Everest Q3 Report: North American Financial Sector Contracts Double over Q2, Global Outsourcing Market Drops 10 Percent

Special Focus Topics: Financial Services, Output-Based Pricing in ITO, Asia
DALLAS--(Business Wire)--
North American banking and financial services firms signed twice as many
outsourcing deals in the third quarter as compared to the second quarter this
year, according to the Market Vista: Q3 2009 report by Everest, a global
consulting and research firm.Everest`s quarterly study on global outsourcing and
offshoring activity reports transaction volume decreased 10 percent globally in
the third quarter compared to the previous quarter, while captives activity was
at an 18-month high. A one-hour Webinar will be held Nov. 10, 9 a.m. CST, to
present study findings and insights.

Comparing Q3 to Q2 this year, the report includes the following findings:

* The BFSI (banking, financial services, insurance) services and MDR
(manufacturing, distribution, retail) verticals contributed towards 36 percent
of deal signings, and healthcare deals increased 4 percent.
* While BFSI sector transactions doubled in North America and accounted for
almost half of all global transactions, global deals in the sector dropped from
88 in Q2 to 81 in Q3.
* North America and Europe contributed towards three-fourths of total
transaction signings; Rest of the World activity remained steady.
* Transaction volume in BPO decreased 14 percent; ITO activity decreased 8
percent.
* Twenty-eight new captives were established in Q3 - an 18 month high. India led
with 11 new centers followed by Europe with eight, Rest of Asia with six, and
Latin America with two new centers. Divestiture of four captives occurred.
* Suppliers announced a total of 144 new transactions in Q3 versus 161 in Q2,
led by IBM. Overall transactions activity improved for offshore
centric-suppliers, while it declined for traditional global majors.

"We continue to see indications that the market is gradually progressing towards
recovery as buyers are now able to re-focus attention towards proactive measures
to add value and lower costs for their organizations," said Eric Simonson,
Managing Principal of Research, Everest. "We expect to see recovery continue
into 2010, driven by gradual stabilization of the global economic and business
environment."

Everest`s quarterly Market Vista reports provide data and analysis of deal
trends in the outsourcing and offshoring market, captive landscape, current and
emerging locations, key supplier developments, and key developments across the
top 20 financial services companies globally. The Market Vista Q3 report also
includes focus sections on input-based pricing for IT outsourcing (ITO),
outsourcing destinations in Asia, and the acquisitions of ACS by Xerox and Perot
Systems by Dell.

Location optimization study insights include:

* Cost arbitrage in many European countries increased over the past 12 months
due to factors including favorable exchange rate dynamics expected to hold for
6-9 months and reduced operating costs. As a result, offshore activity increased
over last two quarters and 14 new centers were established in Q2-Q3 compared to
nine during same time period in 2008.
* Several new delivery centers and captives were established in China over the
last few quarters that mostly serve markets in Japan, Korea and the domestic
market in China; however, there is little evidence of large-scale offshore
operations for United States and United Kingdom clients.
* At the current momentum, the arbitrage opportunity for Asian cities is on an
average of about 20 years for both ITO and BPO.

Quarterly Market Vista reports include key developments among 20 leading global
suppliers. Traditional supplier profiles include Accenture, ACS, Atos Origin,
Capgemini, Convergys, CSC, Hewitt, HP, IBM, Perot Systems and Unisys.
Offshore-centric supplier profiles include Cognizant, EXL, Genpact, HCL,
Infosys, Mahindra Satyam, Tata Consultancy Services, Wipro and WNS.

The 45-minute Webinar, followed by 15 minutes of questions and answers with
participants, will be held Nov. 10 at 9 a.m. CST; 10 a.m. EST; 3 p.m. GMT
Standard Time; 8:30 p.m. India Time. To register, please visit:
www.everestresearchinstitute.com/Events/Webinars.

Market Vista is a subscription service with four reports published per year. For
information about the Market Vista: Q3 2009 report or other research services,
please visit www.everestresearchinstitute.com, e-mail
info@everestresearchinstitute.com or call +1-214-451-3110.

About Everest

Everest Group is a global consulting and research firm that comprehensively
serves the outsourcing and offshoring market. An industry leader since creating
the sourcing consultancy practice in 1991, Everest has earned a worldwide
reputation for ongoing innovation by helping clients capture optimum value
through sourcing strategies and implementation. Everest provides information,
insight, and advice to help buyers, suppliers, and enablers of services
effectively navigate all stages of the sourcing lifecycle. Committed to thought
leadership, Everest is noted for its fact-based analyses and insights on the
outsourcing and offshoring marketplace. For more information, please visit
www.everestgrp.com and www.everestresearchinstitute.com.

The Point Group
Scott Tims, +1-214-378-7970 x 278
mobile +1-214-957-6785
stims@thepointgroup.com
or
Martha Cook, +1-214-378-7970 x 240
mcook@thepointgroup.com

Copyright Business Wire 2009