3rd Quarter 09 TPI Index

0 The TPI Index An Informed View of the State of the Global Commercial Outsourcing Market Third Quarter 2009 October 20, 2009 Copyright © 2009, 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 © 2009, 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 Resources Management Scott Gildner Partner & President, TPI Americas Partner & Managing Director, Industry Tom Lang Verticals, TPI Americas Duncan Aitchison Partner & President, TPI EMEA Copyright © 2009, Technology Partners International, Inc. All Rights Reserved

2 An Informed View Insights into the broader commercial outsourcing market. 28th Quarterly Covers metrics for 3Q09 and 1H09 TPI Index Insights on commercial outsourcing contracts valued at > $25M Focus on strong third quarter due largely to the Telco-to-Telco Highlights market segment Broader market shows solid, steady Q/Q growth Host UBS Investment Research 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 © 2009, Technology Partners International, Inc. All Rights Reserved

3 Headlines Even with a strong third quarter, 2009 still down over 10% YTD. ■ 3Q09 was the strongest third quarter ever by TCV; however, without Telco-to-Telco, 3Q09 performance is in line with the past four slower quarters. ■ Telco-to-Telco contracts accounted for more than 30% of the Broader Market TCV in 3Q09. ■ 2009 YTD results are down 10%; without the Telco activity, TCV was down 23% YTD. ■ 3Q09 performance was supported by: ■ Resurgence in mega deals, within and outside of the Telco-to-Telco market segment. ■ ITO TCV growth driven primarily by the Telco-to-Telco impact. Copyright © 2009, Technology Partners International, Inc. All Rights Reserved

4 Industrywide Contract Award Trends 3Q09 has brought some unanticipated lift to the market for the entire year. Industrywide Contracts With TCV > $25M Q/Q Comparison ($B) YTD TCV Comparison ($B) Industrywide TCV ($B) Total Industrywide Contracts (#) Industrywide TCV ($B) TCV # of ($B) contracts TCV results marked the best third Third quarter of 2009 lifted the YTD quarter ever. results somewhat, but not enough to meet 2008 YTD measures. Copyright © 2009, Technology Partners International, Inc. All Rights Reserved

5 Industrywide Contract Awards – Telco-to-Telco Impact Success in the Broader Market for the third quarter and year-to-date stems significantly from where a Telco carrier outsources activities to a Telco service provider. Industrywide Contracts With TCV > $25M YTD Telco-to-Telco TCV Comparison ($B) 2009 YTD TCV Percentage Industrywide TCV ($B) 15 Telco-to- Rest-of- Telco Market Market TCV% 23% 12 TCV% 77% 9 14.3 6 6.9 3 5.6 0.6 3.3 0 2005 2006 2007 2008 2009 Until recently, network operations outsourcing has proven more popular outside the US, particularly in Western Europe and Asia Pacific. Copyright © 2009, Technology Partners International, Inc. All Rights Reserved

6 Industrywide Contract Award Trends Even without Telco-to-Telco, 3Q09 was the best quarter thus far in 2009. Industrywide Contracts With TCV > $25M Q/Q Comparison ($B) Rest-of-Market TCV Telco-to-Telco TCV 0.8 2.0 3.9 2.0 2.7 7.5 1.1 1.0 4.9 2.0 1.8 29.0 25.2 21.1 22.9 18.9 17.2 17.2 16.7 15.5 15.6 13.9 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 Copyright © 2009, Technology Partners International, Inc. All Rights Reserved

7 Industrywide Contract Award Trends Without the Telco-to-Telco Awards, the Broader Market is down YTD. Industrywide Contracts With TCV > $25M YTD Comparison ($B) Rest-of-Market TCV Telco-to-Telco TCV YTD TCV Growth 0.6 6.9 -10.4% 3.3 YTD TCV Growth 14.3 5.6 (No Telco-to-Telco) -23.4% 65.6 63.0 59.3 50.0 48.3 2005 2006 2007 2008 2009 Copyright © 2009, Technology Partners International, Inc. All Rights Reserved

8 Industrywide Mega-Deal Contract Award Trends Mega-deal story is predominantly upbeat for the quarter. Industrywide Contracts With TCV > $1B Q/Q Comparison ($B) Rest-of-Market Mega-Deal TCV Telco-to-Telco Mega-Deal TCV 7.2 2.1 1.0 10.6 7.2 7.6 2.0 6.5 4.8 5.4 1.1 2.1 2.4 2.0 2.6 1.0 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 Copyright © 2009, Technology Partners International, Inc. All Rights Reserved

9 Industrywide Mega-Deal Contract Award Trends Increased value of mega-deals year to date is having a noticeable impact on the market. Industrywide Contracts With TCV > $1B YTD Comparison ($B) Rest-of-Market Mega-Deal TCV Telco-to-Telco Mega-Deal TCV 2.1 2.0 10.9 20.4 3.0 15.1 15.8 9.3 8.5 2005 2006 2007 2008 2009 Copyright © 2009, Technology Partners International, Inc. All Rights Reserved

10 Industrywide Award Trends – ITO Best quarter for ITO TCV since 4Q03; without Telco-to-Telco, TCV remained flat Q/Q. Industrywide ITO Contracts With TCV > $25M Q/Q Comparison ($B) Rest-of-Market ITO TCV Telco-to-Telco TCV 0.8 2.0 2.7 7.5 3.9 2.0 4.9 1.1 1.0 2.0 1.8 18.8 17.4 15.1 14.4 13.2 12.9 12.6 11.1 11.1 11.0 9.0 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 Copyright © 2009, Technology Partners International, Inc. All Rights Reserved

11 Industrywide Award Trends – ITO Without the Telco-to-Telco awards the ITO market has declined YTD. Industrywide ITO Contracts With TCV > $25M YTD Comparison ($B) Rest-of-Market TCV Telco-to-Telco TCV YTD TCV Growth 0.6 +4.5% 6.9 14.3 YTD TCV Growth 3.3 (No Telco-to-Telco) 5.6 -12.6% 46.3 40.6 41.7 35.2 36.5 2005 2006 2007 2008 2009 Copyright © 2009, Technology Partners International, Inc. All Rights Reserved

12 Industrywide Award Trends – BPO Business Process Outsourcing continues its lackluster track record in 2009. Industrywide BPO Contracts With TCV > $25M Q/Q Comparison ($B) YTD Annual Comparison Industrywide TCV ($B) Total Industrywide Contracts (#) Industrywide TCV ($B) Total Industrywide Contracts (#) TCV # of TCV # of ($B) contracts ($B) contracts BPO is down from 2008 results: 25% by number of contracts, 45% by TCV. Copyright © 2009, Technology Partners International, Inc. All Rights Reserved

13 Industrywide Award Trends – BPO Value of BPO contracts have declined for every traditional BPO process area. Industrywide BPO Contracts With TCV > $25M YTD BPO Contract Awards ($B) with TCV > $25M 2007 2008 2009 2.8 1.3 1.3 1.2 0.9 0.9 0.8 0.7 0.6 0.5 0.5 0.5 0.4 0.4 0.3 0.3 0.2 0.2 0.1 0.2 0.2 0.1 0.1 0.1 0.1 0.1 0.0 Contact Doc. Mgmt. F&A FM FSO HRO Multi-Proc. Procure- Supply Centers BPO ment Chain Mgmt Chart does not include other BPO processes. Copyright © 2009, Technology Partners International, Inc. All Rights Reserved

14 Industrywide Award Trends – BPO < $25M TCV awards driving activity in traditional BPO markets. Number of FAO Contracts Awarded $25M+ TCV < $25M TCV India, US, and European-heritage 100 firms all competing for both small 80 25% and larger-sized TCV contracts. 60 Significant < $25M TCV activity in 40 HRO (benefits administration and 20 recruitment) and Finance & Accounting and Procurement 0 2007 2008 Outsourcing (strategic sourcing and transaction processing). Source: TPI Prevalence DatabaseSM Copyright © 2009, Technology Partners International, Inc. All Rights Reserved

15 Industrywide Award Trends – Americas The Americas has not seen a stronger quarter for TCV awards since 4Q07. Industrywide Contracts With TCV > $25M Q/Q Comparison ($B) Rest-of-Market TCV Telco-to-Telco TCV 0.03 5.0 0.4 0.1 12.9 1.1 0.1 8.6 7.1 7.7 6.2 6.6 6.2 6.8 5.4 5.8 4.7 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 Copyright © 2009, Technology Partners International, Inc. All Rights Reserved

16 Industrywide Award Trends – Americas Market in the Americas was impacted by Telco-to-Telco. Industrywide Contracts With TCV > $25M YTD Comparison ($B) 2009 YTD Top 15 Service Providers by TCV Rest-of-Market TCV Telco-to-Telco TCV ACS 0.2 0.3 CGI Convergys CSC 1.5 Ericsson 5.0 Fujitsu 0.1 Geodis 32.0 32.0 HCL HP 20.5 18.8 IBM 17.2 Infosys Jones Lang LaSalle Perot Systems 2005 2006 2007 2008 2009 RR Donnelly Wipro YTD TCV Growth YTD TCV Growth Note: Service providers in alphabetical order; no rankings implied. (No Telco-to-Telco) Placements based on 2009 YTD TCV commercial contract awards sourced from +8.0% -8.5% TPI contracts database. Copyright © 2009, Technology Partners International, Inc. All Rights Reserved

17 Industrywide Award Trends – EMEA EMEA contract awards based on TCV were down slightly Q/Q. Industrywide Contracts With TCV > $25M Q/Q Comparison ($B) Rest-of-Market TCV Telco-to-Telco TCV 0.9 2.8 0.6 1.0 2.6 0.7 1.3 15.9 13.4 0.3 12.3 1.4 9.6 9.7 8.3 8.5 7.4 7.4 5.4 6.3 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 Copyright © 2009, Technology Partners International, Inc. All Rights Reserved

18 Industrywide Award Trends – EMEA Relative performance in EMEA is similar whether or not the Telco-to-Telco deals are included. Industrywide Contracts With TCV > $25M 2009 YTD Top 15 Service YTD Comparison ($B) Providers by TCV Rest-of-Market TCV Telco-to-Telco TCV Accenture Atos Origin BT Cable & Wireless Capita 3.7 EDB Bus Part Ericsson 1.6 3.8 2.3 Fujitsu HP 36.8 IBM 30.3 25.3 Infosys 21.1 20.2 Logica Orange T-Systems 2005 2006 2007 2008 2009 Telefonica Note: Service providers in alphabetical order; YTD TCV Growth YTD TCV Growth no rankings implied. Placements based on 2009 YTD TCV (No Telco-to-Telco) commercial contract awards sourced from TPI contracts database. -44% -45% Copyright © 2009, Technology Partners International, Inc. All Rights Reserved

19 Industrywide Award Trends – Asia Pacific Asia Pacific experienced a second consecutive strong quarter. Industrywide Contracts With TCV > $25M Q/Q Comparison ($B) Rest-of-Market TCV Telco-to-Telco TCV 3.5 1.0 2.2 0.2 0.1 1.0 1.1 4.6 4.3 4.2 0.5 3.8 0.8 3.4 1.3 2.3 2.7 1.8 1.4 1.6 0.8 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 Robust activity in the network services space (Telco-Telco) has enabled this year’s substantial Asia Pacific performance. Copyright © 2009, Technology Partners International, Inc. All Rights Reserved

20 Industrywide Award Trends – Asia Pacific Asia Pacific experiencing its best year ever and is in position to exceed the Year 2000 for the best full-year results. Industrywide Contracts With TCV > $25M 2009 YTD Top 15 Service YTD Comparison ($B) Providers by TCV Rest-of-Market TCV Telco-to-Telco TCV Alcatel-Lucent CSC Ericsson Fujitsu 7.0 HP IBM Infosys 1.6 Linfox Logistics 1.3 1.8 Nokia Siemens 0.4 9.3 Reliance Comm. 6.2 7.5 Singapore Tele. 5.7 Tata Comm. 3.3 Tech Mahindra Telstra 2005 2006 2007 2008 2009 Wipro Note: Service providers in alphabetical order; YTD TCV Growth YTD TCV Growth no rankings implied. Placements based on 2009 YTD TCV (No Telco-to-Telco) commercial contract awards sourced from TPI contracts database. +120% +64% Copyright © 2009, Technology Partners International, Inc. All Rights Reserved

21 Industry Segment Comparison Potential signs of vitality going forward in Financial Services. Industrywide Broader Market Contracts with TCV > $25M TCV ($B) of Contracts Signed by Industry (YTD View) Diversified Financials Telecommunications Services 0.4 0.3 0.2 0.1 0.0 0.7 0.6 0.6 1.0 0.9 1.2 1.1 1.4 1.2 1.7 1.8 1.8 1.9 1.9 2.3 2.6 3.1 3.1 Household & Personal Products Health Care Equipment & Svcs Technology Hardware & Equip 3.2 Business Services & Supplies Hotels, Restaurants & Leisure 4.5 5.0 Drugs & Biotechnology Food Drink & Tobacco Aerospace & Defense Oil & Gas Operations Software & Services 20.2 Consumer Durables Trading Companies Semiconductors Conglomerates Transportation Capital Goods Food Markets Construction Chemicals Insurance Materials Retailing Banking Utilities Media Arrows represent 50% increase or decrease in 2009 YTD TCV activity compared to 2008. Diversified Financials sector continues to grow. Banking and Insurance sectors poised for increased activity. Copyright © 2009, Technology Partners International, Inc. All Rights Reserved

22 Industrywide Award Trends – Outlook Full year 2009 TCV will likely remain below 2008 levels, but eclipse 2006-2007 totals. Industrywide Contracts With TCV > $25M Annual TCV Comparison ($B) TCV ($B) 1H 2H 100 80 32.1 40.7 48.3 48.8 42.5 50.3 40.2 60 41.2 45.3 40.9 24.7 40 49.5 48.5 46.5 46.2 52.2 20 41.2 40.8 39.7 37.9 32.4 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 In the past five years, 4th quarter TCV has averaged just over $27B. Significant activity in the industry pipeline – much of it involves larger- scale relationships. Copyright © 2009, Technology Partners International, Inc. All Rights Reserved

23 Key Findings ■ 3Q09 had record TCV helped by Telco-to-Telco agreements; without Telco, TCV was down 23% YTD. ■ Mega-deal activity for 3Q09 surged in both the Telco-to-Telco and broader markets. ■ ITO upswing fueled by Telco-to-Telco contracts and increased activity in Asia Pacific stimulated global market momentum. ■ YTD TCV remains down from 2008; however industry activity suggests an upward turn in the marketplace over the next 6-9 months. Copyright © 2009, Technology Partners International, Inc. All Rights Reserved

24 SM Turn to TPI Momentum for your research needs Market Trends & Insights Report on Service Lines Available Now! For this and further information 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: Melany Williams John Buscher John Keppel Sid Pai Partner & Managing Partner & Managing Director Partner & Managing Director Partner & Managing Director Director Americas EMEA TPI India TPI Momentum TPI Momentum TPI Momentum sid.pai@tpi.net melany.williams@tpi.net john.buscher@tpi.net john.keppel@tpi.net +91 98800 77339 +1 415 425 2080 +1 941 730 2507 +44 7879 432 212 Copyright © 2009, Technology Partners International, Inc. All Rights Reserved

3rd Quarter 09 TPI Index

by TPI on Oct 20, 2009

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3rd Quarter 09 TPI Index — Presentation Transcript