Global Offshore Global In-house Center (GIC) Landscape and Trends Focus Geography – Poland


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The report analyzes the global offshore GIC landscape and key trends of the last 30 months (2010 – H1 2012). The report also provides detailed profiles of the global GIC landscape and trends in six key industry verticals – Banking, Financial Services, and Insurance (BFSI); Energy and Utilities; Healthcare; Manufacturing, Distribution, and Retail (MDR); Technology; and Telecom. The report concludes with a deep-dive of the offshore GIC landscape of Poland, covering market size and growth, distribution of GIC landscape, and comprehensive information on industry verticals.

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  • Clearly the GICs have established themselves for process & technology services, scale and reliability. The next paradigm will be to reach full potential in domain knowledge -
    1) leveraging domain knowledge by harvesting knowledge from applications, processes,
    2) creating core teams of business consultants who can be part of the initiation stage of a business project (and not merely at execution or back-end) and 3) addressing new clients,products by using domain based accelerators.

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Global Offshore Global In-house Center (GIC) Landscape and Trends Focus Geography – Poland

  1. 1. Topic: Global Offshore Global In-house Center (GIC)Landscape and TrendsFocus Geography – PolandGlobal SourcingReport: August 2012 – Preview Deck Copyright © 2012, Everest Global, Inc. EGR-2012-2-PD-0747
  2. 2. Our research offerings for global servicesSubscription information Market Vista The full report is included in Global services tracking across functions, sourcing models, locations, and the 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 options, Service Provider Transaction Pricepoint please contact us: intelligence Intelligence – – +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 © 2012, Everest Global, Inc. 2 EGR-2012-2-PD-0747
  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 © 2012, Everest Global, Inc. 3 EGR-2012-2-PD-0747
  4. 4. Background and scope of research The global sourcing market evolved and grew rapidly to reach a size of ~US$116 billion in 2011. GICs were a core component of this evolution with companies such as Texas Instruments and GE setting up offshore GIC units in the late 1980s and early 1990s The last 15 to 20 years witnessed increased adoption of the GIC model with a large number of companies setting up / expanding their GICs. While India continues to remain a leading geography, companies also explored and successfully established GIC operations in China, the Philippines, Central and Eastern Europe, and Latin America. Recently, Middle East and North Africa (MENA) has emerged as attractive offshoring destination However, significant growth of third-party service providers and selective divestitures during the economic crisis led to the perception that the GIC model is under threat. Stated reasons include GIC not delivering value and being significantly more expensive than third-party service providers At the same time, mature users of the GIC model articulate their commitment to it and reinforce its importance in their sourcing strategy and portfolio. Additionally, our discussions with global sourcing offices of large companies and GIC leadership reveal imperatives under way to expand the role of GIC and its value proposition This research provides an in-depth analysis of the global offshore GIC landscape across leading locations. The report is based on Everest Group’s proprietary GIC database and is updated every six months. Besides providing details on global GIC landscape trends and analysis, the report also contains a focus section that provides a deep- dive into the GIC landscape in a select geography. This edition features Poland as the focus geography Copyright © 2012, Everest Global, Inc. 4 EGR-2012-2-PD-0747
  5. 5. Buyer organizations have a range of options for capturingvalue from offshoring, with GIC and third-party outsourcing asthe primary models Offshore business models GIC model Strategic alliance / Joint Venture Third-party outsourcing model model Pure GIC model Build Operate Transfer (BOT) / Pure third-party offshoring  An internal cost center or a Joint Venture (JV)  Use of an offshore provider to 100% subsidiary company to  Provider-owned / joint outsource business processes cater exclusively to the parent operations that can be or IT services company transferred back to the customer  Examples: Alcoa-Infosys, Rio  Examples: American Express,  Example: eServe-Citigroup Tinto - Wipro HSBC Inverted BOT Managed third-party offshoring  Offshore service providers  Full- / part-time resources on theThe focus of this report provide only implementation ground to facilitate transition,is on the GIC model support initially and are allowed relationship management, and to buy into the entity at a later transfer of organization and date domain knowledge to third-party  Examples: AIG-Polaris, BA- providers WNS  Example: Greenpoint-Infosys BPOSource: Everest Group analysis Copyright © 2012, Everest Global, Inc. 5 EGR-2012-2-PD-0747
  6. 6. 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  Scale (FTE range) of global 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, ES / R&D) 2000 and Fortune 500 companies)  Parent geographies Database covers more than 1,200 GICs  Parent size (revenue range) Focus on GICs providing offshore delivery of global services – excludes shared  Location of delivery centers services centers serving the domestic market Copyright © 2012, Everest Global, Inc. 6 EGR-2012-2-PD-0747
  7. 7. Table of contents (page 1 of 2)Topic Page no.Section I: Executive summary 9Section II: Overview of the global GIC landscape 13 Summary 14 Global offshore services and GIC market: Size and growth 15 Distribution of the global offshore GIC landscape by: – Parent revenue 18 – Parent geography 19 – Industry vertical 20 – Functions supported 21 – Offshore delivery locations 23Section III: Deep-dive into key industry verticals 26 Summary 27 Banking, Financial Services, and Insurance (BFSI ) 28 Energy and Utilities (E&U) 31 Healthcare 34 Manufacturing, Distribution, and Retail (MDR) 37 Technology 40 Telecom 43Section IV: Recent trends in the global GIC landscape (Jan 2010- Jun 2012) 46 Summary 47 Recent trends in GIC set-ups and divestitures 48 Copyright © 2012, Everest Global, Inc. 7 EGR-2012-2-PD-0747
  8. 8. Table of contents (page 2 of 2)Topic Page no.Section IV: Recent trends in the global GIC landscape (2009-2011) (continued…) Recent trends in offshore GIC landscape (2009-2011) by: – Parent revenue 49 – Parent geography 50 – Industry verticals 51 – Functions supported 52 – Key GIC locations 53 List of offshore GIC divestitures (2009-2011) 58Section V: Focus geography: GIC landscape in Poland 61 Summary 62 Poland global services market: size and growth 63 Distribution of offshore GICs in Poland by: – Headcount 67 – Parent revenue 68 – Parent geography 69 – Industry vertical 70 – Functions supported 71 – Locations 72 Deep-dive into key industry verticals 74Appendix 80 Recent offshore GIC set-ups (H2 2011 and H1 2012) 82 Glossary of key terms 103 Additional research recommendations 104 Copyright © 2012, Everest Global, Inc. 8 EGR-2012-2-PD-0747
  9. 9. This research report provides an in-depth analysis of theglobal GIC landscape and trendsNumber of leading offshore GICs Distribution of offshore GICs by parent geography 2012; Percentage 100% = 1,251 ROW APAC Rest of Europe (ROE) U.S. UK 2007 2008 2009 2010 2011 H1 2012Distribution of offshore GICs by functions GIC activity | Market activity heatmap2012; Percentage 100% = 1,251 Comments  High adoption in technology, IT 40% followed by BFSI and MDR industry verticals  High adoption in the technology ES / R&D 43% vertical, followed by MDR  High adoption in the BFSI vertical BP 43%  Gaining traction in MDR and technology verticalsSource: Everest Group (2012) Copyright © 2012, Everest Global, Inc. 9 EGR-2012-2-PD-0747
  10. 10. The report analyzes the GIC market across six key industryverticals BFSI Energy and Telecom Utilities (E&U) Key industry verticals Technology Healthcare MDR Copyright © 2012, Everest Global, Inc. 10 EGR-2012-2-PD-0747
  11. 11. This study also provides an analysis of the recent trend (2010to H1 2012) within the global GIC landscapeNumber of offshore GIC divestitures Distribution of offshore GICs by parent revenue Percentage 4 100% = 1,251 >US$50 billion 2 US$10-50 billion US$5-10 billion US$1-5 billion 0 <US$1 billion 2010 2011 H12012 Up to H1 2012 2010 2011 H1 2012 OthersDistribution of offshore GICs by functions Distribution of offshore GICs by industry vertical Up to 2012; Percentage 2010; Percentage 2011; Percentage H1 2012; Percentage Percentage 100% = 1,251 100% = 1,251 100% = 1,251 100% = 1,251 100% = 1,251 Others Healthcare E&U Telecom IT BFSI ES / R&D MDR BP Technology Up to H1 2012 2010 2011 H1 2012Source: Everest Group (2012) Copyright © 2012, Everest Global, Inc. 11 EGR-2012-2-PD-0747
  12. 12. The report also covers a detailed analysis of the focusgeography – PolandPoland IT-BPO export revenue by service segments Distribution of market by delivery models2011; US$ billion 2011; Number of FTEs 100% = 1,251 100% = 1,251 R&D ITO Third-party BPO Shared servicesNumber of leading offshore GICs in Poland Distribution of offshore GICs by headcount – range of FTEs 20121; Percentage 100% = 1,251 2,001-5,000 1,001-2,000 500-1,000 <500 2004 2005-06 2007-08 2009-10 2011-12 2012 New GIC set-upsSource: Everest Group (2012) Copyright © 2012, Everest Global, Inc. 12 EGR-2012-2-PD-0747
  13. 13. Appendix: Additional research recommendationsThe following documents are recommended for additional insight into the topic covered in this research. Therecommended documents either provide additional details on the topic or complementary content that may be ofinterest1. Global Offshore Captive Landscape and Trends: Focus Geography - The Philippines (EGR-2011-2-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 verticals2. Global Locations Compass – China (EGR-2011-2-R-0606); 2011. The report provides detailed data and analysis on the global services landscape in China3. Global Locations Compass - The Philippines (EGR-2012-2-R-0637); 2011. The report provides detailed data and analysis on the global services landscape in the Philippines For more information on this and other research published by Everest Group, please contact us: Salil Dani, Research Director: Anurag Srivastava, Senior Analyst Ritika Dhingra, Knowledge Associate : Everest Group Two Galleria Tower 13455 Noel Road, Suite 2100 Phone: +1-214-451-3110 Dallas, TX 75240 E-mail: Copyright © 2012, Everest Global, Inc. 13 EGR-2012-2-PD-0747
  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 practical consulting,original research, and industry resource services, Everest Group helps clients maximize value from delivery strategies, talent andsourcing models, technologies, and management approaches. Established in 1991, Everest Group serves users of globalservices, providers of services, country organizations, and private equity firms in six continents across all industry categories. Formore information, please visit and (Corporate Headquarters) Toronto India / Middle +1-416-865-2033 +91-124-496-1000New York +44-207-887-1483Stay connectedWebsites Twitter @EverestGroup @Everest_Cloud Copyright © 2012, Everest Global, Inc. 14 EGR-2012-2-PD-0747