1. www.IAOP.org © 2011 IAOP® All Rights Reserved Matt Shocklee IAOP’s Global Ambassador Outsourcing: Global Trends – Global Opportunities ASTRA/IAOP Meeting Moscow, Russia September 5, 2011

2. www.IAOP.org © 2011 IAOP® All Rights Reserved www.IAOP.org A USD $8 Trillion Global Industry* Across: All Functions… Manufacturing (50%); ITES (20%); ITC (10%), Real Estate & Facility Services (10%); Other (10%) All Industries… Manufacturing (40%); ITC & Services (20%); Financial Services (10%); Pharma (5%); Government (5%); Other (20%) Globally… US (50%); Europe (25%); Asia (20%); Other (5%) *IAOP Estimates

3. www.IAOP.org © 2011 IAOP® All Rights Reserved www.IAOP.org Business & Economic Powerhouse *The 2010 Global Outsourcing 100® The Industry’s Top Outsourcing Companies*: Average US$200M in revenue in 2010 with 25% above US$1B and dozens in US$10B+ range. Grew revenue by 5% in 2010 - worst economic period since Great Depression - and by 13% in 2009 Employ 3,200 people on average (400,000+ for largest) and increased employment by 7% in 2010 and by 13% in 2009 Operate in 11 countries on average

4. www.IAOP.org © 2011 IAOP® All Rights Reserved www.IAOP.org Latest Industry Trends Recent economic crisis has been good for outsourcing Today’s outsourcing is more strategic, knowledge-based, bundled Industry has become more globally competitive Offshoring has become all-shoring Advanced tools & technologies, i.e. Cloud Computing, SaaS, analytics are redefining the industry

5. www.IAOP.org © 2011 IAOP® All Rights Reserved www.IAOP.org How Governments are Responding National Programs for: Branding/Advertising/Recruitment Pro-Outsourcing Policies & Incentives National Infrastructure Investments Corporate Infrastructure Investments (Parks, FTZs, etc.) People Investments in Education, Training and Certifications

6. www.IAOP.org © 2011 IAOP® All Rights Reserved www.IAOP.org The MSC Malaysia Bill of Guarantees promises the following benefits: 1. Unrestricted employment of local and foreign knowledge workers 2. Freedom of ownership by being exempted from local ownership requirements 3. World-class physical and information infrastructure 4. Competitive financial incentives, including no income tax for up to 10 years, or an investment tax allowance, and no duties on import of multimedia equipment 5. Freedom to source capital globally and the right to borrow funds globally 6. Intellectual property protection and cyberlaws 7. No internet censorship 8. Globally-competitive telecommunications tariff 9. MDeC as a one-stop support centre Pro-Outsourcing Policies & Incentives

7. www.IAOP.org © 2011 IAOP® All Rights Reserved www.IAOP.org The “1,000-100-10 Project”, led by China’s Ministry of Commerce (MOFCOM), aims to establish 10 Chinese cities as outsourcing bases, attract 100 international corporate customers to offshore in these cities, and assist in the development of 1,000 large and medium-sized outsourcing vendors that can meet the demands of multinational customers. These cities enjoy support from China’s central government in macroeconomic policies, planning, investment, coordination and other related aspects. In addition, special-purpose funds are earmarked by the government for the construction of public information platforms, the development of human resources, and the improvement of infrastructure and investment environments in these cities. National Infrastructure Investments

8. www.IAOP.org © 2011 IAOP® All Rights Reserved www.IAOP.org 8 Source: Information Technology Association - Jordan Need to improve talent pool Industry Maturity People Investments Source: www.intaj.net Jordan: Outsourcing industry is growing due to good business environment & significant efforts are planned to develop talent pool. China: Announced goal of certifying 1.2M professionals in services outsourcing by end of 2012

9. www.IAOP.org © 2011 IAOP® All Rights Reserved www.IAOP.org IAOP® is: A Global Membership-Based Organization for Customers, Providers and Advisors with 112,000+ Members and Affiliates Worldwide The De Facto Standard for Corporate & Professional Excellence in Outsourcing Delivering Proven Results – 85% of Customer Members Credit IAOP for Improved Outsourcing Outcomes

10. www.IAOP.org © 2011 IAOP® All Rights Reserved www.IAOP.org IAOP Member Services: Organizational Development Processes Technologies Training & Certification  Certified Outsourcing Professional  Certified Outsourcing Specialist Professional Development  Professional Membership  Participation in Chapters, Boards, Standards Committees & Research Professional Recognition  Outsourcing Hall of Fame  The GEO Award  Member of the Year BestOutsourcingJobs.com  Post or Find a Job in Outsourcing OPBOK  Standards & Templates  Corporate Social Responsibility (CSR)  Code of Ethics Best Practices  Firmbuilder.com  Surveys/Research  Chapters & Events eSCM  Organization Certification  Customer & Service Provider Models ToolsMAP - Repository  Categorizes User Needs  “MAPS” Available Tools & Technologies to User Needs Value Health Check Survey (VHCS)  Based on the “Sourcing Relationship Value Framework’  Web-Enabled Tool People Helping Customers, Providers, and Advisors Achieve Better Outsourcing Outcomes

11. www.IAOP.org © 2011 IAOP® All Rights Reserved www.IAOP.org IAOP Member Services: Business Development BrandingMarketing Thought-Leadership  Chapter Leadership Teams  IAOP Board/Committee Participation  Conference/Chapter Presentations  Firmbuilder.com – Content Submission  Globalization Today – Article Submission  Research/Surveys/Studies Global Outsourcing 100®  Global Provider Listing  Global Advisor Listing Advertising  IAOP.org  Globalization Today Magazine  Fortune Magazine Speaking, Exhibition Halls & Other Sponsorship Opportunities  Annual World Summit & Regional Conferences/Events  IAOP Chapter Meetings & Webinars  IAOP Speakers Bureau Member-to-Member Networking  IAOP Member-to-Member Network  IAOP Linked-In, Twitter & Other Tools Helping Customers, Providers, and Advisors Achieve Better Outsourcing Outcomes

12. www.IAOP.org © 2011 IAOP® All Rights Reserved www.IAOP.org "It is not the strongest of the species that survive nor the most intelligent, but the most adaptive to change." - Darwin -

13. www.IAOP.org © 2011 IAOP® All Rights Reserved www.IAOP.org Final Thoughts Fundamental restructuring of business continues - globalization Services outsourcing industry is +/-25 years in - at about the half-way point Industry getting smarter, more sophisticated, and more globally competitive A Healthy Global Outsourcing Industry = – Successful Customers, Providers & Advisors – People + Processes + Technologies

14. www.IAOP.org © 2011 IAOP® All Rights Reserved www.IAOP.org Announcement IAOP/ASTRA Meeting and Workshops When: Monday, October 10, 2011 1:00 pm Outsourcing Professional Certification Framework (OPCF) to - Outsourcing Industry Professional Certifications 3:00 pm - How to Earn Your Certification 3:15 pm Outsourcing Relationship Health Check Process TM to - Introduction to the Value Health Check SurveyTM 5:15 pm - Share Sample Reports/Data - Share Best Practices & How to Execute the Process 5:30 pm IAOP/ASTRA Chapter Meeting Workshops Are Free & Registration is Required