TELEPERFORMANCE_Registration_document_2017

INTRODUCTION TO THE GROUP 1.2 Operations and strategy

1.2.3 Group markets and positioning

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 Customer experience management world market outlook (2015-2020E)* – US$ billions

1.2.3.1 Core services markets and competitive environment

Annual growth

1.2.3.1.1 Markets and outlook The global market in customer experience management relating to Teleperformance’s Core services business was valued at around US$310-335bbillion in 2016, up from US$280-300bbillion in 2010. Historical growth for the total market was driven by the continued increase in the number of voice and non-voice (email, SMS, social networks and chat) interactions between consumers and brands, boosted by the mobile and digital boom. Phone calls will remain by far the main channel, despite other “non-voice” channels posting double-digit annual growth. This market excludes debt collection, visa applicationmanagement and online interpreting services markets, which are included amongst the Group’s “Specialized services” (see sectionb1.2.3.2 Markets of the Group’s Specialized services ).

5.3%

4.7% 4.9% 4.9%

82.6

3.1%

78.8

75.1

71.7

66.1 68.1

2015 2016 2017E 2018E 2019E 2020E

* Eb=bestimates. Source: Frostb&bSullivan (2017). The ongoing expansion of the outsourcing market will continue to be underpinned by two trends: ■ a permanent need for companies to improve customer service in a secure and controlled environment while minimizing costs, by outsourcing customer experience management to a top- class provider; ■ outsourcing leaders now offer reliable solutions backed by extensive experience (quality, security, sector expertise) and dedicated integrated resources (offshore/nearshore and omnichannel solutions, automation).  Regional breakdown of the outsourced customer experience management world market (US$72 billion estimated in 2017)

 Change in customer experience management world market outsourcing rate (2010-2016)

in billions of US dollars

280-300

310-335

22%

25%

78%

75%

North America 42%

22%

2010

2016

25%

In-house Outsourcing

Source: Everest (2017).

The outsourced customer experience management market comprises customer relations, technical support and customer acquisition. The outsourced customer experience management market is currently valued at around US$80bbillion according to Everest, corresponding to an outsourcing rate of 25%. Frost and Sullivan valued this market at US$72bbillion in 2017, up 5.3% over 2016. For the 2017-2020 period, Frost and Sullivan estimates outsourcing market growth in value at around 5% per year.

11%

16%

22%

4%

1RUWK $PHULFD GRP

APAC /$7$0 R΍VKRUH $3$& R΍VKRUH

LATAM EMEA Source: Frostb&bSullivan (2017).

The biggest market is the North American market, which represents 42% of the world market. Over half of the US market is served from contact centers located in the United States (domestic market), the rest being handled from centers located in the Asia-Pacific region, (Philippines, India, etc.) and Latin America (Mexico, Colombia, etc.).

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Teleperformance bb - bb Registration documentbb 2017