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The ISG EMEA Outsourcing Index
Market Data and Insights
Fourth Quarter and Full Year 2013

Hosted by:
James Goodman,
Barclays Capital
20 January 2014
2

Welcome to the 45th Quarterly Outsourcing Index Review
Covering the state of the outsourcing industry for EMEA commercial contracts.*

John Keppel

Dr. David Howie

Partner & President

Partner

Bernd Schaefer
Partner

© 2014
Information Services
Group, Inc.
All Rights Reserved

isg-one.com
*Contracts with ACV ≥ €4M from the ISG Contracts Knowledgebase®
3

At a Glance

DOUBLE-DIGIT GROWTH IN 4Q DEAL ACTIVITY,
BUT CONTRACT VALUES DOWN BY LIKE PERCENTAGE

2013 DEAL ACTIVITY SLIGHTLY HIGHER, BUT VALUES FALL, MIRRORING 4Q TREND
AFTER SEVERAL YEARS OF GROWTH, FINANCIAL SERVICES ACTIVITY SLOWS AND
MANUFACTURING DECLINES SHARPLY
ITO ACTIVITY UP, BUT BPO ACTIVITY RECEDES DUE TO LACK OF LARGE DEALS,
EMEA SEES RISE IN ACTIVITY WITH SMALLER DEAL SIZES,
BUT LACK OF LARGE DEALS IN AMERICAS LEADS TO DROP IN VALUE

Scorecard

© 2014
Information Services
Group, Inc.
All Rights Reserved

isg-one.com

Global Market
New Scope
Restructurings
Mega-relationships
ITO
BPO
Americas
EMEA
Asia Pacific

4Q13
ACV (€B)*

€
€
€
€
€
€
€
€
€

3.7
2.4
1.3
0.4
3.0
0.7
1.2
2.1
0.4

4Q Y/Y
Change

4Q Q/Q
Change

-12%
-16%
-5%
-52%
8%
-50%
-23%
-5%
-10%

-17%
-5%
-32%
-58%
-12%
-32%
-17%
-21%
15%

*Contracts with ACV ≥ €4M from the ISG Contracts Knowledgebase®

2013
ACV (€B)*

Y/Y
Change

€ 15.0 -18%
€ 9.0 -27%
€ 6.0 -2%
€ 2.9 -38%
€ 10.8 -8%
€ 4.2 -37%
€ 5.2 -26%
€ 8.2 -6%
€ 1.6 -40%

2013
Counts

Y/Y
Change

1,155
798
357
24
790
365
442
587
126

2%
-5%
22%
-31%
8%
-9%
-10%
18%
-11%
4

Global Market Contract Award Trends
Fourth-quarter ACV was down 12% Y/Y and 17% Q/Q. For the full year, ACV was
down 18% from 2012; however, contract counts ticked up 2% over 2012.
Broader Market 4Q and Full-Year ACV (€B)*
1Q to 3Q ACV

€ 12.9

€ 13.7

€ 3.1

€ 12.2

€ 13.3

€ 4.2

€ 3.3

€ 4.7

€ 9.9

€ 9.5

€ 8.9

2004

05

06

€ 14.6

4Q ACV
€ 16.5

€ 17.6

€ 17.6

€ 18.3

€ 4.4

€ 5.3

€ 4.2

€ 3.7

€ 5.5

€ 10.9

€ 11.0

€ 13.1

€ 12.3

€ 14.1

€ 8.6
07

08

09

10

11

12

€ 15.0
€ 3.7
€ 11.3
2013

Broader Market 4Q and Full-Year Contracting Counts
1Q to 3Q Counts

4Q Counts
1,182
972

774
562

611

617

154

157

176

153

421

405

435

464

05

06

07

08

1,132

1,155

300

273

309

882

859

846

11

12

247

579

575
© 2014
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288

988

2004

195
684

741

09

10

isg-one.com
*Contracts with ACV ≥ €4M from the ISG Contracts Knowledgebase®

2013
5

Global Market Contract Trends by Deal Size
2013 saw the continued dominance of contracting in the smallest ACV bands, and
average deal size trended down across all bands.

Comparing Broader Market Contracting Awards (€B)*
Grouping in ACV Contract Size Bands
€4-31M

ACV(€B)*

€32-79M

€80M +

Contract Counts

Average Contract Size
1,063

€ 10

€8

€ 44

€ 45

€ 44

€ 143

€ 9.0 60%

€ 11

€ 148

673
€ 5.3

€ 6.8

482
€ 2.5

€ 3.2

€ 3.0

20%

70
€ 5.2
© 2014
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Group, Inc.
All Rights Reserved

€ 4.6
€ 2.9

2004

2008

20%

2013

57
36
2004

31

24

2008

2013

€ 122

68

isg-one.com
*Contracts with ACV ≥ €4M from the ISG Contracts Knowledgebase®

2004

2008

2013
6

Global Market New Scope & Restructuring Trends
New Scope ACV dipped 27% from 2012, while Restructuring ACV held steady.
Restructuring counts rose 22% from 2012, but New Scope awards continued down.
New Scope 4Q and Full-Year ACV (€B)*
1Q to 3Q ACV
€ 10.8 € 10.9

€ 10.3 € 10.1
€ 2.4 € 3.0

€ 8.1

€ 3.9

€ 2.5

€ 2.5
€ 7.9

$7.1

2004

05

Restructuring 4Q and Full-Year ACV (€B)*

4Q ACV

1Q to 3Q ACV

€ 12.8 € 12.1
€ 12.2
€ 11.5
€ 2.8 € 9.0
€ 4.4 € 3.0
€ 3.3
€ 2.4

$8.3

$8.4

$9.0

$8.1

06

07

08

09

10

11

12

€ 5.5

€ 3.7 € 3.7 € 1.4 € 2.0 € 1.4 € 1.3
€ 3.6 € 4.1
€ 0.8 € 2.5
€ 1.1 € 1.2
€ 1.2
€ 4.7 € 4.6
€ 0.7
€ 3.3 € 0.8 € 2.6 € 2.5 € 4.1 € 4.1
€ 2.4
€ 2.0
€ 1.7

$6.6

2013

2004

New Scope 4Q and Full-Year Counts
1Q to 3Q Counts

472
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isg-one.com

446

123 126

491

516

143

129

753
234

234

05

06

07

839

349

320

348

387

05

06

07

08

652 588

466

2004

10

11

12

12

2013

4Q Counts
357
287

103

116

120

31
72
09

11

798
210

661

10

187

184
569

09

1Q to 3Q Counts

157
540

08

Restructuring 4Q and Full-Year Counts

4Q Counts
895

774

€ 6.1 € 6.1 € 6.0

€ 2.7

$9.4

$5.6

$6.9

623

4Q ACV

2013

31
85

33
87

2004

05

06

*Contracts with ACV ≥ €4M from the ISG Contracts Knowledgebase®

151
101
24
77

38
113

07

08

198
54
144
09

235
63
172

10

293

66

86

221

207 258

11

12

99

2013
7

Global Market Industry Trends
Manufacturing stood out, with ACV off almost €2B from its prior 5-year average. Yet
Energy and Travel, Transport & Leisure performed close to their prior 5-year highs.
Broader Market 5 Prior Year ACV (€B)* by Industry
Range of Prior 5 Years

Avg of 5 Prior Years

2012

2013

€6

€5
€ 4.3

€4

€3

€ 2.8
€ 2.1

€2

€ 1.8

€ 1.6
€ 1.1

€1

€ 0.8
€ 0.5

© 2014
Information Services
Group, Inc.
All Rights Reserved

€Manufacturing

Financial
Services

Telecom &
Media

Energy

Travel,
Transport,
Leisure

isg-one.com
*Contracts with ACV ≥ €4M from the ISG Contracts Knowledgebase®

Healthcare &
Pharma

Business
Services

Retail
8

EMEA Contract Award Trends
ACV for fourth-quarter and full-year was down slightly Y/Y, yet contract counts at an
all-time high, up almost 18% from 2012.
EMEA 4Q and Full-Year ACV (€B)*
1Q to 3Q ACV
€ 7.9
€ 6.5

€ 5.7

€ 5.9

€ 4.4

2004

05

€ 8.7

€ 8.2

€ 3.0

€ 2.3

€ 2.1

€ 6.1

€ 6.5

€ 6.4

€ 6.0

10

11

12

2013

€ 7.8
€ 2.7

€ 1.8
€ 6.4

€ 3.3

€ 4.0

06

07

08

EMEA 4Q and Full-Year Counts
1Q to 3Q Counts

€ 9.5

€ 3.2

€ 1.6

€ 4.1

€ 8.8

€ 1.5

€ 4.9

€ 2.0

€ 1.7

4Q ACV

€ 4.5

09

EMEA Full-Year Segment Details ACV (€B)*

4Q Counts

Prior 5 Year Range

Avg of 5 Prior Years

2012

2013

€8
535
431

442
138

348
253

265

263

74

81

63

183 179

184

200

251
68
© 2014
Information Services
Group, Inc.
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76
272

135

498
134

167

313

364 420

€ 6.2

€6
€4

129
397

296

587
€ 4.6
€ 3.6

€2

€ 2.0

€0
2004

05

06

07

08

09

10

11

12

2013

isg-one.com
*Contracts with ACV ≥ €4M from the ISG Contracts Knowledgebase®

New Scope Restructuring

ITO

BPO
9

EMEA Contract Award Trends Detail
Most markets in EMEA were flat in 2013. However, U.K. ACV was down 30% Y/Y
despite a 13% increase in contract counts.
EMEA Industries
Full-Year ACV (€B)*

EMEA Sub-regions 5 Prior Years ACV (€B)*
Range of Prior 5 Years

Avg of 5 Prior Years

2012

2012

2013

€ 4.5

2013

Manufacturing

€ 1.4

€ 4.0
Financial Services

€ 2.7

€ 3.5
Telecom & Media

€ 3.0
€ 2.5

€ 0.9

€ 2.65
Energy
Travel, Transport,
Leisure

€ 2.0
€ 1.61

€ 1.5

€ 1.1

€ 1.1

€ 1.39
Healthcare & Pharma

€ 1.0

€ 0.3

€ 0.90
€ 0.71

€ 0.5

© 2014
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€ 0.41

Business Services

€ 0.35

€ 0.5

€ 0.16

€U.K. &
Ireland

DACH

Nordics

Benelux

France

Southern Africa & E. Europe
Europe Middle & Russia
East

isg-one.com
*Contracts with ACV ≥ €4M from the ISG Contracts Knowledgebase®

Retail

€ 0.2
€0

€1

€2

€3

€4
10

EMEA ITO Contract Award Trends
EMEA ITO ACV rose 11% for the year, driven by strong contracting activity. The 409
contracts awarded was a high water mark for the region.
EMEA ITO 4Q and Full-Year ACV ($B) and Contract Counts*
1Q to 3Q ACV

4Q ACV

Full-Year Counts
385

348

332
€ 6.2

182

320
€ 7.3
€ 2.4

€ 2.3

€ 7.2
€ 5.6

€ 6.2

€ 1.3

€ 1.7

€ 1.3

€ 4.6
€ 1.3

€ 1.4

€ 3.3

€ 3.8

€ 1.2
€ 2.2

2004

05

06

€ 2.4

€ 4.8

€ 3.8

€ 4.9

€ 4.8

€ 4.3

€ 4.5

08

09

10

11

12

2013

€ 0.9
€ 3.2
07

EMEA ITO ACV ($B)* by Function
2012

EMEA ITO Full-Year ACV ($B)* by Industry
2012

2013

2013

Financial Services
Infrastructure

€ 1.4

€ 2.0

Manufacturing

€ 1.1

Energy
ADM

€ 2.0

isg-one.com

€ 0.8

Telecom & Media

€ 0.6

Travel, Transport, Leisure

Network Services
© 2014
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Group, Inc.
All Rights Reserved

€ 1.5

Business Services
Healthcare & Pharma

ADM + Infrastructure

€ 1.3
€-

409

€ 0.5

€ 1.0

€ 1.5

Retail
€ 2.0

€ 2.5

*Contracts with ACV ≥ €4M from the ISG Contracts Knowledgebase®

€ 1.0
€ 0.4
€ 0.2
€ 0.1
€ 0.0 € 0.5 € 1.0 € 1.5 € 2.0 € 2.5
11

EMEA BPO Contract Award Trends
Despite increased contract activity, BPO ACV fell almost 40% as large deals
disappeared from the market.
EMEA BPO 4Q and Full-Year ACV ($B) and Contract Counts*
1Q to 3Q ACV

4Q ACV
99

69

Full-Year Counts
122

€ 3.1
€ 2.3

€ 1.6
€ 1.2
€ 0.4
€ 0.8

€ 0.7
€ 0.7

€ 0.3
€ 1.2

€ 0.9

2004

05

06

07

€ 0.8

08

EMEA BPO ACV ($B)* by Function
2012

© 2014
Information Services
Group, Inc.
All Rights Reserved

isg-one.com

Facilities Mgmt
Industry-Specific
F&A
HRO
R&D/KPO
Multi-Process
Contact Centers
Procurement
Supply Chain Mgmt
Document Mgmt

€ 1.5

€ 0.8

€ 1.7

€ 0.8

€ 0.3
€ 1.2

09

10

11

€ 2.2

€ 1.5

12

2012

€ 0.26

€-

€ 0.4

2013

EMEA BPO Full-Year ACV ($B)* by Industry

2013

€ 0.55
€ 0.30
€ 0.20
€ 0.07
€ 0.17
€ 0.27
€ 0.03
€ 0.04
€ 0.07

€ 1.9

€ 0.9

€ 0.7

€ 0.3
€ 1.6

178

150

150

2013

Financial Services

€ 0.66

Energy

€ 0.32

Manufacturing

€ 0.28

Telecom & Media

€ 0.27

Retail

€ 0.06

Business Services

€ 0.09

Healthcare & Pharma

€ 0.10

Travel, Transport, Leisure

€ 0.3 € 0.5 € 0.8 € 1.0 € 1.3 € 1.5

*Contracts with ACV ≥ €4M from the ISG Contracts Knowledgebase®

€ 0.16
€-

€ 0.5

€ 1.0

€ 1.5
12

2013 Top 20 Outsourcing Service Providers in EMEA
In Top 20 for
Both ITO and BPO
Accenture
Atos
Capgemini
CGI
HCL
Infosys

In Top for ITO Only

© 2014
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In Top for BPO Only

AT&T
BT
CSC
Deutsche Telekom
EVRY
France Telecom
HP
IBM
iGATE
Tech Mahindra
Quindell
Swisscom
Tata
Tieto
Wipro

Aon Hewitt
Capita
Communisis
Emcor
G4S
Genpact
GP Strategies
Innovation Group
Interserve
Sodexho Alliance
TCS
WEX
WNS
Xchanging
Xerox

Note: Service providers in alphabetical order; no rankings implied.

*Contractsbased on 2013€4McommercialISG Contracts Knowledgebase®
Placements with ACV ≥ ACV from the contract awards sourced from ISG Contracts Knowledgebase ®.
13

Americas Contract Award Trends
4Q ACV was down moderately Y/Y. For 2013, ACV dropped substantially from 2012,
and contract counts dipped more than 10%.
Americas 4Q and Full-Year ACV (€B)*
1Q to 3Q ACV

€ 6.0

€ 1.2

€ 6.7

€ 6.1

€ 1.6

€ 5.7

€ 1.5

€ 4.5

€ 4.4
05

€ 5.5

€ 4.9

€ 2.2

€ 4.6

2004

06

€ 1.8

€ 7.1

€ 6.4

€ 0.9
€ 1.8

€ 7.0
€ 1.5

€ 3.3

€ 3.5

07

€ 4.9

08

09

€ 6.2

€ 4.6

€ 5.5

11

10

€ 5.2
€ 1.2

€ 1.4

Americas 4Q and Full-Year Counts
1Q to 3Q Counts

4Q ACV

12

€ 4.0
2013

Americas Full-Year Segment Details ACV (€B)*
Range of Prior 5 Years

4Q Counts

Avg of 5 Prior Years

2012

2013

€6
517
414
332
241
61
© 2014
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252

273

65

75

180 187
2004

05

273
72

116

137

198

201
07

08

115

€5
€4
€3

349

380

384 327

245

06

442

109

82

87
298

493

431

€ 3.3

€ 3.1
€ 2.2

€2

€ 1.9

€1
09

10

11

12

2013

€0

isg-one.com
*Contracts with ACV ≥ €4M from the ISG Contracts Knowledgebase®

New Scope

Restructuring

ITO

BPO
14

Americas Contract Award Trends Detail
U.S. ACV was down about 25% from 2012. Drops in the Manufacturing and
Financial Services sectors contributed most to the decline.
Americas Industries
Full-Year ACV (€B)*

Americas Sub-regions 5 Prior Years ACV (€B)*
Range of Prior 5 Years

Avg of 5 Prior Years

2012

2013

€ 0.5

€7

2012

2013

Manufacturing

€ 1.14

Financial Services

€ 1.06

Telecom & Media

€6

€ 0.99

€ 0.4
€5

€ 4.6

€ 0.3

Healthcare & Pharma

€ 0.71

€4
Business Services

€3

€ 0.2

€ 0.30

Retail

€ 0.31

€ 0.21
€ 0.16

€2

€ 0.12

€ 0.1

€ 0.13
Energy

€ 0.47

€1
© 2014
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Group, Inc.
All Rights Reserved

Travel, Transport,
Leisure

€ 0.0

€-

U.S.

Canada

Brazil

Mexico

Other
LatAm

isg-one.com
*Contracts with ACV ≥ €4M from the ISG Contracts Knowledgebase®

€ 0.23
€0

€1

€2

€3
15

Asia Pacific Contract Award Trends
4Q ACV was down moderately Y/Y. For 2013, ACV dropped substantially from 2012,
and contract counts dipped more than 10%.
Asia Pacific 4Q and Full-Year ACV (€B)*
1Q to 3Q ACV
€ 1.7

€ 0.3

€ 0.6
€ 0.6
05

€ 1.0

07

08

Asia Pacific 4Q and Full-Year Counts
1Q to 3Q Counts

25

73
57
20

81
18

94

58
2004

39
05

53

90
63

115
25

€ 0.9
09

10

Range of Prior 5 Years
141
126
30
27

36

32

18
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37

130

€ 0.4

€ 1.5
€ 0.4
€ 2.1

€ 1.2

11

€ 1.1
12

2013

Asia Pacific Full-Year Segment Details ACV (€B)*

4Q Counts
127

83

€ 0.8
€ 1.6

€ 1.3

06

€ 1.6

€ 0.5

€ 0.7

€ 0.9

€ 0.5
€ 1.7

€ 0.3

€ 1.3

2004

€ 0.7

€ 1.2

€ 1.2

€ 2.6

€ 2.1

€ 2.0
€ 1.5

4Q ACV

Avg of 5 Prior Years

2012

€ 2.5
€ 2.0
€ 1.5

105

111 99

79

62

€ 1.29

€ 1.27
€ 1.0
€ 0.5

€ 0.27

€ 0.29
06

07

08

2013

09

10

11

12

2013

€ 0.0

isg-one.com
*Contracts with ACV ≥ €4M from the ISG Contracts Knowledgebase®

New Scope Restructuring

ITO

BPO
16

Asia Pacific Contract Award Trends Detail
Several of the largest markets in Asia Pacific suffered declines in 2013, notably India,
Australia-New Zealand and the Media & Telecom sectors.
Asia Pacific Industries
Full Year ACV (€B)*

Asia Pacific Sub-regions 5 Prior Years ACV (€B)*
Range of Prior 5 Years

Avg of 5 Prior Years

2012

2013

2012

2013

€ 1.2
Telecom & Media

€ 0.18

€ 1.0

Manufacturing

€ 0.22

€ 0.8

Financial Services

€ 0.52

Business Services

€ 0.05

€ 0.6
Travel, Transport,
Leisure

€ 0.49

€ 0.26

€ 0.4
€ 0.32

Energy

€ 0.31

€ 0.17

€ 0.26
€ 0.2

Retail

€ 0.15
© 2014
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€ 0.03

€India and
South Asia

ANZ

Greater
China

ASEAN

Japan

South Korea

isg-one.com
*Contracts with ACV ≥ €4M from the ISG Contracts Knowledgebase®

€ 0.02

Healthcare &
Pharma

€ 0.13
€-

€ 0.3 € 0.5 € 0.8 € 1.0
Special Topic for Fourth Quarter 2013

John Keppel
Partner and President
18

Recognizing the Key Forces for Change
in Outsourcing Market Dynamics
Market Saturation in Traditionally
Strong Segments

Sustained Period of Economic
Pressure in the West
Growth in G-2000 Sourcing
from 5 Years Ago
30%

Northern Europe
and U.S. Regions

Financial Services
and Manufacturing
Largest Western
G-2000 Companies

15%
1%
Americas

Stepped-up Pressure on
Contract Pricing
Deal Term
Down

isg-one.com

Provider
Competition Up

Asia Pacific

Sourcing Model Matures
in Major Territories and Industries

Unit Cost
Drops
Client

© 2014
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EMEA

Rise of the
Small Deal

*Contracts with ACV ≥ €4M from the ISG Contracts Knowledgebase®

SIAM
Provider

Multiple
ITO and
BPO
Providers
19

Taking Advantage of
the New Market Forces
Force 1 Market Saturation in Traditionally Strong Segments

Get smarter with targeting strategies for
underpenetrated markets and industries.
Providers should

Seek out underpenetrated industries like Energy, Pharma and Transportation.
Cultivate new clients in bottom quartile of the G-2000 by offering new solutions.
Force 2 Sustained Period of Economic Pressure in the West

Solve the challenge of expanding into the
more rapidly growing Eastern economies.
Providers should

Note Eastern Service Providers are maturing rapidly, are better positioned and
are starting to win business from new G-2000 companies in the East.
Force 3 Stepped-up Pressure on Contract Pricing

Focus on delivering good returns,
even on reducing revenues.
Providers should

Improve margins by optimizing the efficiency of delivered service.
Drive down costs via technology innovations, process enhancements and automation.

© 2014
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Group, Inc.
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isg-one.com

Force 4 Sourcing Model Matures in Western Markets
Providers should Leverage experience in

mature markets
to make sourcing relevant to new buyers.

Take the opportunity to move directly to current sourcing practices in new industries
and with new buyers, avoiding the growing pains the early adopters experienced.
*Contracts with ACV ≥ €4M from the ISG Contracts Knowledgebase®
4Q13 and Full-Year ISG Outsourcing Index
Summary and Outlook

market

summary

market

outlook
© 2014
Information Services
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All Rights Reserved

2013 had increased deal activity but at a smaller average deal size, the new
normal. Services cost less, holding down overall ACV.
ITO activity is up on the strong performance in EMEA.
BPO activity recedes due to lack of large deals, especially in the Facilities
Management/Corporate Real Estate function.
EMEA had a sizable increase in the number of contracts and saw its fourth
straight year of ACV over €8M.
Americas results were down largely on a decline in U.S. ACV.
Asia Pacific results suffered from a lack of large deals that
drive their market.
Manufacturing fell back following several years of strong performance.
Conversely, Energy and Travel, Transport & Leisure performed close to their
prior 5-year highs.

In 1H14, look for positive Broader Market results, based on a stronger
industry pipeline, and expect a Global Market increase of 3 - 5 percent.
In 2014, expect service providers to continue to offer more varied
solutions, such as systems integration work, transformation work, project
services and, increasingly, automation.
ACV declined, but the effect on the market from recovering economies
tempers that. Service providers’ responses to changing sourcing market
dynamics will be key to their success.

isg-one.com
*Contracts with ACV ≥ €4M from the ISG Contracts Knowledgebase®

20
21

Learn More
Please contact us with your questions and comments.

► John Keppel
Partner and President, ISG
+44 (0)7879 432 212
john.keppel@isg-one.com

--- Media Contacts --► Denise Colgan

► Louise Fernley

Marketing Director, EMEA, ISG
+44 1737 371523
denise.colgan@isg-one.com

© 2014
Information Services
Group, Inc.
All Rights Reserved

isg-one.com

blog.isg-one.com
*Contracts with ACV ≥ €4M from the ISG Contracts Knowledgebase®

Cohn & Wolfe for ISG
+44 207 331 5365
louise.fernley@cohnwolfe.com
Fourth Quarter and Full Year 2013
23

Fourth Quarter and Full Year TCV Scorecard
The ISG Outsourcing Index has moved to ACV as the primary measure of the
Broader Market. In transition, we will continue to provide a high-level TCV view of
the market via a Scorecard analysis.

Scorecard

4Q13
TCV (€B)*

Global Market
New Scope
Restructurings
Mega-deals
ITO
BPO
Americas
EMEA
Asia Pacific

€
€
€
€
€
€
€
€
€

4Q Y/Y
Change

16.0 -16%
11.5 -3%
4.5 -37%
2.2 -34%
11.2 -20%
4.8 -5%
4.4 -12%
10.0 -19%
1.6 -1%

4Q Q/Q
Change

-18%
-17%
-19%
17%
-8%
-35%
-34%
-3%
-36%

© 2014
Information Services
Group, Inc.
All Rights Reserved

isg-one.com

*Contracts with TCV ≥ from from Contracts Knowledgebase®
*Contracts with ACV ≥ €4M€20Mthe ISG the ISG Contracts Knowledgebase®

2013 Y/Y
Change

2013
TCV (€B)*

€
€
€
€
€
€
€
€
€

66.3 -20%
42.8
23.5
11.7
44.2
22.2
21.0
38.3

-24%
-10%
-8%
-16%
-26%
-34%
-5%

7.0 -35%
www.isg-one.com

knowledge powering results®
Information Services Group is a leading technology insights, market intelligence and advisory services company, serving more
than 500 clients around the world to help them achieve operational excellence. ISG supports private and public sector
organizations to transform and optimize their operational environments through research, benchmarking, consulting and
managed services, with a focus on information technology, business process transformation, program management services and
enterprise resource planning. Clients look to ISG for unique insights and innovative solutions for leveraging technology, the
deepest data source in the industry, and more than five decades of experience of global leadership in information and advisory
services. Based in Stamford, Conn., the company has more than 800 employees and operates in 21 countries.

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Fourth Quarter and Full Year 2013 ISG EMEA Outsourcing Index

  • 1. The ISG EMEA Outsourcing Index Market Data and Insights Fourth Quarter and Full Year 2013 Hosted by: James Goodman, Barclays Capital 20 January 2014
  • 2. 2 Welcome to the 45th Quarterly Outsourcing Index Review Covering the state of the outsourcing industry for EMEA commercial contracts.* John Keppel Dr. David Howie Partner & President Partner Bernd Schaefer Partner © 2014 Information Services Group, Inc. All Rights Reserved isg-one.com *Contracts with ACV ≥ €4M from the ISG Contracts Knowledgebase®
  • 3. 3 At a Glance DOUBLE-DIGIT GROWTH IN 4Q DEAL ACTIVITY, BUT CONTRACT VALUES DOWN BY LIKE PERCENTAGE 2013 DEAL ACTIVITY SLIGHTLY HIGHER, BUT VALUES FALL, MIRRORING 4Q TREND AFTER SEVERAL YEARS OF GROWTH, FINANCIAL SERVICES ACTIVITY SLOWS AND MANUFACTURING DECLINES SHARPLY ITO ACTIVITY UP, BUT BPO ACTIVITY RECEDES DUE TO LACK OF LARGE DEALS, EMEA SEES RISE IN ACTIVITY WITH SMALLER DEAL SIZES, BUT LACK OF LARGE DEALS IN AMERICAS LEADS TO DROP IN VALUE Scorecard © 2014 Information Services Group, Inc. All Rights Reserved isg-one.com Global Market New Scope Restructurings Mega-relationships ITO BPO Americas EMEA Asia Pacific 4Q13 ACV (€B)* € € € € € € € € € 3.7 2.4 1.3 0.4 3.0 0.7 1.2 2.1 0.4 4Q Y/Y Change 4Q Q/Q Change -12% -16% -5% -52% 8% -50% -23% -5% -10% -17% -5% -32% -58% -12% -32% -17% -21% 15% *Contracts with ACV ≥ €4M from the ISG Contracts Knowledgebase® 2013 ACV (€B)* Y/Y Change € 15.0 -18% € 9.0 -27% € 6.0 -2% € 2.9 -38% € 10.8 -8% € 4.2 -37% € 5.2 -26% € 8.2 -6% € 1.6 -40% 2013 Counts Y/Y Change 1,155 798 357 24 790 365 442 587 126 2% -5% 22% -31% 8% -9% -10% 18% -11%
  • 4. 4 Global Market Contract Award Trends Fourth-quarter ACV was down 12% Y/Y and 17% Q/Q. For the full year, ACV was down 18% from 2012; however, contract counts ticked up 2% over 2012. Broader Market 4Q and Full-Year ACV (€B)* 1Q to 3Q ACV € 12.9 € 13.7 € 3.1 € 12.2 € 13.3 € 4.2 € 3.3 € 4.7 € 9.9 € 9.5 € 8.9 2004 05 06 € 14.6 4Q ACV € 16.5 € 17.6 € 17.6 € 18.3 € 4.4 € 5.3 € 4.2 € 3.7 € 5.5 € 10.9 € 11.0 € 13.1 € 12.3 € 14.1 € 8.6 07 08 09 10 11 12 € 15.0 € 3.7 € 11.3 2013 Broader Market 4Q and Full-Year Contracting Counts 1Q to 3Q Counts 4Q Counts 1,182 972 774 562 611 617 154 157 176 153 421 405 435 464 05 06 07 08 1,132 1,155 300 273 309 882 859 846 11 12 247 579 575 © 2014 Information Services Group, Inc. All Rights Reserved 288 988 2004 195 684 741 09 10 isg-one.com *Contracts with ACV ≥ €4M from the ISG Contracts Knowledgebase® 2013
  • 5. 5 Global Market Contract Trends by Deal Size 2013 saw the continued dominance of contracting in the smallest ACV bands, and average deal size trended down across all bands. Comparing Broader Market Contracting Awards (€B)* Grouping in ACV Contract Size Bands €4-31M ACV(€B)* €32-79M €80M + Contract Counts Average Contract Size 1,063 € 10 €8 € 44 € 45 € 44 € 143 € 9.0 60% € 11 € 148 673 € 5.3 € 6.8 482 € 2.5 € 3.2 € 3.0 20% 70 € 5.2 © 2014 Information Services Group, Inc. All Rights Reserved € 4.6 € 2.9 2004 2008 20% 2013 57 36 2004 31 24 2008 2013 € 122 68 isg-one.com *Contracts with ACV ≥ €4M from the ISG Contracts Knowledgebase® 2004 2008 2013
  • 6. 6 Global Market New Scope & Restructuring Trends New Scope ACV dipped 27% from 2012, while Restructuring ACV held steady. Restructuring counts rose 22% from 2012, but New Scope awards continued down. New Scope 4Q and Full-Year ACV (€B)* 1Q to 3Q ACV € 10.8 € 10.9 € 10.3 € 10.1 € 2.4 € 3.0 € 8.1 € 3.9 € 2.5 € 2.5 € 7.9 $7.1 2004 05 Restructuring 4Q and Full-Year ACV (€B)* 4Q ACV 1Q to 3Q ACV € 12.8 € 12.1 € 12.2 € 11.5 € 2.8 € 9.0 € 4.4 € 3.0 € 3.3 € 2.4 $8.3 $8.4 $9.0 $8.1 06 07 08 09 10 11 12 € 5.5 € 3.7 € 3.7 € 1.4 € 2.0 € 1.4 € 1.3 € 3.6 € 4.1 € 0.8 € 2.5 € 1.1 € 1.2 € 1.2 € 4.7 € 4.6 € 0.7 € 3.3 € 0.8 € 2.6 € 2.5 € 4.1 € 4.1 € 2.4 € 2.0 € 1.7 $6.6 2013 2004 New Scope 4Q and Full-Year Counts 1Q to 3Q Counts 472 © 2014 Information Services Group, Inc. All Rights Reserved isg-one.com 446 123 126 491 516 143 129 753 234 234 05 06 07 839 349 320 348 387 05 06 07 08 652 588 466 2004 10 11 12 12 2013 4Q Counts 357 287 103 116 120 31 72 09 11 798 210 661 10 187 184 569 09 1Q to 3Q Counts 157 540 08 Restructuring 4Q and Full-Year Counts 4Q Counts 895 774 € 6.1 € 6.1 € 6.0 € 2.7 $9.4 $5.6 $6.9 623 4Q ACV 2013 31 85 33 87 2004 05 06 *Contracts with ACV ≥ €4M from the ISG Contracts Knowledgebase® 151 101 24 77 38 113 07 08 198 54 144 09 235 63 172 10 293 66 86 221 207 258 11 12 99 2013
  • 7. 7 Global Market Industry Trends Manufacturing stood out, with ACV off almost €2B from its prior 5-year average. Yet Energy and Travel, Transport & Leisure performed close to their prior 5-year highs. Broader Market 5 Prior Year ACV (€B)* by Industry Range of Prior 5 Years Avg of 5 Prior Years 2012 2013 €6 €5 € 4.3 €4 €3 € 2.8 € 2.1 €2 € 1.8 € 1.6 € 1.1 €1 € 0.8 € 0.5 © 2014 Information Services Group, Inc. All Rights Reserved €Manufacturing Financial Services Telecom & Media Energy Travel, Transport, Leisure isg-one.com *Contracts with ACV ≥ €4M from the ISG Contracts Knowledgebase® Healthcare & Pharma Business Services Retail
  • 8. 8 EMEA Contract Award Trends ACV for fourth-quarter and full-year was down slightly Y/Y, yet contract counts at an all-time high, up almost 18% from 2012. EMEA 4Q and Full-Year ACV (€B)* 1Q to 3Q ACV € 7.9 € 6.5 € 5.7 € 5.9 € 4.4 2004 05 € 8.7 € 8.2 € 3.0 € 2.3 € 2.1 € 6.1 € 6.5 € 6.4 € 6.0 10 11 12 2013 € 7.8 € 2.7 € 1.8 € 6.4 € 3.3 € 4.0 06 07 08 EMEA 4Q and Full-Year Counts 1Q to 3Q Counts € 9.5 € 3.2 € 1.6 € 4.1 € 8.8 € 1.5 € 4.9 € 2.0 € 1.7 4Q ACV € 4.5 09 EMEA Full-Year Segment Details ACV (€B)* 4Q Counts Prior 5 Year Range Avg of 5 Prior Years 2012 2013 €8 535 431 442 138 348 253 265 263 74 81 63 183 179 184 200 251 68 © 2014 Information Services Group, Inc. All Rights Reserved 76 272 135 498 134 167 313 364 420 € 6.2 €6 €4 129 397 296 587 € 4.6 € 3.6 €2 € 2.0 €0 2004 05 06 07 08 09 10 11 12 2013 isg-one.com *Contracts with ACV ≥ €4M from the ISG Contracts Knowledgebase® New Scope Restructuring ITO BPO
  • 9. 9 EMEA Contract Award Trends Detail Most markets in EMEA were flat in 2013. However, U.K. ACV was down 30% Y/Y despite a 13% increase in contract counts. EMEA Industries Full-Year ACV (€B)* EMEA Sub-regions 5 Prior Years ACV (€B)* Range of Prior 5 Years Avg of 5 Prior Years 2012 2012 2013 € 4.5 2013 Manufacturing € 1.4 € 4.0 Financial Services € 2.7 € 3.5 Telecom & Media € 3.0 € 2.5 € 0.9 € 2.65 Energy Travel, Transport, Leisure € 2.0 € 1.61 € 1.5 € 1.1 € 1.1 € 1.39 Healthcare & Pharma € 1.0 € 0.3 € 0.90 € 0.71 € 0.5 © 2014 Information Services Group, Inc. All Rights Reserved € 0.41 Business Services € 0.35 € 0.5 € 0.16 €U.K. & Ireland DACH Nordics Benelux France Southern Africa & E. Europe Europe Middle & Russia East isg-one.com *Contracts with ACV ≥ €4M from the ISG Contracts Knowledgebase® Retail € 0.2 €0 €1 €2 €3 €4
  • 10. 10 EMEA ITO Contract Award Trends EMEA ITO ACV rose 11% for the year, driven by strong contracting activity. The 409 contracts awarded was a high water mark for the region. EMEA ITO 4Q and Full-Year ACV ($B) and Contract Counts* 1Q to 3Q ACV 4Q ACV Full-Year Counts 385 348 332 € 6.2 182 320 € 7.3 € 2.4 € 2.3 € 7.2 € 5.6 € 6.2 € 1.3 € 1.7 € 1.3 € 4.6 € 1.3 € 1.4 € 3.3 € 3.8 € 1.2 € 2.2 2004 05 06 € 2.4 € 4.8 € 3.8 € 4.9 € 4.8 € 4.3 € 4.5 08 09 10 11 12 2013 € 0.9 € 3.2 07 EMEA ITO ACV ($B)* by Function 2012 EMEA ITO Full-Year ACV ($B)* by Industry 2012 2013 2013 Financial Services Infrastructure € 1.4 € 2.0 Manufacturing € 1.1 Energy ADM € 2.0 isg-one.com € 0.8 Telecom & Media € 0.6 Travel, Transport, Leisure Network Services © 2014 Information Services Group, Inc. All Rights Reserved € 1.5 Business Services Healthcare & Pharma ADM + Infrastructure € 1.3 €- 409 € 0.5 € 1.0 € 1.5 Retail € 2.0 € 2.5 *Contracts with ACV ≥ €4M from the ISG Contracts Knowledgebase® € 1.0 € 0.4 € 0.2 € 0.1 € 0.0 € 0.5 € 1.0 € 1.5 € 2.0 € 2.5
  • 11. 11 EMEA BPO Contract Award Trends Despite increased contract activity, BPO ACV fell almost 40% as large deals disappeared from the market. EMEA BPO 4Q and Full-Year ACV ($B) and Contract Counts* 1Q to 3Q ACV 4Q ACV 99 69 Full-Year Counts 122 € 3.1 € 2.3 € 1.6 € 1.2 € 0.4 € 0.8 € 0.7 € 0.7 € 0.3 € 1.2 € 0.9 2004 05 06 07 € 0.8 08 EMEA BPO ACV ($B)* by Function 2012 © 2014 Information Services Group, Inc. All Rights Reserved isg-one.com Facilities Mgmt Industry-Specific F&A HRO R&D/KPO Multi-Process Contact Centers Procurement Supply Chain Mgmt Document Mgmt € 1.5 € 0.8 € 1.7 € 0.8 € 0.3 € 1.2 09 10 11 € 2.2 € 1.5 12 2012 € 0.26 €- € 0.4 2013 EMEA BPO Full-Year ACV ($B)* by Industry 2013 € 0.55 € 0.30 € 0.20 € 0.07 € 0.17 € 0.27 € 0.03 € 0.04 € 0.07 € 1.9 € 0.9 € 0.7 € 0.3 € 1.6 178 150 150 2013 Financial Services € 0.66 Energy € 0.32 Manufacturing € 0.28 Telecom & Media € 0.27 Retail € 0.06 Business Services € 0.09 Healthcare & Pharma € 0.10 Travel, Transport, Leisure € 0.3 € 0.5 € 0.8 € 1.0 € 1.3 € 1.5 *Contracts with ACV ≥ €4M from the ISG Contracts Knowledgebase® € 0.16 €- € 0.5 € 1.0 € 1.5
  • 12. 12 2013 Top 20 Outsourcing Service Providers in EMEA In Top 20 for Both ITO and BPO Accenture Atos Capgemini CGI HCL Infosys In Top for ITO Only © 2014 Information Services Group, Inc. All Rights Reserved isg-one.com In Top for BPO Only AT&T BT CSC Deutsche Telekom EVRY France Telecom HP IBM iGATE Tech Mahindra Quindell Swisscom Tata Tieto Wipro Aon Hewitt Capita Communisis Emcor G4S Genpact GP Strategies Innovation Group Interserve Sodexho Alliance TCS WEX WNS Xchanging Xerox Note: Service providers in alphabetical order; no rankings implied. *Contractsbased on 2013€4McommercialISG Contracts Knowledgebase® Placements with ACV ≥ ACV from the contract awards sourced from ISG Contracts Knowledgebase ®.
  • 13. 13 Americas Contract Award Trends 4Q ACV was down moderately Y/Y. For 2013, ACV dropped substantially from 2012, and contract counts dipped more than 10%. Americas 4Q and Full-Year ACV (€B)* 1Q to 3Q ACV € 6.0 € 1.2 € 6.7 € 6.1 € 1.6 € 5.7 € 1.5 € 4.5 € 4.4 05 € 5.5 € 4.9 € 2.2 € 4.6 2004 06 € 1.8 € 7.1 € 6.4 € 0.9 € 1.8 € 7.0 € 1.5 € 3.3 € 3.5 07 € 4.9 08 09 € 6.2 € 4.6 € 5.5 11 10 € 5.2 € 1.2 € 1.4 Americas 4Q and Full-Year Counts 1Q to 3Q Counts 4Q ACV 12 € 4.0 2013 Americas Full-Year Segment Details ACV (€B)* Range of Prior 5 Years 4Q Counts Avg of 5 Prior Years 2012 2013 €6 517 414 332 241 61 © 2014 Information Services Group, Inc. All Rights Reserved 252 273 65 75 180 187 2004 05 273 72 116 137 198 201 07 08 115 €5 €4 €3 349 380 384 327 245 06 442 109 82 87 298 493 431 € 3.3 € 3.1 € 2.2 €2 € 1.9 €1 09 10 11 12 2013 €0 isg-one.com *Contracts with ACV ≥ €4M from the ISG Contracts Knowledgebase® New Scope Restructuring ITO BPO
  • 14. 14 Americas Contract Award Trends Detail U.S. ACV was down about 25% from 2012. Drops in the Manufacturing and Financial Services sectors contributed most to the decline. Americas Industries Full-Year ACV (€B)* Americas Sub-regions 5 Prior Years ACV (€B)* Range of Prior 5 Years Avg of 5 Prior Years 2012 2013 € 0.5 €7 2012 2013 Manufacturing € 1.14 Financial Services € 1.06 Telecom & Media €6 € 0.99 € 0.4 €5 € 4.6 € 0.3 Healthcare & Pharma € 0.71 €4 Business Services €3 € 0.2 € 0.30 Retail € 0.31 € 0.21 € 0.16 €2 € 0.12 € 0.1 € 0.13 Energy € 0.47 €1 © 2014 Information Services Group, Inc. All Rights Reserved Travel, Transport, Leisure € 0.0 €- U.S. Canada Brazil Mexico Other LatAm isg-one.com *Contracts with ACV ≥ €4M from the ISG Contracts Knowledgebase® € 0.23 €0 €1 €2 €3
  • 15. 15 Asia Pacific Contract Award Trends 4Q ACV was down moderately Y/Y. For 2013, ACV dropped substantially from 2012, and contract counts dipped more than 10%. Asia Pacific 4Q and Full-Year ACV (€B)* 1Q to 3Q ACV € 1.7 € 0.3 € 0.6 € 0.6 05 € 1.0 07 08 Asia Pacific 4Q and Full-Year Counts 1Q to 3Q Counts 25 73 57 20 81 18 94 58 2004 39 05 53 90 63 115 25 € 0.9 09 10 Range of Prior 5 Years 141 126 30 27 36 32 18 © 2014 Information Services Group, Inc. All Rights Reserved 37 130 € 0.4 € 1.5 € 0.4 € 2.1 € 1.2 11 € 1.1 12 2013 Asia Pacific Full-Year Segment Details ACV (€B)* 4Q Counts 127 83 € 0.8 € 1.6 € 1.3 06 € 1.6 € 0.5 € 0.7 € 0.9 € 0.5 € 1.7 € 0.3 € 1.3 2004 € 0.7 € 1.2 € 1.2 € 2.6 € 2.1 € 2.0 € 1.5 4Q ACV Avg of 5 Prior Years 2012 € 2.5 € 2.0 € 1.5 105 111 99 79 62 € 1.29 € 1.27 € 1.0 € 0.5 € 0.27 € 0.29 06 07 08 2013 09 10 11 12 2013 € 0.0 isg-one.com *Contracts with ACV ≥ €4M from the ISG Contracts Knowledgebase® New Scope Restructuring ITO BPO
  • 16. 16 Asia Pacific Contract Award Trends Detail Several of the largest markets in Asia Pacific suffered declines in 2013, notably India, Australia-New Zealand and the Media & Telecom sectors. Asia Pacific Industries Full Year ACV (€B)* Asia Pacific Sub-regions 5 Prior Years ACV (€B)* Range of Prior 5 Years Avg of 5 Prior Years 2012 2013 2012 2013 € 1.2 Telecom & Media € 0.18 € 1.0 Manufacturing € 0.22 € 0.8 Financial Services € 0.52 Business Services € 0.05 € 0.6 Travel, Transport, Leisure € 0.49 € 0.26 € 0.4 € 0.32 Energy € 0.31 € 0.17 € 0.26 € 0.2 Retail € 0.15 © 2014 Information Services Group, Inc. All Rights Reserved € 0.03 €India and South Asia ANZ Greater China ASEAN Japan South Korea isg-one.com *Contracts with ACV ≥ €4M from the ISG Contracts Knowledgebase® € 0.02 Healthcare & Pharma € 0.13 €- € 0.3 € 0.5 € 0.8 € 1.0
  • 17. Special Topic for Fourth Quarter 2013 John Keppel Partner and President
  • 18. 18 Recognizing the Key Forces for Change in Outsourcing Market Dynamics Market Saturation in Traditionally Strong Segments Sustained Period of Economic Pressure in the West Growth in G-2000 Sourcing from 5 Years Ago 30% Northern Europe and U.S. Regions Financial Services and Manufacturing Largest Western G-2000 Companies 15% 1% Americas Stepped-up Pressure on Contract Pricing Deal Term Down isg-one.com Provider Competition Up Asia Pacific Sourcing Model Matures in Major Territories and Industries Unit Cost Drops Client © 2014 Information Services Group, Inc. All Rights Reserved EMEA Rise of the Small Deal *Contracts with ACV ≥ €4M from the ISG Contracts Knowledgebase® SIAM Provider Multiple ITO and BPO Providers
  • 19. 19 Taking Advantage of the New Market Forces Force 1 Market Saturation in Traditionally Strong Segments Get smarter with targeting strategies for underpenetrated markets and industries. Providers should Seek out underpenetrated industries like Energy, Pharma and Transportation. Cultivate new clients in bottom quartile of the G-2000 by offering new solutions. Force 2 Sustained Period of Economic Pressure in the West Solve the challenge of expanding into the more rapidly growing Eastern economies. Providers should Note Eastern Service Providers are maturing rapidly, are better positioned and are starting to win business from new G-2000 companies in the East. Force 3 Stepped-up Pressure on Contract Pricing Focus on delivering good returns, even on reducing revenues. Providers should Improve margins by optimizing the efficiency of delivered service. Drive down costs via technology innovations, process enhancements and automation. © 2014 Information Services Group, Inc. All Rights Reserved isg-one.com Force 4 Sourcing Model Matures in Western Markets Providers should Leverage experience in mature markets to make sourcing relevant to new buyers. Take the opportunity to move directly to current sourcing practices in new industries and with new buyers, avoiding the growing pains the early adopters experienced. *Contracts with ACV ≥ €4M from the ISG Contracts Knowledgebase®
  • 20. 4Q13 and Full-Year ISG Outsourcing Index Summary and Outlook market summary market outlook © 2014 Information Services Group, Inc. All Rights Reserved 2013 had increased deal activity but at a smaller average deal size, the new normal. Services cost less, holding down overall ACV. ITO activity is up on the strong performance in EMEA. BPO activity recedes due to lack of large deals, especially in the Facilities Management/Corporate Real Estate function. EMEA had a sizable increase in the number of contracts and saw its fourth straight year of ACV over €8M. Americas results were down largely on a decline in U.S. ACV. Asia Pacific results suffered from a lack of large deals that drive their market. Manufacturing fell back following several years of strong performance. Conversely, Energy and Travel, Transport & Leisure performed close to their prior 5-year highs. In 1H14, look for positive Broader Market results, based on a stronger industry pipeline, and expect a Global Market increase of 3 - 5 percent. In 2014, expect service providers to continue to offer more varied solutions, such as systems integration work, transformation work, project services and, increasingly, automation. ACV declined, but the effect on the market from recovering economies tempers that. Service providers’ responses to changing sourcing market dynamics will be key to their success. isg-one.com *Contracts with ACV ≥ €4M from the ISG Contracts Knowledgebase® 20
  • 21. 21 Learn More Please contact us with your questions and comments. ► John Keppel Partner and President, ISG +44 (0)7879 432 212 john.keppel@isg-one.com --- Media Contacts --► Denise Colgan ► Louise Fernley Marketing Director, EMEA, ISG +44 1737 371523 denise.colgan@isg-one.com © 2014 Information Services Group, Inc. All Rights Reserved isg-one.com blog.isg-one.com *Contracts with ACV ≥ €4M from the ISG Contracts Knowledgebase® Cohn & Wolfe for ISG +44 207 331 5365 louise.fernley@cohnwolfe.com
  • 22. Fourth Quarter and Full Year 2013
  • 23. 23 Fourth Quarter and Full Year TCV Scorecard The ISG Outsourcing Index has moved to ACV as the primary measure of the Broader Market. In transition, we will continue to provide a high-level TCV view of the market via a Scorecard analysis. Scorecard 4Q13 TCV (€B)* Global Market New Scope Restructurings Mega-deals ITO BPO Americas EMEA Asia Pacific € € € € € € € € € 4Q Y/Y Change 16.0 -16% 11.5 -3% 4.5 -37% 2.2 -34% 11.2 -20% 4.8 -5% 4.4 -12% 10.0 -19% 1.6 -1% 4Q Q/Q Change -18% -17% -19% 17% -8% -35% -34% -3% -36% © 2014 Information Services Group, Inc. All Rights Reserved isg-one.com *Contracts with TCV ≥ from from Contracts Knowledgebase® *Contracts with ACV ≥ €4M€20Mthe ISG the ISG Contracts Knowledgebase® 2013 Y/Y Change 2013 TCV (€B)* € € € € € € € € € 66.3 -20% 42.8 23.5 11.7 44.2 22.2 21.0 38.3 -24% -10% -8% -16% -26% -34% -5% 7.0 -35%
  • 24. www.isg-one.com knowledge powering results® Information Services Group is a leading technology insights, market intelligence and advisory services company, serving more than 500 clients around the world to help them achieve operational excellence. ISG supports private and public sector organizations to transform and optimize their operational environments through research, benchmarking, consulting and managed services, with a focus on information technology, business process transformation, program management services and enterprise resource planning. Clients look to ISG for unique insights and innovative solutions for leveraging technology, the deepest data source in the industry, and more than five decades of experience of global leadership in information and advisory services. Based in Stamford, Conn., the company has more than 800 employees and operates in 21 countries.