New Report from TPI Momentum(SM) Details for Service Providers Most Promising Opportunities, Best Strategies to Win in Key Functional Areas

TPI Momentum(SM) Market Trends & Insights 2Q09 Service Line Report shows Managed Network Services clients consolidating contracts, Finance & Accounting buyers seeking benefits beyond cost

• Press Release
• Source: TPI
• On 9:56 am EDT, Tuesday October 13, 2009

HOUSTON, Oct. 13 /PRNewswire/ -- TPI, the largest sourcing data and advisory firm in the world and a unit of Information Services Group, Inc. (ISG) (Nasdaq: III - News, IIIU - News, IIIW - News), an industry-leading information-based services company, today announced the release of the second report in its 2009 Market Trends & Insights series for service providers and market watchers detailing the most promising opportunities and best strategies to win in key functional domains of the current global outsourcing market.

The TPI Momentum(SM) Market Trends & Insights 2Q09 Service Line Report combines unique data and firsthand analysis to describe what is happening in nine key IT outsourcing (ITO) and business process outsourcing (BPO) functional areas. To learn more and view a summary, visit http://www.tpi.net/pdf/resources/TPI-Momentum-2Q09-Market-Trends-Insights-Service-Line-Summary.pdf.

"In today's challenging, changing and highly competitive global outsourcing market, service providers need any advantage they can get," said Melany Williams, Partner and Managing Director, TPI Momentum. "With detailed, up-to-date and objective information that will inform their sales and marketing plans and help them decide how to allocate scarce resources, the Market Trends & Insights Service Line Report gives them that edge, and it could only come from TPI Momentum."

Also available now from TPI Momentum is the 2Q09 TPI Index Insider, offering a deep dive into the findings highlighted on the quarterly TPI Index calls. Published semi-annually, the Index Insider is packed with timely, strategic insight into the global sourcing industry for service providers and anyone else interested in interpreting recent market developments. Both information products are available to TPI Momentum members and non-member subscribers.

The Market Trends & Insights Service Line Report presents a comprehensive breakdown of each service line and market data and analysis through the first quarter of 2009 as well as expert observations about the sales process and recommendations to help hone pursuit strategies, maximize interactions with buyers and prevail in competitive situations. With more than 150 pages and 175 charts, tables and graphs, the Report is organized for easy navigation and sharing with focused sales and analyst teams. Extensive data about each of these functional areas provides more depth and understanding into the unique characteristics of each.

Key findings about the ITO market include:

• ITO accounted for 64 percent of all outsourcing contract awards worth at least $25 million and was more volatile than the BPO segment.
• Demand to outsource Application Development & Maintenance services was very strong with buyers driven by the need to improve productivity and agreements getting more sophisticated to include new performance metrics and variable pricing.
• In an effort to implement global changes faster, TPI observed that Managed Network Services clients made efforts to consolidate the number of service providers in their portfolios and to move away from multisourcing. Heritage carriers that were able to expand beyond Transport Services got the most attention during this period.

Key insights into the BPO market in include:

• The market for BPO contracts valued at $25 million or more was essentially flat in 2008, for example, with only 10 more such contracts awarded than in 2007.
• As Finance & Accounting Services matured during the period analyzed, clients sought benefits beyond labor arbitrage, such as access to better technology and delivery center capability, particularly in emerging off- or nearshore destinations such as Latin America.
• The number of Facilities Management Services contract awards nearly tripled during the same period, but looking ahead, TPI expects clients to place increasing importance on the service providers' ability to deliver services that promote corporate social responsibility -- namely reduced energy consumption and carbon emissions.

About TPI

TPI, a unit of Information Services Group, Inc. (ISG) (Nasdaq: III - News, IIIIU - News, IIIIW - News), is the founder and innovator of the sourcing advisory industry, and the largest sourcing data and advisory firm in the world. We are expert at a broad range of business support functions and related research methodologies. Utilizing deep functional domain expertise and extensive practical experience, our accomplished industry experts collaborate with organizations to help them advance their business operations through the best combination of business process improvement, shared services, outsourcing and offshoring. In addition, TPI Momentum(SM), a business unit of TPI, provides information and insights to outsourcing and offshoring service providers to help them provide enhanced services to their sourcing clients. In 2009, TPI is celebrating its 20th anniversary. For additional information, visit www.tpi.net.

About Information Services Group, Inc.

Information Services Group, Inc. (ISG) (Nasdaq: III - News, IIIIU - News, IIIIW - News) was founded in 2006 to build an industry-leading, high-growth, information-based services company by acquiring and growing businesses in advisory, data, business and media information services. In November 2007, the company acquired TPI, the largest independent sourcing advisory firm in the world. Based in Stamford, Conn., ISG has a proven leadership team with global experience in information-based services and a track record of creating significant value for shareowners, clients and employees. For more, visit www.informationsg.com.

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