The ISG Outsourcing Index (formerly the TPI Index) provides a quarterly review of the latest sourcing industry data and trends for clients, service providers, analysts and the media. For more than a decade, it has been the authoritative source for marketplace intelligence related to outsourcing transaction structures and terms, industry adoption, geographic prevalence and service provider performance.

1. The Global ISG Outsourcing Index
Market Data and Insights
First Quarter 2013
Hosted by:
Joe Foresi, Janney
11 April 2013

2. 2
Welcome to the 42st Quarterly Outsourcing Index Review
Covering the state of the outsourcing industry for global, commercial contracts.*
John Keppel Dr. David Howie
President & Chief Partner
Marketing Officer
Esteban Herrera
Partner
© 2013
Information Services
Group, Inc.
All Rights Reserved
isg-one.com
*Contracts with ACV ≥ $5M

3. 3
“
At A Glance
BROADER MARKET SAGGED IN 1Q13, BOTH Y/Y AND Q/Q
MEGA-RELATIONSHIPS WERE UP OVER 50% Y/Y,
BUT SMALL AWARDS SHOWED CONSIDERABLE WEAKNESS
BPO MAINTAINED RECENT STRENGTH, WITH ACTIVITY UP Q/Q,
BUT ITO RESULTS FELL SIGNIFICANTLY Y/Y
MATURE MARKETS IN AMERICAS AND EMEA DECLINED SHARPLY Y/Y
HEALTHY INCREASE IN ASIA PACIFIC PERFORMANCE,
WITH POSITIVE RESULTS IN AUSTRALIA-NEW ZEALAND
“
1Q13 1Q Y/Y 1Q Q/Q 1Q13 1Q Y/Y 1Q Q/Q
Scorecard ACV ($B)* Change Change Counts Change Change
Global Market $ 3.9 -27% -24% 223 -24% -16%
New Scope $ 2.1 -31% -37% 166 -22% -9%
Restructurings $ 1.8 -22% 1% 57 -28% -30%
Mega-relationships $ 1.2 54% 4% 7 -13% -79%
ITO $ 2.4 -35% -28% 127 -34% -30%
BPO $ 1.5 -10% -18% 96 -3% 16%
© 2013
Information Services
Americas $ 1.6 -39% -15% 90 -38% -16%
Group, Inc.
All Rights Reserved EMEA $ 1.9 -20% -30% 105 -15% -17%
Asia Pacific $ 0.4 8% -23% 28 22% -7%
isg-one.com
*Contracts with ACV ≥ $5M

4. 4
Broader Market Contract Award Trends
ACV of almost $4B was down 27% Y/Y and 24% Q/Q. However, the trailing 12-
month ACV was on par with the pervious 12 month period, tempering results.
Broader Market ACV ($B)*
Avg of Prior 1Qs
$5.7
$6.2
$5.6 $5.7 $5.4 $5.6 $6.5 $5.4 $5.7 $5.4 $5.2
$4.5 $4.4
$3.9
1Q10 2Q 3Q 4Q 1Q11 2Q 3Q 4Q 1Q12 2Q 3Q 4Q 1Q13
Broader Market Counts New Scope vs. Restructuring ACV(B)*
Avg of Prior New Scope Restructuring
349 1Qs
300
$4.0
$3.1 $3.4
292
264 $2.1
259 223
$2.3
© 2013 $1.8 $1.8
Information Services
$1.4
Group, Inc.
All Rights Reserved 1Q10 2Q 3Q 4Q 1Q11 2Q 3Q 4Q 1Q12 2Q 3Q 4Q 1Q13 1Q11 2Q 3Q 4Q 1Q12 2Q 3Q 4Q 1Q13
isg-one.com
*Contracts with ACV ≥ $5M

5. 5
Broader Market Contract Trends for the Largest Deals
Mega-relationships, deals with ACV awards 100M+, were up 54% Y/Y and 4% Q/Q.
Mid to small sized awards dipped , but the trailing 12-month compare was stable.
ACV(B)* by Bands
$5 - 49M $50-99M $100M +
Mega-relationships in 8 Quarter Increments
New Scope vs. Restructuring Counts
New Scope Restructuring
$2.3 $2.1
$1.7 $1.5
$0.9 $0.8 $1.2 $1.2
$0.6
$1.0 $1.0 $0.8 $1.1 $0.8 $1.1 $0.9 $0.3 2Q11 - 1Q13 31 31
$0.5
2Q09 - 1Q11 37 22
$4.8 $4.6
$3.9 $4.1 $3.8 $4.0
$3.5 $3.6 2Q07 - 1Q09 48 13
$2.4
© 2013
Information Services
Group, Inc. 1Q11 2Q 3Q 4Q 1Q12 2Q 3Q 4Q 1Q13
All Rights Reserved
isg-one.com
*Contracts with ACV ≥ $5M

6. 6
ITO Contract Award Trends
ITO ACV of almost $2.5B was down 35% Y/Y and 27% Q/Q. Virtually every industry
dropped with the exception of Energy, driven by large deal activity.
ITO Annual ACV ($B)* ITO Industry ACV ($B)*
Avg of Prior 1Qs Prior 5 Like-Qtr Avg 1Q13
$4.0
Manufacturing $1.02
$0.54
$4.7 $4.3 $4.8 $4.6 $0.76
$3.5 $3.9 $3.7 $3.2 $3.6 $3.3 Financial Services
$3.2 $2.8 $0.59
$2.4
Travel, Transport, $0.43
Leisure $0.27
1Q10 2Q 3Q 4Q 1Q11 2Q 3Q 4Q 1Q12 2Q 3Q 4Q 1Q13
Energy $0.43
$0.57
ITO Counts
Telecom & Media $0.37
$0.09
223
193 Avg of Prior 1Qs
190 Business Services $0.26
$0.13
Healthcare & $0.23
Pharma $0.14
155
© 2013 127
Information Services Retail $0.15
Group, Inc. 1Q10 2Q 3Q 4Q 1Q11 2Q 3Q 4Q 1Q12 2Q 3Q 4Q 1Q13 $0.04
All Rights Reserved
isg-one.com
*Contracts with ACV ≥ $5M

7. 7
BPO Contract Award Trends
BPO ACV of 1.5B was down 12% Y/Y and 21% Q/Q, yet Telecom and Travel &
Transportation industries significantly outperformed their historical averages.
BPO Annual ACV ($B)* BPO Industry ACV ($B)*
Prior 5 Like-Qtr Avg 1Q13
Avg of Prior 1Qs
$1.7
Manufacturing $0.42
$0.21
$2.5
$1.9 $1.9 $1.9 Financial Services $0.35
$1.6 $1.7 $1.7 $1.8 $1.5 $0.29
$1.5 $1.2 $1.2
$0.9
Telecom & Media $0.31
$0.54
1Q10 2Q 3Q 4Q 1Q11 2Q 3Q 4Q 1Q12 2Q 3Q 4Q 1Q13
Business Services $0.14
$0.10
BPO Counts
Healthcare & $0.14
Pharma $0.13
126 Avg of Prior 1Qs
99 110
Energy $0.12
$0.08
104 96
83 Travel, Transport, $0.09
Leisure $0.14
© 2013
Information Services Retail $0.05
Group, Inc. $0.06
All Rights Reserved 1Q10 2Q 3Q 4Q 1Q11 2Q 3Q 4Q 1Q12 2Q 3Q 4Q 1Q13
isg-one.com
*Contracts with ACV ≥ $5M

8. 8
Americas Contract Award Trends
Americas ACV of $1.6B was down 39% Y/Y and 15% Q/Q. Americas BPO is up 17%
Y/Y and 50% Q/Q, outperforming the ITO sector for the first time.
Americas ACV ($B)*
Avg of Prior 1Qs
$2.5
$2.9 $2.8 $2.6
$2.0 $2.0 $2.0 $2.3
$1.8 $1.9 $1.8 $1.9 $1.6
$1.1
1Q10 2Q 3Q 4Q 1Q11 2Q 3Q 4Q 1Q12 2Q 3Q 4Q 1Q13
Americas Counts by ACV Bands Americas New vs. Restructuring ACV(B)*
ITO ACV BPO ACV New Scope Restructuring
$1.8
$1.54
$1.39
$1.3 $1.2 $1.19
$1.1 $1.2 $1.2
$1.1 $1.1
$0.9 $0.84
$1.05
$0.9 $0.9
$0.8 $0.8 $0.7 $0.73
$0.7 $0.6 $0.62 $0.67
© 2013 $0.6 $0.6
Information Services
Group, Inc.
All Rights Reserved 1Q11 2Q 3Q 4Q 1Q12 2Q 3Q 4Q 1Q13 1Q11 2Q 3Q 4Q 1Q12 2Q 3Q 4Q 1Q13
isg-one.com
*Contracts with ACV ≥ $5M

9. 9
Americas Contract Award Trends Detail
The U.S .contributed most to the drop in the Americas ACV, down 43% Y/Y and 24%
Q/Q. Mexico continues to enjoy large-deal activity, keeping the ACV numbers high.
Americas Sub-region ACV ($B)* Americas Industry ACV ($B)*
Prior 5 Like-Qtr Range Prior 5 Like-Qtr Avg 1Q12 1Q13 Prior 5 Like-Qtr Avg 1Q13
$0.25 $0.66
$3.0 Manufacturing
$0.24 $0.21
Financial Services $0.37
$2.5 $0.20 $0.35
$2.31
Telecom & Media $0.27
$2.0 $0.54
$0.15
Business Services $0.25
$0.11
$1.5
$1.35 Healthcare & $0.31
$0.10 $0.10
$0.09 Pharma $0.19
$1.0
Retail $0.13
$0.02
$0.05
$0.5
$0.03 Energy $0.11
$0.03
$0.07
$0.01
© 2013 $0.01
Information Services $0.0 $- $0.00 Travel, Transport, $0.11
Group, Inc. US Canada Brazil Other Mexico Leisure $0.09
All Rights Reserved LatAm
isg-one.com
*Contracts with ACV ≥ $5M

10. 10
EMEA Contract Award Trends
EMEA ACV of almost $2B was down 20% Y/Y and 30% Q/Q. Restructuring ACV was
up 12% Y/Y and 29% Q/Q in EMEA.
EMEA ACV ($B)*
Avg of Prior 1Qs
$2.7
$3.5 $3.7
$3.0 $3.1 $2.9
$2.4 $2.7 $2.4 $2.4 $2.7
$2.0 $2.3 $1.9
1Q10 2Q 3Q 4Q 1Q11 2Q 3Q 4Q 1Q12 2Q 3Q 4Q 1Q13
EMEA Counts by ACV Bands EMEA New vs. Restructuring ACV(B)*
ITO ACV BPO ACV New Scope Restructuring
$2.9
$2.5 $2.06
$2.0 $2.0 $1.88
$1.63
$1.5 $1.6 $1.6
$1.4 $1.4
$0.94
$1.2 $0.97
© 2013
$0.8 $0.8 $1.0 $0.8 $0.75 $0.87
Information Services $0.7 $0.8 $0.7 $0.5
$0.69
Group, Inc.
All Rights Reserved
1Q11 2Q 3Q 4Q 1Q12 2Q 3Q 4Q 1Q13 1Q11 2Q 3Q 4Q 1Q12 2Q 3Q 4Q 1Q13
isg-one.com
*Contracts with ACV ≥ $5M

11. 11
EMEA Contract Award Trends Detail
EMEA market leaders UK and DACH had weak 1Q13 results. However, Nordics and
Benelux, a bit off their like-quarter averages, had significant growth from 4Q12.
EMEA Sub-region ACV ($B)* EMEA Industry ACV ($B)*
Prior 5 Like-Qtr Range Prior 5 Like-Qtr Avg 1Q12 1Q13 Prior 5 Like-Qtr Avg 1Q13
$1.2 $0.67
Manufacturing
0.46
$1.0 Financial Services $0.64
0.48
$0.90
Energy $0.42
$0.8
0.42
Travel, Transport, $0.35
$0.6 $0.63
Leisure 0.22
$0.43 Telecom & Media $0.30
$0.4 $0.41 0.08
$0.39 $0.37
$0.36
$0.27 Business Services $0.12
0.11
$0.2
$0.11 $0.10 $0.08 $0.07
$0.04 $0.07 Retail
$0.06 0.08
$0.04 $0.03
$-
© 2013
Information Services UK & DACH Nordics Benelux France Southern Africa & E. Europe Healthcare & $0.06
Group, Inc. Ireland Europe Middle & Russia Pharma 0.08
All Rights Reserved East
isg-one.com
*Contracts with ACV ≥ $5M

12. 12
Asia Pacific Contract Award Trends
Asia Pacific ACV of almost $450M was up 8% Y/Y but down 23% Q/Q. However, the
trailing 12-month ACV is up over 80% from the prior 12 month period.
Asia Pacific ACV ($B)*
Avg of Prior 1Qs
$0.5
$1.07 $1.41
$0.65 $0.72 $0.58
$0.48 $0.46 $0.52 $0.41 $0.44
$0.33 $0.34 $0.35
1Q10 2Q 3Q 4Q 1Q11 2Q 3Q 4Q 1Q12 2Q 3Q 4Q 1Q13
AP Counts by ACV Bands AP New vs. Restructuring ACV(B)*
ITO ACV BPO ACV New Scope Restructuring
$0.86 $1.32
$0.56 $0.47
$0.43 $0.43 $0.38 $0.56
$0.29 $0.27 $0.30 $0.31
$0.22 $0.41 $0.34 $0.36
$0.34
$0.06 $0.11 $0.13
© 2013
Information Services $0.19 $0.09 $0.11 $0.09 $0.00 $0.24 $0.08
Group, Inc.
All Rights Reserved 1Q11 2Q 3Q 4Q 1Q12 2Q 3Q 4Q 1Q13 1Q11 2Q 3Q 4Q 1Q12 2Q 3Q 4Q 1Q13
isg-one.com
*Contracts with ACV ≥ $5M

13. 13
Asia Pacific Contract Award Trends Detail
Australia-New Zealand and Japan posted positive results due to several large
awards. Energy and Travel & Transport were up over historical averages.
Asia Pacific Sub-region ACV ($B)* AP Industry ACV ($B)*
Prior 5 Like-Qtr Range Prior 5 Like-Qtr Avg 1Q12 1Q13 Prior 5 Like-Qtr Avg 1Q13
$0.30
Telecom & Media $0.11
$0.01
$0.25 $0.11
Manufacturing
$0.09
$0.20 Financial Services $0.09
$0.06
$0.18
$0.15 Travel, Transport, $0.05
$0.15
$0.14 Leisure $0.10
Energy $0.02
$0.10 $0.10 $0.17
$0.08
$0.07 $0.02
$0.06 Business Services
$0.05 $0.01
$0.03
Retail $0.01
$0.01 $0.02 $0.01
$0.00 $0.00
© 2013 ANZ India and Japan ASEAN Greater South Korea Healthcare &
Information Services
$0.001
South Asia China Pharma $0.00
Group, Inc.
All Rights Reserved
isg-one.com
*Contracts with ACV ≥ $5M

14. 14
Top Service Providers Across the Globe
The top service providers in each sector based on 1Q13 or TTM ACV awarded
1Q13 Trailing 12 Months
Global Top 20 Global Top 20
Accenture Accenture
AT&T AT&T
Capgemini Atos
CGI BT
Dell Capgemini
Evry CGI
Fidelity CSC
Genpact Dell
HCL HCL
HP HP
IBM IBM
Infosys Infosys
Nihon Unisys ISS Global A/S
StarTek Jones Lang LaSalle
TCS Mahindra Satyam
Tieto MITIE
Virtusa T-Systems
Wipro TCS
© 2013 Xchanging Wipro
Information Services Xerox
Group, Inc.
Xerox
All Rights Reserved
isg-one.com
Note: Service providers in alphabetical order; no rankings implied.
*Contracts with ACV ≥ $5M
Placements based on ACV from commercial contract awards sourced from ISG Contracts Knowledgebase ®.

15. Special Topic for First Quarter 2013
Esteban Herrera
Partner

16. 16
Leading Providers Experience Shift in Market Share
Market Share Shifts 2009 - 2012
CAGR Disparity
2005 - 2012
ACV
2005 2009 2012
13% Awards
12% India-heritage
16%
32%
India-heritage Providers
Western-heritage Providers
7% 0.4%
7%
9%
ACV
Awards
Western-heritage
© 2013
Information Services
Group, Inc.
All Rights Reserved
isg-one.com
*Contracts with ACV ≥ $5M

17. 17
Opportunities and Challenges for Short-term Growth
1 Continue Winning in the Mature
UK and US Restructuring Markets
India-heritage Restructuring ACV
2 Capitalize on BPO Growth via
Investment in Vertical Solutions
India-heritage BPO ACV
Market Share Market Share
36%
20%
16%
4% $ $
2005 2009 2012 Investment 2005 2009 2012 Investment
3 Make New Inroads into the
Global Public Sector Markets 4 Increase European Market Share
via Enhanced Offshore Value Prop
India-heritage European
$ $ $$ ACV Market Share
7% 13%
© 2013
Information Services
Group, Inc.
All Rights Reserved
2005-08 2009-12
isg-one.com
*Contracts with ACV ≥ $5M

18. 18
Staying Ahead: What got you here will not get you there.
Long-term, the best defense may be a good offense, a challenge for western
providers with high overhead. India-heritage providers need long-term growth
engines to stay on trajectory.
Capturing the Expected Growth in the Mid-Market
 India-heritage Providers have proven offshoring credentials
 Western providers have started to create dedicated mid-market organizations
Lower Cost of Switching Puts Everybody on Notice
 Equal threat to all providers, no matter their heritage
 Incumbency advantage disappearing as transitions become less painful
ITO Challenge
Get familiar with the new buyers of emerging technologies, who sit outside
the CIO’s organization.
© 2013
Information Services
BPO Challenge
Pay for performance, rather than for bodies, is becoming the norm. Pricing
Group, Inc.
All Rights Reserved $ based on labor mark-up is becoming less attractive.
isg-one.com
*Contracts with ACV ≥ $5M

19. 19
1Q13 ISG Outsourcing Index Summary and Outlook
 Market continues to struggle to regain traction with soft spots in ACV
smaller deal space and in New Scope
 ITO performance is weak and BPO remains the bright spot
 Trailing 12 months is encouraging and the Large Deal market was strong
market  Americas Manufacturing was weak and also had a low number of ITO
summary contracts. BPO gains rise above ITO in the region.
 EMEA New Scope activity fell unexpectedly but restructurings rose.
Financial Services was off and BPO ACV fell but contract awards
remained strong
 Asia Pacific held steady, with ACV and activity increasing Y/Y, and
positive results in Australia-New Zealand.
 Keep expectations in check for 2Q13 with softness in the overall market
 Positive signs point to a healthier outlook for the full year
market
outlook  Strength in BPO
 Positivity in the emerging markets in the last 12 months
© 2013  Impact of timing on deal flow should eventually rebound
Information Services
Group, Inc.
All Rights Reserved
isg-one.com
*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
© 2013
Information Services
Group, Inc.
All Rights Reserved
isg-one.com blog.isg-one.com
*Contracts with ACV ≥ $5M

21. First Quarter 2013

22. 22
1Q13 TCV Scorecard
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.
1Q13 1Q Y/Y 1Q Q/Q 1Q13 1Q Y/Y 1Q Q/Q
Scorecard TCV ($B)* Change Change Counts Change Change
Global Market $ 18.6 -20% -23% 189 -21% -19%
New Scope $ 9.8 -30% -42% 141 -18% -17%
Restructurings $ 8.8 -4% 18% 48 -26% -26%
Mega-deals $ 5.0 213% 111% 3 200% 50%
ITO $ 10.8 -33% -28% 104 -34% -33%
BPO $ 7.8 8% -16% 85 5% 9%
Americas $ 7.9 -25% -7% 77 -31% -21%
EMEA $ 8.7 -21% -32% 87 -19% -21%
Asia Pacific $ 2.1 11% -33% 25 32% -7%
© 2013
Information Services
Group, Inc.
All Rights Reserved
isg-one.com
*Contracts with ACV ≥ $5M$25M
*Contracts with TCV ≥

23. www.isg-one.com
knowledge powering results®
Information Services Group is a leading technology insights, market intelligence and advisory services company, serving more
than 450 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 800 employees and operates in 21 countries.