2Q 2020 Global ISG Index™

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Proprietary and Confidential. No part of this document may be reproduced in any form or by any
electronic or mechanical means, including information storage and retrieval devices or systems,
without prior written permission from Information Services Group, Inc.
SECOND QUARTER 2020
Managed Services and
As-a-Service Market Insights
July 8, 2020
HOSTED BY: MOSHE KATRI, WEDBUSH SECURITIES

Covering the State of the Managed Services &
As-a-Service Industry for the Global Commercial Market
Welcome
to the 71st Quarterly
Barry Matthews
Partner and Leader,
ISG North Europe
Stanton Jones
Director & Principal
Analyst ISG Research
Steve Hall
Partner &
President ISG
Kathy Rudy
Chief Data &
Analytics Officer
Michael Fullwood
Partner, ISG
Business Services
Scott Furlong
Partner, ISG
Business Services

3ISG Confidential. © 2020 Information Services Group, Inc. All Rights Reserved.
2Q20
At a GlanceGlobal Combined Market
Combined Market ACV fell nearly 5% Y/Y;
Managed Services was weaker during the first half
of the quarter, declining 16% Y/Y; As-a-Service ACV
improved 7% with IaaS growth offsetting softer
SaaS results
Impact of COVID-19
COVID impact highlighted at end of March
worsened in April; businesses began to slowly
emerge in May and June from the lockdown but
with a digital mandate; the pandemic has
accelerated digital business initiatives
Regional Perspective
The Americas was up based on a very weak
comparison with 2Q19 while EMEA and Asia Pacific
fell as Managed Services and SaaS weighed on
results; IaaS growth, while still positive, slowed to
just over 10% with the three largest hyperscalers
continuing to outpace the market
2Q20
ACV ($B)
2Q Y/Y
Change
1H20
ACV ($B)
1H
Change
Global Commercial
Combined Market
13.2 -4.7% 28.2 1.9%
By Type
Managed Services 6.0 -15.7% 12.8 -7.1%
As-a-Service 7.2 6.9% 15.4 10.7%
By Region
Americas Combined 6.8 6.5% 14.6 9.4%
EMEA Combined 4.5 -9.4% 9.5 -2.2%
Asia Pacific Combined 1.9 -24.4% 4.1 -11.3
Scorecard

2Q20
Impact of COVID-19 on the Managed Services Market
First Quarter
⬤ Managed Services was
depressed 700 basis points
⬤ Managed Services ACV was
on track for 9-10% rise Y/Y
⬤ As-a-Service impacted
minimally; IaaS saw brief
surge due to WFH mandate
Second Quarter
⬤ Managed Services was down
16% Y/Y as industry focuses
on operational resiliency
⬤ SaaS providers down 2% Y/Y
and down 11% Q/Q on fewer
license deals
⬤ IaaS providers, led by
hyperscalers, grew 10.5% Y/Y
with significant moves to
public cloud
Second Half
⬤ Managed Services will have slow recovery in 2H – projected
to be up 3% Q/Q
⬤ Overall ACV for the year forecasted to drop 7.5% Y/Y
⬤ Digital transformation still likely to accelerate post-COVID,
but at a slower pace
⬤ As-a-Services spending likely to shift to cybersecurity,
cloud migration, collaborative tools
-16% -7.5%
YoY
With COVID-19 ~700
Without COVID-19
Managed Services
+9-10%
YoY

2Q20
1.9%
1H
55%
1H
Global Commercial Sector
Quarterly Trends
● Combined Market fell nearly $2B sequentially to a little over
$13.2B, its lowest level since 4Q18
● Managed Services was down in the mid-teens both Y/Y and Q/Q
as large deal activity was either delayed or canceled
● Largest Public Cloud providers (AWS, Azure, Google) grew ACV
by 16% Y/Y, outpacing growth in the As-a-Service market
Global Commercial Sector ACV by Function ($B)Combined Market Quarterly ACV ($B)
7.1
6.0 6.1 6.4 6.9 7.2 6.4 6.9 6.7 7.1 7.0 7.0 6.8 6.0
3.8
3.8 4.0
4.4
5.4
6.1
6.3
6.3 7.2 6.7 7.2 6.8
8.2
7.2
10.9
9.8 10.1
10.8
12.3
13.3
12.7
13.2
13.9 13.8 14.2 13.8
15.0
13.2
1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20
As-a-Service
Managed Services
7.6
3.8
3.2
10.9
9.9
4.0
3.3
10.6
11.5
3.9
2.2
10.7
IaaS
SaaS
BPO
ITO
1H20
1H19
1H18
As-a-Service
ACV
Combined
Market ACV
Managed
Services ACV
As-a-Service
Market Ratio
10.7%
1H
-7.1%
1H

2Q20
the
ISG15 Service & Technology Provider Standouts – GLOBAL
Our Contracts Knowledgebase™ is used to determine placements based
on the annual value of commercial contracts awarded in the past 12 months.
The Big 15 The Building 15 The Breakthrough 15 The Booming 15
Revenues > $10B Revenues $3B-$10B Revenues $1B-$3B Revenues <$1B
Managed Services Market
Accenture
Atos
Capgemini
Cognizant
DXC Technology
IBM Global Services
Infosys
NTT Data
TCS
Amdocs
Bechtle
Computacenter
Genpact *
Global Payments
HCL
OptumInsight
Tech Mahindra
Teleperformance
T-Systems
Wipro
EPAM Systems
JLL
LTI
Mindtree
MITIE *
Mphasis
Sutherland
TietoEvry *
Unisys
Virtusa
Birlasoft *
CSG Systems
Ensono
EXL
Globant
Persistent Systems
As-a-Service Market
Alibaba
Amazon
Google
Microsoft
Salesforce
Tencent *
Adobe Systems
Equinix
ServiceNow
Workday
ACI Worldwide *
Allscripts
Autodesk
Digital Realty
Twilio *
Atlassian
CyrusOne
DocuSign
Flexential
Okta *
OVH
QTS *
RingCentral
Veeva Systems *
* New to leaderboard in 2Q20 Providers in alphabetical order; no rankings implied. Revenues sourced from D&B and individual company financial fillings.

2Q20
Americas Commercial Sector
Quarterly Trends
● 2Q20 Combined Market Y/Y gains were against a weaker 2Q19
● Managed Services declined 12% versus five-quarter average
● As-a-Service ACV dipped below $4B but still rallied to
finish up 11% Y/Y
Combined Market Quarterly ACV ($B) Americas Commercial Sector ACV by Service Type ($B)
2.9 2.5
3.7 3.4 3.8
3.1 3.1
3.7 3.2 2.9
3.9
3.0 3.4 2.9
2.2
2.2
2.3 2.4
2.9
3.2 3.3
3.3
3.7
3.6
3.8
3.7
4.4
3.9
5.1
4.7
6.0 5.8
6.7
6.3 6.4
7.0 6.9
6.5
7.7
6.7
7.8
6.8
1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20
As-a-Service
Managed Services
3.6
2.4
1.8
5.2
4.8
2.5
1.8
4.3
5.8
2.5
1.4
4.9
IaaS
SaaS
BPO
ITO
1H20
1H19
1H18
9.4%
1H
14.2%
1H
57%
1H
Managed Services
ACV
Combined
Market ACV
As-a-Service ACV
As-a-Service
Market Ratio
3.6%
1H

2Q20
EMEA Commercial Sector
Quarterly Trends
● Combined Market ACV registered back-to-back quarterly declines
for the first time since 2018
● Managed Services ACV fell by double digits both sequentially and Y/Y
● As-a-Service ACV was up 13% Y/Y pulled ahead by a 23% gain in
Infrastructure-as-a-Service
Combined Market Quarterly ACV ($B) EMEA Commercial Sector ACV by Service Type ($B)
2.1
1.0
1.2
4.7
2.5
1.1
1.2
4.8
3.0
1.0
0.7
4.8
IaaS
SaaS
BPO
ITO
1H20
1H19
1H18
42%
1H
Managed Services
ACV
Combined
Market ACV
As-a-Service ACV
As-a-Service
Market Ratio
8.8%
1H
-2.2%
1H
-8.8%
1H
3.9
2.8
1.6
2.4 2.6
3.2
2.8 2.5 2.8
3.3
2.4
3.5
2.9 2.6
0.9
1.0
1.0
1.2
1.5
1.6
1.8
1.7
2.0
1.7
1.8
1.7
2.1
1.9
4.8
3.8
2.6
3.6
4.1
4.8
4.6
4.2
4.8
5.0
4.2
5.2
5.0
4.5
1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20
As-a-Service
Managed Services

2Q20
Asia Pacific Commercial Sector
Quarterly Trends
● Managed Services ACV was down significantly Y/Y due to a very
strong 2Q19, which had three mega-deals
● Number of Managed Services awards (57) was the most seen
since 4Q18 but it was confined to lower ACV bands
● As-a-Service market fell back to levels not seen since 4Q18
Combined Market Quarterly ACV ($B) Asia Pacific Commercial Sector ACV by Service Type ($B)
1.92
0.41
0.28
1.07
2.51
0.45
0.29
1.42
2.72
0.38
0.14
0.92
IaaS
SaaS
BPO
ITO
1H20
1H19
1H18
0.37
0.69 0.78 0.61 0.50
0.84
0.48
0.70 0.71
1.00
0.65
0.41 0.52 0.53
0.68
0.65
0.70
0.79 1.05
1.28
1.30
1.30
1.47
1.50
1.55
1.45
1.74
1.361.05
1.34
1.48 1.40
1.55
2.12
1.78
2.00
2.18
2.50
2.20
1.86
2.26
1.89
1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20
As-a-Service
Managed Services
75%
1H
Managed
Services ACV
Combined
Market ACV
As-a-Service
ACV
As-a-Service
Market Ratio
4.6%
1H
-38.7%
1H
-11.3%
1H

2Q20
1H20
Y/Y
Growth
Global Broader
Market
Business
Services
Retail &
Consumer
Packaged Goods
Energy
Financial
Services
Healthcare &
Pharma Manufacturing
Telecom
& Media
Travel,
Transport
Leisure
$28.21B ACV $5.29 ACV $3.39B ACV $1.82B ACV $5.57B ACV $2.65B ACV $4.31B ACV $2.72B ACV $2.47B ACV
Combined Market
Managed Services
As-a-Service
Americas
EMEA
Asia Pacific
Global Commercial Sector Industry Award Trends
10%
9%
-3%
-17%
-2%
-36%
4%
6%
5%
-2%
-9%
-26%
1%
11%
8%
2%
-33%
0%
6%
15%
10%
7%
4%
-13%
17%
11%
-11%
-25%
-29%
-29%
9%
10%
27%
4%
4%
12%
7%
14%
6%
13%
4%
-3%
18%
13%
23%
15%
18%
35%
2%
11%
9%
-7%
-2%
-11%

2Q20 ISG Index™
Proprietary and Confidential. No part of this document may be reproduced in any form or
by any electronic or mechanical means, including information storage and retrieval devices
or systems, without prior written permission from Information Services Group, Inc.
SECOND QUARTER 2020
Emerging Trends in BPO
"If you have a great
customer experience, you
won't need customer service.
Customer service is
insurance for breakdowns
in the customer experience."
Michael Fullwood
Partner, ISG
Business Services
Scott Furlong
Partner, ISG
Business Services

2Q20
Contact Centers
Flexible Work-From-Home
Teams Work Pretty Well
Natural Language
Processing
(AI) Artificial
Intelligence
Contextual
Knowledge
Automation
Machine
Learning
One Path of Mass Customization
and Multi-channel Options
Enterprise Workforces
Will Mix Bots & Humans
Creative, flexible workforces for
increased resilience on an ongoing basis
The ultimate goal is a
proactive cognitive contact center
Enhancing customer experience
is the name of the game

2Q20
Facilities Management Agreements
Will have stronger maintenance
obligations to better address
health concerns
Facilities Management
LogisticsHospitality
Facilities Recovery
Retail
Margin
Capital Costs &
Operating
Expenses Margin
Capital Costs &
Operating
Expenses
Margin
Capital Costs &
Operating
Expenses
Strong Future for
Co-working & Flex-space Models
Particularly in their ability to protect service
providers against events like a pandemic

2Q20
Monetization of Captives
Providers Were Able to Quickly Enable
Employees to Work-From-Home
Most service providers
were able to stand up
a remote workforce
in a matter of days
COVID-19
Horizon
Providers Have Found
Employees have been productive working from home,
and operations have improved
Captives Have Not Been as Resilient as Service Providers
This has prompted some
enterprises to rethink
their captive strategy

2Q20 ISG Index™
Proprietary and Confidential. No part of this document may be reproduced in any form or
by any electronic or mechanical means, including information storage and retrieval devices
or systems, without prior written permission from Information Services Group, Inc.
SECOND QUARTER 2020
Director &
Principal Analyst
ISG Research
Impact of Recent H-1B Executive Order
Stanton Jones
Insider 2Q20 ISG Index™

2Q20
What’s Happening With H-1Bs?
The Pandemic Is Creating Record Unemployment in the U.S.
These federal orders were issued with a focus on increasing wages and
employment rates by focusing H-1B approvals on the most-skilled or highest-paid applicants.
2020 Order
2017 Order
QUARANTINE
The 2020 H-1B Order
● Limited to new H-1B requests and individuals yet to enter the country
● Current U.S. H-1B holders may not be able to return due to COVID-19 restrictions
● Creating anxiety for H-1B holders, their families and companies that sponsor them
The 2017 H-1B Order
President Trump enacted
“Buy American, Hire American”

2Q20
Annual Trends for the Top 10 H-1B Petitioners*
2020 Q1 2019 2018 2017
Cognizant
Infosys
TCS
Wipro
Accenture
Deloitte
Amazon
Apple
Google
Microsoft
-68%
India
Heritage
Systems
Integrators
Tech
Vendors
-75%
-81%
+11%
+40%
+11%
+20%
-58%
-25%
* Source: U.S. State Department

2Q20
Operational Resilience
Through Digital Transformation
Services Firms Have Been Preparing for Policy Changes
Nearshore Hiring
Building College
Recruiting Pipelines
Tapping U.S.-based
Subcontracting Firms
Automation and Labor Arbitrage
Mitigating Risks Through
Technology and Hiring Practices

2Q20
In Summary . . .
⬤ Order is limited to new H-1B requests and those H-1B holders yet to enter the country
⬤ India Heritage Firms: Negligible short-term impact on support services
⬤ Systems Integrators: Could see impact on projects starting in 2Q and 3Q
⬤ Technology Vendors: May increase high-end talent use outside U.S.
⬤ Administration evaluating more restrictions including:
– Creating a new definition for “specialty occupation”
– Requiring an advanced degree
– Decreasing the duration of the H-1B visa
⬤ Existing order likely in place through 1Q20;
Future depends on fall elections

2Q20
Summary and Outlook
● Further Impact of the COVID-19 pandemic is still uncertain
due to possible second wave of infections
● Number of larger transactions will continue to be down as
clients focus on business resiliency and operational issues
Q3 Outlook Revised Market Outlook (3Q Y/Y and Full Year)
Telecom & Media -5%Manufacturing-8%
Business Services -5%Travel, Transport
& Hospitality-13%
Energy -5%Retail & Consumer
Packaged Goods-10% Managed Services
2020 Full Year -7.5%Managed Services 3Q20-11%
Healthcare
& Pharma -13%Financial Services-16% As-a-Service
2020 Full Year 11%As-a-Service 3Q207%
Trends Outlook

2Q20
1. Click the "Listen by Phone“ button.
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2Q
20
Global
ISG IndexTM
Listen by Phone
Barry Matthews
Partner & Leader,
ISG North Europe
+44 7881 954710
barry.matthews@isg-one.com
Scott Furlong
Partner, ISG
Business Services
+1 330 416 8359
scott.furlong@isg-one.com
Steven Hall
President, ISG EMEA
Partner, ISG Digital Services
+44 7384 259676
steven.hall@isg-one.com
Director, Principal
Analyst ISG Research
+1 281 795 2636
stanton.jones@isg-one.com
Stanton Jones
Want to Ask a Question?
Mark Your Calendars!
ISG’s 3Q20 Index Call
is scheduled for:
Michael Fullwood
Partner, ISG
Business Services
+1 404 545 1826
michael.fullwood@isg-one.com
Kathy Rudy
Chief Data &
Analytics Officer
+1 972 653 2153
kathy.rudy@isg-one.com

2Q20
TCV Scorecard
The ISG Index has moved to TCV as the primary measure of the broader market.
We will continue to provide a high-level TCV view of the market via a scorecard analysis.
2Q20
TCV ($B)*
2Q Y/Y
Change
1H
TCV ($B)*
1H Y/Y
Change
Global Commercial Combined Market 27.6 -17% 61.0 -8%
By Type
Managed Services 16.8 -27% 37.8 -14%
As-a-Service 10.9 4% 23.2 6%
ITO 13.0 -21% 31.1 -6%
BPO 3.8 -41% 6.7 -40%
IaaS 5.3 11% 11.4 16%
SaaS 5.5 -2% 11.8 -3%
By Region
Americas Combined 13.9 -5% 29.7 3%
EMEA Combined 10.7 -22% 23.7 -14%
Asia Pacific Combined 3.1 -40% 7.6 -22%
Scorecard
*Contracts with TCV ≥ $25M from the ISG Contracts Knowledgebase™

2Q20
the
ISG15 Service & Technology Provider Standouts – AMERICAS
Accenture
AT&T
Atos
Capgemini
Cognizant
DXC Technology
IBM Global Services
Infosys
NTT DATA
TCS
Verizon *
Amdocs
Cushman &
Wakefield
Genpact *
Global Payments *
HCL
OptumInsight
SS&C Technologies
Tech Mahindra
Teleperformance
Wipro
EPAM Systems
JLL
LTI
Mindtree
Mphasis
Sutherland
TTEC
Unisys
Virtusa
Birlasoft *
CSG Systems
Ensono
EXL
Globant *
Persistent Systems
As-a-Service Market
Amazon
Google
Microsoft
Salesforce
Adobe Systems
Equinix
Paychex
ServiceNow
Workday
ACI Worldwide*
Allscripts
Autodesk
Digital Realty
Twilio *
Ultimate Software
Ceridian HCM
Coresite *
CyrusOne
Docusign *
Flexential
HubSpot*
Paycom
QTS *
RingCentral

2Q20
the
ISG15 Service & Technology Provider Standouts – EMEA
Accenture
Atos
BT Group
Capgemini
Cognizant
DXC Technology
IBM Global Services
Infosys
ISS Global
TCS
Amdocs
Bechtle
Computacenter
HCL
Orange Business
Services
SoftwareOne *
Sopra Steria
Tech Mahindra
Teleperformance
T-Systems
Wipro
Alten
Arqiva *
Asseco
Cancom
EPAM Systems *
JLL
LTI
Mindtree
MITIE
Reply *
TietoEVRY
Unisys
Virtusa
adesso AG *
Digita
EXL
Fastweb
HGS *
HH Global
NNIT A/S
Persistent Systems *
QIWI
WNS *
As-a-Service Market
Amazon
Google
Microsoft
Salesforce
SAP
Adobe Systems
Equinix
ServiceNow *
VMWare *
ACI Worldwide *
Autodesk
Atlassian Corporation *
DocuSign
OVH
Veeva Systems *
Visma

2Q20
the
ISG15 Service & Technology Provider Standouts – Asia Pacific
Accenture
Capgemini *
Cognizant
DXC Technology
Hitachi
IBM Global Services
NTT Data
TCS
Amadeus
Amdocs
Genpact
HCL
IT Holdings (TIS)
ITOCHU Techno-
Solutions
Nomura Research
Institute
Orange *
Sodexho
Tech Mahindra
T-Systems*
Wipro
Digital China
JLL
Neusoft
Nihon Unisys
NS Solutions
SCSK
Sutherland
transcosmos
TTEC
Unisys
Beyondsoft
ChinaSoft
Data#3 *
Empired *
Fuji Soft
Relia
Shinsegae I&C
Taiji Computer
As-a-Service Market
Alibaba
Amazon
Google
Microsoft
Salesforce *
SAP *
Tencent
Adobe Systems
Equinix
ServiceNow *
ACI Worldwide *
Autodesk
DropBox *
Sage
Twillio *
Atlassian
Docusign *
Kingdee
Veeva Systems
Xero
Zendesk *
Zoho Corp.

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ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and
advisory firm. A trusted business partner to more than 700 clients, including more than 75
of the top 100 enterprises in the world, ISG is committed to helping corporations, public
sector organizations, and service and technology providers achieve operational excellence
and faster growth. The firm specializes in digital transformation services, including
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services; network carrier services; strategy and operations design; change management;
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more than 20 countries—a global team known for its innovative thinking, market influence,
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capabilities based on the industry’s most comprehensive marketplace data.

2Q 2020 Global ISG Index™

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2Q 2020 Global ISG Index™