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MENA’s Outsourcing Market Value

Proposition

Does it Measure Up?

21st April 2011

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Today’s Presenters

Lindsey Mc Donald, Consultant,Information and Communication Technologies Practice, Middle East and North Africa (MENA), Frost & Sullivan

Tanu Chopra, Assistant Manager, Corporate Communications,Frost & Sullivan

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Agenda

� The Growth of the Outsourcing Culture

� Factors Impacting Growth in the Region

� Outsourcing Services Present in the Region

� Diverse Destinations

� Great Market Potential

� Global Destination Benchmarking

� Elements of a Convincing Value Proposition

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The Outsourcing Culture is a Global Phenomenon

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Factors Impacting Growth in the MENA region

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Outsourcing Services Present in the MENA Region

•CRM Services /

•Call Centres

•Procurement

Services•IT Services

•Finance &

Accounting

Services

•Human Resource

Services

•Other Specialist

Services / KPO

•Bu

sin

ess

Pro

ce

ss

•Customer service

•Nascent •Credible •Mature

•Telesales

•Market research

•and promotion

•Customer support

•Consumer

Research

•Outbound data

capturing &

cleaning

•IT helpdesk

•Emergency

services

•Network management

•and maintenance

•Application development

•Implementation services

•Packaged application •outsourcing

•Infrastructure

•outsourcing

•Web design and •development

•Document management

•Business continuity

•Billing

•Claims and •Applications processing

•Accounts payable

•Accounts receivable

•Financial reporting

•Auditing and compliance

•Tax

•Asset management

•Securities

•Debt collection

•Payroll administration

•Recruitment

•Training

•Performance management

•Direct & indirect procurement &

purchasing

•Tender management

•Supply chain management

•Legal services

•Transcription

•Medical Case •Management

•R&D

•Data analytics

•Shared services

•Animation

•Business Intelligence,

•Translation

•E-Procurement•Succession

Planning

•Information•Management

•Employee Benefits

•Employee Administration

•Strategy •Data Management

•Not exhaustive

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Need for Service Specialisation

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•8

Global Market Sizing

•$ B

illio

ns

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•9

Comparative Regional Contribution 2007 and 2009

•Pe

rce

nta

ge

%

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•10

Development of Global Market Segmentation 2007, 2009, 2016

•$ B

illio

ns

•22

0

•272.

28

•479.

32

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Diverse Destinations

South Africa

India Philippines Jordan Egypt UAE

Education Systems and BPO Related Skills

Labour Costs

English Proficiency

Global Language Proficiency

BPO market overview

Connectivity

Infrastructure

Political and social climate

•Legend: •Poo

r

•Good

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MENA Market Size and Potential

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MENA Vertical Market Segmentation

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•14

Global CAGR Growth Comparison 2009 – 2016

•Source: Frost & Sullivan.

•Pe

rce

nta

ge

%

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Global Service Benchmarking

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•16

Egypt’s International Ranking

•Source: Frost & Sullivan.

0

2

4

6

8

10Crime and lifestyle perceptions

Critical mass in back-office skills

Labour cost competitiveness

Cost competitiveness

Real estate costs

Political Stability

Compliance (legal and regulatory)

Number of foreign language speakers

Level of domestic outsourcing culture

Attrition

Extent of service offering

Degree of market intelligence

Track record with global deals

Number of mutlinational service providers

Awareness of Dubai as a BPO

destination

Availability of quick setup facilities

International level

Egypt

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•17

Jordan’s International Ranking

•Source: Frost & Sullivan.

0

2

4

6

8

10Crime and lifestyle perceptions

Critical mass in back-office skills

Labour cost competitiveness

Cost competitiveness

Real estate costs

Political Stability

Compliance (legal and regulatory)

Number of foreign language speakers

Level of domestic outsourcing culture

Attrition

Extent of service offering

Degree of market intelligence

Track record with global deals

Number of mutlinational service providers

Awareness of Dubai as a BPO

destination

Availability of quick setup facilities

International level

Jordan

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•18

UAE’s International Ranking

•Source: Frost & Sullivan.

0

2

4

6

8

10Crime and lifestyle perceptions

Critical mass in back-office skills

Labour cost competitiveness

Cost competitiveness

Real estate costs

Political Stability

Compliance (legal and regulatory)

Number of foreign language speakers

Level of domestic outsourcing culture

Attrition

Extent of service offering

Degree of market intelligence

Track record with global deals

Number of mutlinational service providers

Awareness of Dubai as a BPO

destination

Availability of quick setup facilities

International level

UAE

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Elements of a Convincing Value Proposition

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Next Steps

� Request a proposal for or Growth Partnership Services or Growth Consulting Services

to support you and your team to accelerate the growth of your company.

(myfrost@frost.com) 1-877-GoFrost (1-877-463-7678)

� Join us at our annual Growth, Innovation, and Leadership 2011: A Frost & Sullivan

Global Congress on Corporate Growth (www.gil-global.com)

� Register for the next Chairman’s Series on Growth: Driving Innovation – The What, Why,

and How. Visions and Benchmarks as the Innovation Key

(October 5th) (http://www.frost.com/growth)

� Register for Frost & Sullivan’s Growth Opportunity Newsletter and keep abreast of

innovative growth opportunities (www.frost.com/news)

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For Additional Information

Lindsey Mc Donald

Consultant - Information and Communication Technology – MENA

(971) 4433 1892

lindseyM@frost.com

Caroline Lewis

Asst Manger - Corporate Communications – South Asia

(91) 22 6607 2038

caroline.lewis@frost.com

Priya George

BD- Manager , Information and Communication Technology – MENA

(044) 6160-6666

priyageorge1@frost.com

Tanu Chopra

Asst. Manager - Corporate Communications - MENA

(91) 22 66072037

tanu.chopra@frost.com