Outsourcing Deal Activity - April 2011

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Transaction Intelligence (TI) Monthly report for April, 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 April 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 - April 2011

  1. 1. Transaction Intelligence MonthlyReportApril 2011
  2. 2. Trailing three-month average of outsourcingtransactions Number of transactions1; Apr 2010 – Apr 2011 200 180 160 140 120 100 80 60 40 20 0 May 2010 Mar 2011 Jun 2010 Nov 2010 Jan 2011 Jul 2010 Aug 2010 Apr 2010 Oct 2010 Apr 2011 Sep 2010 Dec 2010 Feb 2011 1 Includes only transaction signings that were publicly disclosedSource: Everest Research Institute Transaction Intelligence 2 Proprietary & Confidential. © 2011, Everest Global, Inc.
  3. 3. Outsourcing transactions | By function and industryverticalSplit of outsourcing transactions announced by function Split of outsourcing transactions1 announced by industryNumber of transactions Number of transactions100% = 186 156 138 100% = 186 156 138Both 4% 5% 1% Others2 15% 15% 19%BPO 30% Technology 5% 1% 30% 7% 2% Energy & utilities 5% 40% 6% Retail 3% 8% 4% Telecom 5% 3% 4% Government 11% Healthcare 7% 24% 23% Defense 4% Travel & transport 7% 7% 11%ITO 67% 69% 1% Manufacturing 15% 6% 4% 54% 4% 12% 8% BFSI1 23% 17% 16% Apr 2010 Mar 2011 Apr 2011 Apr 2010 Mar 2011 Apr 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 Research Institute Transaction Intelligence 3 Proprietary & Confidential. © 2011, Everest Global, Inc.
  4. 4. Outsourcing transactions | By key buyer geography1M-o-M change in three-month trailing average of outsourcing transactions Increased Similar Decreased Mar 2011 activity2 activity2 activity2 Apr 2011 Finland Sweden Norway Canada UK Denmark Poland Netherlands Belgium Germany France Switzerland US Italy China Japan Spain India BrazilOutsourcing transactions Australia New Zealand 51 42 38 31 34 31 32 35 3 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 Research Institute Transaction Intelligence 4 Proprietary & Confidential. © 2011, Everest Global, Inc.
  5. 5. Key outsourcing deals signed in April 2011 Service Deal value Contract FunctionalBuyer Industry vertical provider (US$ million) duration scopeTryg Insurance CSC 348 7 years ITONational Grid Energy & Utilities HP 2671 7 years ITOVodafone Telecom Tech Mahindra 250 5 years ITONationwide Building Other financial Carillion 2401 3 years BPOSociety servicesMoscow City Government Government Sitronics 226 1 years ITOMGM Resorts International Others ACS 200 5 years ITOFAA Government Raytheon 177 N/A ITOVirgin Media Others Carillion 1601 2 years BPOWestminster City Council Government Vertex 1381 2 years BPOUS Army Defense Northrop 78 5 years ITO Grumman 1 Deal value estimatedSource: Everest Research Institute Transaction Intelligence 5 Proprietary & Confidential. © 2011, Everest Global, Inc.
  6. 6. The Transaction Intelligence offering can be accessedas a subscription to the on-line database or via acustom research 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 targetsCustomized  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 6 Proprietary & Confidential. © 2011, Everest Global, Inc.
  7. 7. Overview of the TI capabilityTransaction Intelligence (TI) is the largest and most comprehensive database ofoutsourcing transactions. TI contains information which is collected and validated frommultiple secondary sources. The database structure facilitates easy queries of theinformation and quick analysis of the transactions. The TI database is operated by EverestResearch Institute, the research arm of the Everest Group. TI contains ~17,000 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 writeto TIteam@everestresearchinstitute.com. 7 Proprietary & Confidential. © 2011, Everest Global, Inc.
  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: Q1 2011 (ERI-2011-8-R-0543); 2011. This report summarizes the key trends and developments for Q1 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 transactions that are coming up for renewal. The database contains key deal parameters like names of buyer and supplier, 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. Banking, Financial Services, and Insurance (BFSI): Trends for Q1 2011 (ERI-2011-8-R-0555); 2011. This report provides BFSI 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 BFSI industry For more information on this and other research published by the Everest Research Institute, please contact us: Rahul Kumar, Knowledge Director: rkumar@everestgrp.com Amara Shyam Sundar, Sr. Information Specialist: samara@everestgrp.com Everest Research Institute Two Galleria Tower 13455 Noel Road, Suite 2100 Phone: +1-214-451-3110 Dallas, TX 75240 E-mail: info@everestresearchinstitute.com 8 Proprietary & Confidential. © 2011, Everest Global, Inc.
  9. 9. 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 info@everestresearchinstitute.com +1-416-865-2033 +1-214-451-3000 +1-214-451-3110New York India/Middle Eastinfo@everestgrp.com india@everestgrp.com+1-646-805-4000 +91-124-496-1000 +91-124-496-1100 UK Netherlands & Continental Europe unitedkingdom@everestgrp.com benelux@everestgrp.com +44-870-770-0270 +31-20-301-2138www.everestgrp.com | www.everestresearchinstitute.com | www.sherpasinblueshirts.com 9 Proprietary & Confidential. © 2011, Everest Global, Inc.

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