expense of cost
Expectations of value beyond cost savings
Distribution of parent respondents; Percentage
100% = 52 53
Deliver additional value even 4%
8%
if cost savings is reduced
Deliver additional value while
50% 60%
maintaining cost savings
Focus only on cost savings 42%
36%
2007 2012
Source: Everest Group GIC Value Diagnostic Survey 2012
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15. What to expect in 2013
Moderate uptick in growth but nature of growth will be very different
Continued shifts in service provider landscape become even more visible
More granular vs. broad-based approaches to sourcing model decisions
Global talent management an increasing priority
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16. When organizations move work to
an onshore center, what is the
main motivation?
Improve quality by moving work back
51%
onshore from offshore delivery
Reduce cost by moving work out of
15%
high cost locations to lower cost…
Other (regulatory, tax, etc.) 32%
Don't know 1%
Source: Live polling conducted during the “Market Vista: Global Services Developments in Q4 2012 and 2012 Year in Review” webinar on
Proprietary & Confidential. © 2013, Everest Global, Inc. 16
February 6, 2013

17. Presentation topics
Special topic |
Key market
Global sourcing
developments in Wrap up and Q&A
locations: outlook
2012
for 2013
 “Newer” frontiers
 Expanding scope of
services
 Onshore/offshore location
activity
Proprietary & Confidential. © 2013, Everest Global, Inc. 17

18. Global sourcing locations: Outlook for 2013
1 Companies will continue to expand into “newer” geographies to tap into niche labor pools,
manage costs of delivery, or diversify risks
2 Scope of services delivered from established locations likely to selectively expand beyond
“traditional” sweet spots
3 Companies will continue to grow onshore, but not at the expense of offshore
Proprietary & Confidential. © 2013, Everest Global, Inc. 18

19. Companies will continue to push the envelope and explore
“newer” frontiers
1
NOT EXHAUSTIVE
Multilingual skills, low
competition
Baltic states
Native English skills Turkey Emerging R&D South Korea
destinations
Taiwan
The Caribbean
Vietnam
Large graduate pool, Colombia
Spanish skills Low-cost alternative
Peru
for IT
Attractive costs and South Africa
Spanish skills
Preferred location for UK
voice; large domestic market
Proprietary & Confidential. © 2013, Everest Global, Inc. 19

20. Scope of services delivered from locations likely to expand
beyond “traditional” sweet spots
2
Locations “Traditional” sweet spots “Hidden jewels”
Philippines
English-language voice BPO for Healthcare BPO
the U.S.
South Africa
English-language contact center High-end finance skills
for the UK
Costa Rica
Bilingual (English and Spanish) Engineering and design
voice BPO for the U.S.
Chile
Bilingual (English and Spanish) KPO, analytics, financial
BPO for the U.S. research
Proprietary & Confidential. © 2013, Everest Global, Inc. 20

21. Companies will continue to grow onshore, but not at the
expense of offshore
3
New delivery centers of Market Vista Estimated capacity addition by Market Vista
Index service providers Index service providers
Number ‘000 FTEs
79 88 28-32 36-40
Offshore 66%
78% Offshore 87% 92%
Onshore 34%
22% Onshore 13% 8%
2011 2012 2011 2012
 Even though large service providers are setting up delivery centers in onshore locations, this is not at the
expense of offshore locations; share of onshore locations by number of set-ups is typically 20-30%
 On a capacity basis, the share of onshore locations is even smaller (10-15% annually)
Proprietary & Confidential. © 2013, Everest Global, Inc. 21

22. Presentation topics
Special topic |
Key market
Global sourcing
developments in Wrap up and Q&A
locations: outlook
2012
for 2013
 Submit any remaining
questions!
Proprietary & Confidential. © 2013, Everest Global, Inc. 22

23. Highlights of the webinar
 Growth is slower, but broad-based
across sourcing models, providers
Global services market maturing in
 Stronger permission for GICs to
multiple ways
deliver value, but not at the
expense of savings
 Growth in both traditional locations
Increase in new location set-ups; and some “dark horses”
significant uptick in LATAM  BPO driving growth in Latin
America
 Onshore-offshore complementary,
Global sourcing locations: outlook not competing
for 2013  Continued push towards newer
locations and models
Proprietary & Confidential. © 2013, Everest Global, Inc. 23

24. Q&A
To ask a question during the Q&A session
 Click the question mark (Q&A) button located on right side of your screen. This opens Q&A
 Be sure to keep the default set to “send to All Panelists”
 Type your question in the box at the bottom of the Q&A box and click the send button
 Attendees will receive an email with instructions for downloading today’s presentation
 For advice or research on Market Vista, please contact:
– Eric Simonson, eric.simonson@everestgrp.com
– H. Karthik, h.karthik@everestgrp.com
Stay connected
Websites Twitter Blogs
www.everestgrp.com @EverestGroup www.sherpasinblueshirts.com
research.everestgrp.com @Everest_Cloud www.gainingaltitudeinthecloud.com
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25. Check out our blog for the latest perspectives
on global services
Experts in the global
services terrain
www.sherpasinblueshirts.com
Proprietary & Confidential. © 2013, Everest Global, Inc. 25

26. Related Content
 Market Vista: Q4 2012
 Market Vista: 2012 in Review
 Market Vista Industry Trends and Buyer Geography Trends
 Global Location Compass – Brazil
 Global Location Insights: January 2013 – Healthcare BPO is a “Hidden Jewel” for The
Philippines' Global Services Industry
 Blog: Service Providers Versus GICs: the Age-old Debate
 Blog: Leverage Points in Global Services for India, China, and Philippines
 Blog: Why the Traditional Infrastructure Outsourcing Market Is about to Shrink Dramatically
Proprietary & Confidential. © 2013, Everest Global, Inc. 26

27. About Everest Group
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.
Proprietary & Confidential. © 2013, Everest Global, Inc. 27

28. Everest Group
Leading clients from insight to action
Everest Group locations
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+1-214-451-3000
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www.everestgrp.com | research.everestgrp.com | www.sherpasinblueshirts.com
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