Outsourcing Deal Activity – September 2012

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Transaction Intelligence (TI) Monthly report for September, 2012. 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 September 2012

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Outsourcing Deal Activity – September 2012

  1. 1. Transaction IntelligenceMonthly ReportSeptember 2012 EGR-2012-6-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 Sep 2011 Oct 2011 Mar 2012 June 2012 Jan 2012 Feb 2012 Nov 2011 Apr 2012 July 2012 Aug 2012 Sep 2012 Dec 2011 May 2012 1 Includes only transaction signings that were publicly disclosedSource: Everest Group Transaction Intelligence Database Proprietary & Confidential. © 2012, 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 91 133 100% = 148 91 133 Both 3% 3% 1% Others2 16% 14% 23% 20% BPO 31% 29% Technology 3% 4% Energy & utilities 4% 8% 4% Retail 5% 1% 8% Telecom 5% 5% 4% 5% Government 17% 26% Healthcare 9% 24% Defense 2% 77% 4% ITO 68% Travel & transport 8% 3% 66% 5% 7% 5% Manufacturing 9% 8% 8% 4% BFSI1 22% 19% 14% Sep 2011 Aug 2012 Sep 2012 Sep 2011 Aug 2012 Sep 2012 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. © 2012, 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 Aug 2012 activity2 activity2 activity2 Sep 2012 Finland Sweden Canada Norway Russia Denmark Netherlands UK Belgium Germany Switzerland France Austria US Spain Italy Japan UAE India The Philippines Colombia Brazil AustraliaOutsourcing transactions Chile 45 41 33 23 24 18 21 19 North America UK Rest of Europe Others3 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. © 2012, Everest Global, Inc. 4
  5. 5. Key outsourcing deals signed in September 2012 Industry Signing Deal value Contract FunctionalBuyer vertical region Service provider (US$ million) duration scopeZurich Financial Services Insurance Switzerland CSC 1,3001 7 years ITOGeneralitat de Catalonia Government Spain T-Systems 514 ITO(Spain)Department of Homeland Government U.S. Unisys 504 5 years ITOSecurity (U.S.)Federal Aviation Government U.S. Harris Corporation 331 7 years ITOAdministration (U.S.)Unknown client Others N/A Accenture 280 5 years ITOBuckinghamshire County Government UK Updata 162 4 years ITOCouncil (UK)Schneider Electric Technology U.S. Xerox 153 7 years ITOAustralian Tax Office Government Australia Serco 145 5 years BPOUS Army Defense U.S. CGI 143 3 years BPOTesco Retail UK Sentrum 105 15 years ITO 1 Contract value estimatedSource: Everest Group Transaction Intelligence Database Proprietary & Confidential. © 2012, 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. © 2012, 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. TI contains ~20,000 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. © 2012, 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. Global Locations Compass – The Philippines (EGR-2011-2-R-0637); 2011. This research report provides detailed data and in-depth analysis of the Philippines global services sector, and is intended to enable the development of a holistic perspective on the country2. Market Vista: Q1 2012 (EGR-2012-8-R-0685); 2012. This report includes data, analysis and insights on transaction trends, information on major deals, captive market dynamics, and fact-base for offshoring destinations in Asia. Also included is the Standard Locations Database that tracks 23 leading offshore locations3. Transaction Renewal Analysis – January 2012 to December 2012 (ERI-2011-6-O-0511); 2012. 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 organizations 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. © 2012, 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. © 2012, 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. © 2012, Everest Global, Inc. 10

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