1DRAFT–CONFIDENTIALNOTTOBEDISTRIBUTEDFABMay30,2003CompetitiveAssessment2DRAFT–CONFIDENTIALNOTTOBEDISTRIBUTEDF&Aoutsourcingisacrowdedmarketplace,withservicesofferedbyITandtraditionalconsultingcompanies,pureBPOplayers,andcompanieswithlargesharedservicecentersinlowcostlocationsCurrentlythemarketisstillhighlyfragmented,andnoclearmarketleaderhasyetemergedContinuedmarketentryaswellasconsolidationisexpectedtooccurwithinthenext2yearsthroughacquisitions,partnerships,andbankruptcies/exitofsmallerplayersMostplayers,includingtheleadersinthisspace,arestrengtheningtheirF&Aofferinginanattempttobecometheundisputedgloballeaderinthisfastgrowingmarketbyofferinganall-inclusivebest-of-breedF&ABPOpackagearoundtheworldManyplayerslookingtoexpandgeographicallybyreachingouttoclientsbeyondtheUSandUKPlayersarefocusingonbuilding/acquiringoffshoreoutsourcingservicecenterstocontinueloweringtheircostsByleveragingtheCGEYBPOcapabilitiesandtheAmericanExpressprocessingcenters,anewjointventurecouldquicklybecomeamarketleaderCGE&YandAmericanExpresscanleveragetheirreputation,brandandrelationswiththeworld’slargestcompaniestoacceleratethepenetrationbythenewjointventureManyofthesmallerandmorespecializedplayersareexpectedtobeinterestedinforgingstrategicalliancesoramergerwiththisnewmajorplayerTheF&ABPOmarkethasTheF&ABPOmarkethasmanycompetitorsbutisstillmanycompetitorsbutisstillhighlyfragmentedhighlyfragmentedManyplayersareinvestingManyplayersareinvestingsignificantlyandgloballytosignificantlyandgloballytoexpandandimprovethebreadthexpandandimprovethebreadthandqualityofF&AservicesandqualityofF&AservicesCGE&Y&AmericanExpresshaveCGE&Y&AmericanExpresshaveanopportunitytobecomealeadinganopportunitytobecomealeadingproviderinF&ABPOspaceproviderinF&ABPOspaceTheF&ABPOMarketIsHighlyCompetitiveButVeryFragmented,CreatinganOpportunityforCGEY/AmExtoBecomeaLeader3DRAFT–CONFIDENTIALNOTTOBEDISTRIBUTEDCGEYAnalyzedFourMajorCategoriesofF&ABPOPlayersThehighlyfragmentedmarketoffersstrongopportunityforCGEY/AmExThehighlyfragmentedmarketoffersstrongopportunityforCGEY/AmExIT&GeneralConsultingFirmsIT&GeneralConsultingFirmsLeadingconsultingandITcompanieswithworldwidecoverage,multipleproductsandservices,withF&ABPOrepresentingasmallbutgrowingpartoftheirrevenuePureBPOPlayersPureBPOPlayersSmall,medium,andlargecompanies,forwhichalargeportionofrevenueisderivedfromofferingBPOproductsandservices,someofferingF&ABPOexclusivelyProcessSpecialistsProcessSpecialistsSmall,medium,andlarge-sizecompaniesfocusingononeF&ABPOprocess,suchaspayrolloraccountsreceivableOther/PotentialCompetitorsOther/PotentialCompetitorsLargecompaniesofferingmulti-processF&ABPOfor“in-house”needs,withmultipleoffshoresharedservicescenters,whichcouldpotentiallyofferthisserviceto3rdpartiesCGEYAccentureIBM/PWCDeloitteEDSCSCCGIBearingPointCreditekOutsourcePartnersInternat.APIOutsourcingEphinayExultXchangingCoEfficientWiproSpectramindOutsourcingSolutionsXansaNetLedgerSourceNetSolutionsEquitantEcreditCompassConnectionsEfundsWorldNetworkConnectionsIntacctACSCrossdomainSolutionsInaltusEXLServiceGelcoNechoSystemsConcurTechnologiesAutomaticDataProcessingCeridianPaychexDiversifiedCreditServicesFlexiInternationalCheckfreeIntelliRiskManagementGEGMJPMorganChaseAgilentCitibankHSB...