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 ISG Outsourcing Index, EMEA
Market Data and Insights
First Quarter 2013
Hosted by:
John King
Barclays Capital
15 April 2013

2. 2
Welcome to the 42nd Quarterly ISG Outsourcing Index EMEA
Covering the state of the outsourcing industry for global, commercial contracts.*
John Keppel Dr. David Howie
President & Chief Partner
Marketing Officer
Bernd Schaefer
Partner
© 2013
Information Services
Group, Inc.
All Rights Reserved
isg-one.com
*Contracts with ACV ≥ €4M

3. 3
At A Glance
“ BROADER MARKET SAGGED IN 1Q13, BOTH Q/Q AND Y/Y
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 € 3.1 -27% -24% 223 -24% -16%
New Scope € 1.7 -31% -37% 166 -22% -9%
Restructurings € 1.4 -22% 1% 57 -28% -30%
Mega-relationships € 1.0 54% 4% 7 -13% -79%
ITO € 1.9 -35% -28% 127 -34% -30%
BPO € 1.2 -10% -18% 96 -3% 16%
© 2013
Information Services
Americas € 1.2 -39% -15% 90 -38% -16%
Group, Inc.
All Rights Reserved EMEA € 1.5 -20% -30% 105 -15% -17%
Asia Pacific € 0.4 8% -23% 28 22% -7%
isg-one.com
*Contracts with ACV ≥ €4M

4. 4
Broader Market Contract Award Trends
ACV of just over €4B was down 27% Y/Y and 24% Q/Q. However, the trailing 12-
month ACV was on par with the previous 12 month period, tempering results.
Broader Market ACV (€B)*
Avg of Prior 1Qs
€ 4.5
€ 4.9
€ 4.3 € 4.3
€ 3.1
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 € 3.2
€ 2.5 € 2.7
292
264 € 1.7
259 223
€ 1.8
© 2013 € 1.4 € 1.4
Information Services
€ 1.1
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 ≥ €4M

5. 5
Broader Market Contract Trends for the Largest Deals
Mega-relationships, deals with ACV of €80M+, 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
€ 4 - 79M € 40-79M € 80M +
Mega-relationships in 8 Quarter Increments
New Scope vs. Restructuring Counts
1.9 1.7 New Scope Restructuring
1.4 1.2
0.7 0.6 0.9 1.0
0.5
0.8 0.8 0.7 0.9 0.7 0.9 0.7 0.2
0.4 2Q11 - 1Q13 31 31
2Q09 - 1Q11 37 22
3.8 3.7
3.1 3.3 3.1 3.2
2.8 2.9
1.9 2Q07 - 1Q09 48 13
© 2013
Information Services 1Q11 2Q 3Q 4Q 1Q12 2Q 3Q 4Q 1Q13
Group, Inc.
All Rights Reserved
isg-one.com
*Contracts with ACV ≥ €4M

6. 6
EMEA Contract Award Trends
EMEA ACV of €1.5B was down 32% Q/Q and 21% Y/Y. Restructuring ACV grew
modestly while New Scope ACV fell sharply.
EMEA ACV (€B)*
Avg of Prior 1Qs
€ 2.2
€ 2.8 € 3.0
€ 2.4 € 2.2 € 2.5 € 2.3 € 2.2
€ 1.9 € 1.8 € 1.9 € 1.9
€ 1.6 € 1.5
1Q10 2Q 3Q 4Q 1Q11 2Q 3Q 4Q 1Q12 2Q 3Q 4Q 1Q13
EMEA Counts by ACV Band EMEA New vs. Restructuring ACV(€B)*
€ 4 - 15M €16 - 79M € 80M + New Scope Restructuring
2 3 4 8 3 5 4 7 3 € 1.65
€ 1.50
33 31 37 32 29 € 1.31
25 21 21 21
€ 0.75
129 € 0.74
€ 0.70
© 2013 96 97 83 82 91 81 € 0.55 € 0.60
Information Services 76 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 ≥ €4M

7. 7
EMEA Contract Award Trends Detail
The UK and DACH had weak 1Q13 results. However, Nordics and Benelux, held
steady.
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
€ 0.9
Manufacturing € 0.54
€ 0.8 € 0.37
€ 0.7 € 0.72 € 0.51
Financial Services
€ 0.38
€ 0.6
Energy € 0.34
€ 0.33
€ 0.5 € 0.50
Travel, Transport, € 0.28
€ 0.4 Leisure € 0.18
€ 0.35
€ 0.31 € 0.33 Telecom & Media € 0.24
€ 0.3 € 0.30 € 0.06
€ 0.29
€ 0.2 € 0.22
Business Services € 0.10
€ 0.09
€ 0.1 € 0.09 € 0.08 € 0.06
€ 0.04 € 0.05 € 0.05
€ 0.03 € 0.05 Retail
€ 0.02 € 0.06
€-
© 2013
Information Services UK & DACH Nordics Benelux France Southern Africa & E. Europe Healthcare & € 0.05
Group, Inc. Ireland Europe Middle & Russia Pharma € 0.06
All Rights Reserved East
isg-one.com
*Contracts with ACV ≥ €4M

8. 8
EMEA ITO Contract Award Trends
ITO ACV of €1.1B was down 15% Q/Q and 8% Y/Y. Contract numbers fell to their
lowest point since 4Q 2008.
EMEA ITO Annual ACV (€B)*
Avg of Prior Qs
€ 1.4
€ 2.5 € 2.3
€ 2.0 € 2.0
€ 1.7 € 1.6 € 1.6
€ 1.2 € 1.2 € 1.2 € 1.1 € 1.3 € 1.1
1Q10 2Q 3Q 4Q 1Q11 2Q 3Q 4Q 1Q12 2Q 3Q 4Q 1Q13
EMEA ITO Counts EMEA ITO New vs. Restructuring ACV (€B)*
New Scope Restructuring
122 Avg of Prior
Qs
84
91 € 1.18
€ 1.10 € 0.82
€ 0.80
66
67 € 0.92 € 0.59
© 2013 € 0.55
Information Services € 0.45 € 0.45
€ 0.43
Group, Inc.
All Rights Reserved 1Q10 2Q 3Q 4Q 1Q11 2Q 3Q 4Q 1Q12 2Q 3Q 4Q 1Q13 1Q10 2Q 3Q 4Q 1Q11 2Q 3Q 4Q 1Q12 2Q 3Q 4Q 1Q13
isg-one.com
*Contracts with ACV ≥ €4M

9. 9
EMEA BPO Contract Award Trends
While BPO contract numbers remained buoyant in the first quarter, ACV fell due to
the absence of large BPO deals in the region.
EMEA BPO Annual ACV (€B)*
Avg of Prior 1Qs
€ 0.53
€ 0.93
€ 0.77
€ 0.59 € 0.64 € 0.66 € 0.66 € 0.66
€ 0.54
€ 0.35 € 0.41 € 0.39
€ 0.28 € 0.30
1Q10 2Q 3Q 4Q 1Q11 2Q 3Q 4Q 1Q12 2Q 3Q 4Q 1Q13
EMEA BPO Counts EMEA BPO New vs. Restructuring ACV (€B)*
Avg of Prior New Scope Restructuring
42 1Qs
39 € 0.68
37 39 39
€ 0.51
€ 0.47
29 € 0.25 € 0.25
€ 0.15 € 0.21
€ 0.10 € 0.12
© 2013 € 0.19
Information Services
Group, Inc.
All Rights Reserved 1Q10 2Q 3Q 4Q 1Q11 2Q 3Q 4Q 1Q12 2Q 3Q 4Q 1Q13 1Q10 2Q 3Q 4Q 1Q11 2Q 3Q 4Q 1Q12 2Q 3Q 4Q 1Q13
isg-one.com
*Contracts with ACV ≥ €4M

10. 10
Top Service Providers in EMEA
The top service providers based on 1Q13 ACV or TTM ACV awarded
1Q13 Trailing 12 Months
EMEA Top 20 EMEA Top 20
Accenture Accenture
AT&T AT&T
Capgemini Atos
CGI BT
Communisis Capgemini
Evry CGI
Genpact CSC
HCL Evry
HP HCL
Infosys HP
Lottomatica IBM
Nokia Infosys
SQS ISS Global A/S
Swisscom Jones Lang LaSalle
TCS Mahindra Satyam
Thales MITIE
Tieto Serco
Virtusa TCS
© 2013 Xchanging T-Systems
Information Services
Group, Inc.
Xerox Xchanging
All Rights Reserved
isg-one.com
Note: Service providers in alphabetical order; no rankings implied.
*Contracts with ACV ≥ €4M
Placements based on ACV from commercial contract awards sourced from ISG Contracts Knowledgebase ®.

11. 11
Americas Contract Award Trends
Americas ACV of €1.2B 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
€ 2.0
€ 2.3 € 2.3 € 2.1
€ 1.6 € 1.6 € 1.6 € 1.8
€ 1.4 € 1.5 € 1.4 € 1.5
€ 0.9 € 1.2
1Q10 2Q 3Q 4Q 1Q11 2Q 3Q 4Q 1Q12 2Q 3Q 4Q 1Q13
Americas ITO vs. BPO ACV (€B)* Americas New vs. Restructuring ACV(€B)*
ITO ACV BPO ACV New Scope Restructuring
€ 1.23
€ 1.44 € 1.11
€ 0.95
€ 0.99
€ 0.87 € 0.62
€ 0.72 € 0.84
€ 0.74 € 0.59
€ 0.50 € 0.53
© 2013
€ 0.63 € 0.49 € 0.52
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 ≥ €4M

12. 12
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, boosting the ACV numbers.
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
€ 2.5 € 0.20
Manufacturing € 0.53
€ 0.19 € 0.16
€ 0.18
Financial Services € 0.30
€ 2.0 € 0.16 € 0.28
€ 1.85
€ 0.14 € 0.22
Telecom & Media
€ 0.43
€ 1.5 € 0.12
Business Services € 0.20
€ 0.10 € 0.09
€ 1.0 € 1.08 € 0.08 € 0.08 Healthcare & € 0.25
€ 0.08 Pharma € 0.16
€ 0.06
Retail € 0.10
€ 0.02
€ 0.5 € 0.04
€ 0.02 € 0.02 Energy € 0.09
€ 0.02 € 0.05
€ 0.01
© 2013
€- € 0.00
Information Services €- €- Travel, Transport, € 0.09
Group, Inc. US Canada Brazil Other Mexico Leisure € 0.07
All Rights Reserved LatAm
isg-one.com
*Contracts with ACV ≥ €4M

13. 13
Asia Pacific Contract Award Trends
Asia Pacific ACV of almost €360M 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
€ 1.13 € 0.37
€ 0.86
€ 0.52 € 0.58 € 0.46
€ 0.38 € 0.37 € 0.42 € 0.33 € 0.36
€ 0.26 € 0.28 € 0.28
1Q10 2Q 3Q 4Q 1Q11 2Q 3Q 4Q 1Q12 2Q 3Q 4Q 1Q13
AP ITO vs. BPO ACV (€B)* AP New vs. Restructuring ACV(B)*
ITO ACV BPO ACV New Scope Restructuring
€ 1.06
€ 0.34 € 0.37
€ 0.24 € 0.25 € 0.44
€ 0.18 € 0.33 € 0.27 € 0.29
€ 0.09 € 0.11
© 2013
Information Services € 0.09 € 0.07 €- € 0.19 € 0.07
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 ≥ €4M

14. 14
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
€ 0.25
Telecom & € 0.09
Media € 0.01
Manufacturing € 0.09
€ 0.20 € 0.07
Financial € 0.07
Services € 0.05
€ 0.15 Travel,
€ 0.14 € 0.04
Transport,
€ 0.08
€ 0.12 Leisure
€ 0.11
€ 0.10 Energy € 0.02
€ 0.13
€ 0.08
€ 0.07 Business € 0.02
€ 0.06 Services € 0.00
€ 0.05 € 0.05
Retail € 0.01
€ 0.03 € 0.00
© 2013 € 0.01 € 0.01
Information Services €- €- Healthcare & € 0.001
Group, Inc. Pharma €-
All Rights Reserved
ANZ India and Japan ASEAN Greater South Korea
South Asia China
isg-one.com
*Contracts with ACV ≥ €4M

15. Special Topic for First Quarter 2013
John Keppel
President & Chief
Marketing Officer

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 ≥ €4M

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 ≥ €4M

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 ≥ €4M

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 Mega-relationship market
market was strong
summary EMEA New Scope activity fell unexpectedly but restructurings rose.
Financial Services was off and BPO ACV fell while contract awards
remained strong
Americas saw decline in the US market and a low number of ITO
contracts. BPO gains rise above ITO in the region.
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
market Positive signs point to a healthier outlook for the full year
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 ≥ €4M

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 ---
► Denise Colgan ► Louise Fernley
Marketing Director, EMEA, ISG Cohn & Wolfe for ISG
+44 1737 371523 +44 207 331 5365
denise.colgan@isg-one.com louise.fernley@cohnwolfe.com
© 2013
Information Services
Group, Inc.
All Rights Reserved
isg-one.com blog.isg-one.com
*Contracts with ACV ≥ €4M

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 € 14.8 -20% -23% 189 -21% -19%
New Scope € 7.8 -30% -42% 141 -18% -17%
Restructurings € 7.0 -4% 18% 48 -26% -26%
Mega-deals € 4.0 213% 111% 3 200% 50%
ITO € 8.6 -33% -28% 104 -34% -33%
BPO € 6.2 8% -16% 85 5% 9%
Americas € 6.3 -25% -7% 77 -31% -21%
EMEA € 6.9 -21% -32% 87 -19% -21%
Asia Pacific € 1.6 11% -33% 25 32% -7%
© 2013
Information Services
Group, Inc.
All Rights Reserved
isg-one.com
*Contracts with TCV ≥ €20M
*Contracts with ACV ≥ €4M

23. www.isg-one.com
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than 450 clients around the world to help them achieve operational excellence. ISG supports private and public sector
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