This research provides an in-depth analysis of the global offshore GIC landscape across leading locations. The report is based on Everest Group’s proprietary GIC database and is updated every six months. Besides providing details on global GIC landscape trends and analysis, the report also contains a focus section that provides a deep-dive into the GIC landscape in a select geography. This edition features Poland as the focus geography

1. Topic: Global Offshore Global In-house Center (GIC)
Landscape and Trends
Focus Geography – Poland
Global Sourcing
Report: August 2012 – Preview Deck
Copyright © 2012, Everest Global, Inc.
EGR-2012-2-PD-0747

2. Our research offerings for global services
Subscription information Market Vista
 The full report is included in Global services tracking across functions, sourcing models, locations, and
the following subscription(s) service providers – industry tracking reports also available
– Global Sourcing
Banking, Financial Finance &
Healthcare
 In addition to published Services, Insurance Accounting
research, a subscription may
include analyst inquiry, data Information
cuts, and other services Procurement Cloud Vista
Technology
 If you want to learn whether
your organization has a Human Resources Recruitment Process Global Sourcing
subscription agreement or
request information on pricing
and subscription options, Service Provider Transaction
Pricepoint
please contact us: intelligence Intelligence
– info@everestgrp.com
– +1-214-451-3110 Custom research capabilities
 Benchmarking | Pricing, delivery model, skill portfolio
 Peer analysis | Scope, sourcing models, locations
 Locations | Cost, skills, sustainability, portfolio
 Tracking services | Service providers, locations, risk
 Other | Market intelligence, service provider capabilities, technologies
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3. Terminology | Global In-house Center (GIC) replacing “captive”
Context What has changed
 Historically, the term “captive” has  Everest Group has adopted “Global In-house
referred to service delivery operations Center” or “GIC” as the preferred term to
in lower cost geographies, which are replace “captive”
owned and operated by the same
company receiving the services (i.e.,  This will appear in all of our reports and content
not third-party outsourcing) beginning in July 2012
 Although the term has become widely
used, it has a perceived negative tone
and is not self-explanatory, causing
Growing industry-wide shift
confusion for those new to the global
Both NASSCOM (India) and BPAP
services space
(Philippines) are championing the change in
terminology
 Furthermore, many organizations, for
which captive is intended to describe,
do not use the term themselves
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4. Background and scope of research
 The global sourcing market evolved and grew rapidly to reach a size of ~US$116 billion in 2011. GICs were a core
component of this evolution with companies such as Texas Instruments and GE setting up offshore GIC units in the
late 1980s and early 1990s
 The last 15 to 20 years witnessed increased adoption of the GIC model with a large number of companies setting
up / expanding their GICs. While India continues to remain a leading geography, companies also explored and
successfully established GIC operations in China, the Philippines, Central and Eastern Europe, and Latin America.
Recently, Middle East and North Africa (MENA) has emerged as attractive offshoring destination
 However, significant growth of third-party service providers and selective divestitures during the economic crisis led
to the perception that the GIC model is under threat. Stated reasons include GIC not delivering value and being
significantly more expensive than third-party service providers
 At the same time, mature users of the GIC model articulate their commitment to it and reinforce its importance in
their sourcing strategy and portfolio. Additionally, our discussions with global sourcing offices of large companies
and GIC leadership reveal imperatives under way to expand the role of GIC and its value proposition
 This research provides an in-depth analysis of the global offshore GIC landscape across leading locations. The
report is based on Everest Group’s proprietary GIC database and is updated every six months. Besides providing
details on global GIC landscape trends and analysis, the report also contains a focus section that provides a deep-
dive into the GIC landscape in a select geography. This edition features Poland as the focus geography
Copyright © 2012, Everest Global, Inc.
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5. Buyer organizations have a range of options for capturing
value from offshoring, with GIC and third-party outsourcing as
the primary models
Offshore business models
GIC model Strategic alliance / Joint Venture Third-party outsourcing model
model
Pure GIC model Build Operate Transfer (BOT) / Pure third-party offshoring
 An internal cost center or a Joint Venture (JV)  Use of an offshore provider to
100% subsidiary company to  Provider-owned / joint outsource business processes
cater exclusively to the parent operations that can be or IT services
company transferred back to the customer  Examples: Alcoa-Infosys, Rio
 Examples: American Express,  Example: eServe-Citigroup Tinto - Wipro
HSBC
Inverted BOT Managed third-party offshoring
 Offshore service providers  Full- / part-time resources on the
The focus of this report
provide only implementation ground to facilitate transition,
is on the GIC model
support initially and are allowed relationship management, and
to buy into the entity at a later transfer of organization and
date domain knowledge to third-party
 Examples: AIG-Polaris, BA- providers
WNS  Example: Greenpoint-Infosys
BPO
Source: Everest Group analysis
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6. This research leverages Everest Group’s proprietary GIC
database that tracks offshore GICs of leading companies
Everest Group’s proprietary GIC database
Unique characteristics Key dimensions tracked
 Industry’s most comprehensive database  Scale (FTE range)
of global GICs located across India, Rest
of Asia, Europe, Latin America, and Africa  Industry verticals
 Tracks GICs of leading firms (e.g., Forbes  Functions offered (e.g., IT, BP, ES / R&D)
2000 and Fortune 500 companies)
 Parent geographies
 Database covers more than 1,200 GICs
 Parent size (revenue range)
 Focus on GICs providing offshore delivery
of global services – excludes shared  Location of delivery centers
services centers serving the domestic
market
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7. Table of contents (page 1 of 2)
Topic Page no.
Section I: Executive summary 9
Section II: Overview of the global GIC landscape 13
 Summary 14
 Global offshore services and GIC market: Size and growth 15
 Distribution of the global offshore GIC landscape by:
– Parent revenue 18
– Parent geography 19
– Industry vertical 20
– Functions supported 21
– Offshore delivery locations 23
Section III: Deep-dive into key industry verticals 26
 Summary 27
 Banking, Financial Services, and Insurance (BFSI ) 28
 Energy and Utilities (E&U) 31
 Healthcare 34
 Manufacturing, Distribution, and Retail (MDR) 37
 Technology 40
 Telecom 43
Section IV: Recent trends in the global GIC landscape (Jan 2010- Jun 2012) 46
 Summary 47
 Recent trends in GIC set-ups and divestitures 48
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8. Table of contents (page 2 of 2)
Topic Page no.
Section IV: Recent trends in the global GIC landscape (2009-2011) (continued…)
 Recent trends in offshore GIC landscape (2009-2011) by:
– Parent revenue 49
– Parent geography 50
– Industry verticals 51
– Functions supported 52
– Key GIC locations 53
 List of offshore GIC divestitures (2009-2011) 58
Section V: Focus geography: GIC landscape in Poland 61
 Summary 62
 Poland global services market: size and growth 63
 Distribution of offshore GICs in Poland by:
– Headcount 67
– Parent revenue 68
– Parent geography 69
– Industry vertical 70
– Functions supported 71
– Locations 72
 Deep-dive into key industry verticals 74
Appendix 80
 Recent offshore GIC set-ups (H2 2011 and H1 2012) 82
 Glossary of key terms 103
 Additional research recommendations 104
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9. This research report provides an in-depth analysis of the
global GIC landscape and trends
Number of leading offshore GICs Distribution of offshore GICs by parent geography
2012; Percentage
100% = 1,251
ROW
APAC
Rest of Europe (ROE)
U.S.
UK
2007 2008 2009 2010 2011 H1 2012
Distribution of offshore GICs by functions GIC activity | Market activity heatmap
2012; Percentage
100% = 1,251 Comments
 High adoption in technology,
IT 40% followed by BFSI and MDR
industry verticals
 High adoption in the technology
ES / R&D 43% vertical, followed by MDR
 High adoption in the BFSI vertical
BP 43%  Gaining traction in MDR and
technology verticals
Source: Everest Group (2012)
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10. The report analyzes the GIC market across six key industry
verticals
BFSI
Energy and
Telecom
Utilities (E&U)
Key industry
verticals
Technology Healthcare
MDR
Copyright © 2012, Everest Global, Inc.
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11. This study also provides an analysis of the recent trend (2010
to H1 2012) within the global GIC landscape
Number of offshore GIC divestitures Distribution of offshore GICs by parent revenue
Percentage
4
100% = 1,251
>US$50 billion
2
US$10-50 billion
US$5-10 billion
US$1-5 billion
0
<US$1 billion
2010 2011 H12012 Up to H1 2012 2010 2011 H1 2012
Others
Distribution of offshore GICs by functions Distribution of offshore GICs by industry vertical
Up to 2012; Percentage 2010; Percentage 2011; Percentage H1 2012; Percentage Percentage
100% = 1,251 100% = 1,251 100% = 1,251 100% = 1,251 100% = 1,251
Others Healthcare
E&U Telecom
IT
BFSI
ES /
R&D MDR
BP Technology
Up to H1 2012 2010 2011 H1 2012
Source: Everest Group (2012)
Copyright © 2012, Everest Global, Inc.
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12. The report also covers a detailed analysis of the focus
geography – Poland
Poland IT-BPO export revenue by service segments Distribution of market by delivery models
2011; US$ billion 2011; Number of FTEs
100% = 1,251 100% = 1,251
R&D
ITO
Third-party
BPO
Shared services
Number of leading offshore GICs in Poland Distribution of offshore GICs by headcount – range of FTEs
20121; Percentage
100% = 1,251
2,001-5,000
1,001-2,000
500-1,000
<500
2004 2005-06 2007-08 2009-10 2011-12 2012
New GIC set-ups
Source: Everest Group (2012)
Copyright © 2012, Everest Global, Inc.
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13. Appendix: Additional research recommendations
The following documents are recommended for additional insight into the topic covered in this research. The
recommended documents either provide additional details on the topic or complementary content that may be of
interest
1. Global Offshore Captive Landscape and Trends: Focus Geography - The Philippines (EGR-2011-2-R-0661); 2012. This
report analyzes the global offshore GIC landscape and key trends for the last three years (2009-2011). The report also
provides a deep-dive analysis of the offshore GIC landscape in the Philippines, covering market size and growth and
distribution of GIC landscape. It deep-dives into industry verticals
2. Global Locations Compass – China (EGR-2011-2-R-0606); 2011. The report provides detailed data and analysis on the
global services landscape in China
3. Global Locations Compass - The Philippines (EGR-2012-2-R-0637); 2011. The report provides detailed data and analysis
on the global services landscape in the Philippines
For more information on this and other research published by Everest Group, please
contact us:
Salil Dani, Research Director: salil.dani@everestgrp.com
Anurag Srivastava, Senior Analyst anurag.srivastava@everestgrp.com
Ritika Dhingra, Knowledge Associate : ritika.dhingra@everestgrp.com
Everest Group
Two Galleria Tower
13455 Noel Road, Suite 2100 Phone: +1-214-451-3110
Dallas, TX 75240 E-mail: info@everestgrp.com
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14. Everest Group
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Global 1000 firms dramatically improve their performance by optimizing their back- and middle-office business services. With a
fact-based approach driving outcomes, Everest Group counsels organizations with complex challenges related to the use and
delivery of global services in their pursuits to balance short-term needs with long-term goals. Through its practical consulting,
original research, and industry resource services, Everest Group helps clients maximize value from delivery strategies, talent and
sourcing models, technologies, and management approaches. Established in 1991, Everest Group serves users of global
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