The document provides an overview of outsourcing market data and insights for the second quarter and first half of 2012 in the EMEA region. Some key points: - Global outsourcing contract value (TCV) was up year-over-year and quarter-over-quarter in Q2 2012, helped by strong mega-deal activity, though the first half of 2012 saw an overall decline compared to the previous year. - The EMEA region saw a decline in TCV in Q2 2012, down 21% year-over-year and 11% quarter-over-quarter. For the first half of 2012, EMEA TCV was down 24% compared to the same period in

1. The TPI EMEA Index
EMEA Outsourcing Market Data and Insights
Second Quarter/First Half 2012
Hosted by:
Marc Geall,
Deutsche Bank Software and IT
Services Team
Monday 16th July 2012

2. 2
Welcome to the 39th Quarterly Outsourcing Index Call
Covering the state of the outsourcing industry for global, commercial contracts.
Duncan Aitchison
Partner & President
North Europe, ISG
Bernd Schaefer
Partner & Managing Director,
ISG Germany
© 2012
Information
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*Contracts with TCV > €20M

3. 3
At A Glance
“ GLOBAL BROADER MARKET TCV UP Y/Y & Q/Q
MEGA DEAL STRENGTH HELPED OFFSET WEAKER 2Q ACTIVITY
GLOBALLY, BPO HAD SOLID GAINS Y/Y AND Q/Q
“
EMEA COOLS AS ASIA-PACIFIC RETURNS AN IMPRESSIVE QUARTER AND HALF
YEAR PERFORMANCE
YEAR TO DATE, STRONG MEGA DEAL AND ASIA-PACIFIC RESULTS WERE NOT
ENOUGH TO OFFSET BROADER MARKET DECLINE
2Q12 TCV 2Q Y/Y 2Q Q/Q 1H12 1H Y/Y
Score Card (€B)* Change Change TCV (€B)* Change
Global Market € 17.1 7% 7% € 33.1 -8%
Mega Deals € 5.0 180% 320% € 6.2 23%
New Scope € 12.4 9% 34% € 21.6 -22%
Restructurings € 4.7 1% -31% € 11.5 39%
ITO € 10.4 6% -5% € 21.4 -6%
BPO € 6.7 7% 32% € 11.7 -13%
© 2012 EMEA € 6.7 -21% -11% € 14.2 -24%
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Asia Pacific € 3.8 181% 162% € 5.2 44%
Americas € 6.60 6% -6% € 13.7 flat
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*Contracts with TCV > €20M

4. 4
Global Broader Market Contract Award Trends
2Q12 TCV was up 7% Q/Q and Y/Y. Year to date, the TCV was down 8%.
Quarterly TCV (€B)*
TCV Avg of 4 Prior 2Qs
€ 18.13
€ 21.2
€ 17.6 € 17.7
€ 16.0 € 16.0 € 17.1
2Q08 3Q 4Q 1Q 2Q09 3Q 4Q 1Q 2Q10 3Q 4Q 1Q 2Q11 3Q 4Q 1Q 2Q12
Half-year Counts by TCV Bands Half-year TCV (€B)*
€20-79M TCV Band €80M+ TCV Band 1H TCV 2H TCV Avg of 5 Prior 1Hs
1H 2H 1H 2H
366
€ 34.3 € 42.3 € 35.1 € 45.8
327 308 € 36.3
250
€ 36.6
404
291 286 277 111 130 99 113 € 39.2 € 34.0 € 40.9 € 36.1
© 2012 231 € 32.5 € 33.1
Information 116 115 124 111 96
Services Group, Inc.
All Rights Reserved 2008 09 10 11 2012 2008 09 10 11 2012 2007 2008 2009 2010 2011 2012
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*Contracts with TCV > €20M

5. 5
EMEA Contract Award Trends
EMEA TCV was down 21% Y/Y and 11% Q/Q. Year to date, TCV was down by 24%.
Quarterly EMEA TCV (€B)*
TCV Avg of 4 Prior 2Qs
€ 13.0 €8.8
€ 8.5 € 7.5
€ 6.7 € 7.2 € 6.7
2Q08 3Q 4Q 1Q 2Q09 3Q 4Q 1Q 2Q10 3Q 4Q 1Q 2Q11 3Q 4Q 1Q 2Q12
Half-year EMEA Counts by TCV Bands Half-year EMEA TCV (€B)*
€20-79M TCV Band €80M+ TCV Band
1H 2H 1H 2H 2H TCV 1H TCV Avg of 5 Prior 1Hs
158
157 € 14.9 € 27.8
148 € 18.6
€ 16.4 € 21.8
102 $18.0
171
125 108 51 61 52 59 € 23.9
© 2012 90 105 € 15.6 € 17.6 € 18.8
62 50 54 € 14.2 € 14.2
Information 45 45
Services Group, Inc.
All Rights Reserved 2008 09 10 11 2012 2008 09 10 11 2012 07 08 09 10 11 2012
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*Contracts with TCV > €20M

6. 6
EMEA Mega-deal & Mega-relationship Trends
The increase in the number of Mega-relationships in 2012, was not enough to make
up for the drop in Mega-deal numbers and TCV.
Quarterly EMEA Mega-deal TCV (€B)*
TCV Counts 4
3 3
2
2
1 1 1 € 6.2
€ 4.7 € 4.7 1 € 5.8
€ 4.5 1
0 € 2.5 € 1.8 0
€ 1.2 € 0.9 € 0.8 € 1.0
2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12
55% of Mega
Relationships in the
Quarterly EMEA Mega-relationship ACV (€B)* last 5 quarters were
Restructurings
9 ACV Counts
5
4
3 3
1
€ 1.1 € 1.4 € 1.1
© 2012 € 1.0 € 0.7 € 1.0 € 0.6
Information
€ 0.2 € 0.3 € 0.3 € 0.5 € 0.4
Services Group, Inc. € 0.1
All Rights Reserved
2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12
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*Contracts with TCV > €20M

7. 7
EMEA New Scope & Restructuring Trends
Both New Scope and Restructurings dropped Q/Q. Year to date, New Scope TCV fell
32% as Restructurings rose 5%.
Quarterly EMEA New Scope vs. Restructuring TCV (€B)*
New Scope Restructured
€ 9.8
€ 5.5 € 5.5 € 5.7 € 5.2 € 4.7
€ 2.7 € 2.4 € 2.0
€ 1.2 € 1.2 € 1.7
2Q08 3Q 4Q 1Q 2Q09 3Q 4Q 1Q 2Q10 3Q 4Q 1Q 2Q11 3Q 4Q 1Q 2Q12
Half-year EMEA New Scope TCV (€B)* Half-year EMEA Restructuring TCV (€B)*
1H TCV 2H TCV Avg of 5 Prior 1Hs 1H TCV 2H TCV Avg of 5 Prior 1Hs
€ 9.9 € 12.2
€ 19.5 € 15.5 € 6.5
€ 13.9 € 14.2
€ 12.1
€ 5.0 € 3.8
€ 20.1 € 2.5 € 2.4
© 2012 € 13.1 € 11.5 € 11.8 € 14.6 € 5.8
Information
€ 9.9 € 2.5 € 3.9 € 2.7 € 4.2 € 4.4
Services Group, Inc.
All Rights Reserved
2007 2008 2009 2010 2011 2012 2007 2008 2009 2010 2011 2012
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*Contracts with TCV > €20M

8. 8
EMEA Country Details in Contract Award Trends
While all countries fell behind their first quarter values, only Scandinavia, France
and Southern Europe reached their five year average.
Like-half EMEA TCV (€B)* by Country
Prior 5 Period Range Average 1H11 1H12
€ 12
€ 10
€8
€6
€ 5.69
€4
€ 3.08
€2 € 2.12
€ 1.26
€ 0.91 € 0.68
€ 0.37 € 0.13
€0
© 2012 UK & Ireland DACH Scandinavia Benelux Africa & France Southern E. Europe &
Information Middle East Europe Russia
Services Group, Inc.
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*Contracts with TCV > €20M

9. 9
EMEA ITO Contract Award Trends
EMEA ITO TCV dropped 26% in the first half of 2012 as the number of ITO contracts
signed in the region declines across all TCV bands.
Half-year EMEA ITO TCV (€B)*
1H TCV 2H TCV Avg of 5 Prior 1Hs
Top 10 EMEA ITO Providers
by 1H12 TCV
€ 11.1 € 15.2 € 20.8
€ 17.6
€ 8.7 € 13.8 Accenture
€ 17.7 € 15.1 BT
€ 12.7 € 11.3 € 12.3 € 9.1
CSC
2007 2008 2009 2010 2011 2012 Fujitsu
HCL
Half-year EMEA ITO Counts by TCV Bands HP
€20-79M TCV Band €80M+ TCV Band IBM
1H 2H 1H 2H Infosys
TCS
119 105
T-Systems
110
71
118
97 36 46 38 47 Note: Service providers in alphabetical order; no
© 2012 67 70 70 rankings implied. Placements based on ISG
Information
45 36 42 37 31
contracts database.
Services Group, Inc.
All Rights Reserved 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012
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*Contracts with TCV > €20M

10. 10
EMEA BPO Contract Award Trends
Although BPO contract numbers dropped in the first half of 2012, BPO TCV remains
ahead of its five year average.
Half-year EMEA BPO TCV (€B)*
1H TCV 2H TCV Avg of 5 Prior 1Hs
Top 10 EMEA BPO Providers
by 1H12 TCV
€ 6.9
€ 3.8
€ 7.7 € 4.2 HCL
€ 4.2
€ 3.4
€ 6.2 € 6.6 HP
€ 5.1
€ 3.0 € 2.9 € 2.6 Infosys
2007 2008 2009 2010 2011 2012 Johnson Controls
Logica
Half-year EMEA BPO Counts by TCV Bands Mahindra Satyam
€20-79M TCV Band €80M+ TCV Band Mitie
1H 2H 1H 2H Serco
53 Sodexo
38
Xchanging
38
31 53
35 38 15 12 Note: Service providers in alphabetical order; no
© 2012 28 15 14 rankings implied. Placements based on ISG
23 17 17 14
Information 9 8
contracts database.
Services Group, Inc.
All Rights Reserved 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012
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*Contracts with TCV > €20M

11. 11
EMEA Industry Details in Contract Award Trends
Only Financial Services and Travel, Transport & Leisure sectors finished ahead of last
year’s first-half totals.
Like-Half EMEA TCV (€B)* by Industry
Prior 5 Period Range Average 1H11 1H12
€9
€8
€7
€6
€5 € 4.9
€4 € 3.8
€3
€2
€ 1.3 € 1.4 € 1.5
€1 € 0.8
€ 0.6
€- € 0.1
© 2012
Information
Services Group, Inc.
All Rights Reserved
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*Contracts with TCV > €20M

12. 12
Public Sector Analysis for EMEA
UK Public Sector continues to dominate EMEA Public sector contracting.
UK Public Sector Share of the EMEA Public Sector Market
Years 2007 – 2011 TCV (€ B)* Year-to-date 2012 TCV (€ B)*
UK Public Sector UK Public Sector
Other EMEA Public Sector Other EMEA Public Sector
€ 1.1
€ 22.1
9%
19%
€ 94.4 € 11.4
81% 91%
© 2012
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*Contracts with TCV > €20M

13. 13
Public vs Commercial Sector Analysis for the UK
The Public Sector expands to two-thirds of the UK market as the Commercial
outsourcing market shrinks.
UK Public Sector vs. Commercial Sector Market Share
Years 2007 – 2011 TCV (€ B)* Year-to-date 2012 TCV (€ B)*
UK Public Sector UK Public Sector
UK Commercial Sector UK Commercial Sector
€ 5.7
€ 69.5
33%
42% € 94.4
€ 11.4
58%
67%
© 2012
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*Contracts with TCV > €20M

14. 14
Public Sector Top 5 Service Providers
The Top 5 Service Providers List, based on TCV awarded in the first half of 2012, for
contracts over € 20 million in total value, shown in alphabetical order.
Top 5 Top 5
UK Public Sector Other EMEA Public Sector
Capita Accenture
Carillion Atkins
CSC BT
HP KPN
Logica Tieto
Note: Service providers in alphabetical order; no rankings implied
Placements based on UK Public Sector contract awards sourced from ISG contracts database
© 2012
Information
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All Rights Reserved
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*Contracts with TCV > €20M

15. 15
Asia-Pacific Contract Award Trends
Asia-Pacific TCV was up significantly Q/Q and Y/Y with most TCV awards in Financial
Services and Telecom. Year to date, TCV was up 44%.
Quarterly Asia-Pacific TCV (€B)* Includes a
TCV (B) Avg of 4 Prior 2Qs €1 B Mega
Deal in India
€ 3.7 € 3.8
€ 1.9
€ 1.4 € 1.1 € 1.3 € 1.4
2Q08 3Q 4Q 1Q 2Q09 3Q 4Q 1Q 2Q10 3Q 4Q 1Q 2Q11 3Q 4Q 1Q 2Q12
Half-year Asia-Pacific Counts by TCV Bands Half-year Asia-Pacific TCV (€B)*
€20-79M TCV Band €80M+ TCV Band
2H TCV 1H TCV Avg of 5 Prior 1Hs
1H 2H 1H 2H
36 € 5.3
36 € 4.6
42 41 € 6.4 € 3.9
€ 5.7
53 € 3.7
40 43 18
13 9 € 4.6 € 5.1 € 5.2
© 2012 25 28 11 € 2.8 € 3.6
Information 11 19 8 13 16 € 2.2
Services Group, Inc.
All Rights Reserved 2008 09 10 11 2012 2008 09 10 11 2012 2007 2008 2009 2010 2011 2012
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*Contracts with TCV > €20M

16. 16
Americas Contract Award Trends
Americas TCV was up 6% Y/Y but down 6% Q/Q. Mega-deals accounted for a
substantial share of 2Q12 TCV. Year to date, TCV was flat.
Includes €3B of Mega
Quarterly Americas TCV (€B)* Deal activity, with €1.8
TCV Avg of 4 Prior 2Qs out of Brazil in
Financial Services
€ 9.30 € 7.4
€ 6.82 € 7.15 € 7.06 € 6.6
€ 6.26
2Q08 3Q 4Q 1Q 2Q09 3Q 4Q 1Q 2Q10 3Q 4Q 1Q 2Q11 3Q 4Q 1Q 2Q12
Half-year Americas Counts by TCV Bands Half-year Americas TCV (€B)*
€20-79M TCV Band €80M+ TCV Band
2H TCV 1H TCV Avg of 5 Prior 1Hs
1H 2H 1H 2H
172
€ 10.8
129 124 € 15.2 € 14.1
€ 15.4 € 13.0 € 14.8
106
180
138 141 126 61 52 € 21.0
116 51 59 € 14.8 € 13.7 € 13.7
© 2012 € 12.3 € 12.5
Information 43 51 66 44 35
Services Group, Inc.
All Rights Reserved 2008 09 10 11 2012 2008 09 10 11 2012 2007 2008 2009 2010 2011 2012
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*Contracts with TCV > €20M

17. 17
Duration Trend Impact on the Global Market
Declines in duration may appear small, but even a slight decline can have large
impact on TCV levels.
What if all 1H12 contracts* had 1999 average durations of 6.4?
1H12 Actual TCV € 33 B 38%
Hypothetical 1H12 TCV with 1999-2000 Durations € 46 B
Average Contract Durations Over Time
Avg Duration Duration Plateau
6.4
6.0
5.5
6.48
5.1
6.35 6.14 6.10 6.07 5.95 5.88 5.72 5.48 5.31 5.10 4.98 5.05 4.85
© 2012
Information
Services Group, Inc. 1999 00 01 02 03 04 05 06 07 08 09 10 2011 1H12
All Rights Reserved
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*Contracts with TCV > €20M

18. 18
Does the 1H12 duration dip signal the start of a step down?
Durations decreased across a range of contract types.
Distribution of Contracts* Average Durations Fall
Moves Towards Lower Durations for All Contract Sizes*
Durations Durations Durations TCV < €160M TCV > €160M
< 5 Years 5 - 6.9 Years 7+ Years
6.6
6.1 6.2 6.0
46% 51% 4.9 4.8 4.9 4.6
32% 34%
22% 15%
2009 1H12 2009 1H12 2009 1H12 2009 2010 2011 1H12 2009 2010 2011 1H12
BPO Duration Trends* Restructuring Duration Trends*
5.5
5.3 5.3 12%
5.0 10%
4.8 4.8
4.7
4.5
© 2012
Information 2009 2010 2011 1H12 2009 2010 2011 1H12
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All Rights Reserved
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*Contracts with TCV > €20M

19. 19
Factors Influencing Downward Trend in Contract Durations
Average Duration for
Stepped Up Market Competition New Adopters
Amidst increased provider competition, companies ↓14%
– particularly New Sourcing Adopters – push for 5.1
4.4
shorter contract commitments, leveraging the
2009 1H12
providers’ desire to seal the deal.
Outsourcing Savvy Clients and Providers
Solution improvements enable more efficient and effective
delivery of innovations, making the best solutions at the best
prices available via more frequent contract negotiations.
Disposability of Cloud Solutions
© 2012
Service Providers note that contracts with Cloud in scope are shorter
Information
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in duration than Managed Services deals.
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*Contracts with TCV > €20M

20. 20
2Q12 TPI Index Summary and Outlook
Global Broader Market TCV up 7% Y/Y – strengthened by Mega
Deals and increased activity in Asia-Pacific
market EMEA TCV and contract numbers dropped both Q/Q and Y/Y
summary EMEA BPO flat Q/Q, while global values gain traction
Year to date, Global TCV was down 8% impacted by weak
EMEA results and fewer contract awards
Anticipate a soft 3Q against a tough Y/Y compare
market 4Q TCV may pick up because of larger deals in the pipeline
outlook Unprecedented levels of TCV in 2H12 are required for the
market to meet the record-high 2011 TCV result
© 2012
Information
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*Contracts with TCV > €20M

21. 21
Learn More
Please contact us with your questions and comments.
► John Keppel ► Duncan Aitchison
Partner & President Research & Partner & President
Managed Services and Chief North Europe, ISG
Marketing Officer +44 (0)1628 21702
+44 (0)7879 432 212 duncan.aitchison@isg-one.com
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
© 2012
Information
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*Contracts with TCV > €20M

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