Sunteți pe pagina 1din 76

CopyrlghL 2013 PfS 8esearch LLd.

lnslghL. Advlce. 8enchmarklng.


nfS kesearch
Collaborauve Sourclng lnLelllgence

for Global Business & IT Services
CuLsourclng SmarL Covernance ulsrupuve 1echnologles
The Knowledge Community
State of the Cutsourc|ng Industry 2013:

April 2013

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity.
Phil Fersht
Founder and CEO
HfS Research

Jamie Snowdon
Vice President, Market Forecasting and Data Products
HfS Research

CopyrlghL 2013 PfS 8esearch LLd.
2
C
u
L
s
o
u
r
c
l
n
g



S
m
a
r
L

C
o
v
e
r
n
a
n
c
e



u
l
s
r
u
p
u
v
e

1
e
c
h
n
o
l
o
g
l
e
s

State of the |ndustry 2013 - scope
ConducLed uecember 2012 / lebruary 2013
1he largesL-ever quanuLauve lndusLry sLudy coverlng boLh l1 and buslness
process ouLsourclng
8espondenLs lncluded 1333 sLakeholders across enLerprlse buyers, servlce
provlders and consulLanL/lnuencer organlzauons
1he alm of Lhe survey was Lo undersLand Lhelr vlews, observauons and
lnLenuons for 2013 and beyond, when lL comes Lo ouLsourclng l1 and
buslness processes
Survey was conducLed wlLh Lhe supporL of kMC
1hls presenLauon conLalns a seL of slldes wlLh Lhe Lop level resulLs of Lhe
survey

CopyrlghL 2013 PfS 8esearch LLd.
3
C
u
L
s
o
u
r
c
l
n
g



S
m
a
r
L

C
o
v
e
r
n
a
n
c
e



u
l
s
r
u
p
u
v
e

1
e
c
h
n
o
l
o
g
l
e
s

Summary of key I|nd|ngs
l1 and llnance & Accounung admlnlsLrauve processes domlnaLe ouLsourclng plans.
LnLerprlses are sull very focused on achlevlng operauonal eecuveness when Lhey ouLsource: CosL-
reducuon (87), greaLer scalablllLy of operauons (82) and process sLandardlzauon (74), are Lhe key
mouvauons behlnd l1 and buslness operauons ouLsourclng.
Core areas of sLraLeglc focus when ouLsourclng, lnclude accesslng beuer LalenL (70), galnlng access Lo
beuer Lechnology (62) and lmprovlng analyucal capablllues (62).
Mld-markeL enLerprlses ($1bn-$3bn revenues) are much more mouvaLed by sLraLeglc needs Lhan Plgh-end
enLerprlses (more Lhan $3bn revenues),
CuLsourclng cusLomers are gemng whaL Lhey pay for, wlLh ouLsourclng performances meeung Lhe Lable-
sLakes" of cosL-reducuon and sLandard dellvery (88 are saused), buL falllng shorL ln sLraLeglc areas, such as
lmprovlng analyucal capablllues, access Lo LalenL and achlevlng lnnovauon,
8C engagemenLs are noLably ouLperforms l1 CuLsourclng engagemenLs for cosL reducuon eecuveness and
process sLandardlzauon, process Lransformauon and lmprovlng analyucal capablllues.
CuLsourclng adopuon sull very nascenL for buslness processes, for example only 23 are uslng ouLsourclng
as Lhe predomlnanL model for accounLs payable processes, 19 purchaslng and accounLs recelvables, 11
for recrulung and sLamng.
CuLsourclng cusLomers do noL expecL lnnovauon from suppllers, Lhey wanL sLablllLy, lndusLry undersLandlng
and dellvery excellence
Close Lo a Lhlrd of hlgh-end enLerprlses vlew Clobal 8uslness Servlces as a mlsslon-crlucal framework for
Lhelr fuLure operaung model.
CopyrlghL 2013 PfS 8esearch LLd.
lnslghL. Advlce. 8enchmarklng.
nfS kesearch
Collaborauve Sourclng lnLelllgence

for Global Business & IT Services
CuLsourclng SmarL Covernance ulsrupuve 1echnologles
The Knowledge Community
State of the Cutsourc|ng Industry 2013:
Conducted with the support of KPMGs Shared Services and Outsourcing Advisory Practice

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity.
CopyrlghL 2013 PfS 8esearch LLd.
3
C
u
L
s
o
u
r
c
l
n
g



S
m
a
r
L

C
o
v
e
r
n
a
n
c
e



u
l
s
r
u
p
u
v
e

1
e
c
h
n
o
l
o
g
l
e
s

Q. Based on your recent experiences, will your clients seek to increase / reduce their reliance on the
following operating models for their general and administrative functions, over the next 2 years?
4%
9%
21%
30%
14%
47%
64%
50%
36%
32%
11%
17%
37%
12%
4%
2%
9% In-house delivery, no Shared Services
In-house Shared Services (Limited
Outsourcing)
Outsourcing with service providers
(Limited Shared Services)
Hybrid Outsourcing & Shared Services
(Global Business Services)
Increase significantly Increase moderately No change expected Reduce moderately Reduce significantly
Source: HfS Research 2013
2013 State of Outsourcing Study, n = 495 Service Provider Executives
Conducted with the support of KPMG Shared Services & Outsourcing Advisory
G|oba| 8us|ness Serv|ces becom|ng the dom|nant
de||very mode| for h|gh-end enterpr|ses
CopyrlghL 2013 PfS 8esearch LLd.
6
C
u
L
s
o
u
r
c
l
n
g



S
m
a
r
L

C
o
v
e
r
n
a
n
c
e



u
l
s
r
u
p
u
v
e

1
e
c
h
n
o
l
o
g
l
e
s

Q. How important are the following business DRIVERS behind your company's IT outsourcing
and BPO decision making in today's business environment?
17%
20%
21%
22%
24%
29%
33%
34%
35%
37%
43%
43%
45%
41%
40%
46%
39%
36%
34%
39%
45%
44%
29%
27%
27%
32%
28%
27%
16%
21%
22%
12%
10%
11%
9%
11%
6%
3%
5%
15%
11%
5%
6%
3%
Force change into our business operations
Proven / mature offerings from service
providers
Improve analytical capabilities
Gain access to new technology
Gain access to talent
Transform / re-engineer processes
More effective operations at a global level
Meet compliance / regulatory requirements
Standardize processes
Greater flexibility to scale operations
Reduce Operating Costs
Mission critical Important, but not critical Somewhat Important Not Important at all
Transform / re-engineer processes
More effective operations at a global level
Meet compliance / regulatory requirements
Standardize processes
Greater flexibility to scale operations
Reduce Operating Costs
Force change into our business operations
Proven / mature offerings from service
providers
Improve analytical capabilities
Gain access to new technology
Gain access to talent
O
p
e
r
a
t
i
o
n
a
l

S
t
r
a
t
e
g
i
c

CopyrlghL 2013 PfS 8esearch LLd.
Source: HfS Research 2013, n = 399 Buy-side Enterprises

2013 State of Outsourcing Study
Conducted with the support of KPMG Shared Services & Outsourcing Advisory
Lnterpr|ses sn|| very focused on ach|ev|ng operanona|
resu|ts when they outsourc|ng
CopyrlghL 2013 PfS 8esearch LLd.
7
C
u
L
s
o
u
r
c
l
n
g



S
m
a
r
L

C
o
v
e
r
n
a
n
c
e



u
l
s
r
u
p
u
v
e

1
e
c
h
n
o
l
o
g
l
e
s

Q. How important are the following business DRIVERS behind your company's IT outsourcing
and BPO decision making in today's business environment? (Mission-critical only)
27%
16%
19%
26%
27%
29%
33%
28%
33%
41%
32%
18%
20%
22%
22%
23%
28%
34%
38%
38%
42%
54%
0% 20% 40% 60%
Proven / mature offerings from service
providers
Force change into our business
operations
Improve analytical capabilities
Gain access to new technology
Gain access to talent
Transform / re-engineer processes
Meet compliance / regulatory
requirements
Standardize processes
More effective operations at a global level
Greater flexibility to scale operations
Reduce Operating Costs
High-end Enterprises
($5bn+)
Mid-Market Enterprises
($1bn-$5bn)
32%
54%
27%
18%
Source: HfS Research 2013, n = 399 Buy-side Enterprises

2013 State of Outsourcing Study
Conducted with the support of KPMG Shared Services & Outsourcing Advisory
n|gh-end enterpr|ses focused on cost, m|d-market
focused on prov|der so|unons
CopyrlghL 2013 PfS 8esearch LLd.
8
C
u
L
s
o
u
r
c
l
n
g



S
m
a
r
L

C
o
v
e
r
n
a
n
c
e



u
l
s
r
u
p
u
v
e

1
e
c
h
n
o
l
o
g
l
e
s

S out of 10 Lnterpr|ses p|ann|ng to start ] expand
ADM scope, 4 out of 10 I&A 8C |n 2013
Q. Are you likely to increase or decrease your outsourcing activity across the following
business operations areas in the next 12 months?
5%
3%
4%
6%
8%
4%
9%
10%
10%
10%
8%
9%
11%
13%
15%
15%
16%
17%
17%
19%
21%
29%
32%
39%
31%
31%
36%
26%
26%
30%
30%
47%
34%
40%
25%
37%
4%
3%
2%
1%
2%
4%
5%
3%
5%
6%
5%
6%
50%
50%
43%
52%
48%
45%
39%
21%
30%
15%
29%
9%
Marketing Operations Outsourcing
Customer Relationship Management
Legal Process Outsourcing
Knowledge Process Outsourcing
Analytics
Industry Specific Processes
Procurement & Sourcing Outsourcing
Document & Print Operations Outsourcing
Human Resources Outsourcing
IT Infrastructure Outsourcing
Finance & Accounting Outsourcing
Application Development & Maintenance
Will start outsourcing for the 1st time Increase scope Stay the same Decrease scope No plans
8%
9%
32%
39%
25%
37%
5%
6%
29%
9%
Finance & Accounting Outsourcing
Application Development & Maintenance
Source: HfS Research 2013, n = 399 Buy-side Enterprises

2013 State of Outsourcing Study
Conducted with the support of KPMG Shared Services & Outsourcing Advisory
CopyrlghL 2013 PfS 8esearch LLd.
9
C
u
L
s
o
u
r
c
l
n
g



S
m
a
r
L

C
o
v
e
r
n
a
n
c
e



u
l
s
r
u
p
u
v
e

1
e
c
h
n
o
l
o
g
l
e
s

Q. How effective have your current BPO / IT outsourcing initiatives been for achieving the following
business benefits to date?
9%
13%
18%
15%
17%
20%
23%
29%
29%
35%
53%
56%
55%
63%
61%
61%
63%
56%
53%
52%
38%
31%
27%
21%
22%
19%
15%
16%
18%
12%
Providing innovation
Gaining access to analytical
capabilities
Gaining access to new technology
Transforming processes
Forcing change into our business
operations
Gaining access to capable talent
Meeting regulatory requirements
Standardizing processes
Supporting more effective ops at a
global level
Reducing operating Costs
Very Effective Somewhat Effective Not Effective
9%
13%
18%
53%
56%
55%
38%
31%
27%
Providing innovation
Gaining access to analytical
capabilities
Gaining access to new technology
G
o
o
d


P
e
r
f
o
r
m
a
n
c
e

A
v
e
r
a
g
e


P
e
r
f
o
r
m
a
n
c
e

P
o
o
r


P
e
r
f
o
r
m
a
n
c
e

Lnterpr|se Cutsourc|ng erformance Meenng
1ab|e-stakes, but Ia|||ng Short |n Strateg|c Areas
Source: HfS Research 2013, n = 399 Buy-side Enterprises

2013 State of Outsourcing Study Conducted with KPMG
Conducted with the support of KPMG Shared Services & Outsourcing Advisory
CopyrlghL 2013 PfS 8esearch LLd.
10
C
u
L
s
o
u
r
c
l
n
g



S
m
a
r
L

C
o
v
e
r
n
a
n
c
e



u
l
s
r
u
p
u
v
e

1
e
c
h
n
o
l
o
g
l
e
s

Q. How effective have your current BPO/ IT outsourcing initiatives been for achieving the
following business benefits to date? (very effective responses only)
7%
11%
16%
18%
17%
21%
19%
27%
31%
41%
7%
12%
14%
17%
17%
20%
21%
29%
32%
44%
Providing new and creative methods of
achieving business value (innovation)
Gaining access to analytical capabilities
Gaining access to new technology
Gaining access to capable talent
Transforming / re-engineering processes
Meeting compliance / regulatory
requirements
Forcing change into our business
operations
Standardizing processes
Supporting more effective operations at a
global level
Reducing operating Costs
High-end Enterprises
($5bn+)
Mid-Market Enterprises
($1bn-$5bn)
Source: HfS Research 2013, n = 399 Buy-side Enterprises

2013 State of Outsourcing Study
Conducted with the support of KPMG Shared Services & Outsourcing Advisory
n|gh-end and M|d-market enterpr|ses ach|ev|ng
s|m||ar resu|ts from outsourc|ng
CopyrlghL 2013 PfS 8esearch LLd.
11
C
u
L
s
o
u
r
c
l
n
g



S
m
a
r
L

C
o
v
e
r
n
a
n
c
e



u
l
s
r
u
p
u
v
e

1
e
c
h
n
o
l
o
g
l
e
s

Q. How effective have your current IT outsourcing initiatives been for achieving the following
business benefits to date?
7%
9%
13%
14%
19%
20%
20%
22%
29%
31%
55%
57%
62%
63%
61%
55%
67%
58%
52%
55%
39%
34%
26%
23%
19%
25%
13%
19%
19%
15%
Providing new and creative methods of
achieving business value (innovation)
Gaining access to analytical capabilities
Transforming / re-engineering processes
Forcing change into our business
operations
Gaining access to capable talent
Gaining access to new technology
Meeting compliance / regulatory
requirements
Standardizing processes
Supporting more effective operations at a
global level
Reducing operating Costs
Very Effective Somewhat Effective Not Effective
7%
9%
13%
Source: HfS Research 2013, n = 399 Buy-side Enterprises

2013 State of Outsourcing Study
Conducted with the support of KPMG Shared Services & Outsourcing Advisory
I1C |n|nanves: Iuncnona||y eecnve, but ||ght on
|nnovanon
CopyrlghL 2013 PfS 8esearch LLd.
12
C
u
L
s
o
u
r
c
l
n
g



S
m
a
r
L

C
o
v
e
r
n
a
n
c
e



u
l
s
r
u
p
u
v
e

1
e
c
h
n
o
l
o
g
l
e
s

Q. How effective have your current IT outsourcing initiatives been for achieving the following
business benefits to date? (very effective responses only)
4%
7%
17%
23%
11%
17%
17%
17%
33%
31%
3%
6%
7%
15%
15%
15%
16%
22%
29%
40%
Supporting more effective operations at a
global level
Meeting compliance / regulatory
requirements
Providing new and creative methods of
achieving business value (innovation)
Transforming / re-engineering processes
Standardizing processes
Gaining access to new technology
Gaining access to capable talent
Gaining access to analytical capabilities
Reducing operating Costs
Forcing change into our business
operations
High-end Enterprises
($5bn+)
Mid-Market Enterprises
($1bn-$5bn)
17%
23%
7% 7%
15% 15%
Source: HfS Research 2013, n = 399 Buy-side Enterprises

2013 State of Outsourcing Study
Conducted with the support of KPMG Shared Services & Outsourcing Advisory
I1C: M|d-market hav|ng more success transform|ng
processes and ach|ev|ng |nnovanon
CopyrlghL 2013 PfS 8esearch LLd.
13
C
u
L
s
o
u
r
c
l
n
g



S
m
a
r
L

C
o
v
e
r
n
a
n
c
e



u
l
s
r
u
p
u
v
e

1
e
c
h
n
o
l
o
g
l
e
s

Q. How effective have your current BPO initiatives been for achieving the following business
benefits to date?
12%
16%
17%
18%
20%
21%
25%
29%
35%
40%
51%
55%
55%
65%
58%
61%
59%
53%
54%
50%
38%
29%
28%
17%
21%
18%
16%
18%
12%
10%
Providing new and creative methods of
achieving business value (innovation)
Gaining access to new technology
Gaining access to analytical capabilities
Transforming / re-engineering
processes
Forcing change into our business
operations
Gaining access to capable talent
Meeting compliance / regulatory
requirements
Supporting more effective operations at
a global level
Standardizing processes
Reducing operating Costs
Very Effective Somewhat Effective Not Effective
29%
35%
40%
Supporting more effective operations at
a global level
Standardizing processes
Reducing operating Costs
Source: HfS Research 2013, n = 399 Buy-side Enterprises

2013 State of Outsourcing Study
Conducted with the support of KPMG Shared Services & Outsourcing Advisory
90 of 8C |n|nanves h|gh|y eecnve at meenng
operanon targets
CopyrlghL 2013 PfS 8esearch LLd.
14
C
u
L
s
o
u
r
c
l
n
g



S
m
a
r
L

C
o
v
e
r
n
a
n
c
e



u
l
s
r
u
p
u
v
e

1
e
c
h
n
o
l
o
g
l
e
s

8C outperforms I1C for cost reducnon, process
standard|zanon and var|ous strateg|c measures
0%
10%
20%
30%
40%
E
n
t
e
r
p
r
i
s
e

B
u
y
e
r
s

E
x
p
e
r
i
e
n
c
i
n
g


V
e
r
y

E
f
f
e
c
t
i
v
e

P
e
r
f
o
r
m
a
n
c
e
I1 Cutsourc|ng
8us|ness rocess Cutsourc|ng
Tactical Measures
Strategic Measures
Q. How effective have your current outsourcing initiatives been for achieving the following
business benefits to date? (Very Effective responses only)
Source: HfS Research 2013, n =399 Buy-side Enterprises

2013 State of Outsourcing Study Conducted with KPMG
CopyrlghL 2013 PfS 8esearch LLd.
13
C
u
L
s
o
u
r
c
l
n
g



S
m
a
r
L

C
o
v
e
r
n
a
n
c
e



u
l
s
r
u
p
u
v
e

1
e
c
h
n
o
l
o
g
l
e
s

Q. How effective have your current BPO initiatives been for achieving the following business
benefits to date? (very effective responses only)
11%
21%
14%
22%
24%
21%
15%
24%
33%
43%
11%
12%
17%
19%
24%
26%
27%
35%
36%
48%
Supporting more effective operations at a
global level
Gaining access to capable talent
Meeting compliance / regulatory
requirements
Gaining access to new technology
Transforming / re-engineering processes
Standardizing processes
Providing new and creative methods of
achieving business value (innovation)
Reducing operating Costs
Gaining access to analytical capabilities
Forcing change into our business
operations
High-end Enterprises
($5bn+)
Mid-Market Enterprises
($1bn-$5bn)
15% 15%
24% 24%
27%
35%
Providing new and creative methods of
achieving business value (innovation)
Reducing operating Costs
Source: HfS Research 2013, n = 399 Buy-side Enterprises

2013 State of Outsourcing Study
Conducted with the support of KPMG Shared Services & Outsourcing Advisory
Large enterpr|ses gemng beuer performance from
8C than m|d-s|zed enterpr|ses
CopyrlghL 2013 PfS 8esearch LLd.
16
C
u
L
s
o
u
r
c
l
n
g



S
m
a
r
L

C
o
v
e
r
n
a
n
c
e



u
l
s
r
u
p
u
v
e

1
e
c
h
n
o
l
o
g
l
e
s

US hrms |ook|ng for h|gher-va|ue capab|||ty from
Cutsourc|ng
Q. How important are the following business DRIVERS behind your company's IT outsourcing
and BPO decision making in today's business environment? (Mission-critical only)
47%
32%
30%
31%
26%
15%
21%
13%
7%
11% 11%
41%
37%
32%
35%
36%
32%
23%
24%
26%
24%
17%
29%
46%
54%
18%
38% 38%
15%
8%
15%
8%
25%
Reduce
Operating
Costs
Greater
flexibility to
scale
operations
Standardize
processes
Meet
compliance /
regulatory
requirements
More effective
operations at
a global level
Transform /
re-engineer
processes
Gain access
to talent
Gain access
to new
technology
Improve
analytical
capabilities
Proven /
mature
offerings from
service
providers
Force change
into our
business
operations
Europe North America Asia Pacific
24%
26%
24%
15% 1
30%
32%%
54%
15%%
32%%
38%
Source: HfS Research 2013
2013 State of Outsourcing Study, n = 399 Buy-side Enterprises
Conducted with the support of KPMG Shared Services & Outsourcing Advisory
CopyrlghL 2013 PfS 8esearch LLd.
17
C
u
L
s
o
u
r
c
l
n
g



S
m
a
r
L

C
o
v
e
r
n
a
n
c
e



u
l
s
r
u
p
u
v
e

1
e
c
h
n
o
l
o
g
l
e
s

79%
78%
76%
73%
69%
73%
71%
60%
55%
52%
56%
44%
46%
42%
45%
42%
40%
38%
14%
13%
14%
15%
19%
13%
16%
19%
23%
22%
19%
25%
21%
17%
18%
20%
23%
18%
2%
3%
5%
3%
3%
4%
2%
6%
5%
7%
6%
8%
4%
10%
6%
6%
4%
6%
5%
5%
5%
9%
10%
10%
11%
15%
17%
19%
19%
23%
30%
31%
32%
33%
33%
38%
Strategic Sourcing: Direct Procurement
Financial Planning & Analysis
Logistics/Supply Chain Management
Workforce data management / analytics
Management Reporting
Strategic Sourcing: Indirect Procurement
Recruitment / Staffing
Employee contact center
General Accounting / GL
Accounts Receivable
Purchase-to-pay/Transactional Purchasing
Accounts Payable
Benefits Administration
Application Development
IT Infrastructure Management
Ongoing ERP Maintenance
Payroll
IT Help Desk
Inhouse Shared Services Offshore captive Outsourced
Q. Which delivery model do you predominantly use for managing the following processes?

Source: HfS Research 2013
2013 State of Outsourcing Study, n = 399 Buy-side Enterprises
Conducted with the support of KPMG Shared Services & Outsourcing Advisory
Cutsourc|ng sn|| has a |ong, |ong way go - espec|a||y
for bus|ness processes
CopyrlghL 2013 PfS 8esearch LLd.
lnslghL. Advlce. 8enchmarklng.
nfS kesearch
Collaborauve Sourclng lnLelllgence

for Global Business & IT Services
CuLsourclng SmarL Covernance ulsrupuve 1echnologles
The Knowledge Community
State of the Cutsourc|ng Industry 2013:
Conducted with the support of KPMGs Shared Services and Outsourcing Advisory Practice

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity.
CopyrlghL 2013 PfS 8esearch LLd.
19
C
u
L
s
o
u
r
c
l
n
g



S
m
a
r
L

C
o
v
e
r
n
a
n
c
e



u
l
s
r
u
p
u
v
e

1
e
c
h
n
o
l
o
g
l
e
s

G|oba| bus|ness serv|ces mode|s support g|oba| expans|on. lndusLrles wlLh global
fooLprlnLs are more aggresslve ln Lhelr approaches because Lhey need Lo supporL a
growlng lnLernauonal cusLomer-base. Lxamples are pharmaceuucal & llfe sclences,
CC, LransporLauon, and manufacLurlng.
keta|| and hosp|ta||ty |ndustr|es focus on shared serv|ces. 1lghL lnLegrauon wlLh
local markeL languages, supply chaln, and reglonal brands lnuence declslons Lo go
wlLh a shared servlce model.
8|ended onshore and oshore requ|rements ba|ance dec|s|ons. Servlclng local
cusLomers conunues Lo balance Lhe lnsurance lndusLry's approach Lo shared
servlces (onshore) and ouLsourclng (oshore).
Shared serv|ces requ|res sca|e. Large companles are mosL llkely Lo conslder shared
servlces operaung models because Lhey have more scale and are more llkely Lo
operaLe globally.
Capnve mode|s rema|n rare. 8anklng, lnsurance, and soware/hl-Lech rms are
mosL llkely Lo leverage capuve models, whlch Lyplcally house l1-relaLed processes.
key Industry 1rends
CopyrlghL 2013 PfS 8esearch LLd.
20
C
u
L
s
o
u
r
c
l
n
g



S
m
a
r
L

C
o
v
e
r
n
a
n
c
e



u
l
s
r
u
p
u
v
e

1
e
c
h
n
o
l
o
g
l
e
s

78%
78%
74%
73%
66%
65%
62%
59%
54%
56%
53%
45%
39%
45%
40%
37%
37%
36%
17%
15%
16%
15%
17%
21%
21%
21%
23%
22%
22%
25%
19%
14%
22%
17%
20%
16%
1%
4%
6%
3%
4%
6%
8%
5%
6%
8%
8%
7%
3%
11%
5%
9%
4%
4%
6%
7%
12%
12%
13%
14%
14%
17%
18%
21%
33%
34%
35%
35%
39%
39%
Strategic Sourcing: Direct Procurement
Logistics/Supply Chain Management
Strategic Sourcing: Indirect Procurement
Financial Planning & Analysis
Workforce data management / analytics
Management Reporting
Recruitment / Staffing
Purchase-to-pay/Transactional Purchasing
Employee contact center
General Accounting / GL
Accounts Receivable
Accounts Payable
Ongoing ERP Maintenance
IT Infrastructure Management
Benefits Administration
Application Development
Payroll
IT Help Desk
Inhouse Shared Services Offshore captive Outsourced
Q. Which delivery model do you predominantly use for managing the following processes?

Source: HfS Research 2013
2013 State of Outsourcing Study, n = 399 Buy-side Enterprises
Conducted with the support of KPMG Shared Services & Outsourcing Advisory
redom|nant de||very mode|s: 8ank|ng Sector
CopyrlghL 2013 PfS 8esearch LLd.
21
C
u
L
s
o
u
r
c
l
n
g



S
m
a
r
L

C
o
v
e
r
n
a
n
c
e



u
l
s
r
u
p
u
v
e

1
e
c
h
n
o
l
o
g
l
e
s

80%
73%
76%
77%
73%
65%
70%
74%
61%
60%
61%
58%
50%
50%
47%
46%
46%
39%
11%
16%
12%
15%
11%
18%
14%
13%
19%
16%
14%
17%
22%
17%
23%
23%
21%
24%
6%
6%
7%
3%
9%
9%
6%
4%
7%
11%
9%
9%
5%
9%
5%
6%
7%
9%
3%
5%
5%
7%
8%
9%
10%
13%
14%
16%
16%
23%
24%
25%
26%
26%
28%
Financial Planning & Analysis
Management Reporting
Logistics/Supply Chain Management
Strategic Sourcing: Direct Procurement
Strategic Sourcing: Indirect Procurement
Employee contact center
Workforce data management / analytics
Recruitment / Staffing
General Accounting / GL
Accounts Receivable
Purchase-to-pay/Transactional Purchasing
Accounts Payable
IT Infrastructure Management
Benefits Administration
Ongoing ERP Maintenance
IT Help Desk
Payroll
Application Development
Inhouse Shared Services Offshore captive Outsourced
Q. Which delivery model do you predominantly use for managing the following processes?

Source: HfS Research 2013
2013 State of Outsourcing Study, n = 399 Buy-side Enterprises
Conducted with the support of KPMG Shared Services & Outsourcing Advisory
redom|nant de||very mode|s: Insurance Sector
CopyrlghL 2013 PfS 8esearch LLd.
22
C
u
L
s
o
u
r
c
l
n
g



S
m
a
r
L

C
o
v
e
r
n
a
n
c
e



u
l
s
r
u
p
u
v
e

1
e
c
h
n
o
l
o
g
l
e
s

81%
84%
75%
66%
66%
73%
42%
68%
40%
50%
40%
26%
35%
39%
44%
27%
28%
35%
12%
10%
15%
22%
15%
10%
33%
9%
28%
21%
29%
36%
16%
19%
12%
32%
22%
15%
4%
4%
1%
5%
11%
3%
13%
5%
6%
6%
5%
8%
10%
15%
15%
18%
18%
21%
27%
28%
29%
36%
38%
39%
39%
44%
44%
Financial Planning & Analysis
Strategic Sourcing: Direct Procurement
Logistics/Supply Chain Management
Management Reporting
Recruitment / Staffing
Workforce data management / analytics
General Accounting / GL
Strategic Sourcing: Indirect Procurement
Accounts Receivable
Employee contact center
Purchase-to-pay/Transactional Purchasing
Accounts Payable
IT Infrastructure Management
Benefits Administration
Application Development
Payroll
IT Help Desk
Ongoing ERP Maintenance
Inhouse Shared Services Offshore captive Outsourced
Q. Which delivery model do you predominantly use for managing the following processes?

Source: HfS Research 2013
2013 State of Outsourcing Study, n = 399 Buy-side Enterprises
Conducted with the support of KPMG Shared Services & Outsourcing Advisory
redom|nant de||very mode|s: CG Sector
CopyrlghL 2013 PfS 8esearch LLd.
23
C
u
L
s
o
u
r
c
l
n
g



S
m
a
r
L

C
o
v
e
r
n
a
n
c
e



u
l
s
r
u
p
u
v
e

1
e
c
h
n
o
l
o
g
l
e
s

86%
79%
78%
80%
66%
73%
62%
72%
49%
55%
47%
50%
30%
47%
33%
40%
40%
32%
11%
12%
10%
10%
21%
13%
18%
14%
28%
21%
29%
24%
33%
11%
29%
23%
19%
19%
4%
6%
4%
4%
6%
1%
7%
6%
5%
10%
11%
6%
6%
7%
5%
6%
8%
9%
10%
14%
14%
16%
18%
18%
22%
26%
30%
32%
34%
35%
42%
Strategic Sourcing: Direct Procurement
Financial Planning & Analysis
Logistics/Supply Chain Management
Strategic Sourcing: Indirect Procurement
Management Reporting
Workforce data management / analytics
Employee contact center
Recruitment / Staffing
General Accounting / GL
Purchase-to-pay/Transactional Purchasing
Accounts Receivable
Benefits Administration
Accounts Payable
Application Development
Payroll
IT Infrastructure Management
Ongoing ERP Maintenance
IT Help Desk
Inhouse Shared Services Offshore captive Outsourced
Q. Which delivery model do you predominantly use for managing the following processes?

Source: HfS Research 2013
2013 State of Outsourcing Study, n = 399 Buy-side Enterprises
Conducted with the support of KPMG Shared Services & Outsourcing Advisory
redom|nant de||very mode|s: Manufactur|ng Sector
CopyrlghL 2013 PfS 8esearch LLd.
24
C
u
L
s
o
u
r
c
l
n
g



S
m
a
r
L

C
o
v
e
r
n
a
n
c
e



u
l
s
r
u
p
u
v
e

1
e
c
h
n
o
l
o
g
l
e
s

81%
77%
75%
72%
78%
73%
73%
59%
59%
53%
52%
41%
52%
44%
41%
39%
38%
27%
11%
15%
11%
18%
11%
16%
16%
21%
18%
23%
24%
28%
19%
20%
24%
21%
18%
22%
1%
1%
7%
7%
7%
9%
9%
9%
9%
13%
20%
21%
21%
27%
27%
31%
33%
37%
41%
48%
Strategic Sourcing: Direct Procurement
Financial Planning & Analysis
Logistics/Supply Chain Management
Management Reporting
Strategic Sourcing: Indirect Procurement
Workforce data management / analytics
Recruitment / Staffing
Purchase-to-pay/Transactional Purchasing
Employee contact center
Accounts Receivable
General Accounting / GL
Accounts Payable
Benefits Administration
Application Development
Payroll
IT Infrastructure Management
Ongoing ERP Maintenance
IT Help Desk
Inhouse Shared Services Offshore captive Outsourced
Q. Which delivery model do you predominantly use for managing the following processes?

Source: HfS Research 2013
2013 State of Outsourcing Study, n = 399 Buy-side Enterprises
Conducted with the support of KPMG Shared Services & Outsourcing Advisory
redom|nant de||very mode|s: Lnergy & Un||nes
CopyrlghL 2013 PfS 8esearch LLd.
23
C
u
L
s
o
u
r
c
l
n
g



S
m
a
r
L

C
o
v
e
r
n
a
n
c
e



u
l
s
r
u
p
u
v
e

1
e
c
h
n
o
l
o
g
l
e
s

87%
81%
77%
76%
78%
68%
68%
64%
62%
55%
50%
54%
49%
59%
45%
48%
43%
40%
7%
15%
12%
12%
20%
18%
19%
14%
14%
23%
13%
19%
9%
20%
13%
15%
2%
8%
3%
9%
7%
7%
7%
7%
7%
7%
8%
9%
13%
14%
21%
23%
24%
24%
25%
25%
31%
31%
35%
42%
Workforce data management / analytics
Recruitment / Staffing
Financial Planning & Analysis
Strategic Sourcing: Direct Procurement
Logistics/Supply Chain Management
Strategic Sourcing: Indirect Procurement
Management Reporting
Purchase-to-pay/Transactional Purchasing
Ongoing ERP Maintenance
Employee contact center
General Accounting / GL
Application Development
Accounts Receivable
IT Infrastructure Management
Accounts Payable
IT Help Desk
Benefits Administration
Payroll
Inhouse Shared Services Offshore captive Outsourced
Q. Which delivery model do you predominantly use for managing the following processes?

Source: HfS Research 2013
2013 State of Outsourcing Study, n = 399 Buy-side Enterprises
Conducted with the support of KPMG Shared Services & Outsourcing Advisory
redom|nant de||very mode|s: Med|a & Lnterta|nment
Sectors
CopyrlghL 2013 PfS 8esearch LLd.
26
C
u
L
s
o
u
r
c
l
n
g



S
m
a
r
L

C
o
v
e
r
n
a
n
c
e



u
l
s
r
u
p
u
v
e

1
e
c
h
n
o
l
o
g
l
e
s

86%
78%
76%
72%
73%
64%
68%
52%
61%
47%
52%
40%
51%
39%
35%
33%
33%
30%
10%
16%
13%
18%
14%
21%
17%
23%
13%
23%
21%
24%
17%
14%
24%
23%
19%
20%
2%
6%
2%
11%
5%
6%
8%
12%
14%
14%
22%
23%
24%
24%
29%
31%
36%
38%
41%
44%
47%
Financial Planning & Analysis
Strategic Sourcing: Direct Procurement
Logistics/Supply Chain Management
Strategic Sourcing: Indirect Procurement
Recruitment / Staffing
Management Reporting
Workforce data management / analytics
General Accounting / GL
Employee contact center
Accounts Receivable
Purchase-to-pay/Transactional Purchasing
Accounts Payable
Benefits Administration
Application Development
Payroll
IT Infrastructure Management
Ongoing ERP Maintenance
IT Help Desk
Inhouse Shared Services Offshore captive Outsourced
Q. Which delivery model do you predominantly use for managing the following processes?

Source: HfS Research 2013
2013 State of Outsourcing Study, n = 399 Buy-side Enterprises
Conducted with the support of KPMG Shared Services & Outsourcing Advisory
redom|nant de||very mode|s: harma, L|fe Sc|ences &
nea|th
CopyrlghL 2013 PfS 8esearch LLd.
27
C
u
L
s
o
u
r
c
l
n
g



S
m
a
r
L

C
o
v
e
r
n
a
n
c
e



u
l
s
r
u
p
u
v
e

1
e
c
h
n
o
l
o
g
l
e
s

89%
79%
88%
77%
85%
86%
85%
80%
67%
66%
78%
62%
51%
60%
48%
52%
51%
39%
7%
17%
7%
17%
9%
7%
8%
9%
22%
21%
10%
23%
28%
22%
27%
19%
20%
9%
1%
2%
2%
1%
1%
2%
1%
3%
3%
4%
3%
4%
5%
2%
2%
3%
3%
13%
2%
3%
3%
5%
5%
5%
5%
8%
8%
9%
9%
12%
16%
17%
23%
26%
26%
39%
Strategic Sourcing: Direct Procurement
Financial Planning & Analysis
Logistics/Supply Chain Management
Workforce data management / analytics
Management Reporting
Strategic Sourcing: Indirect Procurement
Recruitment / Staffing
Employee contact center
General Accounting / GL
Accounts Receivable
Purchase-to-pay/Transactional Purchasing
Accounts Payable
Application Development
Payroll
Benefits Administration
IT Infrastructure Management
Ongoing ERP Maintenance
IT Help Desk
Inhouse Shared Services Offshore captive Outsourced
Q. Which delivery model do you predominantly use for managing the following processes?

Source: HfS Research 2013
2013 State of Outsourcing Study, n = 399 Buy-side Enterprises
Conducted with the support of KPMG Shared Services & Outsourcing Advisory
redom|nant de||very mode|s: : ub||c Sector
CopyrlghL 2013 PfS 8esearch LLd.
28
C
u
L
s
o
u
r
c
l
n
g



S
m
a
r
L

C
o
v
e
r
n
a
n
c
e



u
l
s
r
u
p
u
v
e

1
e
c
h
n
o
l
o
g
l
e
s

71%
63%
74%
74%
55%
68%
70%
70%
52%
48%
47%
39%
33%
46%
40%
42%
44%
41%
26%
32%
19%
17%
34%
21%
19%
18%
32%
33%
35%
35%
40%
18%
32%
24%
19%
20%
10%
8%
9%
10%
10%
13%
15%
16%
23%
25%
26%
27%
31%
34%
36%
Strategic Sourcing: Direct Procurement
Logistics/Supply Chain Management
Strategic Sourcing: Indirect Procurement
Financial Planning & Analysis
Employee contact center
Workforce data management / analytics
Management Reporting
Recruitment / Staffing
General Accounting / GL
Accounts Receivable
Purchase-to-pay/Transactional Purchasing
Accounts Payable
Benefits Administration
Application Development
Payroll
IT Infrastructure Management
IT Help Desk
Ongoing ERP Maintenance
Inhouse Shared Services Offshore captive Outsourced
Q. Which delivery model do you predominantly use for managing the following processes?

Source: HfS Research 2013
2013 State of Outsourcing Study, n = 399 Buy-side Enterprises
Conducted with the support of KPMG Shared Services & Outsourcing Advisory
redom|nant de||very mode|s: keta|| & nosp|ta||ty
CopyrlghL 2013 PfS 8esearch LLd.
29
C
u
L
s
o
u
r
c
l
n
g



S
m
a
r
L

C
o
v
e
r
n
a
n
c
e



u
l
s
r
u
p
u
v
e

1
e
c
h
n
o
l
o
g
l
e
s

78%
65%
80%
73%
73%
70%
56%
52%
60%
49%
50%
48%
44%
40%
44%
53%
39%
39%
16%
20%
13%
18%
17%
16%
20%
25%
15%
17%
21%
18%
14%
26%
17%
17%
23%
20%
4%
10%
4%
8%
5%
7%
12%
6%
8%
15%
12%
2%
7%
6%
5%
5%
8%
8%
11%
16%
17%
18%
21%
24%
26%
27%
27%
28%
28%
31%
35%
Strategic Sourcing: Direct Procurement
Logistics/Supply Chain Management
Financial Planning & Analysis
Management Reporting
Workforce data management / analytics
Recruitment / Staffing
Employee contact center
General Accounting / GL
Strategic Sourcing: Indirect Procurement
Purchase-to-pay/Transactional Purchasing
Accounts Receivable
IT Infrastructure Management
Application Development
Accounts Payable
Ongoing ERP Maintenance
Benefits Administration
Payroll
IT Help Desk
Inhouse Shared Services Offshore captive Outsourced
Q. Which delivery model do you predominantly use for managing the following
processes?

Source: HfS Research 2013
2013 State of Outsourcing Study, n = 399 Buy-side Enterprises
Conducted with the support of KPMG Shared Services & Outsourcing Advisory
redom|nant de||very mode|s: Sohware, n|-1ech &
1e|ecoms
CopyrlghL 2013 PfS 8esearch LLd.
30
C
u
L
s
o
u
r
c
l
n
g



S
m
a
r
L

C
o
v
e
r
n
a
n
c
e



u
l
s
r
u
p
u
v
e

1
e
c
h
n
o
l
o
g
l
e
s

82%
89%
81%
87%
77%
79%
56%
73%
55%
59%
40%
51%
36%
48%
31%
47%
28%
28%
7%
16%
14%
22%
16%
25%
18%
20%
17%
15%
17%
15%
8%
2%
10%
1%
1%
9%
18%
8%
18%
8%
22%
9%
10%
12%
14%
16%
16%
23%
26%
27%
31%
35%
45%
51%
Strategic Sourcing: Direct Procurement
Financial Planning & Analysis
Logistics/Supply Chain Management
Workforce data management / analytics
Management Reporting
Strategic Sourcing: Indirect Procurement
General Accounting / GL
Recruitment / Staffing
Employee contact center
Purchase-to-pay/Transactional Purchasing
Accounts Receivable
Payroll
Accounts Payable
Benefits Administration
IT Help Desk
IT Infrastructure Management
Ongoing ERP Maintenance
Application Development
Inhouse Shared Services Offshore captive Outsourced
Q. Which delivery model do you predominantly use for managing the following processes?

Source: HfS Research 2013
2013 State of Outsourcing Study, n = 399 Buy-side Enterprises
Conducted with the support of KPMG Shared Services & Outsourcing Advisory
redom|nant de||very mode|s: 1ransport & Log|sncs
CopyrlghL 2013 PfS 8esearch LLd.
31
C
u
L
s
o
u
r
c
l
n
g



S
m
a
r
L

C
o
v
e
r
n
a
n
c
e



u
l
s
r
u
p
u
v
e

1
e
c
h
n
o
l
o
g
l
e
s

79%
72%
74%
65%
67%
73%
65%
63%
42%
45%
43%
49%
47%
35%
40%
38%
30%
27%
13%
19%
17%
16%
21%
13%
21%
19%
30%
27%
31%
16%
18%
31%
19%
17%
22%
21%
4%
2%
2%
8%
2%
4%
2%
6%
6%
4%
2%
8%
6%
4%
6%
8%
6%
6%
4%
6%
6%
10%
10%
10%
13%
13%
22%
24%
24%
27%
29%
29%
34%
38%
42%
46%
Financial Planning & Analysis
Strategic Sourcing: Direct Procurement
Logistics/Supply Chain Management
Employee contact center
Management Reporting
Recruitment / Staffing
Strategic Sourcing: Indirect Procurement
Workforce data management / analytics
Purchase-to-pay/Transactional Purchasing
Accounts Receivable
General Accounting / GL
Application Development
Benefits Administration
Accounts Payable
IT Infrastructure Management
Ongoing ERP Maintenance
Payroll
IT Help Desk
Inhouse Shared Services Offshore captive Outsourced
Q. Which delivery model do you predominantly use for managing the following processes?

Source: HfS Research 2013
2013 State of Outsourcing Study, n = 399 Buy-side Enterprises
Conducted with the support of KPMG Shared Services & Outsourcing Advisory
redom|nant de||very mode|s: M|d-Market
organ|zanons (>51bn - 5Sbn revenues)
CopyrlghL 2013 PfS 8esearch LLd.
32
C
u
L
s
o
u
r
c
l
n
g



S
m
a
r
L

C
o
v
e
r
n
a
n
c
e



u
l
s
r
u
p
u
v
e

1
e
c
h
n
o
l
o
g
l
e
s

67%
78%
73%
71%
68%
60%
64%
42%
42%
43%
35%
24%
31%
38%
38%
35%
34%
31%
18%
16%
15%
16%
12%
23%
17%
27%
27%
23%
26%
30%
29%
22%
19%
20%
18%
21%
10%
1%
5%
2%
7%
3%
2%
10%
8%
10%
12%
13%
5%
5%
6%
7%
9%
6%
5%
5%
8%
11%
12%
13%
16%
21%
23%
24%
27%
33%
34%
35%
36%
38%
39%
43%
Logistics/Supply Chain Management
Strategic Sourcing: Direct Procurement
Financial Planning & Analysis
Workforce data management / analytics
Strategic Sourcing: Indirect Procurement
Management Reporting
Recruitment / Staffing
General Accounting / GL
Employee contact center
Purchase-to-pay/Transactional Purchasing
Accounts Receivable
Accounts Payable
Payroll
Benefits Administration
IT Infrastructure Management
Ongoing ERP Maintenance
Application Development
IT Help Desk
Inhouse Shared Services Offshore captive Outsourced
Q. Which delivery model do you predominantly use for managing the following processes?

Source: HfS Research 2013
2013 State of Outsourcing Study, n = 399 Buy-side Enterprises
Conducted with the support of KPMG Shared Services & Outsourcing Advisory
Cutsourc|ng sn|| has a |ong, |ong way go - espec|a||y
for bus|ness process (5Sbn+ Lnterpr|ses)
CopyrlghL 2013 PfS 8esearch LLd.
lnslghL. Advlce. 8enchmarklng.
nfS kesearch
Collaborauve Sourclng lnLelllgence

for Global Business & IT Services
CuLsourclng SmarL Covernance ulsrupuve 1echnologles
The Knowledge Community
State of the Cutsourc|ng Industry 2013:
Conducted with the support of KPMGs Shared Services and Outsourcing Advisory Practice

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity.
CopyrlghL 2013 PfS 8esearch LLd.
34
C
u
L
s
o
u
r
c
l
n
g



S
m
a
r
L

C
o
v
e
r
n
a
n
c
e



u
l
s
r
u
p
u
v
e

1
e
c
h
n
o
l
o
g
l
e
s

Q. How important are the following service provider attributes your organization today?
6%
14%
17%
17%
19%
23%
28%
29%
30%
35%
35%
36%
40%
35%
39%
40%
48%
43%
47%
42%
48%
42%
44%
29%
34%
43%
40%
34%
37%
27%
30%
25%
26%
20%
23%
18%
21%
25%
16%
19%
13%
7%
7%
8%
6%
5%
3%
5%
3%
15%
6%
2%
Brand
Ability to guarantee gainsharing incentives for
productivity / growth improvements
Ability to provide analytical insight
Ability to support business-outcome initiatives, as
opposed to solely effort-based pricing
Ability to provide innovation - new sources of
productivity / growth
Ability to transform / reengineer existing processes
Culture of the provider's delivery organization
Capability of delivery talent to add value beyond
standard operations
Ability to support change management and
governance needs
Track record to deliver standard operational services
Global delivery scale and flexibility
Knowledge of specific industry processes
Financial stability
Mission critical Important, but not critical Somewhat Important Not Important
Source: HfS Research 2013
2013 State of Outsourcing Study, n = 399 Buy-side Enterprises
Conducted with the support of KPMG Shared Services & Outsourcing Advisory
Stab|||ty, know|edge and de||very competence trump
|nnovanon
CopyrlghL 2013 PfS 8esearch LLd.
33
C
u
L
s
o
u
r
c
l
n
g



S
m
a
r
L

C
o
v
e
r
n
a
n
c
e



u
l
s
r
u
p
u
v
e

1
e
c
h
n
o
l
o
g
l
e
s

Q. How important are the following service provider attributes your organization today?
Q. Based on your experience, how important are the following service provider attributes to your clients today
for IT/BPO services? (Mission Critical responses only)
Source: HfS Research 2013
2013 State of Outsourcing Study, n = 399 Buy-side Enterprises
n = 495 Service Provider Executives
6%
14%
17%
17%
19%
23%
28%
29%
30%
35%
35%
36%
40%
11%
19%
24%
22%
30%
34%
21%
45%
32%
50%
35%
45%
33%
0% 20% 40% 60%
Brand
Ability to guarantee gainsharing incentives for
productivity / growth improvements
Ability to provide analytical insight
Ability to support business-outcome initiatives,
as opposed to solely effort-based pricing
Ability to provide innovation - new sources of
productivity / growth
Ability to transform / reengineer existing
processes
Culture of the provider's delivery organization
Capability of delivery talent to add value
beyond standard operations
Ability to support change management and
governance needs
Track record to deliver standard operational
services
Global delivery scale and flexibility
Knowledge of specific industry processes
Financial stability
What Providers
think Buyers view
as Mission Critical
Buyers view of
Mission Critical
rov|ders overesnmate |mportance buyers p|ace on the|r ta|ent, |nnovanon
capab|||ty and track record for standard de||very
CopyrlghL 2013 PfS 8esearch LLd.
lnslghL. Advlce. 8enchmarklng.
nfS kesearch
Collaborauve Sourclng lnLelllgence

for Global Business & IT Services
CuLsourclng SmarL Covernance ulsrupuve 1echnologles
The Knowledge Community
State of the Cutsourc|ng Industry 2013:
Conducted with the support of KPMGs Shared Services and Outsourcing Advisory Practice

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity.
CopyrlghL 2013 PfS 8esearch LLd.
37
C
u
L
s
o
u
r
c
l
n
g



S
m
a
r
L

C
o
v
e
r
n
a
n
c
e



u
l
s
r
u
p
u
v
e

1
e
c
h
n
o
l
o
g
l
e
s

Q. Are you likely to increase or decrease your outsourcing activity across the following
business operations areas in the next 12 months? (Will look to start outsourcing for the first
time only) Top 3 responses by industry
Insurance Manufacturing Banking CPG
Document & Print Operations
Outsourcing 17%
Analytics 15%
Document & Print Operations
Outsourcing 10%
Application Development &
Maintenance Outsourcing 13%
Analytics 8%
Human Resources
Outsourcing 14%
IT Infrastructure Outsourcing
10%
IT Infrastructure Outsourcing
13%
Application Development &
Maintenance Outsourcing 8%
Knowledge Process
Outsourcing 8%
Finance & Accounting
Outsourcing 7%
Finance & Accounting
Outsourcing 11%
Energy & Utilities Entertainment
Pharma, Life Sciences &
Healthcare
Public Sector
Document & Print Operations
Outsourcing 25%
IT Infrastructure Outsourcing
30%
Procurement & Sourcing
Outsourcing 20%
Document & Print Operations
Outsourcing 40%
IT Infrastructure Outsourcing
18%
Application Development &
Maintenance Outsourcing 18%
Finance & Accounting
Outsourcing 19%
Customer Relationship
Management Outsourcing 20%
Marketing Operations
Outsourcing 18%
Analytics 10% Analytics 13%
Industry Specific Processes
20%
Source: HfS Research 2013
2013 State of Outsourcing Study, n = 399 Buy-side Enterprises
Retail
Software, Hi-Tech and
Telecoms
Transportation & Logistics Other industries
IT Infrastructure Outsourcing
25%
Human Resources
Outsourcing 15%
Human Resources
Outsourcing 44%
Analytics 24%
Application Development &
Maintenance Outsourcing 13%
IT Infrastructure Outsourcing
14%
Procurement & Sourcing
Outsourcing 38%
Finance & Accounting
Outsourcing 18%
Document & Print Operations
Outsourcing 11%
Application Development &
Maintenance Outsourcing 13%
Finance & Accounting
Outsourcing 25%
Knowledge Process
Outsourcing 18%
Conducted with the support of KPMG Shared Services & Outsourcing Advisory
|ans to start outsourc|ng |n 2013: by |ndustry
CopyrlghL 2013 PfS 8esearch LLd.
38
C
u
L
s
o
u
r
c
l
n
g



S
m
a
r
L

C
o
v
e
r
n
a
n
c
e



u
l
s
r
u
p
u
v
e

1
e
c
h
n
o
l
o
g
l
e
s

Q. Are you likely to increase or decrease your outsourcing activity across the following business
operations areas in the next 12 months? (Will look to start outsourcing for the first time only)
3%
3%
4%
6%
7%
8%
9%
9%
10%
10%
10%
13%
2%
6%
2%
15%
13%
4%
2%
6%
7%
9%
9%
6%
2%
4%
4%
6%
4%
4%
2%
11%
15%
8%
6%
13%
0% 20%
Customer Relationship Management
Outsourcing
Legal Process Outsourcing
Industry Specific Processes
Document & Print Operations Outsourcing
Finance & Accounting Outsourcing
Knowledge Process Outsourcing
Marketing Operations Outsourcing
Analytics
Human Resources Outsourcing
Application Development & Maintenance
Outsourcing
Procurement & Sourcing Outsourcing
IT Infrastructure Outsourcing
Small Enterprises (<
$1bn)
Mid-market Enterprises:
($1bn - $5bn)
High-end Enterprises:
($5bn+)
Source: HfS Research 2013
2013 State of Outsourcing Study, n = 399 Buy-side Enterprises
Conducted with the support of KPMG Shared Services & Outsourcing Advisory
|ans to start outsourc|ng |n 2013: by organ|zanona|
s|ze
CopyrlghL 2013 PfS 8esearch LLd.
39
C
u
L
s
o
u
r
c
l
n
g



S
m
a
r
L

C
o
v
e
r
n
a
n
c
e



u
l
s
r
u
p
u
v
e

1
e
c
h
n
o
l
o
g
l
e
s

Q. Are you likely to increase or decrease your outsourcing activity across the following
business operations areas in the next 12 months? (Increase scope only)
6%
19%
7%
20%
20%
9%
19%
13%
9%
24%
43%
21%
12%
14%
16%
16%
17%
17%
18%
22%
30%
34%
37%
43%
0% 20% 40% 60%
Marketing Operations Outsourcing
Knowledge Process Outsourcing
Customer Relationship Management
Outsourcing
Industry Specific Processes
Procurement & Sourcing Outsourcing
Legal Process Outsourcing
Analytics
Document & Print Operations Outsourcing
Human Resources Outsourcing
IT Infrastructure Outsourcing
Application Development & Maintenance
Outsourcing
Finance & Accounting Outsourcing
High-end Enterprises:
($5bn+)
Mid-market Enterprises:
($1bn - $5bn)
Source: HfS Research 2013
2013 State of Outsourcing Study, n = 399 Buy-side Enterprises
Conducted with the support of KPMG Shared Services & Outsourcing Advisory
|ans to |ncrease outsourc|ng scope |n 2013: ADM and I&A
dom|nate. Large hrms |ncreas|ng I1 |nfrastructure and nk
CopyrlghL 2013 PfS 8esearch LLd.
40
C
u
L
s
o
u
r
c
l
n
g



S
m
a
r
L

C
o
v
e
r
n
a
n
c
e



u
l
s
r
u
p
u
v
e

1
e
c
h
n
o
l
o
g
l
e
s

Q. Are you likely to increase or decrease your outsourcing activity across the following
business operations areas in the next 12 months? (Increase scope only)
Source: HfS Research 2013
2013 State of Outsourcing Study, n = 399 Buy-side Enterprises
6%
6%
6%
11%
11%
12%
13%
14%
15%
16%
16%
17%
Retail
Transportation
& Logistics
Public Sector
Banking
Entertainment
Other
industries
CPG
Manufacturing
Insurance
Energy &
Utilities
Pharma, Life
Sciences &
Software, Hi-
Tech and
CRM BPO
16%
22%
25%
25%
29%
31%
33%
35%
35%
40%
43%
45%
Public Sector
Retail
Energy & Utilities
Other industries
Banking
Entertainment
Insurance
Pharma, Life
Sciences &
Transportation &
Logistics
Manufacturing
CPG
Software, Hi-Tech
and Telecoms
F&A BPO
10%
15%
16%
19%
19%
20%
20%
20%
22%
25%
32%
33%
Entertainment
Energy &
Utilities
Transportation
& Logistics
Insurance
Other
industries
Banking
Pharma, Life
Sciences &
Public Sector
Software, Hi-
Tech and
CPG
Manufacturing
Retail
HR BPO
8%
8%
8%
8%
13%
13%
15%
16%
20%
22%
23%
28%
CPG
Energy & Utilities
Retail
Software, Hi-Tech
and Telecoms
Manufacturing
Entertainment
Pharma, Life
Sciences &
Transportation &
Logistics
Other industries
Insurance
Banking
Public Sector
Industry Specific Processes
Conducted with the support of KPMG Shared Services & Outsourcing Advisory
|ans to |ncrease outsourc|ng |n 2013 by |ndustry
CopyrlghL 2013 PfS 8esearch LLd.
41
C
u
L
s
o
u
r
c
l
n
g



S
m
a
r
L

C
o
v
e
r
n
a
n
c
e



u
l
s
r
u
p
u
v
e

1
e
c
h
n
o
l
o
g
l
e
s

Q. Are you likely to increase or decrease your outsourcing activity across the following
business operations areas in the next 12 months? (Increase scope only)
Source: HfS Research 2013
2013 State of Outsourcing Study, n = 399 Buy-side Enterprises
8%
8%
13%
14%
14%
15%
15%
17%
20%
20%
25%
28%
Manufacturing
Entertainment
Energy & Utilities
Insurance
Transportation &
Logistics
Banking
Software, Hi-Tech
and Telecoms
Other industries
CPG
Retail
Pharma, Life
Sciences &
Public Sector
Analytics
20%
32%
33%
36%
37%
37%
38%
38%
40%
45%
45%
60%
Transportation
& Logistics
Retail
Energy &
Utilities
Other
industries
Pharma, Life
Sciences &
Manufacturing
Entertainment
CPG
Software, Hi-
Tech and
Insurance
Banking
Public Sector
ADM
14%
14%
23%
24%
25%
28%
29%
29%
30%
35%
36%
54%
Retail
Transportation
& Logistics
Other
industries
Entertainment
Software, Hi-
Tech and
Energy &
Utilities
Manufacturing
Banking
Pharma, Life
Sciences &
Insurance
CPG
Public Sector
IT Infrastructure Outsourcing
Conducted with the support of KPMG Shared Services & Outsourcing Advisory
|ans to |ncrease outsourc|ng |n 2013 by |ndustry
CopyrlghL 2013 PfS 8esearch LLd.
lnslghL. Advlce. 8enchmarklng.
nfS kesearch
Collaborauve Sourclng lnLelllgence

for Global Business & IT Services
CuLsourclng SmarL Covernance ulsrupuve 1echnologles
The Knowledge Community
State of the Cutsourc|ng Industry 2013:
Conducted with the support of KPMGs Shared Services and Outsourcing Advisory Practice

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity.
CopyrlghL 2013 PfS 8esearch LLd.
43
C
u
L
s
o
u
r
c
l
n
g



S
m
a
r
L

C
o
v
e
r
n
a
n
c
e



u
l
s
r
u
p
u
v
e

1
e
c
h
n
o
l
o
g
l
e
s

Q. To help us with our research, how important are the following topics/issues to
your organization's outsourcing strategy going into 2013?
6%
7%
13%
16%
17%
19%
20%
21%
22%
23%
27%
28%
31%
25%
38%
34%
43%
52%
38%
26%
48%
47%
41%
36%
34%
40%
32%
34%
32%
23%
31%
27%
24%
23%
24%
27%
29%
28%
16%
16%
8%
6%
12%
26%
6%
7%
7%
9%
Making better use of social media to improve collaboration
Defining roles and career paths for sourcing executives
Governance talent management
Improving the perception of outsourcing within our organization
Accessing price benchmarks
Understanding capabilities of providers, beyond low-cost
Improving our analytical capabilities
Creating a global business services framework
Accessing performance benchmarks
Accomplishing innovation with operational processes
Altering the mindset of leadership from cost to value-creation
Change management
Mission critical Important, but not critical Somewhat Important Not Important at all
Source: HfS Research 2013
2013 State of Outsourcing Study, n = 399 Buy-side Enterprises
Conducted with the support of KPMG Shared Services & Outsourcing Advisory
"Change" Dom|nates key 1op|cs of Interest for 2013
(8uyers)
CopyrlghL 2013 PfS 8esearch LLd.
44
C
u
L
s
o
u
r
c
l
n
g



S
m
a
r
L

C
o
v
e
r
n
a
n
c
e



u
l
s
r
u
p
u
v
e

1
e
c
h
n
o
l
o
g
l
e
s

Q. To help us with our research, how important are the following topics/issues to your
organization's outsourcing strategy going into 2013? (Mission Critical only)
9%
9%
16%
14%
19%
19%
21%
26%
18%
30%
28%
26%
4%
7%
15%
16%
19%
20%
22%
24%
29%
29%
29%
31%
0% 20% 40% 60%
Defining roles and career paths for sourcing
Making better use of social media to improve
Improving the perception of outsourcing within our
Governance talent management
Accessing price benchmarks
Understanding capabilities of providers, beyond
Improving our analytical capabilities
Accessing performance benchmarks
Creating a global business services framework
Change management
Accomplishing innovation with operational
Altering the mindset of leadership from one of cost
>$5b >$1b <$5b
Source: HfS Research 2013
2013 State of Outsourcing Study, n = 495 Service Provider Executives
Conducted with the support of KPMG Shared Services & Outsourcing Advisory
n|gh-end Lnterpr|ses focused on G8S
CopyrlghL 2013 PfS 8esearch LLd.
43
C
u
L
s
o
u
r
c
l
n
g



S
m
a
r
L

C
o
v
e
r
n
a
n
c
e



u
l
s
r
u
p
u
v
e

1
e
c
h
n
o
l
o
g
l
e
s

Q. To help us with our research, how important are the following topics/issues to your
organization's outsourcing strategy going into 2013? (Mission Critical only)
18% 18%
20% 20%
25%
39%
17% 17%
33%
28%
8%
13%
17%
29% 29%
17%
12%
17%
33%
17%
15%
31% 31% 31%
58%
10%
9%
11%
-20%
0%
20%
40%
60%
Creating a global
business services
framework
Improving our analytical
capabilities
Accomplishing innovation
with operational
processes
Change management Altering the mindset of
leadership from one of
cost to value-creation
Banking CPG
Insurance Manufacturing
Energy & Utilities Entertainment
Source: HfS Research 2013
2013 State of Outsourcing Study, n = 399 Buy-side Enterprises
Conducted with the support of KPMG Shared Services & Outsourcing Advisory
1op|cs for 2013 - customer v|ew by |ndustry
CopyrlghL 2013 PfS 8esearch LLd.
46
C
u
L
s
o
u
r
c
l
n
g



S
m
a
r
L

C
o
v
e
r
n
a
n
c
e



u
l
s
r
u
p
u
v
e

1
e
c
h
n
o
l
o
g
l
e
s

Q. To help us with our research, how important are the following topics/issues to your
organization's outsourcing strategy going into 2013? (Mission Critical only)
30%
26%
35%
15% 15%
40% 40%
20% 20%
10%
45%
10%
44%
33%
53%
50%
44%
22% 22%
33%
22%
44%
17%
35%
24% 24%
35%
-20%
0%
20%
40%
60%
Creating a global business
services framework
Improving our analytical
capabilities
Accomplishing innovation
with operational processes
Change management Altering the mindset of
leadership from one of cost
to value-creation
Pharma, Life Sciences & Healthcare Public Sector
Retail Software, Hi-Tech & Telecoms
Transport & Logistics Other Industries
Source: HfS Research 2013
2013 State of Outsourcing Study, n = 495 Service Provider Executives
Conducted with the support of KPMG Shared Services & Outsourcing Advisory
1op|cs for 2013 - customer v|ew by |ndustry
CopyrlghL 2013 PfS 8esearch LLd.
47
C
u
L
s
o
u
r
c
l
n
g



S
m
a
r
L

C
o
v
e
r
n
a
n
c
e



u
l
s
r
u
p
u
v
e

1
e
c
h
n
o
l
o
g
l
e
s

Q. To help us with our research, how important are the following topics/issues to your
organization's strategy going into 2013?
8%
9%
19%
19%
20%
22%
23%
28%
28%
28%
32%
33%
39%
41%
46%
38%
33%
41%
47%
38%
44%
48%
42%
42%
41%
39%
50%
38%
42%
36%
37%
38%
34%
27%
27%
27%
25%
25%
25%
25%
27%
15%
18%
14%
17%
17%
20%
7%
7%
15%
7%
4%
5%
5%
6%
2%
2%
5%
3%
1%
Making better use of social media to improve client collaboration
Making better use of social media to improve internal collaboration
Accessing price benchmarks
Understanding the opportunities in the middle-market
Helping clients create a global business services framework
Improving our clients' analytical capabilities
Improving our account management talent
Helping clients with change management
Accessing performance benchmarks
Improving our marketing capabilities
Improving the perception of outsourcing within our clients' organization
Helping clients accomplish innovation with operational processes
Getting more visibility in the market
Moving our services up the operational value chain
Altering the mindset of clients' leadership from cost to value-creation
Mission critical Important, but not critical Somewhat Important Not Important at all
Source: HfS Research 2013
2013 State of Outsourcing Study, n = 495 Service Provider Executives
Conducted with the support of KPMG Shared Services & Outsourcing Advisory
1op|cs for 2013 (Serv|ce rov|ders)
CopyrlghL 2013 PfS 8esearch LLd.
48
C
u
L
s
o
u
r
c
l
n
g



S
m
a
r
L

C
o
v
e
r
n
a
n
c
e



u
l
s
r
u
p
u
v
e

1
e
c
h
n
o
l
o
g
l
e
s

key Cbservanons for 2013
2013 wlll see a maLurlng of organlzauonal approaches Lo ouLsourclng and shared servlces.
Cone are Lhe excuses, now ls Lhe ume for execuuon aer Lhe uncerLaln years".
1wo-Lhlrds of organlzauons care abouL lmprovlng Lhelr sourclng capablllues beyond merely
meeung green-llghLs meLrlcs". cbooqe Moooqemeot and 5blfloq tbe cotp MloJset ftom cost
to voloe domlnaLe enLerprlse sourclng agenda
CuLsourclng buyers are gemng whaL Lhey pald for: cosL-reducuon and emclenL dellvery
CuLsourclng buyers are noL gemng whaL Lhey now wanL: lnnovauon, analyucal capablllLy,
skllled LalenL Lo dene buslness ouLcomes
2013 wlll be a crlucal year for Lhe fuLure of lndlan-based 8C dellvery. CosL dlerenuals are
closlng, especlally ln Lurope, for mld-level skllls. Cshore model sull ln quesuon for
operauonal value beyond baslc admlnlsLrauve servlces
ueslre Lo sLandardlze operauons ls fuelllng markeL for plauorm-based soluuons LhaL can
lndusLrlallze processes. rovlders wlLh sLrong Lech-enablemenL capablllues sLand Lo galn
1alenL lssues wlll come Lo Lhe forefronL: enLerprlses are geared up for achlevlng Lacucal
measures and lack Lhe skllls Lo be analyucal and lnnovauve, 30 of provlders fall Lo have formal
Lralnlng for Lhelr own sLa ln sLraLeglc skllls
CopyrlghL 2013 PfS 8esearch LLd.
lnslghL. Advlce. 8enchmarklng.
nfS kesearch
Collaborauve Sourclng lnLelllgence

for Global Business & IT Services
CuLsourclng SmarL Covernance ulsrupuve 1echnologles
The Knowledge Community
State of the Cutsourc|ng Industry 2013:
Conducted with the support of KPMGs Shared Services and Outsourcing Advisory Practice

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity.
CopyrlghL 2013 PfS 8esearch LLd.
30
C
u
L
s
o
u
r
c
l
n
g



S
m
a
r
L

C
o
v
e
r
n
a
n
c
e



u
l
s
r
u
p
u
v
e

1
e
c
h
n
o
l
o
g
l
e
s

Q. Are you primarily a buyer (customer), advisor or provider of outsourcing services?
Buyer of
outsourcing
services /
currently
evaluating
30%
Outsourcing
advisor /
consultant /
analyst
30%
Provider of
outsourcing
services
40%
Source: HfS Research 2013
2013 State of Outsourcing
Study, n = 1355 Enterprises
Survey Scope
CopyrlghL 2013 PfS 8esearch LLd.
31
C
u
L
s
o
u
r
c
l
n
g



S
m
a
r
L

C
o
v
e
r
n
a
n
c
e



u
l
s
r
u
p
u
v
e

1
e
c
h
n
o
l
o
g
l
e
s

Q. Please specify your company's industry?
Source: HfS Research 2013
2013 State of Outsourcing
Study, n = 1355 Enterprises
Banking
21%
Insurance
12%
Pharma, Life
Sciences &
Healthcare
9% CPG
9%
Manufacturing
9%
Software, Hi-
Tech and
Telecoms
8%
Energy and
Utilities
6%
Retail
6%
Entertainment
5%
Transportation
& Logistics
4%
Public Sector
2%
Other
9%
Survey Scope - Industry
CopyrlghL 2013 PfS 8esearch LLd.
32
C
u
L
s
o
u
r
c
l
n
g



S
m
a
r
L

C
o
v
e
r
n
a
n
c
e



u
l
s
r
u
p
u
v
e

1
e
c
h
n
o
l
o
g
l
e
s

Q. Where are you located?
Asia Pacific
7%
Europe
23%
North America
65%
Other
5%
Source: HfS Research 2013
2013 State of Outsourcing
Study, n = 1355 Enterprises
Survey Scope - Locanon
CopyrlghL 2013 PfS 8esearch LLd.
33
C
u
L
s
o
u
r
c
l
n
g



S
m
a
r
L

C
o
v
e
r
n
a
n
c
e



u
l
s
r
u
p
u
v
e

1
e
c
h
n
o
l
o
g
l
e
s

Q. What are your company's annual revenues?
Less than $500M
15%
Between $500M
and $1B
11%
Between $1B and
$3B
16%
Between $3B and
$5B
11%
Between $5B and
$10B
12%
Greater than $10B
32%
Non-profit
3%
Source: HfS Research 2013
2013 State of Outsourcing
Study, n = 1355 Enterprises
Survey Scope - Company S|ze
CopyrlghL 2013 PfS 8esearch LLd.
lnslghL. Advlce. 8enchmarklng.
nfS kesearch
Collaborauve Sourclng lnLelllgence

for Global Business & IT Services
CuLsourclng SmarL Covernance ulsrupuve 1echnologles
The Knowledge Community
State of the Cutsourc|ng Industry 2013:
Conducted with the support of KPMGs Shared Services and Outsourcing Advisory Practice

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity.
CopyrlghL 2013 PfS 8esearch LLd.
33
C
u
L
s
o
u
r
c
l
n
g



S
m
a
r
L

C
o
v
e
r
n
a
n
c
e



u
l
s
r
u
p
u
v
e

1
e
c
h
n
o
l
o
g
l
e
s

I1 Serv|ces and 8C Market 2013 - 2017
n|gh||ghts
I1 Serv|ces to growth 3.S |n 2013, 4.7 CAGk to 2017
- LMLA markeL conunues sLuuerlng adopuon
- Slow down ln professlonal servlces spendlng expecLed Lo level ouL P2 2013 led
by recoverlng growLh ln norLh Amerlca
- l1 lnfrasLrucLure managemenL growLh holdlng up as a resulL expanslon ouLslde
of Lradluonal markeLs
- AuM growLh expecLed Lo acceleraLe Lo 3.6 CAC8 as markeL conunues Lo grow
ln LMLA
8C to grow at S.1 |n 2013, 6.0 CAGk to 2017
- l&A and P8 Lwo fasLesL growlng areas as exlsung cllenLs expand scope and
servlces expand lnLo lower parL of Lhe lorLune 300
- C8M markeL conunues Lo be slow ln 2013 as pure volce volumes fall, expecLed
Lo grow more rapldly ln 2014 as cllenLs buy more value add servlces around
soclal medla / analyucs
CopyrlghL 2013 PfS 8esearch LLd.
36
C
u
L
s
o
u
r
c
l
n
g



S
m
a
r
L

C
o
v
e
r
n
a
n
c
e



u
l
s
r
u
p
u
v
e

1
e
c
h
n
o
l
o
g
l
e
s

G|oba| 8C and I1 Serv|ces Market 2013 (5b)
F&A BPO , $25,
3%
CRM BPO , $52,
5%
HR BPO , $42,
4%
Industry
Specific , $185,
20%
IT Infrastructure
Mgmt, $143,
15%
ADM, $70, 7%
IT Prof Services,
$309, 33%
Other IT
Services, $126,
13%
2013 Total Market Size:
$952 Billion
IT Services: $648 bn
BPO: $304 bn
Source: HfS Research, 2013
CopyrlghL 2013 PfS 8esearch LLd.
37
C
u
L
s
o
u
r
c
l
n
g



S
m
a
r
L

C
o
v
e
r
n
a
n
c
e



u
l
s
r
u
p
u
v
e

1
e
c
h
n
o
l
o
g
l
e
s

G|oba| 8C and I1 Serv|ces Market Growth |n 2013
7.8%
4.1%
5.6%
5.0%
3.8%
4.8%
3.1%
3.3%
F&A BPO
CRM BPO
HR BPO
Industry Specific BPO
IT Infrastructure Mgmt
ADM
IT Prof Services
Other IT Services
% Growth 2012-13
%
Source: HfS Research, 2013
ITO
Markets
BPO
Markets
CopyrlghL 2013 PfS 8esearch LLd.
38
C
u
L
s
o
u
r
c
l
n
g



S
m
a
r
L

C
o
v
e
r
n
a
n
c
e



u
l
s
r
u
p
u
v
e

1
e
c
h
n
o
l
o
g
l
e
s

G|oba| 8C and I1 Serv|ces Market 2012 - 2017 (5b)
-
250
500
750
1,000
1,250
2012 2013 2014 2015 2016 2017
A
n
n
u
a
l

E
x
p
e
n
d
i
t
u
r
e

(
$

B
i
l
l
i
o
n
s
)

Other IT Services
IT Prof Services
ADM
IT Infrastructure Mgmt
Industry Specific
HR BPO
CRM BPO
F&A BPO
CAC8
C8M 8C 3.3
l&A 8C 7.6
P8 8C 6.2
lndusLry Speclc 8C 3.8
AuM 3.6
l1 lnfrasLrucLure 4.6
rofesslonal Servlces 4.9
CLher l1 Servlces 3.3
Source: HfS Research, 2013
CopyrlghL 2013 PfS 8esearch LLd.
39
C
u
L
s
o
u
r
c
l
n
g



S
m
a
r
L

C
o
v
e
r
n
a
n
c
e



u
l
s
r
u
p
u
v
e

1
e
c
h
n
o
l
o
g
l
e
s

G|oba| 8C and I1 Serv|ces Market 2013 (5b)
by keg|on
Source: HfS Research, 2013
North
America,
$398, 42%
Latin
America,
$44, 5%
EMEA,
$319, 34%
APexJ ,
$88, 9%
J apan,
$101, 10%
2013 Total Market Size:
$952 Billion
CopyrlghL 2013 PfS 8esearch LLd.
60
C
u
L
s
o
u
r
c
l
n
g



S
m
a
r
L

C
o
v
e
r
n
a
n
c
e



u
l
s
r
u
p
u
v
e

1
e
c
h
n
o
l
o
g
l
e
s

G|oba| 8C Serv|ces Market 2012 - 2017 (5b) by
keg|on
0
100
200
300
400
2012 2013 2014 2015 2016 2017
A
n
n
u
a
l

E
x
p
e
n
d
i
t
u
r
e

(
$

B
i
l
l
i
o
n
s
)
J apan
APexJ
EMEA
Latin America
North America
CAC8
norLh Amerlca 3.3
Laun Amerlca 7.4
LMLA 6.3
Aex! 8.1
!apan 4.4
Source: HfS Research, 2013
CopyrlghL 2013 PfS 8esearch LLd.
61
C
u
L
s
o
u
r
c
l
n
g



S
m
a
r
L

C
o
v
e
r
n
a
n
c
e



u
l
s
r
u
p
u
v
e

1
e
c
h
n
o
l
o
g
l
e
s

G|oba| I1 Serv|ces Market 2012 - 2017 (5b) by keg|on
0
100
200
300
400
500
600
700
800
900
2012 2013 2014 2015 2016 2017
A
n
n
u
a
l

E
x
p
e
n
d
i
t
u
r
e

(
$

B
i
l
l
i
o
n
s
)

J apan
APexJ
EMEA
Latin America
North America
CAC8
norLh
Amerlca 3.3
Laun Amerlca 8.7
LMLA 3.3
Aex! 7.0
!apan 2.9
Source: HfS Research, 2013
CopyrlghL 2013 PfS 8esearch LLd.
62
C
u
L
s
o
u
r
c
l
n
g



S
m
a
r
L

C
o
v
e
r
n
a
n
c
e



u
l
s
r
u
p
u
v
e

1
e
c
h
n
o
l
o
g
l
e
s

Luropean I1 Serv|ces and 8C Market 2013 - 2017

I1 Serv|ces to growth 1.1 |n 2013, 3.4 CAGk to 2017
- CrowLh ln lnfrasLrucLure managemenL conunues Lo be slow ln Lurope as prlce pressure conunues wlLh
renewals aL reduced raLes
- 8ooklngs for lnfrasLrucLure managemenL were down across WesLern Lurope ln 2012
- Pybrld cloud soluuons becomlng an lncreaslng feaLure of enLerprlse ouLsourclng deals
- Large AuM poLenual ln conunenLal Lurope as accepLance ln lrance / Cermany lncreases
- Lxpandlng mld-markeL opporLunlLy for hosLed opporLunlues
- Mlxed performance ln professlonal servlces, SouLhern Lurope / 8enelux conunue Lo sLruggle whllsL Lhe
resL of Lurope ls expecLed Lo see lncreaslng acuvlLy ln 2013
- AnuclpaLe an lncrease ln ouLsourclng lnLeresL as economles move ouL of recesslon
8C to grow at S.2 |n 2013, 6.1 CAGk to 2017
- MarkeLs ouLslde of uk sull lmmaLure parucularly ln mulu-process 8C
- ockeLs of opporLunlLy ln lndusLry speclc 8C as lnLeresL lncreases across Lurope for example,
lnsurance 8C processlng conLracLs ln lrance and Cermany
- lncreased lnLeresL from mld-markeL ln plauorm based oers
- C8M 8C alLhough slowed ln recenL years ls expecLed Lo beneL from lncreaslng focus on cusLomer
sausfacuon from large mulu-nauonals companles and governmenLs across Lurope. WlLh cusLomers
seeklng hlgher quallLy servlces
- l&A 8C and P8 8C conunue Lo be Lhe fasLesL growlng markeLs as adopuon drlvers move away from
cosL reducuon Loward buslness value
CopyrlghL 2013 PfS 8esearch LLd.
63
C
u
L
s
o
u
r
c
l
n
g



S
m
a
r
L

C
o
v
e
r
n
a
n
c
e



u
l
s
r
u
p
u
v
e

1
e
c
h
n
o
l
o
g
l
e
s

Luropean 8C and I1 Serv|ces Market 2013 (5b)
2013 Total Market Size:
$301 Billion
IT Services: $204bn
BPO: $97bn
Source: HfS Research, 2013
CRM BPO,
$18, 6%
F&A BPO,
$10, 3%
HR BPO,
$11, 3%
Industry
Specific, $58,
19%
ADM, $25,
8%
IT
Infrastructure
Mgmt, $49,
16%
Other IT
Services,
$39, 13%
IT Prof
Services,
$98, 32%
CopyrlghL 2013 PfS 8esearch LLd.
64
C
u
L
s
o
u
r
c
l
n
g



S
m
a
r
L

C
o
v
e
r
n
a
n
c
e



u
l
s
r
u
p
u
v
e

1
e
c
h
n
o
l
o
g
l
e
s

Luropean 8C and I1 Serv|ces Market Growth |n 2013
8.1%
3.1%
6.0%
5.3%
3.1%
5.3%
-1.2%
2.0%
F&A BPO
CRM BPO
HR BPO
Industry Specific BPO
IT Infrastructure Mgmt
ADM
IT Prof Services
Other IT Services
% Growth 2012-13
8.1%
Source: HfS Research, 2013
ITO
Markets
BPO
Markets
CopyrlghL 2013 PfS 8esearch LLd.
63
C
u
L
s
o
u
r
c
l
n
g



S
m
a
r
L

C
o
v
e
r
n
a
n
c
e



u
l
s
r
u
p
u
v
e

1
e
c
h
n
o
l
o
g
l
e
s

Luropean 8C and I1 Serv|ces Market 2013 (5b)
by Country
Source: HfS Research, 2013
Benelux,
$23, 8%
Central
Europe,
$65, 21%
Eastern
Europe,
$13, 4%
France,
$47, 15%
Nordic,
$31, 10%
ROE, $6,
2%
Southern
Europe,
$39, 13%
UK, $85,
27%
CopyrlghL 2013 PfS 8esearch LLd.
66
C
u
L
s
o
u
r
c
l
n
g



S
m
a
r
L

C
o
v
e
r
n
a
n
c
e



u
l
s
r
u
p
u
v
e

1
e
c
h
n
o
l
o
g
l
e
s

As|a ac|hc I1 Serv|ces and 8C Market 2013 - 2017
I1 Serv|ces to growth S.3 |n 2013, 4.8 CAGk to 2017
- CrowLh lead by sLrong professlonal servlces spendlng as slow economles bounce back ln
2013 - penL up demand ln !apan durlng P2 2013
- rofesslonal servlces preferred way Lo consume l1 servlces ln emerglng economles
- AuM servlce spend ls also expecLed Lo recover ln !apan durlng 2013 and we expecL
conunued hlgh growLh ln Chlna/lndla
- Cverall lnfrasLrucLure managemenL growLh slowed by sLauc !apanese markeL, reglonal
growLh drlven by fasLer domesuc adopuon ln Chlna/lndla
8C to grow at 6.3 |n 2013, 7.2 CAGk to 2017
- MarkeLs ouLslde of AusLralla, new Zealand and !apan sull very lmmaLure
- l&A and P8 grow from low base as A rms focus on process lmprovemenL Lo help
enhance scalablllLy and cusLomer servlce
- Cshore markeL creaLes hlgh level of ouLsourclng accepLance ln Lhe reglon and access Lo
skllls
- uomesuc C8M 8C markeL conunues Lo expand ln Chlna and lndla as numbers of
consumers expand
- 1ransacuonal lndusLry speclc 8C opporLunlues also expand ln Lhe publlc secLor, banks
and lnsurance secLors
CopyrlghL 2013 PfS 8esearch LLd.
67
C
u
L
s
o
u
r
c
l
n
g



S
m
a
r
L

C
o
v
e
r
n
a
n
c
e



u
l
s
r
u
p
u
v
e

1
e
c
h
n
o
l
o
g
l
e
s

As|a ac|hc 8C and I1 Serv|ces Market 2013 (5b)
2013 Total Market Size:
$188 Billion
IT Services: $154bn
BPO: $34bn
Source: HfS Research, 2013
CRM BPO,
$7, 4%
F&A BPO,
$2, 1%
HR BPO, $3,
1%
Industry
Specific, $23,
12%
ADM, $15,
8%
IT
Infrastructure
Mgmt, $37,
19%
Other IT
Services,
$32, 17%
IT Prof
Services,
$71, 38%
CopyrlghL 2013 PfS 8esearch LLd.
68
C
u
L
s
o
u
r
c
l
n
g



S
m
a
r
L

C
o
v
e
r
n
a
n
c
e



u
l
s
r
u
p
u
v
e

1
e
c
h
n
o
l
o
g
l
e
s

As|a ac|hc 8C and I1 Serv|ces Market Growth |n
2013
8.7%
5.8%
8.2%
6.0%
4.0%
4.4%
7.3%
3.0%
F&A BPO
CRM BPO
HR BPO
Industry Specific BPO
IT Infrastructure Mgmt
ADM
IT Prof Services
Other IT Services
% Growth 2012-13
Source: HfS Research, 2013
ITO
Markets
BPO
Markets
CopyrlghL 2013 PfS 8esearch LLd.
69
C
u
L
s
o
u
r
c
l
n
g



S
m
a
r
L

C
o
v
e
r
n
a
n
c
e



u
l
s
r
u
p
u
v
e

1
e
c
h
n
o
l
o
g
l
e
s

As|a ac|hc 8C and I1 Serv|ces Market 2013 (5b)
by Country
Source: HfS Research, 2013
J apan, $90,
51%
Australia &
NZ, $31,
17%
China, $16,
9%
India, $15,
8%
Rest of Asia/
Pacific, $27,
15%
CopyrlghL 2013 PfS 8esearch LLd.
lnslghL. Advlce. 8enchmarklng.
nfS kesearch
Collaborauve Sourclng lnLelllgence

for Global Business & IT Services
CuLsourclng SmarL Covernance ulsrupuve 1echnologles
The Knowledge Community
State of the Cutsourc|ng Industry 2013:

Conducted with the support of KPMGs Shared Services and Outsourcing Advisory Practice

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity.
CopyrlghL 2013 PfS 8esearch LLd.
71
C
u
L
s
o
u
r
c
l
n
g



S
m
a
r
L

C
o
v
e
r
n
a
n
c
e



u
l
s
r
u
p
u
v
e

1
e
c
h
n
o
l
o
g
l
e
s

h|| Iersht
lounder and CLC, PfS 8esearch
Cverv|ew
- Cver 17 years' buslness experlence ln Lhe global ouLsourclng and shared
servlces lndusLry across uS, Lurope and Asla
- An acknowledged lndusLry advlsor, sLraLeglsL, auLhor, speaker, pracuuoner and
blogger
- Advlsed on 100s of global l1 & 8C engagemenLs
rev|ous Lxper|ence
- racuce Pead for l1 Servlces & 8C racuce, AM8 8esearch (CarLner lnc.)
- 8C MarkeLplace Leader aL uelolue Consulung
- vlce resldenL for LveresL Croup, leadlng research and consulung Leams based
ln Lhe uS and lndla.
r|or Career
- 8eglonal ulrecLor, luC Asla/aclc
- rogram Manager, Luropean l1 MarkeLs Servlces, luC Lurope
Lducanon
- 8S wlLh Ponors ln Luropean 8uslness & 1echnology from CovenLry unlverslLy,
unlLed klngdom
- ulplme unlverslLalre de 1echnologle ln 8uslness & 1echnology from Lhe
unlverslLy of Crenoble, lrance

phil.fersht@hfsresearch.com
CopyrlghL 2013 PfS 8esearch LLd.
72
C
u
L
s
o
u
r
c
l
n
g



S
m
a
r
L

C
o
v
e
r
n
a
n
c
e



u
l
s
r
u
p
u
v
e

1
e
c
h
n
o
l
o
g
l
e
s

Iam|e Snowdon
ulrecLor, MarkeL lorecasung and uaLa roducLs

Cverv|ew
- Cver sevenLeen years experlence ln Lhe l1 and 8uslness Servlces lndusLry.
- Cversees Lhe developmenL of PfS' CuarLerly MarkeL lndex, ln addluon Lo
managlng and developlng Lhe rm's daLa-cenLrlc producLs and servlces.
- Works across Lhe PfS analysL Leams Lo dene evolvlng servlces markeLs and
creaLe markeL slze esumaLes and forecasLs.
- Manages PfS' quanuLauve survey and benchmark daLa.
rev|ous Lxper|ence
- 8esearch ulrecLor aL uk-based analysL rm, nelson-Pall , conducung vendor
and markeL analysls wlLhln Lhe l1 and 8uslness Servlces communlLy.
- Luropean Consulung ulrecLor for luC's servlces group, managlng all of Lhelr
bespoke research.
Speclallsed ln dellverlng cusLom markeL forecasL models and forecasung Lools Lallored Lo
hls cllenL's lndlvldual needs.
8an luC's Luropean ouLsourclng research, coverlng boLh l1 and buslness process
ouLsourclng. !amle has wlde lndusLry knowledge coverlng l1 consulung, enLerprlse
appllcauons, l1 & buslness process ouLsourclng, deskLop & neLwork servlces, equlpmenL
malnLenance, and buslness conunulLy
- l1 Servlces 8esearch SpeclallsL aL lnu1 dolng a mlxLure of markeung and
analysls roles.
J amie.snowdon@hfsresearch.com
CopyrlghL 2013 PfS 8esearch LLd.
73
C
u
L
s
o
u
r
c
l
n
g



S
m
a
r
L

C
o
v
e
r
n
a
n
c
e



u
l
s
r
u
p
u
v
e

1
e
c
h
n
o
l
o
g
l
e
s

About nfS kesearch
20 dedicated analysts across US, Europe and Asia/Pac
Industry leading focus on demand-side trends, market landscapes, competitive evaluations, pricing
dynamics, market sizing and forecasting
Educates and facilitates discussion among the worlds largest knowledge community of services
and operations executives, currently comprising 120,000 subscribers. 19,000 LinkedIn Group
members; leading blog and research portal in the services industry
The largest web and social media presence in the sourcing industry
A major following from the buy-side: 40% of readership comes from sourcing buyers
We leverage our vast community of sourcing professionals to deliver rapid insights on global
sourcing industry trends & developments - Surveyed over 15,000 organizations in 2011-12 on
their sourcing intentions and dynamics
CopyrlghL 2013 PfS 8esearch LLd.
74
C
u
L
s
o
u
r
c
l
n
g



S
m
a
r
L

C
o
v
e
r
n
a
n
c
e



u
l
s
r
u
p
u
v
e

1
e
c
h
n
o
l
o
g
l
e
s

About nfS kesearch
PfS 8esearch (www.nfSkesearch.com) ls a leadlng lndependenL global analysL auLhorlLy and knowledge communlLy for Lhe
buslness and l1 servlces lndusLry.
PfS ls unlque ln Lhe facL LhaL lL serves Lhe research and sLraLegy needs of buslness operauons leaders across nance, supply
chaln, human resources, markeung, cusLomer managemenL, l1 and core lndusLry funcuons. ln addluon Lo researchlng
buslness operauons sLraLegles, PfS educaLes and faclllLaLes dlscusslon among Lhe world's largesL knowledge communlLy of
enLerprlse servlces professlonals, currenLly comprlslng 120,000 subscrlbers. PfS 8esearch also faclllLaLes Lhe
nfS Sourc|ng Lxecunve Counc||, Lhe acclalmed ellLe group of sourclng pracuuoners from leadlng organlzauons, whlch meeLs
on a bl-annual basls Lo share Lhe fuLure dlrecuon of Lhe global servlces lndusLry and dlscuss Lhe fuLure enLerprlse operauons
framework.
Led by recognlzed lndusLry experL hll lershL, PfS 8esearch dlerenuaLes lLself wlLh lLs global Leam of experL servlces analysLs
wlLh real lndusLry experlence, provocauve and oplnlonaLed research, unrlvalled markeL analyucs, and a vlew of Lechnology as
an enabler for buslness process lmprovemenL. lLs on-demand experuse relauonshlp model helps cllenLs leverage PfS
knowledge and sLraLeglc lnslghL ln a rapld, responslve and engaglng manner.
ln 2010 & 2011, PfS was awarded AnalysL of Lhe ?ear by Lhe lnLernauonal lnsuLuLe of AnalysL 8elauons (llA8), Lhe premler
body of analysL-faclng professlonals, and achleved Lhe dlsuncuve award of belng voLed Lhe research analysL lndusLry's mosL
lnnovauve AnalysL llrm ln 2012.
now ln lLs slxLh year of publlcauon, PfS 8esearch's acclalmed blog "norses for Sources" ls wldely recognlzed as Lhe leadlng
desunauon for unfeuered collecuve lnslghL, research and open debaLe of sourclng lndusLry lssues and developmenLs.
1o |earn more about nfS kesearch, p|ease ema|| researchQnfSkesearch.com.
CopyrlghL 2013 PfS 8esearch LLd.
73
C
u
L
s
o
u
r
c
l
n
g



S
m
a
r
L

C
o
v
e
r
n
a
n
c
e



u
l
s
r
u
p
u
v
e

1
e
c
h
n
o
l
o
g
l
e
s

About kMG's Shared Serv|ce and Cutsourc|ng
Adv|sory
KPMG is a leading provider of global sourcing advisory services, has the ability to help member firms clients
transform enterprise services to help improve value, increase agility, and create sustainable business
performance.

Who we are: Shared Services and Outsourcing Advisory brings a specialized global team of more than 400
professionals within KPMGs global network of independent member firms operating in 152 countries.

What we do: We help clients align their business strategy, organization, and execution to enable them to manage
the entire IT and business process life-cycle, improving business performance, and laying the groundwork for
genuine business transformation..
How we do it: We apply focused research, automating tools, proprietary data, clear business acumen, and a
forward-thinking mind-set to provide timely, objective, actionable advice and practical approaches for clients.
CopyrlghL 2013 PfS 8esearch LLd.
76
C
u
L
s
o
u
r
c
l
n
g



S
m
a
r
L

C
o
v
e
r
n
a
n
c
e



u
l
s
r
u
p
u
v
e

1
e
c
h
n
o
l
o
g
l
e
s

Get Your Free Copy of the Report
Download your complimentary copy of the
State of the Outsourcing Industry 2013 Executive Findings

Register for the KPMGInstitutes.com
As part of the KPMG Institutes online community, you'll be able to participate in Webcasts,
access premium content, post comments, rate research and provide valuable insight
supporting critical business topics and industry issues. Just select your areas of interest.

For information and research on outsourcing, shared services and internal improvement,
visit the KPMG Shared Services and Outsourcing Institute at
http://www.kpmginstitutes.com/shared-services-outsourcing-institute/

S-ar putea să vă placă și