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8/8/2019 Key Market Developments in Q32010 Quarterly Market Vista Briefing[1]
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Proprietary & Confidential. 2010, Everest Global, Inc.1
Todays Webinar is brought t o you by Everest Group
Todays Webinar
Key Market Developments in Q3-2010:Market Vista Report Briefing
Synopsis:Everest research analysts will highlight the findingsof the Q3-2010 Market Vista report. Atul Kunwarfrom Mahindra Satyam will share perspectives onstrategic priorities as the company positions itself for
growth following release of re-stated financials andintegration with TechMahindra.
Upcoming Webinar
Survival of the Differentiated The NewMantra of Success for Tier-2 Service Providers
Date and time:Thursday, November 18, 20108:30 a.m. CDT/9:30 a.m. EDT
Presented by:
Amneet Singh, Everest Group Jimit Arora, Everest Group
About Everest Group
Everest Group is an advisor to business leaders on global services with a worldwide reputation for helpingGlobal 1000 firms dramatically improve their performance by optimizing their back- and middle-office businessservices. With a fact-based approach driving outcomes, Everest Group counsels organizations with complex
challenges related to the use and delivery of global services in their pursuits to balance short-term needs withlong-term goals. Through its practical consulting, original research and industry resource services, EverestGroup helps clients maximize value from internal transformations, shared services, outsourcing and blendedmodel strategies. Established in 1991, Everest Group serves users of global services, providers of services,country organizations and private equity firms, in six continents across all industry categories. For moreinformation, please visit www.everestgrp.com and www.everestresearchinstitute.com.For more information, contact Mark Williamson at mark.williamson@everestgrp.com
mailto:mark.williamson@everestgrp.commailto:mark.williamson@everestgrp.commailto:mark.williamson@everestgrp.commailto:mark.williamson@everestgrp.commailto:mark.williamson@everestgrp.commailto:mark.williamson@everestgrp.com8/8/2019 Key Market Developments in Q32010 Quarterly Market Vista Briefing[1]
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Proprietary & Confidential. 2010, Everest Global, Inc.2
Q& A
To ask a question during the Q&A session
Click the question mark (Q&A) button located on the floating tool bar in the bottom rightof your screen. This will open the Q&A Panel
Be sure to keep the default set to send to a Panelist
Then, type your question in the rectangular field at the bottom of the Q&A box and clickthe send button to submit
8/8/2019 Key Market Developments in Q32010 Quarterly Market Vista Briefing[1]
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In t roduc t ions
Atul KunwarPresidentMahindra Satyamatul_kunwar@mahindrasatyam.com
Anand RameshResearch Director, Global SourcingEverest Group
anand.ramesh@everestgrp.com
Salil DaniSenior Research Analyst, Global SourcingEverest Groupsalil.dani@everestgrp.com
Eric SimonsonManaging Principal, ResearchEverest Grouperic.simonson@everestgrp.com
mailto:salil.dani@everestgrp.commailto:anand.ramesh@everestgrp.commailto:salil.dani@everestgrp.commailto:anand.ramesh@everestgrp.commailto:anand.ramesh@everestgrp.commailto:salil.dani@everestgrp.commailto:anand.ramesh@everestgrp.commailto:salil.dani@everestgrp.commailto:salil.dani@everestgrp.com8/8/2019 Key Market Developments in Q32010 Quarterly Market Vista Briefing[1]
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K ey Mark et Developm ents in
Q3-2010: Quart er ly Ma rk et
V is t a Br ie f ing
Webinar
November 09, 2010
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Contex t se t t i ng
What will you learn from this Webinar?
Key findings from the Q3 2010 Market Vista report and what they mean for buyers andsuppliers
Highlights of trends across outsourcing and offshoring transactions, captives, locationdynamics, supplier developments, and implications for stakeholders in the globalservices industry
Interview with Atul Kunwar, President Mahindra Satyam, to discuss the organizationsdirection, trajectory and priorities following the release of restated financial statementson Sep 29, 2010
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What i s Marke t V is ta?
Overall sourcing market
Detailed analysis of trends byindustry vertical and geography
Report of transaction volume,size, and momentum
Perspective on events withsignificant industry impact (e.g.,M&A)
Implications of regulatorychanges
Supplier landscape
Updates on suppliermarket share,capabilities, andperformance
Supplier profiles,including data on: Transactions Location footprint M&A activity
Location data and dynamics
Data on market activity inkey offshore geographies Political Macroeconomic Promotion incentives
Trends in wage inflation,attrition, and arbitrage
Processes and models
Process-level trends Captive set ups,
divestures, and overalltrends
Fact-based insights onadoption of emergingpricing models
Data and perspectives onnew opportunity areas
QuarterlyReport
PrimerLocationdatabase
Breakingviewpoint
LocationInsights
e-newsletter
Suppliercapabilityprofiles
Industry trends
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Agenda
Key market developments in Q3-2010
Interview with Atul Kunwar, President Mahindra Satyam
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Act iv i t y ac ross ou tsourc ing t ransac t ions and c apt ives
c ont inues t o ind ica t e tha t t he global serv ices marke t
is ho ld ing s teady
1 Includes only data that has been publicly disclosed
2 Announcements include both new set-ups and expansion of existing captive operations
Source: Everest Research Institute Transaction Intelligence Database
Index of outsourcing transactions1
Number
422
498 503
Q3 2009 Q2 2010 Q3 2010
Index of offshore captive health1
Number
Captive announcements2 = Actual Planned+
Captive divestures = Actual Planned+
27
38
25
134
1813
14
20
12
1
2
Q3 2009 Q2 2010 Q3 2010
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Among c apt ives , expans ion o f ex is t ing c enters and
se tup o f new cen te rs c on t inues w i th As ia dominat ing
ot her geographies
India:
10 new captive announcements PricewaterhouseCoopers center in
Kolkata to provide F&A support toall global PwC network firms
Credit Suisse expanded its centerof excellence in Mumbai
Nalco established a technologysupport center in Pune
East Asia:
7 new captive announcements P&G opened its R&D center in Beijing
(China) General Motors plans to set up a
research facility in Shanghai (China) Intel opened a new R&D center in
Shenzhen (China)
Note: All references to captives include only offshore captives
Source: Everest Research Institute analysis
Europe:
6 new captive announcements Eli Lilly plans to establish a European
Financial Services center in Cork (Ireland) Nestle plans to set up a shared-services
center in Lviv (Ukraine)
Latin America:1 new captive
announcement Microsoft plans to build
a data center in Brazil
Africa:1 new captiveannouncement Amazon plans to open a
customer service center inCape Town (South Africa)
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Transaction signings by geographyQ3-2010
Change in BPO transaction volume by process
36% 36% 34%
17% 12% 13%
20% 28%
24% 15% 19%
30%2%
1%2%
5%1% 4%
Q3 2009 Q2 2010 Q3 2010
Notab le ins ights : T ransac t ion vo lumes in Nor th
Am er ic a and Europe s t ab le ; ITO s t ronger in Q3 t han
BPO
Transaction volumes in North America and Europe stayed
stable relative to Q2
North America witnessed a slight reduction and Europestayed similar
Concerns around economic softening did not impacttransaction volumes in North America
Consistent with overall market trends, companies in both ofthese key geographies continue to approach outsourcingand offshoring with caution
Most BPO processes are seeing higher activity thanQ3-2009 but lower than Q2-2010
Transaction volumes in FAO, HRO, Customer Care andIndustry specific processes are higher than Q3-2009
However, compared to Q2-2010, BPO transaction volumesare lower in Q3-2010 We expect to see stabilization and growth in BPO
transaction volumes on an overall basis. However, the Q-o-Qtrend is likely to be erratic
UK
ROW
North America
Others
Rest of Europe
Japan
498 503422100% =
Customer care
Industry-level trending analysis included in the Market Vista Industry Trends reports
Q3 09 to Q3 10 Q2 10 to Q3 10
HRO
FAO
PO
Industry specific
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Offshore loca t ion ac t iv i t y w as c omparab le to Q3-2009
w i th a s l ight b ias tow ards T ie r -2 c i t ies
23
13
161817
15
Tier-1 Tier-2
21
10
5
21
76
18
86
Asia Europe and Africa Latin America
Market activity across geographies
Number of service delivery centers set up
Market activity across Tier-1 and Tier-2
locationsNumber of service delivery centers set up
Source: Everest Research Institute analysis
Q3 2010
Q3 2009
2009 Quarterly average
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Share of revenue from public sector
2009, Percentage
Increase in wage inflation rate: 2009 to 2010Percentage points
Not able ins ights : Regula tory developm ent s in t he U.S.
need mon i to r ing ; w age in fla t ion and a t t r i t ion ra tes
c reeping up
Regulatory developments are causing some concern
and need careful monitoring Ohio banned offshore delivery of government projects
and the border security bill increases visa costs Other emerging moves around proposed tax
amendments and visa regulations are adding to theconcern
Global suppliers likely more impacted. However, thesedevelopments may create additional impetus for
offshore suppliers to expand delivery presence in theU.S.
Wage inflation rates in offshore locations arecreeping up as competition for talent increases Greater predictability in pipeline is leading suppliers to
restore hiring rates to pre-2009 levels
Several large captives are also expanding rapidly Labor market pressures are increasing, most notably in
India but also across other offshore locations Expect to see further pressures during the next few
quarters
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Agenda
Key market developments in Q3-2010
Interview with Atul Kunwar, President Mahindra Satyam
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Snapshot o f k ey messages f rom Everest s Break ing
View po int : A New Mah indra Satyam ?
The combined Mahindra Satyam Tech Mahindraentity is positioned among the Tier-1 Indian ITservices providers
To recapture a growth trajectory, Mahindra Satyamwill be best able to differentiate using fourfoundations of growth
Mahindra Satyams recovery and integration with Tech Mahindra highlights some key implications for
the industry: Buyers need to implement holistic risk management across all aspects of global services portfolio Buyers will benefit from re-introduction of major offshore IT services provider
Suppliers will see increased competitive intensity as the combined entity aggressively pursues growth Mahindra Satyam will need to reinforce industry confidence by backing promises with strong performance,
ensuring smooth integration, maintaining strategic differentiation, and continued investments towardscapability development and growth
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Q& A
Attendees will receive an email enabling them to download todays webinar presentation. To access
a recorded audio version of this webinar, please contact Mark Williamson,mark.williamson@everestgrp.com
For advice or research on outsourcing and offshoring, please contact: Anand Ramesh, anand.ramesh@everestgrp.com Salil Dani, salil.dani@everestgrp.com
For background information on Everest, please visit: www.everestgrp.com www.everstresearchinstitute.com
Thank you for attending today
To ask a question during the Q&A session
Click the question mark (Q&A) button located on the floating tool bar in the bottom right of yourscreen. This will open the Q&A Panel
Be sure to keep the default set to send to a Panelist
Then, type your question in the rectangular field at the bottom of the Q&A box and click the sendbutton to submit
mailto:mark.williamson@everestgrp.commailto:anand.ramesh@everestgrp.commailto:salil.dani@everestgrp.comhttp://www.everestgrp.com/http://www.everstresearchinstitute.com/http://www.everstresearchinstitute.com/http://www.everestgrp.com/mailto:salil.dani@everestgrp.commailto:anand.ramesh@everestgrp.commailto:mark.williamson@everestgrp.comRecommended