Introduction

While the year 2009 was witness to a tough business environment and reduced spending overall, the market for FAO services registered a reasonable amount of growth (considering both inorganic and organic growth). Though there was a dip in new contract signings, the year saw a spike in end-of-term contract extensions thus enabling the market to grow at an average of 11% in terms of YoY ACV growth. The 2009 business context also gave suppliers an opportunity for introspection, revaluate service offerings, and build capability (both in-house and through acquisitions as valuations remained attractive) for an anticipated growth in 2010.

In this study, we analyze the global multi-process FAO supplier landscape in 2009. We focus on:

• Supplier evaluation and relative position on the Everest PEAK matrix
• Comparison of relative market success and capability development of suppliers
• Changes to global supplier landscape in 2009
• Market success and capability development of suppliers YoY from 2008 to 2009
• Trends in supplier landscape for different buyer segments based on buyer industry, buyer geography, and buyer size
• Key areas of investments by suppliers

Scope and methodology

• Third-party FAO deals; it does not include shared services or captives
• 470+ multi-process FAO contracts signed as of November 2009 with a minimum of two F&A processes, over US$1 million in ACV, and a minimum contract term of three years
• Coverage across 20+ FAO suppliers with multi-process capability including Accenture, ACS, Capgemini, Cognizant, Compass BPO (Recently acquired by Aditya Birla Minacs, an arm of Aditya Birla Group), EXL services, Genpact, HCL, HP, IBM, iGATE, Infosys BPO, Intelenet, KPIT Cummins, OPI, Patni, Steria, TCS, VWA, Wipro, and WNS

Content

This report will assist key stakeholders (buyers, suppliers, technology providers) understand the changing dynamics of FAO market supplier landscape and help them identify market leaders, major contenders, emerging players, and the star performers coming out of 2009. In this backdrop, this report provides comprehensive coverage of the global FAO supplier landscape including detailed analysis on market shares, capability assessment, landscape movement in 2009, and supplier landscape by buyer segments (buyer industry, geography, and size).

Some of the findings in this report, among others, are:

• There are 20+ suppliers with established multi-process FAO capability. Everest classifies the FAO supplier landscape into leaders, major contenders, and emerging players on the Everest Performance| Experience| Ability| Knowledge (PEAK) Matrix. IBM, Accenture, and Genpact are the dominant leaders, but a number of other suppliers (in the leaders and major contenders groups on PEAK matrix) are closing the gap. Capgemini strengthened its leadership position in 2009 and witnessed growth levels higher than the market average. Infosys BPO crossed over from the major contenders group to the leaders group in 2009. TCS, Wipro, and WNS further closed the gap on PEAK leaders. Cognizant, EXL, and Intelenet also moved from emerging players to major contenders
• Everest identified five suppliers as the “2009 FAO Market Star Performers” – Genpact, IBM, Infosys, Wipro, and WNS. These five suppliers were chosen based on the relative movement on the Everest PEAK matrix from 2008 to 2009 of 20+ FAO suppliers
• Beyond the 2009 FAO Market Star Performers, several other suppliers including Accenture, Capgemini, and TCS noticeably enhanced their positioning on the PEAK matrix in 2009
• We assess the supplier landscape across three buyer segments – buyer industry, signing region, and buyer organization size