ACV down slightly for the year on weaker than typical 4Q results. Number of mega relationship contracts up for 2012, lifting ACV when overall contract numbers were down. BPO expanded on several large deals while ITO performance was off for 2012. Asia Pacific surged in 2012 while EMEA struggled on a weak first half. Guarded optimism for 2013 with a possible slowdown second quarter.

1. The TPI Index
Global Sourcing Market Data and Insights
Fourth Quarter and Full Year 2012
Hosted by:
Moshe Katri,
Cowen and Company
16 January 2013

2. 2
Welcome to the 41st Quarterly Outsourcing Index Review
Covering the state of the outsourcing industry for global, commercial contracts.*
John Keppel Dr. David Howie
President & Chief Partner EMEA
Marketing Officer
Esteban Herrera
Partner Americas
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*Contracts with ACV ≥ $5M

3. 3
At A Glance
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*Contracts with ACV ≥ $5M

4. 4
Broader Market Contract Award Trends
ACV was down 27% Y/Y and 11% Q/Q on a strong 3Q and as the industry paused
due to the US Election. For the full year, ACV of $21B was down 3% from 2011.
Broader Market ACV ($B)*
Broader Market Counts
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*Contracts with ACV ≥ $5M

5. 5
Broader Market Contract Trends for the Largest Deals
34 Mega-relationships were awarded in 2012, up 36%. Restructuring activity is
prevalent in large deals for the third straight year.
Mega-relationship Contracts - ACV > $100M
Mega-relationship Counts Mega-relationship New/Restructured ACV
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*Contracts with ACV ≥ $5M

6. 6
ITO Contract Award Trends
ITO ACV was down 37% Y/Y and 18% Q/Q. For the full year, ACV was down 11% on
diminishing New Scope awards.
ITO Annual ACV ($B)*
ITO Counts Top 15 ITO Providers
by 2012 ACV Awarded
Accenture HCL
Atos HP
BT IBM
Capgemini Infosys
CGI1 Mahindra Satyam1
CSC TCS
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Dell T-Systems
Services Group, Inc. Fujitsu 1New in 2012
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Note: Service providers in alphabetical order; no rankings implied. Placements sourced from ISG Contracts Knowledgebase®.
*Contracts with ACV ≥ $5M

7. 7
BPO Contract Award Trends
BPO ACV was flat Y/Y and up 5% Q/Q. For the full year, ACV was up 14% because of
several large contract awards.
BPO Annual ACV ($B)*
BPO Counts Top 15 BPO Providers
by 2012 ACV Awarded
Accenture2 ISS Global
Aditya Birla Minacs Jones Lang LaSalle
Capgemini2 Mahindra Satyam
Genpact2 MITIE Group
HCL2 Sodexho Alliance
© 2013
HP Xchanging
Information IBM2 Xerox2
Services Group, Inc.
All Rights Reserved Infosys2 2Repeat from 2011
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Note: Service providers in alphabetical order; no rankings implied. Placements sourced from ISG Contracts Knowledgebase®.
*Contracts with ACV ≥ $5M

8. 8
Americas Contract Award Trends
Americas ACV was down 28% Y/Y and 9% Q/Q and full year ACV was down 3%. New
Scope ACV remarkably consistent on a quarterly basis throughout the year.
Americas ACV ($B)*
Americas ITO and BPO ACV ($B)* Americas New and Restructured ACV ($B)*
New Scope Restructured
$5.9 $6.1 $5.6
$5.1 $5.3 $5.0 $4.9 $5.4
$4.2 $4.4
$2.8 $2.4 $3.5
$2.3 $2.5 $2.6 $2.4
$1.8 $1.9
$1.4
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*Contracts with ACV ≥ $5M

9. 9
Americas Contract Award Trends Detail
LATAM markets were up significantly in 2012, while the U.S. market finished slightly
below it’s five year average.
Americas Sub-region ACV ($B)* Americas Industry ACV ($B)*
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*Contracts with ACV ≥ $5M

10. 10
EMEA Contract Award Trends
EMEA ACV was down 29% Y/Y and 6% Q/Q. For the full Year, ACV was down 12% on
lighter contracting activity.
EMEA ACV ($B)*
EMEA ITO and BPO ACV ($B)* EMEA New and Restructured ACV ($B)*
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*Contracts with ACV ≥ $5M

11. 11
EMEA Contract Award Trends Detail
For the year, UK ACV was up 20% over 2011 and the Nordics and Benelux saw
improvement. Financial Services ACV grew by 9% over 2011.
EMEA Sub-region ACV ($B)* EMEA Industry ACV ($B)*
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*Contracts with ACV ≥ $5M

12. 12
Asia Pacific Contract Award Trends
Asia Pacific ACV was flat Y/Y and down 34% Q/Q; For the year, ACV is up 55% off
strong performance from the second quarter.
Asia Pacific ACV ($B)*
AP ITO and BPO ACV ($B)* AP New and Restructured ACV ($B)*
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*Contracts with ACV ≥ $5M

13. 13
Asia Pacific Contract Award Trends Detail
The emerging markets of India, China and ASEAN lead Asia Pacific to record ACV
result in 2012. ANZ, the traditional market leader, experienced a downturn.
Asia Pacific Sub-region ACV ($B)* AP Industry ACV ($B)*
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*Contracts with ACV ≥ $5M

14. 14
Top Service Providers Across the Globe
The top service providers in each region based on total 2012 ACV awarded
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Note: Service providers in alphabetical order; no rankings implied.
*Contracts with ACV ≥ACV commercial contract awards sourced from ISG Contracts Knowledgebase ®.
Placements based on 2012 $5M

15. Special Topic for Fourth Quarter 2012
John Keppel
President & Chief
Marketing Officer

16. 16
Key Short-term Trends in Sourcing for 2013 and Beyond
U.S. G201-500 Companies Recent Emerging Markets to
Sourcing Adoption Rate Expands Continue their Increasing
Large Deal Potential for Providers Impact on Sourcing ACV
Adoption ACV Change from 2007
$$ Rate $ $$$ +150%
$ $ +100%
2010 32% 2012
LatinAm China
and Mexico and India
BPO Expansion Continues
with Industry Specific Solutions
Leading the Way
BPO ACV Change from 2010
+60%
$
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*Contracts with ACV ≥ $5M

17. 17
Disruptive Technologies Shape Long-term Industry Trends
Four disruptive technology trends impact enterprises today and shape long-term
industry trends: Social Media, Mobility, Cloud Computing and Big Data.
Social Media
Collaboration
Mobility
Cloud
Computing & Storage
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Big Data/Analytics
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*Contracts with ACV ≥ $5M

18. 18
Case Study: Tech Trends Spur Transformative Solutions
BT “Global Trace“ provides TNT with a cloud-based solution that leverages Big Data
and Analytics to improve customer satisfaction and operational efficiency.
Social Media
Collaboration
Social Media Data +
Supply Chain Data +
External Data Sources
Mobility
Cloud Global Trace
Computing & Storage utilizes real-time data
stored in the Cloud and
analyzed with software
edge adaptors to improve
© 2013 client decision making
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Big Data/Analytics
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*Contracts with ACV ≥ $5M

19. 19
4Q12 TPI Index Summary and Outlook
 4Q ACV underperformed 3Q, yet 2012 performance
market nearly met 2011 levels
summary  Fewer contracts were awarded for 2012, but
Mega-relationships supported the market value
 BPO ACV and Asia Pacific ACV helped lift Broader Market
for 2012
 Contract push-out and lingering fiscal uncertainties in both
the U.S. and Europe could make for a softer first half in 2013
market  Outlook for 2013 ACV awards is one of cautious optimism
outlook  Market growth, in terms of Annualized Revenue, is projected
to be 3 - 4% in 2013
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*Contracts with ACV ≥ $5M

20. 20
Learn More
Please contact us with your questions and comments.
► John Keppel
President & Chief Marketing Officer
+44 (0)7879 432 212
john.keppel@isg-one.com
--- Media Contacts ---
► Andrew Park ► Gwennie Poor
Director, ISG Cohn & Wolfe for ISG
+1 919 259 9252 +1 212 798 9842
andrew.park@isg-one.com gwennie.poor@cohnwolfe.com
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*Contracts with ACV ≥ $5M

21. Fourth Quarter and Full Year 2012

22. 22
4Q12 TCV Scorecard
The TPI Index has moved to ACV as the primary measure of the Broader Market. In
transition, we will continue to provide a high-level TCV view of the market via a
Scorecard analysis.
4Q12 4Q Y/Y 4Q Q/Q 2012 2012 Y/Y
Scorecard TCV ($B)* Change Change TCV ($B)* Change
Global Market $ 23.4 -33% -10% $ 99.1 -9%
New Scope $ 15.8 -31% -6% $ 66.2 -9%
Restructurings $ 7.6 -35% -16% $ 32.9 -10%
Mega-deals $ 2.4 -78% -59% $ 16.0 -34%
ITO $ 14.1 -40% -16% $ 62.6 -15%
BPO $ 9.3 -17% 3% $ 36.5 1%
Americas $ 7.8 -24% -16% $ 37.5 0%
EMEA $ 12.8 -40% -4% $ 48.6 -22%
Asia Pacific $ 2.8 -7% -13% $ 13.0 31%
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*Contracts with ACV ≥ $5M$25M
*Contracts with TCV ≥

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