Hosted by:
Keith Bachman, BMO Capital Markets
15 July 2014
The Global ISG Outsourcing Index
Second Quarter and First Half 2014
Market Data and Insights
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*Contracts with ACV ≥ $5M from the ISG Contracts Knowledgebase®
2
Covering the state of the outsourcing industry for global, commercial contracts.*
Welcome to the 47th Quarterly Outsourcing Index Review
Esteban Herrera Partner
John Keppel Partner & President
Dr. David Howie Partner
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*Contracts with ACV ≥ $5M from the ISG Contracts Knowledgebase®
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At a Glance
BEST SECOND QUARTER EVER IN BROADER MARKET ACV, UP Y/Y AND Q/Q
MANUFACTURING REBOUNDS IN ALL SEGMENTS WITH HIGHEST SECOND QUARTER EVER FOR BOTH ACV AND NUMBER OF AWARDS
RECORD SECOND QUARTER FOR ITO ACV WITH STRENGTH IN BOTH NEW AND RESTRUCTURED CONTRACTING
BPO ACV UP SLIGHTLY Y/Y AND Q/Q EVEN AS CONTRACT ACTIVITY TRENDS LAG BEHIND THE BROADER MARKET PACE
YEAR-ON-YEAR SECOND QUARTER AND HALF-YEAR ACV UP ACROSS ALL REGIONS
Scorecard 2Q14 2Q Y/Y 2Q Q/Q 1H14 1H Y/Y
ACV ($B)* Change Change ACV ($B)* Change
Global Market $ 6.4 72% 6% $ 12.4 34%
New Scope $ 4.1 49% 7% $ 7.9 41%
Restructurings $ 2.3 139% 4% $ 4.5 23%
Mega-relationships $ 1.6 83% -9% $ 3.4 43%
ITO $ 4.9 100% 7% $ 9.5 52%
BPO $ 1.5 17% 2% $ 2.9 -4%
Americas $ 2.3 118% 22% $ 4.2 21%
EMEA $ 3.1 45% -2% $ 6.3 32%
Asia Pacific $ 1.0 94% 0% $ 1.9 99%
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Second quarter ACV is up 72% Y/Y against a weak 2Q13 and up 6% Q/Q against a strong 1Q14. YTD, Broader Market ACV is up 34%.
Quarterly Broader Market ACV ($B)* and Counts
Broader Market Contract Award Trends
Half-Year Broader Market ACV ($B)* Half-Year Broader Market Counts
$6.4 $6.0 $4.6
$5.9
$3.7
$5.5 $5.4 $5.6 $6.3
340 323 299 352
211
299 278 251
292
2Q141Q4Q3Q2Q131Q4Q3Q2Q12
ACV Counts
$12.4
$9.2
$12.4 $10.2
$12.6 $10.3 $11.0
$8.4 $8.9 $9.1
$10.4
$11.0 $13.2 $10.2 $11.3
$9.3 $9.1
$7.4 $9.4
$19.7
$23.5
$18.6
201413121110090807062005
1H ACV 2H ACV
663 510
628 627 534 518
411 340 330 329
651 529 617
501 516
432
329 331 314
1,161 1,157
643
201413121110090807062005
1H Counts 2H Counts
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2Q14 award activity is the highest ever for a second quarter. Contracting activity is up Y/Y and Q/Q in all ACV bands except for the Mega-relationship category.
Broader Market Contract Trends by Deal Size
ACV($B)*
$10-39M $40-99M $100M+ $5-9M
Comparing Broader Market Contracting Awards ($B)* Grouping in ACV Contract Size Bands
Contract Counts
$1.6
$0.9
$2.2
$1.5
$0.9
$1.4
$2.2
$1.3 $1.8
$1.1 $0.7
$0.9
2Q141Q4Q3Q2Q131Q4Q3Q2Q12
7 11 2 9 7 9 8 8 12
24 22 19 21 16 17 23 19 23
133 118 117
137
79
125 113 119 105
176 172
161
185
109
148 134
105
152
2Q141Q4Q3Q2Q131Q4Q3Q2Q12
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2Q14 New Scope and Restructuring ACV are up significantly Y/Y and up slightly Q/Q. YTD results are up over 1H13 but in line with prior years.
New Scope and Restructuring Contract Award Trends
$4.5 $3.6 $4.4
$2.7 $3.5 $2.3 $2.2 $1.6 $3.5 $2.2
$4.1 $3.6 $5.3 $3.6 $2.4 $2.5
$1.7 $1.7 $2.7
$7.7 $8.0
$5.0
201413121110090807062005
1H ACV 2H ACV
Half-Year New Scope ACV ($B)*
Half-Year Restructuring Contract Counts
220 151 163 156
118 114 80 58 66 67
213 147 142
122 92 81 48 54 66
364 310
133
201413121110090807062005
1H Counts 2H Counts
Half-Year New Scope Contract Counts
Half-Year Restructuring ACV ($B)*
$7.9 $5.6
$8.1 $7.4 $9.0
$8.0 $8.8 $6.8
$5.4 $6.9
$6.3
$7.4 $7.8 $6.6 $8.8
$6.7 $7.5
$5.7
$6.7
$11.9
$15.5 $13.6
201413121110090807062005
1H ACV 2H ACV
443 359
465 471 416 404
331 282 264 262
438 382
475
379 424
351
281 277 248
797 847
510
201413121110090807062005
1H Counts 2H Counts
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2Q14 ITO ACV is up 100% Y/Y and 7% Q/Q with record high number of ITO contracts awarded in 2Q. Half-year ITO ACV is the second highest ever.
ITO Half-Year ACV ($B)*
ITO Contract Award Trends
ITO Quarterly ACV ($B)* and Contract Counts
ITO Half-Year Domain Details ACV ($B)*
ITO Half-Year New vs. Restructuring ACV ($B)*
$4.9 $4.6 $3.6
$4.5
$2.5
$3.8 $3.6 $3.7 $3.6
250 235 224 248
131
197 197 163
181
2Q141Q4Q3Q2Q131Q4Q3Q2Q12
ACV Counts
$9.5
$6.3 $7.8
$6.6
$9.7 $7.4 $7.8
$6.3 $6.6 $6.8
$8.1 $7.3 $9.7
$8.0 $8.2
$6.4 $6.3 $5.2
$6.3
$14.3 $15.1 $13.1
201413121110090807062005
1H ACV 2H ACV
$2.69
$1.97
$1.41
$1.26
$1.03
$0.52
$0.31
$0.35
$- $0.5 $1.0 $1.5 $2.0 $2.5 $3.0
Manufacturing
Financial Services
Telecom & Media
Travel, Transport, Leisure
Energy
Business Services
Healthcare & Pharma
Retail
Avg of Prior 4 Halves 1H14
$6.15
$3.37
$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
$7.0
New Scope Restructuring
Range of Prior 4 Halves Avg of Prior 4 Halves 1H13 1H14
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2Q14 BPO ACV is up 17% Y/Y and 2% Q/Q. YTD BPO ACV is down slightly from 1H13. First half Manufacturing ACV outperformed its prior four-half average.
BPO Half-Year ACV ($B)*
BPO Contract Award Trends
$2.9 $3.0
$4.6 $3.6
$2.9 $2.8 $3.2 $2.1 $2.3 $2.4
$2.3
$3.8
$3.5
$2.2 $3.0 $2.9
$2.8 $2.2 $3.1
$5.3
$8.4
$5.5
201413121110090807062005
1H ACV 2H ACV
BPO Quarterly ACV ($B)* and Contract Counts
$1.5 $1.4
$0.9
$1.4 $1.2 $1.7 $1.9 $1.9
$2.7
90 88 75
104
80
102
81 88
111
2Q141Q4Q3Q2Q131Q4Q3Q2Q12
ACV Counts
BPO Half-Year Industry Details ACV ($B)*
$0.81
$0.66
$0.47
$0.24
$0.24
$0.18
$0.16
$0.12
$- $0.50 $1.00 $1.50
Manufacturing
Financial Services
Telecom & Media
Energy
Business Services
Travel, Transport, Leisure
Healthcare & Pharma
Retail
Avg of Prior 4 Halves 1H14
BPO Half-Year New vs. Restructuring ACV ($B)*
$1.55 $1.44
$1.80
$1.09
$0.0
$1.0
$2.0
$3.0
$4.0
New Scope Restructuring
Range of Prior 4 Halves Avg of Prior 4 Halves 1H13 1H14
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Share of BPO
Active Contract Numbers
ACV Band 5 yrs. ago Today 5-year CAGR
>$2 to $5M 35% 37% 8.8%
> $5M 65% 63% 7.5%
Share of BPO Annualized Revenue
ACV Band 5 yrs. ago Today 5-year CAGR
>$2 to $5M 7% 9% 6.1%
> $5M 93% 91% 2.6%
Active Contract Counts
Annualized Revenue ($B)
Annualized Revenue Growth is slowing for larger contracts awards but remains robust in the smaller segment ($>2M-$5M.) Contracting activity, as measured by number of active contracts, remains high in both large and small deal categories.
An Expanded Look: BPO Active Contracts With ACV > $2M
$31.1 $26.3
$3.0 $2.1
Today5 Years Ago
ACV >$2M to $5M ACV > $5M
1,933 1,276
1,150
694
Today5 Years Ago
ACV >$2M to $5M ACV > $5M
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Note: Service providers in alphabetical order; no rankings implied. Placements based on ACV from commercial contract awards sourced from ISG Contracts Knowledgebase ®.
Accenture Aditya Birla Minacs Accenture Accenture Accenture
Aon Hewitt Convergys Alliance Data Systems Capgemini Capgemini
ADP EXL Capita EXL EXL
Ceridian Genpact CSC Genpact Genpact
Fidelity Infosys Dell GEP IBM
Genpact SITEL First Data Corporation IBM Infosys
IBM SYNNEX FIS Infosys TCS
Northgate TCS HCL TCS Wipro
Workday TeleTech TCS Xchanging WNS
Xerox Xerox Xerox Xerox Xerox
Top Service Providers in the BPO Market: ACV > $2M Contracting Numbers and Change % by Service Segment From June 2013 to 2014
Percentage of Market Share by Provider Types
India-heritage Western-heritage Function-specific
66% 50% 38% 24%
4% 27% 24%
26% 54%
30% 23% 38% 50% 46%
HRO Contact Center Industry-specific Procurement F&A
447 438
1,112
214
619
↓6% ↓7%
↑ 4%
↓2%
↓1%
HRO Contact Center Industry-specific Procurement F&A
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Second quarter ACV is up 118% Y/Y and 22% Q/Q, even as large deals remain mostly absent from a mature market. YTD, Broader Market ACV is up 21%.
Americas Quarterly ACV ($B)* in Size Bands
Americas Contract Award Trends
$0.3 $1.0 $0.8
$0.7 $0.5 $0.3
$1.1 $0.3 $0.7
$0.5 $0.2 $0.3
2Q141Q4Q3Q2Q131Q4Q3Q2Q12
$100M + $40-99M $10-39M $5 - 9M
Americas Quarterly ACV ($B)* and Counts
$2.3 $1.9
$1.5 $1.7
$1.1
$2.4 $1.9 $1.9 $2.1
155
111 113
137
70
127 111 104 111
2Q141Q4Q3Q2Q131Q4Q3Q2Q12
ACV Counts
Americas Half-Year Segment Details ACV ($B)* Americas Half-Year ACV ($B)*
$4.2 $3.5
$5.0
$3.8
$5.7
$4.2
$3.1 $3.2
$4.6 $3.7
$3.2
$3.8 $4.3
$3.1 $4.2
$3.1 $3.7
$3.0 $3.8
$6.7
$8.8
$7.5
201413121110090807062005
1H ACV 2H ACV
$2.33
$1.90
$2.55
$1.67
$0.0
$1.0
$2.0
$3.0
$4.0
New Scope Restructuring ITO BPO
Range of Prior 4 Halves Avg of Prior 4 Halves 1H13 1H14
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$0.24
$0.06 $0.04
$0.03 $-
$0.1
$0.1
$0.2
$0.2
$0.3
$0.3
$0.4
Canada Brazil Other LatAm Mexico
Range of Prior 4 Halves Avg of Prior 4 Halves 1H13 1H14
YTD, U.S.-based ACV is up significantly Y/Y and Q/Q. YTD, gains in the Americas are led by the Financial Services and Manufacturing industries.
Americas Contract Award Trends Detail
Americas Half-Year Sub-regions ACV ($B)* Americas Industries ACV ($B)*
$3.86
$-
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
$4.0
$4.5
$5.0
U.S.
$0.49
$0.42
$0.24
$0.18
$0.14
$0.12
$0.07
$0.01
$- $0.50 $1.00
Financial Services
Manufacturing
Telecom & Media
Business Services
Energy
Healthcare &Pharma
Retail
Travel, Transport,Leisure
1H13 1H14
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Co. Revenues < $2 B Co. Revenues $2 -10 B
ISG Sourcing Market Standouts in the Americas For ACV awards in the past 12 months*, Americas-based providers dominate the largest tier, while India-heritage providers lead in both the mid-size and smaller segments.
1Top 10 in Region across all company sizes *Placements based on ACV of commercial contract awards sourced from ISG Contracts Knowledgebase®. Service providers in alphabetical order; no rankings implied. Revenues sourced from Hoovers and individual company financial fillings
The Building 10
Sourcing Standouts
The Breakthrough 10
Sourcing Standouts
Aon Hewitt CB Richard Ellis Group
CGI Cognizant1
Genpact HCL1
Infosys1
SAIC
Tech Mahindra
Wipro
Accenture1
AT&T BT
Capgemini1
CSC1
Dell IBM1
ISS Global TCS1
Xerox1
Aditya Birla Minacs Allscripts
EXL GardaWorld
iGATE1
KPIT Technologies Neoris
NIIT Technologies Syntel
WNS Global Services
SOURCING STANDOUTS BY COMPANY SIZE
The Big 10
Sourcing Standouts
Co. Revenues > $10B
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Asia Pacific generates second consecutive strong quarterly performance with significant Y/Y gains led by several large contract awards.
Asia Pacific Quarterly ACV ($B)* in Size Bands
Asia Pacific Contract Award Trends
$0.5 $0.2 $0.6
$0.2 $0.3
$0.2 $0.2 $0.3
$0.1 $0.1 $0.2
2Q141Q4Q3Q2Q131Q4Q3Q2Q12
$100M + $40-99M $10-39M $5 - 9M
Asia Pacific Quarterly ACV ($B)* and Counts
AP Half-Year Segment Details ACV ($B)* Asia Pacific Half-Year ACV ($B)*
$1.9
$0.9
$1.9
$1.0 $0.8
$1.4
$0.7
$1.3 $1.0
$0.4
$1.0
$1.4
$1.0 $1.5
$1.3
$1.6 $1.3
$0.5 $1.1
$1.9
$3.3
$1.5
201413121110090807062005
1H ACV 2H ACV
$1.39
$0.48
$1.81
$0.06 $0.0
$0.5
$1.0
$1.5
$2.0
New Scope Restructuring ITO BPO
Range of Prior 4 Halves Avg of Prior 4 Halves 1H13 1H14
$1.0 $0.9
$0.5 $0.5 $0.5 $0.5 $0.6
$0.8
$1.4
37 44
26
39
31 29 32 38
51
2Q141Q4Q3Q2Q131Q4Q3Q2Q12
ACV Counts
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$0.40
$0.49
$0.25
$0.52
$0.19
$0.01 $-
$0.1
$0.2
$0.3
$0.4
$0.5
$0.6
$0.7
$0.8
$0.9
$1.0
India andSouth Asia
ANZ GreaterChina
Japan SoutheastAsia
South Korea
Range of Prior 4 Halves Avg of Prior 4 Halves 1H13 1H14
YTD, ANZ and Japan step up contracting award activity. Gains in Manufacturing and Telecom lead the YTD regional improvement.
Asia Pacific Contract Award Trends Detail
Asia Pacific Half-Year Sub-regions ACV ($B)*
$0.74
$0.44
$0.22
$0.21
$0.12
$0.08
$0.03
$0.03
$- $0.5 $1.0
Manufacturing
Telecom & Media
Financial Services
Travel, Transport,Leisure
Energy
Healthcare & Pharma
Business Services
Retail
1H13 1H14
Asia Pacific Industries ACV ($B)*
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Co. Revenues < $2 B Co. Revenues $2 -10 B
ISG Sourcing Market Standouts in Asia Pacific For ACV awards in the past 12 months*, Asia Pacific features diversity in the large tier with providers from all regions. The middle tier is led by India-heritage providers.
1Top 10 in Region across all company sizes *Placements based on ACV of commercial contract awards sourced from ISG Contracts Knowledgebase®. Service providers in alphabetical order; no rankings implied. Revenues sourced from Hoovers and individual company financial fillings
SOURCING STANDOUTS BY COMPANY SIZE
Co. Revenues > $10B
Amdocs Cognizant1
Dimension Data HCL
Infosys1
Orange Business Services SingTel Optus1
Tech Mahindra Unisys Wipro1
Accenture1
Alcatel-Lucent Capgemini
CSC1
Fujitsu1
HP IBM1
NTT Data TCS1
Telstra1
ASG Chinasoft
Hollysys Automation Itron
Kratos Defense & Security Lufthansa Systems
Pactera Ramco
REDKNEE UXC
The Building 10
Sourcing Standouts
The Breakthrough 10
Sourcing Standouts
The Big 10
Sourcing Standouts
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Second Quarter ACV is up 45% Y/Y but down slightly 2% Q/Q. YTD ACV is up 32% with 1H14 being the second best 1H performance ever.
EMEA Quarterly ACV ($B)* in Size Bands
EMEA Contract Award Trends
$1.1 $0.7 $0.8
$0.6 $0.3 $0.8
$0.9 $0.8 $0.7
$0.5 $0.3
$0.4
2Q141Q4Q3Q2Q131Q4Q3Q2Q12
$100M + $40-99M $10-39M $5 - 9M
EMEA Quarterly ACV ($B)* and Counts
$3.1 $3.2 $2.6
$3.7
$2.2 $2.6 $2.9 $2.9 $2.8
148 168 160
176
110
143 135
109 130
2Q141Q4Q3Q2Q131Q4Q3Q2Q12
ACV Counts
EMEA Half-Year Segment Details ACV ($B)*
$4.23
$2.09
$5.17
$1.15
$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
New Scope Restructuring ITO BPO
Range of Prior 4 Halves Avg of Prior 4 Halves 1H13 1H14
EMEA Half-Year ACV ($B)*
$6.3
$4.8 $5.5 $5.4
$6.1
$4.6
$7.2
$4.0 $3.3
$5.0
$6.2 $5.8
$7.9
$5.6 $5.8
$4.6
$4.2 $3.9
$4.6
$11.0 $11.3
$9.5
201413121110090807062005
1H ACV 2H ACV
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DACH, Southern Europe and France rise significantly over 1H13. Almost all industries are up over last year’s first half, with Manufacturing leading the charge.
EMEA Contract Award Trends Detail
EMEA Sub-regions Half-Year ACV ($B)* EMEA Industries
Half Year ACV ($B)*
$1.79
$0.92
$1.08
$0.30
$0.75
$1.16
$0.27
$0.05 $-
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
U.K. &Ireland
DACH Nordics Benelux SouthernEurope
France Africa &Middle
East
E. Europe& Russia
Range of Prior 4 Halves Avg of Prior 4 Halves 1H13 1H14
$1.76
$1.25
$1.09
$0.83
$0.63
$0.39
$0.20
$0.17
$- $0.5 $1.0 $1.5 $2.0
Manufacturing
Financial Services
Travel, Transport,Leisure
Telecom & Media
Energy
Business Services
Retail
Healthcare & Pharma
1H13 1H14
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Co. Revenues < $2 B Co. Revenues $2 -10 B
ISG Sourcing Market Standouts in EMEA For ACV awards in the past 12 months*, EMEA and local based providers lead in all segments. For lower two tiers, India-heritage providers are making inroads.
1Top 10 in Region across all company sizes *Placements based on ACV of commercial contract awards sourced from ISG Contracts Knowledgebase®. Service providers in alphabetical order; no rankings implied. Revenues sourced from Hoovers and individual company financial fillings
SOURCING STANDOUTS BY COMPANY SIZE
Co. Revenues > $10B
Capita Carillion
Cognizant EVRY HCL1
Infosys1
MITIE Orange Business Services
Tech Mahindra Tieto
Accenture1
Atos1
Balfour Beatty BT1
Capgemini1
CSC1
T-Systems1
HP IBM1
TCS1
Asseco Communisis GP Strategies
iGATE Innovation Group
Kelway NNIT A/S
NorthgateArinso Quindell
WEX
The Building 10
Sourcing Standouts
The Breakthrough 10
Sourcing Standouts
The Big 10
Sourcing Standouts
Special Topic for Second Quarter and First Half 2014
David Howie Partner
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EMEA Is the Largest Outsourcing Market With 55% of the global ACV awarded in the last 3 years, a 70% increase since 2008, EMEA is clearly a high-priority target for service providers.
$42 billion
$9 billion $25 billion
Sourcing Market Activity by Major Region Recent 3-year Totals
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$20.5
$7.5 $8.1
$13.8
$4.7
0%
20%
40%
60%
80%
100%
120%
140%
160%
180%
200%
0% 10% 20% 30% 40% 50% 60%
Variations in Sourcing Profiles Across Europe Targeting the diverse markets of Europe requires a multifaceted approach. Market growth rates and size, recent award levels and buyer penetration rates factor in.
Sourcing Profiles of Select European Markets
Sou
rcin
g G
row
th O
ver
10
Ye
ars
An
nu
aliz
ed R
even
ues
in U
.S. b
illio
ns
S. Europe U.K. & Ireland
Nordics
DACH
Benelux
Market Potential* Based on Percentage Forbes G-2000 Companies Not Sourcing as of 2013
*Sourced from ISG Momentum™ Geography Report
Current Market Size in U.S. billions
Germany's GDP is largest in Europe, and combined with relatively low sourcing penetration, potential for sourcing growth is heightened.
France is the largest market in this sub-region. Growth is up considerably and the market is under-penetrated with scope to grow.
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Market Share Changes in Europe by Provider Peer Groups Americas-based providers lost share in all regions as India-based providers gained. S. Europe, the least mature market, remains a stronghold for EMEA-based providers.
U.K. & Ireland
Benelux
2005 - 07
17%
58%
25%
Since 2011
2005 - 07
25%
38%
37%
Since 2011 2005 - 07
23%
22% 54%
Since 2011
2005 - 07
20%
38%
42%
Since 2011
Nordics
DACH
India/AP-based Provider Americas-based Provider EMEA-based Provider
37%
48%
14% 26%
69%
5%
55% 42%
4%
54% 31%
14%
Share Shifts by Provider Peer Group in Select EMEA Markets
Southern Europe
2005 - 07
3%
50% 47%
Since 2011
36%
61%
2%
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Five Factors That Drive Sourcing Success Recognizing the best practices of the successful souring provider
Value Proposition
Address customer demand for new and better-integrated products, platforms and business solutions.
Work to present a local face and understanding of the local culture through the sales and consulting process.
Sales Culture
Delivery Culture
Play to clients’ appetite for global delivery models, married to more flexible, output-based commercial structures.
Technology Leadership
Leverage cloud computing and smart analytics to focus on strategic projects that drive growth.
Demonstrate deep domain expertise, as the impetus for sourcing moves from the CIO organization towards the business users.
Solution Verticalization
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Broader Market ACV is up significantly Y/Y and slightly Q/Q
ITO 2Q activity is at record highs for ACV and number of contracts awarded
All three regions have strong quarterly performances Y/Y and YTD
Americas 2Q results continue the upward trend despite a lack of large deals
YTD, Europe continues to account for the majority of the ACV with 51% of the broader market activity
Asia Pacific has its second best half-year performance ever supported by an uptick in large deal activity
We expect 3Q14 ACV to be flat or lower Y/Y on a difficult comparison against a robust 3Q13
We see lots of transaction activity in the market that should come to award in the second half of 2014
Expect full-year ACV to exceed 2013 ACV levels by more than 25%, more in line with full-year 2012 results.
2Q and 1H 2014 ISG Outsourcing Index Summary and Outlook
summary market
outlook market
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Please contact us with your questions and comments.
Learn More
--- Media Contacts ---
► John Keppel Partner and President, ISG +44 (0)7879 432 212 [email protected]
► Will Thoretz Leader, Marketing & Communications, ISG +1 203 517 3119 [email protected]
► Jim Baptiste Matter Communications for ISG +1 978 518 4527 [email protected]
www.isg-one.com
Second Quarter and First Half 2014
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The ISG Outsourcing 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.
Second Quarter and First Half TCV Scorecard
*Contracts with TCV ≥ $25M from the ISG Contracts Knowledgebase®
Scorecard 2Q14 2Q Y/Y 2Q Q/Q 1H14 1H14 Y/Y
TCV ($B)* Change Change TCV ($B)* Change
Global Market $ 27.0 43% 2% $ 53.3 28%
New Scope $ 18.5 27% 8% $ 35.5 36%
Restructurings $ 8.5 97% -9% $ 17.8 15%
Mega-deals $ 7.0 144% 122% $ 10.2 29%
ITO $ 20.4 76% 7% $ 39.4 54%
BPO $ 6.6 -10% -10% $ 13.9 -13%
Americas $ 9.0 79% 9% $ 17.2 17%
EMEA $ 13.9 23% 1% $ 27.5 24%
Asia Pacific $ 4.1 62% -6% $ 8.6 87%
Information Services Group is a leading technology insights, market intelligence and advisory services company, serving more than 500 clients around the world to help them achieve operational excellence. ISG supports private and public sector organizations to transform and optimize their operational environments through research, benchmarking, consulting and managed services, with a focus on information technology, business process transformation, program management services and enterprise resource planning. Clients look to ISG for unique insights and innovative solutions for leveraging technology, the deepest data source in the industry, and more than five decades of experience of global leadership in information and advisory services. Based in Stamford, Conn., the company has more than 850 employees and operates in 21 countries.
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