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First Quarter 2014 Global ISG Outsourcing Index

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The ISG Outsourcing Index (formerly the TPI Index) provides a quarterly review of the latest sourcing industry data and trends for clients, service providers, analysts and the media. For more than a …

The ISG Outsourcing Index (formerly the TPI Index) provides a quarterly review of the latest sourcing industry data and trends for clients, service providers, analysts and the media. For more than a decade, it has been the authoritative source for marketplace intelligence related to outsourcing transaction structures and terms, industry adoption, geographic prevalence and service provider performance.

The global outsourcing market is constantly evolving. Keep pace with the change and capitalize on the latest trends with the ISG Outsourcing Index.

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  • 1. Hosted by: Joseph Foresi Janney Capital Markets 10 April 2014 The Global ISG Outsourcing Index First Quarter 2014 Market Data and Insights
  • 2. © 2014 Information Services Group, Inc. All Rights Reserved isg-one.com *Contracts with ACV ≥ $5M from the ISG Contracts Knowledgebase® 2 Covering the state of the outsourcing industry for global, commercial contracts.* Welcome to the 46th Quarterly Outsourcing Index Review Esteban Herrera Partner John Keppel Partner & President Dr. David Howie Partner
  • 3. © 2014 Information Services Group, Inc. All Rights Reserved isg-one.com *Contracts with ACV ≥ $5M from the ISG Contracts Knowledgebase® 3 At a Glance BROADER MARKET ACV UP Y/Y WITH 10 MEGA-RELATIONSHIPS SUPPORTING MARKET GROWTH ITO ACV UP, DRIVEN BY NEW SCOPE ACV BPO ACV DECLINED Y/Y ON INCONSISTENT CONTRACT ACTIVITY AMERICAS ACV IMPROVES MARKEDLY OVER THE PRIOR THREE QUARTERS EMEA ACV UP MODERATELY Y/Y WITH CONTRACTING ACTIVITY REMAINING HIGH FOR NEW SCOPE AND ITO AWARDS ASIA PACIFIC ACV UP SIGNIFICANTLY Y/Y AS SEVERAL MAJOR MARKETS, ANZ, INDIA AND SE ASIA, REBOUND FROM A DIFFICULT 2013 Scorecard 1Q14 1Q Y/Y 1Q Q/Q 1Q14 1Q Y/Y 1Q Q/Q ACV ($B)* Change Change Counts Change Change Global Market $ 5.7 14% 24% 321 11% 6% New Scope $ 3.6 41% 23% 211 8% 3% Restructurings $ 2.1 -15% 24% 110 20% 11% Mega-Relationships $ 1.6 18% 229% 10 25% 233% ITO $ 4.3 29% 16% 229 21% 1% BPO $ 1.4 -16% 53% 92 -7% 19% Americas $ 1.9 -16% 32% 113 -7% 0% EMEA $ 2.9 29% 10% 165 21% 1% Asia Pacific $ 0.9 89% 69% 43 43% 59%
  • 4. © 2014 Information Services Group, Inc. All Rights Reserved isg-one.com *Contracts with ACV ≥ $5M from the ISG Contracts Knowledgebase® 4 Broader Market ACV is up Y/Y with increases in both volume and size of awards supporting growth. The award count in the trailing 12 months is at an all-time high. Broader Market ACV ($B)* and Counts Broader Market Trailing 12 Months Broader Market Contract Award Trends $5.7 $4.6 $5.7 $3.6 $5.0$5.2$5.6 $6.2$6.0 321303 349 210 288274252 285 328 1Q144Q3Q2Q1Q134Q3Q2Q1Q12 ACV Counts $19.7$22.0$23.3$21.2$22.6 1,1831,0991,1731,0941,009 2Q13 - 1Q142Q12 - 2Q132Q11 - 1Q122Q10 - 1Q112Q09 - 1Q10 ACV Counts
  • 5. © 2014 Information Services Group, Inc. All Rights Reserved isg-one.com *Contracts with ACV ≥ $5M from the ISG Contracts Knowledgebase® 5 10396879127 221820161422192324 289282 320 188 266245 224 250 297 178 164 187 113 147 135 105 148 172 1Q144Q3Q2Q1Q134Q3Q2Q1Q12 $1.6$1.4$1.0 $1.2$0.7 $1.5 $1.8 $2.0$2.4 $1.1 $0.9 $1.1 1Q144Q3Q2Q1Q134Q3Q2Q1Q12 The 10 awards this quarter in the largest ACV band are one of the best results in two years. Counts in lowest ACV band ($5M-$9M) are up 20% from a year ago. Broader Market Contract Trends by Deal Size Comparing Broader Market Contracting Awards ($B)* Grouping in ACV Contract Size Bands ACV($B)* Contract Counts $10-39M $40-99M $100M+$5-9M
  • 6. © 2014 Information Services Group, Inc. All Rights Reserved isg-one.com *Contracts with ACV ≥ $5M from the ISG Contracts Knowledgebase® 6 New Scope ACV is up in 1Q14 on increasing contract activity. In the last 12 months, the number of Restructuring awards is up 24% over the prior 12-month period. New Scope ACV ($B)* Trailing 12 Months New Scope and Restructuring Contract Award Trends New Scope ACV ($B)* Counts Restructuring ACV ($B)* Trailing 12 MonthsRestructuring ACV ($B)* and Counts $12.5 $14.3$14.2$15.3$16.3 809797 888836791 2Q13 - 1Q14 2Q12 - 2Q13 2Q11 - 1Q12 2Q10 - 1Q11 2Q09 - 1Q10 ACV Counts $7.2$7.7 $9.1 $5.9$6.3 374 302285 258 218 2Q13 - 1Q14 2Q12 - 2Q13 2Q11 - 1Q12 2Q10 - 1Q11 2Q09 - 1Q10 ACV Counts $3.6 $3.0$3.2 $2.7$2.6 $3.5$3.7 $4.5 $3.5 211204 235 159 196188193 220 240 1Q144Q3Q2Q1Q134Q3Q2Q1Q12 ACV Counts $2.1 $1.7 $2.5 $0.9 $2.4 $1.7$1.8$1.7 $2.5 110 99 114 51 9286 5965 88 1Q144Q3Q2Q1Q134Q3Q2Q1Q12 ACV Counts
  • 7. © 2014 Information Services Group, Inc. All Rights Reserved isg-one.com *Contracts with ACV ≥ $5M from the ISG Contracts Knowledgebase® 7 ITO ACV is up 29% Y/Y on substantial New Scope ACV. In the last 12 months, the number of contracts is up 15% over the prior 12-month period. ITO Trailing 12 Months ITO Contract Award Trends ITO ACV ($B)* and Contract Counts $4.3$3.7$4.3 $2.3 $3.4$3.4$3.7$3.5$4.1 229226245 127 189194 162173 209 1Q144Q3Q2Q1Q134Q3Q2Q1Q12 ACV Counts ITO Domain Details ACV ($B)* $1.30 $0.56 $0.70 $1.76 $0.0 $0.5 $1.0 $1.5 $2.0 ADM Network Services ADM + Infrastructure Infrastructure Avg of 8 Prior Qtrs 1Q14 ITO New vs. Restructuring ACV ($B)* $14.6$13.9 $16.3$15.9$16.7 827 718744701668 2Q13 - 1Q14 2Q12 - 2Q13 2Q11 - 1Q12 2Q10 - 1Q11 2Q09 - 1Q10 ACV Counts $2.33 $1.37 $2.81 $1.50 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 New Scope Restructuring Range of Prior 8 Qtrs Avg of 8 Prior Qtrs 4Q13 1Q14
  • 8. © 2014 Information Services Group, Inc. All Rights Reserved isg-one.com *Contracts with ACV ≥ $5M from the ISG Contracts Knowledgebase® 8 BPO ACV and number of awards are up Q/Q, 53% and 19% respectively, yet the trailing 12 months compares show a significant decline over the prior like period. BPO Trailing 12 Months BPO Contract Award Trends BPO ACV ($B)* and Contract Counts BPO Domain Details ACV ($B)* $0.27 $0.14 $0.17 $0.01 $0.02 $0.35 $0.26 $0.08 $0.08 $0.03 $0.0 $0.1 $0.2 $0.3 $0.4 $0.5 Multi-Process Contact Centers F&A Procurement HRO Facilities Mgmt Industry-Specific R&D/KPO Document Mgmt Supply Chain Mgmt Avg of 8 Prior Qtrs 1Q14 BPO New vs. Restructuring ACV ($B)* $0.62 $0.30 $0.84 $0.57 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 New Scope Restructuring Range of Prior 8 Qtrs Avg of 8 Prior Qtrs 4Q13 1Q14 $1.4 $0.9 $1.4$1.3 $1.7$1.8$1.9 $2.7 $1.9 92 77 104 83 99 80 90 112 119 1Q144Q3Q2Q1Q134Q3Q2Q1Q12 ACV Counts $5.1 $8.1 $7.0 $5.4$6.0 356381 429 393 341 2Q13 - 1Q14 2Q12 - 2Q13 2Q11 - 1Q12 2Q10 - 1Q11 2Q09 - 1Q10 ACV Counts
  • 9. © 2014 Information Services Group, Inc. All Rights Reserved isg-one.com *Contracts with ACV ≥ $5M from the ISG Contracts Knowledgebase® 9 Accenture Atos Capgemini Cognizant HCL IBM Infosys TCS Wipro Xerox Minacs Aon Hewitt Atento Capita CB Richard Ellis Garda World Genpact Interserve ISS Global Xchanging BT Carillion CSC Dell EVRY HP iGATE Orange Tech Mahindra T-Systems ITO Only The leading providers in both ITO and BPO have remained fairly consistent in recent years. Top 20 Commercial Providers by Scope - Trailing 12 Months Note: Service providers in alphabetical order; no rankings implied. Placements based on ACV of commercial contract awards sourced from ISG Contracts Knowledgebase ®. BPO Only Leaders in both ITO and BPO
  • 10. © 2014 Information Services Group, Inc. All Rights Reserved isg-one.com *Contracts with ACV ≥ $5M from the ISG Contracts Knowledgebase® 10 Americas ACV, while down Y/Y, is at its highest point in four quarters. The trailing 12 months ACV is down 24%, yet the number of awards is down only slightly. Americas Trailing 12 Months Americas Contract Award Trends $6.2 $8.2$8.9 $7.9 $9.1 433 450 538 439445 2Q13 - 1Q14 2Q12 - 2Q13 2Q11 - 1Q12 2Q10 - 1Q11 2Q09 - 1Q10 ACV Counts Americas Quarterly ACV ($B)* and Counts $1.9 $1.4 $1.7 $1.1 $2.3 $1.9$1.9$2.1 $2.9 113113 137 70 122 111106111 167 1Q144Q3Q2Q1Q134Q3Q2Q1Q12 ACV Counts Americas ITO vs. BPO ACV ($B)* $1.10 $0.34 $1.01 $0.90 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 ITO BPO Range of Prior 8 Qtrs Avg of 8 Prior Qtrs 4Q13 1Q14 Americas New vs. Restructuring ACV ($B)* $0.90 $0.54 $0.92 $0.99 $0.0 $0.5 $1.0 $1.5 $2.0 New Scope Restructuring Range of Prior 8 Qtrs Avg of 8 Prior Qtrs 4Q13 1Q14
  • 11. © 2014 Information Services Group, Inc. All Rights Reserved isg-one.com *Contracts with ACV ≥ $5M from the ISG Contracts Knowledgebase® 11 $0.13 $0.04 $0.01 $0.02 $0.00 $0.05 $0.10 $0.15 $0.20 $0.25 $0.30 Canada Brazil Other LatAm Mexico Range of Prior 8 Qtrs Avg of 8 Prior Qtrs 4Q13 1Q14 U.S. results rebounded in 1Q14 and were up over the eight-quarter average. Financial Services ACV is up substantially, driven by large contract awards. Americas Contract Award Trends Detail Americas Sub-regions ACV ($B)* $0.45 $0.64 $0.12 $0.14 $0.09 $0.21 $0.08 $0.17 $- $0.2 $0.4 $0.6 $0.8 Manufacturing Financial Services Telecom & Media Energy Travel, Transport, Leisure Business Services Healthcare & Pharma Retail Avg of 8 Prior Qtrs 1Q14 Americas Industries ACV ($B)* $1.71 $- $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 U.S.
  • 12. © 2014 Information Services Group, Inc. All Rights Reserved isg-one.com *Contracts with ACV ≥ $5M from the ISG Contracts Knowledgebase® 12 EMEA ACV was up 29% Y/Y on continued high contracting activity, up 21% Y/Y. The positive quarterly results are driven by New Scope awards and ITO strength. EMEA Trailing 12 Months EMEA Contract Award Trends EMEA Quarterly ACV ($B)* and Counts EMEA ITO vs. BPO ACV ($B)*EMEA New vs. Restructuring ACV ($B)* $1.56 $1.11 $2.23 $0.71 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 New Scope Restructuring Range of Prior 8 Qtrs Avg of 8 Prior Qtrs 4Q13 1Q14 $2.15 $0.51 $2.49 $0.46 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 ITO BPO Range of Prior 8 Qtrs Avg of 8 Prior Qtrs 4Q13 1Q14 $2.9$2.7 $3.5 $2.0$2.3 $2.8$2.9$2.7$2.6 165163 174 109 136132 108 125 135 1Q144Q3Q2Q1Q134Q3Q2Q1Q12 ACV Counts $11.1$10.7 $12.4 $10.8$11.1 611 501522521 438 2Q13 - 1Q14 2Q12 - 2Q13 2Q11 - 1Q12 2Q10 - 1Q11 2Q09 - 1Q10 ACV Counts
  • 13. © 2014 Information Services Group, Inc. All Rights Reserved isg-one.com *Contracts with ACV ≥ $5M from the ISG Contracts Knowledgebase® 13 The U.K. and Nordics built on their consistent performances. French ACV is up significantly due to large contract awards. $1.28 $0.33 $0.42 $0.15 $0.06 $0.63 $0.05 $0.04 $- $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 $1.6 U.K. & Ireland DACH Nordics Benelux Southern Europe France Africa & Middle East E. Europe & Russia Range of Prior 8 Qtrs Avg of 8 Prior Qtrs 4Q13 1Q14 EMEA Contract Award Trends Detail EMEA Sub-regions ACV ($B)* EMEA Industries ACV ($B)* $0.41 $0.53 $0.56 $0.19 $0.79 $0.27 $0.08 $0.10 $- $0.2$0.4$0.6$0.8$1.0 Manufacturing Financial Services Telecom & Media Energy Travel, Transport, Leisure Business Services Healthcare & Pharma Retail Avg of 8 Prior Qtrs 1Q14
  • 14. © 2014 Information Services Group, Inc. All Rights Reserved isg-one.com *Contracts with ACV ≥ $5M from the ISG Contracts Knowledgebase® 14 Asia Pacific ACV was up significantly Y/Y on the highest contracting activity in two years. The ACV of the largest AP ITO awards were up significantly Y/Y and Q/Q. Asia Pacific Trailing 12 Months Asia Pacific Contract Award Trends $2.4 $3.1 $1.9 $2.5$2.5 139148 113 134126 2Q13 - 1Q14 2Q12 - 2Q13 2Q11 - 1Q12 2Q10 - 1Q11 2Q09 - 1Q10 ACV Counts Asia Pacific Quarterly ACV ($B)* and Counts $0.9 $0.5$0.5$0.5$0.5$0.6 $0.8 $1.4 $0.5 43 27 38 313031 38 49 26 1Q144Q3Q2Q1Q134Q3Q2Q1Q12 ACV Counts Asia Pacific ITO vs. BPO ACV ($B)* $0.45 $0.07 $0.81 $0.06 $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 ITO BPO Range of Prior 8 Qtrs Avg of 8 Prior Qtrs 4Q13 1Q14 Asia Pacific New vs. Restructuring ACV ($B)* $0.50 $0.02 $0.50 $0.37 $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 New Scope Restructuring Range of Prior 8 Qtrs Avg of 8 Prior Qtrs 4Q13 1Q14
  • 15. © 2014 Information Services Group, Inc. All Rights Reserved isg-one.com *Contracts with ACV ≥ $5M from the ISG Contracts Knowledgebase® 15 $0.23 $0.31 $0.12 $0.05 $0.15 $0.01 $- $0.1 $0.2 $0.3 $0.4 $0.5 $0.6 $0.7 $0.8 $0.9 $1.0 India and South Asia ANZ Greater China Japan South East Asia South Korea Range of Prior 8 Qtrs Avg of 8 Prior Qtrs 4Q13 1Q14 Several of Asia Pacific’s major markets, ANZ, India and SE Asia, rebounded from 4Q13. 1Q14 ACV awards in Telecom and Manufacturing are up significantly. Asia Pacific Contract Award Trends Detail Asia Pacific Sub-regions ACV ($B)* Asia Pacific Industries ACV ($B)* $0.28 $0.12 $0.27 $0.01 $0.17 $0.00 $0.01 $0.01 $- $0.1 $0.2 $0.3 Manufacturing Financial Services Telecom & Media Energy Travel, Transport, Leisure Business Services Healthcare & Pharma Retail Avg of 8 Prior Qtrs 1Q14
  • 16. © 2014 Information Services Group, Inc. All Rights Reserved isg-one.com *Contracts with ACV ≥ $5M from the ISG Contracts Knowledgebase® 16 Asia PacificEMEAAmericas Half of the Top 20 Providers in each region lead across all three major markets. Top 20 Commercial Providers by Region - Trailing 12 Months Note: Service providers in alphabetical order; no rankings implied. Placements based on ACV of commercial contract awards sourced from ISG Contracts Knowledgebase ®. Global Multi-Region Single Region Accenture Accenture Accenture Capgemini Capgemini Capgemini Cognizant Cognizant Cognizant CSC CSC CSC HCL HCL HCL HP HP HP IBM IBM IBM Infosys Infosys Infosys TCS TCS TCS Tech Mahindra Tech Mahindra Tech Mahindra iGATE iGATE Wipro Wipro Allscripts Atos Amdocs Atento BT ChinaSoft CB Richard Ellis Capita Fujitsu Dell Carillion Hollysys Garda World EVRY Lufthansa Systems ISS Global Orange Optus Minacs Quindell Pactera Xerox Tieto Redknee T-Systems Telstra
  • 17. © 2014 Information Services Group, Inc. All Rights Reserved isg-one.com *Contracts with ACV ≥ $5M from the ISG Contracts Knowledgebase® 17 For the past 12-month total, Public Sector ACV represents 64% of global awards, outpacing the Commercial sector, with larger average contract size in comparison. Public Sector Trailing 12 Months Counts Global Public Sector Award Trends 1,1831,0991,1731,0941,009 1,066 956874849 704 2Q13 - 1Q14 2Q12 - 2Q13 2Q11 - 1Q12 2Q10 - 1Q11 2Q09 - 1Q10 Commercial Sector Public Sector Public Sector Trailing 12 Months ACV ($B)* Public Sector ITO vs. BPO TTM ACV ($B)*Public Sector ACV Percentage of All Contracts 64% 55% 51% 56% 49% 2Q13 - 1Q14 2Q12 - 2Q13 2Q11 - 1Q12 2Q10 - 1Q11 2Q09 - 1Q10 $19.7 $35.1 $27.1 $24.4 $27.4 $21.6 2Q13 - 1Q14 2Q12 - 2Q13 2Q11 - 1Q12 2Q10 - 1Q11 2Q09 - 1Q10 Commercial Sector Public Sector $28.1 $20.3 $17.6 $20.3 $16.5 $7.1$6.8$6.8$7.1$5.1 2Q13 - 1Q14 2Q12 - 2Q13 2Q11 - 1Q12 2Q10 - 1Q11 2Q09 - 1Q10 Public Sector ITO ACV Public Sector BPO ACV
  • 18. © 2014 Information Services Group, Inc. All Rights Reserved isg-one.com *Contracts with ACV ≥ $5M from the ISG Contracts Knowledgebase® 18 The U.S. and U.K. Public Sectors have ACV market shares that far outpace other markets. U.S.-based providers are market leaders, regardless of geography. Share of Public Sector ACV for Trailing 12 Months Top 10 Providers by Major Region Global Public Sector Award Trends by Region ITO vs. BPO ACV for Trailing 12 Months 61% 23% 8% 7% US & Canada U.K. Continental Europe Australia U.S. & Canada CACI CGI CSC General Dynamics Harris Corp. HP Lockheed Martin Mantech Northrop Grumman SAIC Australia Accenture CSC Data 3 Fujitsu HP IBM Optus Serco Telstra Unisys U.K. Atos BT Capgemini Capita CGI CSC Fujitsu HP IBM Serco Europe Accenture Atos BT Capgemini Fujitsu HP IBM Indra T-Systems Tieto 72% 39% 89% 67% 28% 61% 11% 33% US & Canada UK Continental Europe Australia ITO BPO Other = 2% Note: Service providers in alphabetical order; no rankings implied. Placements based on ACV of public sector contract awards sourced from ISG Contracts Knowledgebase ®.
  • 19. Special Topic for First Quarter 2014 Esteban Herrera Partner
  • 20. © 2014 Information Services Group, Inc. All Rights Reserved isg-one.com *Contracts with ACV ≥ $5M from the ISG Contracts Knowledgebase® 20 A Look at the Growth in the U.S. Healthcare Market The U.S., which has the largest Healthcare market globally, is experiencing dynamic change along with a shift in the mix between Commercial and Public Sector sourcing. 2002-04 Since 2011 57%U.S Market Share that’s $6.7 billion in contracting Global Public and Commercial Healthcare Market Activity nearly Doubled from 10 years ago U.S. Federal Healthcare Market Activity Surges (U.S. $B) $2.56 $1.55 $1.29 $1.33 $2.86 $3.10 Since 2011 2008-2010 U.S. Federal U.S. State and Local U.S. Commercial
  • 21. © 2014 Information Services Group, Inc. All Rights Reserved isg-one.com *Contracts with ACV ≥ $5M from the ISG Contracts Knowledgebase® 21 U.S. Healthcare Change – There’s big work to be done Seismic shifts in the U.S. Healthcare industry are creating compliance and efficiency challenges, triggering unprecedented Commercial and Public sector spending. A complete transformation of the business model ► From B2B to B2C ► Population and wellness-management solutions (big data) ► Bundled payments require formation of ACOs Affordable Care Act Competition drives effectiveness and efficiency ► Project work shifts spend from staff augmentation to managed services ► M&A activity by both payers and providers to handle administrative burden ► Blurred lines between payer and provider may drive vertical integration S $$ $ Provider Competition Uncertainty ICD10 Implementation uncertainty around new claims coding protocol ► Industry effectively caught “half-pregnant” without many choices ► Claims processing efficiency and effectiveness under threat
  • 22. © 2014 Information Services Group, Inc. All Rights Reserved isg-one.com *Contracts with ACV ≥ $5M from the ISG Contracts Knowledgebase® 22  Broader Market ACV turned positive with larger deals driving growth  New Scope awards support positive results in the IT market, while the BPO market trends remain uneven  Europe continues to generate consistent ACV results, and contracting activity remains high  Large ITO awards helped support Asia Pacific ACV growth as contracting activity rebounded from a softer 2013  Americas had its best quarterly ACV result since 1Q13  The U.S. Healthcare market (both public and commercial sector) is undergoing significant change, with a heightened focus on cost control, making it an ideal market for stepped-up sourcing activity  We expect first-half 2014 ACV growth in excess of 15%  We expect full-year 2014 ACV growth to reach high single-digits over a weak 2013. The industry pipeline is showing good activity levels  Number of contracts should continue to grow at a larger magnitude than ACV as many second-generation contracts get renewed in multi-sourced environments 1Q14 ISG Outsourcing Index Summary and Outlook summary market outlook market
  • 23. © 2014 Information Services Group, Inc. All Rights Reserved isg-one.com *Contracts with ACV ≥ $5M from the ISG Contracts Knowledgebase® 23 Please contact us with your questions and comments. Learn More --- Media Contacts --- ► John Keppel Partner and President, ISG +44 (0)7879 432 212 john.keppel@isg-one.com ► Will Thoretz Leader, Marketing & Communications, ISG +1 203 517 3119 will.thoretz@isg-one.com ► Jim Baptiste Matter Communications for ISG +1 978 518 4527 jbaptiste@matternow.com www.isg-one.com
  • 24. First Quarter 2014
  • 25. © 2014 Information Services Group, Inc. All Rights Reserved isg-one.com *Contracts with ACV ≥ $5M from the ISG Contracts Knowledgebase® 25 The ISG Outsourcing Index has moved to ACV as the primary measure of the Broader Market. In transition, we will continue to provide a high-level TCV view of the market via a Scorecard analysis. First Quarter TCV Scorecard *Contracts with TCV ≥ $25M from the ISG Contracts Knowledgebase® Scorecard 1Q14 1Q Y/Y 1Q Q/Q TCV ($B)* Change Change Global Market $ 24.9 25% 18% New Scope $ 16.1 12% 50% Restructurings $ 8.8 57% -16% Mega-deals $ 3.2 17% -37% ITO $ 17.7 26% 37% BPO $ 7.3 22% -13% Americas $ 8.3 51% -12% EMEA $ 12.5 0% 29% Asia Pacific $ 4.1 110% 102%
  • 26. Information Services Group is a leading technology insights, market intelligence and advisory services company, serving more than 500 clients around the world to help them achieve operational excellence. ISG supports private and public sector organizations to transform and optimize their operational environments through research, benchmarking, consulting and managed services, with a focus on information technology, business process transformation, program management services and enterprise resource planning. Clients look to ISG for unique insights and innovative solutions for leveraging technology, the deepest data source in the industry, and more than five decades of experience of global leadership in information and advisory services. Based in Stamford, Conn., the company has more than 800 employees and operates in 21 countries. knowledge powering results® www.isg-one.com