Outsourcing deal activity november 2011


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Transaction Intelligence (TI) Monthly report for November 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 November 2011

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Outsourcing deal activity november 2011

  1. 1. Transaction IntelligenceMonthly ReportNovember 2011 EGR-2011-6-R-0583
  2. 2. Outsourcing transactions | Trailing three-monthaverage Trailing three-month average of outsourcing transactions1 200 180 160 140 120 100 80 60 40 20 0 May 2011 Mar 2011 Nov 2010 Jan 2011 Jun 2011 Nov 2011 Jul 2011 Aug 2011 Apr 2011 Oct 2011 Sep 2011 Dec 2010 Feb 2011 1 Includes only transaction signings that were publicly disclosedSource: Everest Group Transaction Intelligence Database Proprietary & Confidential. © 2011, Everest Global, Inc. 2
  3. 3. Outsourcing transactions | By function and industryverticalSplit of outsourcing transactions announced by function Split of outsourcing transactions announced by industryNumber of transactions Number of transactions100% = 148 147 118 100% = 148 147 118 Both 5% 5% 3% Others2 11% 14% 18% Technology 0% BPO 25% Energy & utilities 5% 2% 26% 29% Retail 5% 5% 6% Telecom 6% 9% 4% 4% 8% Government 22% 1% 16% 16% Healthcare 12% 12% 15% ITO 69% 72% Defense 9% 5% 66% Travel & transport 2% 7% 3% 6% Manufacturing 11% 9% 8% BFSI1 17% 17% 15% Nov 2010 Oct 2011 Nov 2011 Nov 2010 Oct 2011 Nov 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 Group Transaction Intelligence Database Proprietary & Confidential. © 2011, Everest Global, Inc. 3
  4. 4. Outsourcing transactions | By key buyer geography1M-o-M change in three-month trailing average of outsourcing transactions Increased Similar Decreased Oct 2011 activity2 activity2 activity2 Nov 2011 Finland Sweden Russia Canada Norway Denmark Germany Netherlands UK Belgium Switzerland Austria France Portugal Spain Italy Japan US China UAE India Brazil AustraliaOutsourcing transactions New Zealand 61 45 35 22 31 24 29 18 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 Group Transaction Intelligence Database Proprietary & Confidential. © 2011, Everest Global, Inc. 4
  5. 5. Key outsourcing deals signed in November 2011 Industry Deal value Contract FunctionalBuyer vertical Signing region Service provider (US$ million) duration scopeFriends Life Insurance UK TCS 2,200 15 years ITO and BPOBAE Systems Defense UK CSC 800 5 years ITODepartment for Work and Government UK Accenture 762 7 years ITOPensionsZain Telecom Iraq Ericsson 650 5 years ITOChicago Transit Authority Travel & US Cubic Corporation 454 12 years ITO TransportUnknown client N/A UK Hexaware 250 5 years ITO Technologies LtdAP Moller-Maersk Travel & Denmark HP 150 5 years ITO TransportLos Angeles County Healthcare US Netsmart 93 11 years ITODepartment of Mental TechnologiesHealthGeneral Dynamics Defense US SAIC 90 7 years ITORoyal Berkshire NHS Healthcare UK CSC 70 7 years ITOFoundation Trust 1 Deal value estimatedSource: Everest Group Transaction Intelligence Database Proprietary & Confidential. © 2011, Everest Global, Inc. 5
  6. 6. The Transaction Intelligence offering can be accessed as asubscription to the on-line database or via a customresearch 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 targets Customized  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 Proprietary & Confidential. © 2011, Everest Global, Inc. 6
  7. 7. Overview of the TI capabilityTransaction Intelligence (TI) is the largest and most comprehensive database of outsourcingtransactions. TI contains information which is collected and validated from multiple secondarysources. The database structure facilitates easy queries of the information and quick analysis ofthe transactions. The TI database is operated by Everest Research Institute, the research arm ofthe Everest Group. TI contains ~19,000 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 write toTIteam@everestgrp.com. Proprietary & Confidential. © 2011, Everest Global, Inc. 7
  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 market1. Market Vista: Q3 2011 (EGR-2011-8-R-0607); 2011. This report summarizes the key trends and developments for Q3 2011 in the global offshoring and outsourcing market2. Transaction Renewal Analysis – January 2012 to December 2012 (ERI-2011-6-O-0511); 2011. The analysis is aimed at providing a list of outsourcing transactions that are coming up for renewal. The database contains key deal parameters like names of buyer and service provider, 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 organizations3. Technology: Trends for Q3 2011 (EGR-2011-8-R-0618); 2011. This report provides technology 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 technology industry For more information on this and other research published by the Everest Research Institute, please contact us: Rahul Kumar, Director (Business & Information Services): rahul.kumar@everestgrp.com Amara Shyam Sundar, Knowledge Associate: shyam.amara@everestgrp.com Everest Research Institute Two Galleria Tower 13455 Noel Road, Suite 2100 Phone: +1-214-451-3110 Dallas, TX 75240 E-mail: info@everestgrp.com Proprietary & Confidential. © 2011, Everest Global, Inc. 8
  9. 9. About Everest GroupEverest Group is an advisor to business leaders on the next generation of global services with aworldwide reputation for helping Global 1000 firms dramatically improve their performance byoptimizing their back- and middle-office business services. With a fact-based approach drivingoutcomes, Everest Group counsels organizations with complex challenges related to the useand 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 Grouphelps clients maximize value from delivery strategies, talent and sourcing models, technologiesand management approaches. Established in 1991, Everest Group serves users of globalservices, providers of services, country organizations and private equity firms, in six continentsacross all industry categories. For more information, please visit www.everestgrp.com andresearch.everestgrp.com. Proprietary & Confidential. © 2011, Everest Global, Inc. 9
  10. 10. Everest GroupLeading clients from insight to actionEverest Group locations Dallas (Headquarters): info@everestgrp.com +1-214-451-3000 New York: info@everestgrp.com +1-646-805-4000 Toronto: canada@everestgrp.com +1-416-865-2033 London: unitedkingdom@everestgrp.com +44-207-887-1483 Delhi: india@everestgrp.com +91-124-496-1000 www.everestgrp.com | research.everestgrp.com | www.sherpasinblueshirts.com Proprietary & Confidential. © 2011, Everest Global, Inc. 10