1st Quarter 2010 TPI Index

0 The TPI Index An Informed View of the State of the Global Commercial Outsourcing Market First Quarter 2010 April 21, 2010 Copyright © 2010, Technology Partners International, Inc. All Rights Reserved. No part of this document may be reproduced in any form or by any electronic or mechanical means,Technology Partners International, retrievalRights Reserved Copyright © 2010, including information storage and Inc. All devices or systems, without prior written permission from Technology Partners International, Inc.

1 Welcome TPI presenters Mark Mayo Partner & President, TPI Global Operations Tom Lang Partner & Managing Director, Industry Verticals and CIO Services, TPI Americas Duncan Aitchison Partner & President, TPI EMEA Copyright © 2010, Technology Partners International, Inc. All Rights Reserved

2 An Informed View Insights into the broader commercial outsourcing market. 30th Quarterly Insights on commercial outsourcing contracts valued at > $25M TPI Index Focus is on Y/Y trends this quarter instead of Q/Q comparisons Contract restructurings provided substantial boost to 1Q10 Highlights Underlying activity indicates slow and uneven recovery continuing Host Goldman Sachs – Julio Quinteros TPI Index Summary of the market indicators Format Analysts invited to ask questions during the Q&A session For More Slides are available at www.tpi.net Information Continue the discussion at www.considerthesourceblog.com Copyright © 2010, Technology Partners International, Inc. All Rights Reserved

3 1Q10 Headlines Restructuring contracts drove strong first-quarter results. ■ TCV of $19.5 billion, up 25% Y/Y ■ By scope, ITO dominated results, while BPO continued to decline ■ 109 total contracts, down 21% Y/Y ■ Key verticals: Financial Services ■ Restructuring activity accounted for down, Manufacturing and Travel, 42% of the market, the highest ever, Transportation and Hospitality up and three of four mega-deals. ■ Unusually large number of delayed ■ Restructurings also fueled strong contracts in pipeline now “cleared” TCV growth in EMEA and the Americas Conclusions ■ Market’s growth driven by unusually high level of restructuring activity ■ Recovery continuing slowly and unevenly Copyright © 2010, Technology Partners International, Inc. All Rights Reserved

4 Industrywide Contract Award Trends 1Q10 Total Contract Value awarded is up 25% Y/Y. 1Q TCV Comparison ($B) Industrywide TCV ($B) Total Industrywide Contracts (#) TCV # of ($B) contracts 30 200 25 This quarter’s results 160 contradict the usual trend 20 towards an increasing 120 number of lower-value 15 28.4 contracts each year. 23.9 23.7 80 21.6 21.1 10 19.9 19.0 19.5 15.5 15.6 13.3 40 5 0 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Copyright © 2010, Technology Partners International, Inc. All Rights Reserved

5 Industrywide Restructuring Award Trends Restructurings made up an unprecedented portion of the TCV in the quarter. Annual Comparison (Relative % of Restructuring TCV Awarded % of Restructuring TCV to Broader Market TCV > $25M 50% 40% Three of the four 30% mega deals signed 20% 42% in 1Q10 were 29% 10% 17% 20% 18% 19% 26% 18% 24% 21% Restructurings. 10% 0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 1Q10 Quarterly New Scope TCV Comparison Industrywide TCV ($B) Total Industrywide Contracts (#) TCV # of ($B) contracts 25 200 New scope in the market 20 150 was actually down by 15% 15 Y/Y in 1Q10. 100 10 18.7 18.9 19.4 16.0 12.1 13.2 12.9 13.1 11.3 50 5 0 0 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 Copyright © 2010, Technology Partners International, Inc. All Rights Reserved

6 The Flow of Restructurings Recent activity represents a positive contribution to the recovery. The number of expiring contracts up for renewal is moderately higher than this time in 2009. Of that, we estimate that clients will renegotiate between $10 billion and $12 billion in ACV. Typically, 85-90% of the time, incumbents retain their expiring contracts. Increasingly clients splitting off portions of original scope to award to best-of-breed providers. Copyright © 2010, Technology Partners International, Inc. All Rights Reserved

7 Industrywide Mega-Deal Trends Four large Mega-Deals helped support 1Q10 Broader Market TCV results. Annual Mega-Deal Comparison (By Number) # of mega-deals 25 20 Client/ Region Scope Industry Large Bank EMEA Data Center 15 Large Americas Infrastructure 24 Healthcare 23 Firm 10 20 17 Large Americas ADM plus 16 15 Conglomerate infrastructure 12 13 13 5 10 Railway EMEA ADM plus company infrastructure 4 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 1Q10 2000-2009 Totals reflect full year counts Copyright © 2010, Technology Partners International, Inc. All Rights Reserved

8 Industrywide Regional Contract Award Trends Americas TCV saw an increase of 47% Y/Y; EMEA up 7% Y/Y. 1Q TCV ($B) of Contracts Awarded Comparison by Region 1Q06 1Q07 1Q08 1Q09 1Q10 19.5 Up 7% Y/Y Up 47% Y/Y 13.4 Up 35% Y/Y 9.3 8.4 8.5 9.0 7.2 6.2 6.4 6.6 2.4 3.4 1.5 Restructurings were a 0.8 1.1 substantial part of the Americas EMEA Asia-Pacific both Americas and EMEA 1Q Number of Contracts Awarded Comparison by Region TCV awarded this quarter. 1Q06 1Q07 1Q08 1Q09 1Q10 88 71 68 67 55 59 59 53 45 45 16 16 17 19 13 Americas EMEA Asia-Pacific Copyright © 2010, Technology Partners International, Inc. All Rights Reserved

9 Industrywide ITO Contract Award Trends $16B in ITO contract-award TCV represented an increase of 46% Y/Y. Quarterly ITO TCV Comparison ($B) Industrywide TCV ($B) Total Industrywide Contracts (#) TCV # of ($B) contracts 25 200 Within overall ITO activity, 20 160 ADM and ADM bundled 15 120 with Infrastructure scope 10 17.4 19.0 16.0 80 areas saw the most 13.3 14.4 13.8 12.3 11.1 11.0 5 40 activity. 0 0 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 Quarterly ITO TCV Comparison ($B) New Scope Only Industrywide TCV ($B) Total Industrywide Contracts (#) TCV # of ($B) contracts 20 150 New ITO scope 120 15 added was 90 10 essentially flat. 14.6 60 11.9 12.3 5 8.5 8.6 8.9 9.9 9.4 8.9 30 0 0 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 Copyright © 2010, Technology Partners International, Inc. All Rights Reserved

10 Industrywide BPO Contract Award Trends TCV awarded in the BPO market above $25M came in at $3.4B, down 26% Y/Y. Quarterly BPO TCV Comparison ($B) Industrywide TCV ($B) Total Industrywide Contracts (#) TCV # of ($B) contracts Decision makers postponed 10 100 transformational and 8 80 investment-requiring 6 60 4 7.9 7.8 8.5 40 initiatives as they weathered 2 5.6 4.6 3.6 4.5 5.7 3.4 20 the realities of the recession. 0 0 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 TCV ($B) of BPO Contracts Awarded by Quarter 1Q09 2Q09 3Q09 4Q09 1Q10 1.4 0.9 1.0 0.8 0.6 0.6 0.7 0.5 0.4 0.5 0.4 0.3 0.3 0.3 0.3 0.1 0.1 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.1 0.0 0.1 0.0 0.1 Contact Centers FSO HRO F&A Procurement Multi-Process Chart does not represent all BPO Processes: Document Mgmt; Facilities Mgmt , Supply Chain, etc. Copyright © 2010, Technology Partners International, Inc. All Rights Reserved

11 Industry Segment Comparison Travel and Transportation was the leading industry in terms of TCV awarded. Industrywide Contracts With TCV > $25M: Y/Y TCV Awarded Comparison ($B) 1Q09 1Q10 5.0 5.1 4.1 4.2 2.5 2.4 1.7 1.8 1.5 1.1 1.0 1.2 1.1 0.8 0.9 0.6 Business Energy Financial Healthcare & Manufacturing Retail Telecom and Travel, Services Services Pharma Media Transport Business Services Chemicals Banking Drugs & Aerospace & Food Media Hotels, & Supplies Oil & Gas Diversified Biotechnology Defense Markets Telecom Services Restaurants & Software & Operations Financials Health Care Capital Goods Retailing Leisure Services Utilities Insurance Equipment & Conglomerates Transportation Svcs Construction Consumer Durables Food Drink & Forbes G-2000 Industry Tobacco categories and how they map to Household & Personal Prod. broader Industries Segments Materials Semiconductors Technology HW Copyright © 2010, Technology Partners International, Inc. All Rights Reserved

12 Industrywide Contract Award Trends Leading Service Providers in 1Q10. 1Q10 Top 15 Three or More Contracts > $25M Service Providers by TCV Awarded Signed in 1Q10 Accenture Infosys Arvato Logica BT RR Donnelly CSC Siemens Hewitt T-Systems HP TCS IBM Wipro Indra Note: Service providers in alphabetical order; no rankings implied. Placements based on 1Q10 TCV commercial contract awards sourced from TPI contracts database. Copyright © 2010, Technology Partners International, Inc. All Rights Reserved

13 Telco-to-Telco Service Provider Contract Award Trends 1Q10 was second best quarter ever for TCV awarded. Annual Telco-to-Telco Service Provider TCV Comparison ($B) Industrywide TCV ($B) Total Industrywide Contracts (#) TCV ($B) 12 30 9 20 6 9.1 10 3 5.4 4.5 4.9 2.0 2.0 2.0 1.0 1.1 0 0 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 Much of the Telco-to-Telco Service Provider activity in 1Q10 occurred in the emerging markets – especially in the Asia-Pacific region. Copyright © 2010, Technology Partners International, Inc. All Rights Reserved

14 Outlook Key market indicators point to a steady flow of new opportunities for the industry. As we entered As we enter First Quarter Second Quarter 2010 2010 Industry Pipeline Values High Lower Q/Q but Flat with 2Q09 Industry Pipeline Additions Stable Stable Industry Pipeline Timing Award Delayed Contracts Delays Cleared Industry Contract Renewals High High The market in coming quarters should continue to recover slowly but unevenly over the course of 2010. Copyright © 2010, Technology Partners International, Inc. All Rights Reserved

15 SM Turn to TPI Momentum for your bespoke research needs TPI Momentum Annual Report Now Available! 2010 Momentum Verticals Report will be available in May 2010 For this and further information on obtaining a copy of the TPI Index Insider visit www.tpi.net/TPIMomentum.html For details about TPI Momentum Services and Information Products, as well as membership information, contact tpimomentum@tpi.net or: Paul Reynolds John Keppel Director and Chief Research Officer Partner & Managing Director Americas EMEA TPI Momentum TPI Momentum paul.reynolds@tpi.net john.keppel@tpi.net +1 508 625 2194 +44 7879 432 212 Copyright © 2010, Technology Partners International, Inc. All Rights Reserved

16 Summary ■ The market’s TCV grew substantially during the quarter, driven by unusually large restructuring activity. ■ Restructurings drove the mega-deal and ITO markets and supported strong growth in the Americas and EMEA. ■ We expect restructuring activity will slow but still outstrip historical norms. ■ The underlying market is recovering slowly and unevenly. Copyright © 2010, Technology Partners International, Inc. All Rights Reserved

1st Quarter 2010 TPI Index

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1st Quarter 2010 TPI Index — Presentation Transcript