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1Q17 Global ISG Index

The ISG Index for Q1 2017 indicates a 12% growth in the global commercial combined market driven by as-a-service offerings, with traditional sourcing experiencing flat performance. The Americas showed record as-a-service growth, while the public sector faced a decline primarily due to a lack of large contracts. In summary, the contracting trends reflect a significant shift towards as-a-service solutions across regions, highlighting both opportunities and challenges within traditional sourcing.

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ISG Confidential. © 2017 Information Services Group, Inc. All Rights Reserved. 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. Global Combined Sourcing and As-a-Service Market Insights Hosted by: Moshe Katri, Wedbush Securities 12 April 2017 FIRST QUARTER 2017
ISG Confidential. © 2017 Information Services Group, Inc. All Rights Reserved 2 GLOBAL 1Q17 Covering the state of the combined sourcing and as-a- service industry for global, commercial and public sector contracts. Welcome to the 58th Quarterly ISG Index John Keppel Partner and President Esteban Herrera Partner Stanton Jones Research Director and Principal Analyst
ISG Confidential. © 2017 Information Services Group, Inc. All Rights Reserved 3 GLOBAL 1Q17 *Contracts with ACV ≥ $5M from the ISG Contracts Knowledgebase™ At a Glance Commercial Combined Market up 12% as Traditional Sourcing remains flat Y/Y and As-a-Service growth continues Record quarter for Americas Commercial Combined Market; As-a-Service strength offsets slight Y/Y drop in Traditional Sourcing As-a-Service propels EMEA's near-record quarter; Traditional Sourcing rises slightly Asia Pacific sees four consecutive $1B-plus quarters; As-a-Service far surpasses Traditional Sourcing Combined Public Sector ACV down on lack of large awards and softness in the Americas and EMEA Scorecard 1Q17 1Q Y/Y 1Q Q/Q ACV ($B)* Change Change Global Commercial Combined Market $ 10.5 12% 13% By Type Traditional Sourcing $ 6.1 -1% 17% As-a-Service $ 4.4 39% 9% By Region Americas Commercial $ 5.0 11% 11% EMEA Commercial $ 4.4 13% 19% AP Commercial $ 1.1 16% 1% Global Public Sector Combined Market $ 12.9 -21% 17% By Type Traditional Sourcing $ 12.5 -22% 17% As-a-Service $ 0.4 31% 8%
ISG Confidential. © 2017 Information Services Group, Inc. All Rights Reserved 4 GLOBAL 1Q17 $77.4 $92.1 $77.2 $15.9 $11.9 $8.5 $93.3 $104.0 $85.7 2Q16 - 1Q172Q15 - 1Q162Q14 - 1Q15 Outsourcing As-a-Service $18.6$15.9 $20.2$22.6$22.1$19.0 $25.6$25.4 $18.5$21.2$20.0$17.5$16.3 $4.8 $4.4 $3.6 $3.2$3.4 $3.2 $3.0$2.3 $2.1 $2.1$2.1 $2.3$1.8 $23.4 $20.3 $23.8$25.8$25.5 $22.2 $28.6$27.7 $20.6 $23.3$22.1 $19.8$18.1 1Q174Q3Q2Q1Q164Q3Q2Q1Q154Q3Q2Q1Q14 As-a-Service Outsourcing Global Commercial and Public Sector Contracting Trends Industry Details for Trailing 12 Months Global Combined Market TTM ACV ($B)Global Combined Market Quarterly ACV ($B) Combined Market down 9% Y/Y with weakness in Traditional Sourcing segment, which undermines strong As-a-Service gains across each region. Traditional Sourcing As-a-Service Traditional Sourcing As-a-Service $5.9 $3.7 $2.1 $3.3 $2.5 $1.9 $1.5 $0.9 $1.0 $2.5 $2.0 $3.5 $1.8 $0.7 $1.1 $1.2 $1.1 $0.9 $8.4 $5.6 $5.5 $5.1 $3.2 $3.0 $2.7 $2.0 $1.9 $- $2.0 $4.0 $6.0 $8.0 Financial Services Manufacturing Business Services Telecom & Media Energy Travel, Transport & Leisure Healthcare & Pharma Retail Consumer Packaged Goods Combined Prior TTM Outsourcing Current TTM As-a-Service Current TTMTraditional Sourcing TTM As-a-Service TTM $54.7 $22.7 $1.3 $14.6 $56.0 $37.3 Public Sector Commercial Sector
ISG Confidential. © 2017 Information Services Group, Inc. All Rights Reserved 5 GLOBAL 1Q17 $9.8$10.7$10.2 $8.3$6.4 $4.5 $18.1$17.2 $14.7 2Q16 - 1Q172Q15 - 1Q162Q14 - 1Q15 Outsourcing TTM As-a-Service TTM Americas Commercial Sector Contracting Trends Combined Market ACV up 11% Y/Y as Americas registers its best-ever quarter. Both Traditional Sourcing and As-a-Service markets are running nearly parallel with each other in ACV volume. Americas Commercial Sector Quarterly ACV ($B) Americas Commercial Sector TTM ACV ($B) Americas Commercial Sector TTM ACV by Type ($B) $2.6$2.3$2.2$2.7$2.7$2.7$2.4$2.9 $2.2$2.7$2.6$2.6$2.2 $2.4 $2.3$1.9 $1.7$1.9$1.7 $1.6$1.2 $1.1 $1.1$1.1$1.2 $1.0 $5.0 $4.6 $4.1$4.4$4.6$4.4 $4.0$4.1 $3.3 $3.8$3.7$3.8 $3.2 1Q174Q3Q2Q1Q164Q3Q2Q1Q154Q3Q2Q1Q14 As-a-Service ACV Outsourcing ACVTraditional Sourcing As-a-Service Traditional Sourcing As-a-Service $6.5 $7.9 $7.1 $3.6 $2.8 $2.7 $1.8 $2.9 $2.6 $2.7 $3.5 $5.7 2Q16 - 1Q17 2Q16 - 1Q172Q14 - 1Q15 ITO BPO SaaS IaaS
ISG Confidential. © 2017 Information Services Group, Inc. All Rights Reserved 6 GLOBAL 1Q17 Americas Commercial Sector Industry Award Trends Financial Services and Business Services drive ACV growth in the Americas with gains in both Traditional Sourcing and As-a-Service segments. Traditional Sourcing TTM ACV ($B) Americas Commercial Industries As-a-Service TTM ACV ($B) Americas Commercial Industries $2.40 $1.49 $1.11 $1.32 $0.93 $0.62 $0.67 $0.75 $0.51 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 Financial Services Manufacturing Healthcare & Pharma Business Services Telecom & Media Energy Travel, Transport & Leisure Consumer Packaged Goods Retail Range of 3 TTMs Avg of 3 TTMs 2Q15 - 1Q16 2Q16 - 1Q17 $1.42 $1.05 $0.73 $2.08 $1.05 $0.35 $0.58 $0.48 $0.59 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 Financial Services Manufacturing Healthcare & Pharma Business Services Telecom & Media Energy Travel, Transport & Leisure Consumer Packaged Goods Retail Range of 3 TTMs Avg of 3 TTMs 2Q15 - 1Q16 2Q16 - 1Q17
ISG Confidential. © 2017 Information Services Group, Inc. All Rights Reserved 7 GLOBAL 1Q17 Our Contracts Knowledgebase™ is used to determine placements based on the annual value of commercial contracts awarded in the past 12 months. Traditional Sourcing Market Atento Ensono Hexaware Hinduja Global Solutions KPIT Technologies L&T Infotech Luxoft Mindtree Mphasis Softtek StarTek Synacor VirtusaPolaris As-a-Service Market CyrusOne IPsoft Traditional Sourcing Market CGI CSC Concentrix DST Systems Genpact HCL Sutherland Global TeleTech Unisys WEX Wipro As-a-Service Market Adobe Systems Equinix Iron Mountain Salesforce.com Traditional Sourcing Market Accenture Atos BT Capgemini Cognizant HPE IBM Infosys NTT DATA TCS T-Systems As-a-Service Market Amazon Web Services Google Microsoft Oracle The Building 15 The Breakthrough 15The Big 15 Co. Revenues > $10 B Sourcing Standouts AMERICAS Co. Revenues $1 -10 B Co. Revenues < $1 B Providers in alphabetical order; no rankings implied. Revenues sourced from Hoovers and individual company financial fillings. the ISG15
ISG Confidential. © 2017 Information Services Group, Inc. All Rights Reserved 8 GLOBAL 1Q17 $1.9$2.2 $2.8 $2.4$1.5 $1.1 $4.3 $3.7$3.9 2Q16 - 1Q172Q15 - 1Q162Q14 - 1Q15 Outsourcing As-a-Service Asia Pacific Commercial Sector Contracting Trends Combined Market ACV up 16% Y/Y as quarterly ACV surpassed $1B for the fourth consecutive quarter; As-a-Service ACV now has overtaken the output of Traditional Sourcing. AP Commercial Sector Quarterly ACV ($B) AP Commercial Sector TTM ACV ($B) AP Commercial Sector TTM ACV by Type ($B) $2.3 $1.4 $1.5 $0.4 $0.8 $0.4 $0.3 $0.4 $0.4 $0.8 $1.1 $2.0 2Q15 - 1Q16 2Q16 - 1Q172Q14 - 1Q15 ITO BPO SaaS IaaS Traditional Sourcing As-a-Service $0.35$0.41$0.52$0.60$0.48$0.52$0.56$0.61$0.56 $0.73 $0.46 $1.00$1.02 $0.73$0.66$0.54$0.47 $0.46$0.42$0.40$0.28$0.29 $0.28 $0.26 $0.28$0.21 $1.08$1.07$1.06$1.07 $0.94$0.94$0.96$0.89$0.85 $1.00 $0.72 $1.28$1.23 1Q174Q3Q2Q1Q164Q3Q2Q1Q154Q3Q2Q1Q14 As-a-Service ACV Outsourcing ACV
ISG Confidential. © 2017 Information Services Group, Inc. All Rights Reserved 9 GLOBAL 1Q17 Asia Pacific Commercial Sector Industry Award Trends Strong As-a-Service results drive growth in the larger verticals such as Telco and Business Services, with Manufacturing still experiencing some headwinds due to softness in Traditional Sourcing. Traditional Sourcing TTM ACV ($B) Asia Pacific Commercial Industries As-a-Service TTM ACV ($B) Asia Pacific Commercial Industries $0.39 $0.58 $0.29 $0.23 $0.19 $0.13 $0.01 $0.04 $0.03$0.0 $0.2 $0.4 $0.6 $0.8 $1.0 Financial Services Telecom & Media Manufacturing Travel, Transport & Leisure Energy Business Services Consumer Packaged Goods Healthcare & Pharma Retail Range of 3 TTMs Avg of 3 TTMs 2Q15 - 1Q16 2Q16 - 1Q17 $0.39 $0.27 $0.32 $0.17 $0.11 $0.66 $0.14 $0.17 $0.17 $0.0 $0.1 $0.2 $0.3 $0.4 $0.5 $0.6 $0.7 Financial Services Telecom & Media Manufacturing Travel, Transport & Leisure Energy Business Services Consumer Packaged Goods Healthcare & Pharma Retail Range of 3 TTMs Avg of 3 TTMs 2Q15 - 1Q16 2Q16 - 1Q17
ISG Confidential. © 2017 Information Services Group, Inc. All Rights Reserved 10 GLOBAL 1Q17 Our Contracts Knowledgebase™ is used to determine placements based on the annual value of commercial contracts awarded in the past 12 months. Traditional Sourcing Market Ajilon Cross-Tab Marketing Services Data #3 Group Datacom Ebix Firstsource Solutions FPT Software Insurity Luxoft Mindpearl Posco ICT VirtusaPolaris As-a-Service Market IPsoft Xero Zoho Traditional Sourcing Market Amadeus HCL Sabre Singtel Optus SK C&C Co. Sutherland Global Tech Mahindra Unisys WEX Wipro As-a-Service Market Adobe Systems Equinix FIS Global Iron Mountain Salesforce.com Traditional Sourcing Market Accenture BT Cognizant HPE IBM Infosys NEC NTT DATA TCS Telstra As-a-Service Market Amazon Web Services Google Microsoft Oracle SAP The Building 15 The Breakthrough 15The Big 15 Co. Revenues > $10 B Sourcing Standouts Asia Pacific Co. Revenues $1 -10 B Co. Revenues < $1 B Providers in alphabetical order; no rankings implied. Revenues sourced from Hoovers and individual company financial fillings. the ISG15
ISG Confidential. © 2017 Information Services Group, Inc. All Rights Reserved 11 GLOBAL 1Q17 $3.2$2.6$2.9$2.4 $3.1 $3.9 $2.8$3.0$2.4 $3.4 $2.7 $3.4$3.4 $1.2 $1.1$0.8 $0.7 $0.8 $0.8 $0.7$0.5 $0.6 $0.5 $0.5 $0.6$0.4 $4.4 $3.7$3.7 $3.1 $3.9 $4.7 $3.6$3.5 $3.0 $3.9 $3.3 $4.0$3.8 1Q174Q3Q2Q1Q164Q3Q2Q1Q154Q3Q2Q1Q14 As-a-Service ACV Outsourcing ACV $11.1 $12.8$11.9 $3.8$2.9$2.2 $14.9$15.7 $14.1 2Q16 - 1Q172Q15 - 1Q162Q14 - 1Q15 Outsourcing As-a-Service EMEA Commercial Sector Contracting Trends Combined Market in EMEA surpasses $4B level, up 13% Y/Y as EMEA registers second-best quarter ever; Traditional Sourcing sees slight growth Y/Y, while As-a-Service rises nearly 50% off a smaller base. EMEA Commercial Sector Quarterly ACV ($B) EMEA Commercial Sector TTM ACV ($B) EMEA Commercial Sector TTM ACV by Type ($B) $9.3 $9.6 $7.9 $2.6 $3.2 $3.2 $0.7 $1.1 $1.0 $1.5 $1.7 $2.8 2Q15 - 1Q16 2Q16 - 1Q172Q14 - 1Q15 ITO BPO SaaS IaaS Traditional Sourcing As-a-Service Traditional Sourcing As-a-Service
ISG Confidential. © 2017 Information Services Group, Inc. All Rights Reserved 12 GLOBAL 1Q17 EMEA Commercial Sector Industry Award Trends Telco and Financial Services ACV up notably, while Manufacturing, weighed down by Traditional Sourcing, trails its prior year’s result. Traditional Sourcing TTM ACV ($B) EMEA Commercial Industries As-a-Service TTM ACV ($B) EMEA Commercial Industries $3.15 $1.87 $1.69 $1.00 $1.82 $0.62 $0.34 $0.22 $0.37 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 Financial Services Manufacturing Energy Travel, Transport & Leisure Telecom & Media Business Services Healthcare & Pharma Consumer Packaged Goods Retail Range of Prior 4 TTMs Avg of Prior 4 TTMs 2Q15 - 1Q16 2Q16 - 1Q17 $0.67 $0.58 $0.20 $0.33 $0.45 $0.71 $0.31 $0.26 $0.31 $0.0 $0.5 $1.0 $1.5 $2.0 Financial Services Manufacturing Energy Travel, Transport & Leisure Telecom & Media Business Services Healthcare & Pharma Consumer Packaged Goods Retail Range of Prior 4 TTMs Avg of Prior 4 TTMs 2Q15 - 1Q16 2Q16 - 1Q17
ISG Confidential. © 2017 Information Services Group, Inc. All Rights Reserved 13 GLOBAL 1Q17 Our Contracts Knowledgebase™ is used to determine placements based on the annual value of commercial contracts awarded in the past 12 months. Traditional Sourcing Market Atento Coor Service Management Datagroup EPAM Systems Firstsource Solutions Hexaware KMD A/S L&T Infotech Luxoft Mindtree NNIT A/S SIA VirtusaPolaris Webhelp WNS As-a-Service Market - Traditional Sourcing Market Amdocs Capita Carillion CGI CSC Emcor Group EVRY Genpact HCL Interserve Orange Business Services Tech Mahindra Tieto Wipro As-a-Service Market Equinix Traditional Sourcing Market Accenture Atos BT Capgemini Cognizant Fujitsu HPE IBM Infosys TCS T-Systems As-a-Service Market Amazon Web Services Google IBM Microsoft The Building 15 The Breakthrough 15The Big 15 Co. Revenues > $10 B Sourcing Standouts EMEA Co. Revenues $1 -10 B Co. Revenues < $1 B Providers in alphabetical order; no rankings implied. Revenues sourced from Hoovers and individual company financial fillings. the ISG15
ISG Confidential. © 2017 Information Services Group, Inc. All Rights Reserved 14 GLOBAL 1Q17 Public Sector Contracting Trends Combined Public Sector Market ACV lower Y/Y for fourth consecutive quarter due to weak results in Americas and EMEA; As-a-Service boasts strong quarterly gains off a relatively small base. Public Sector Quarterly ACV ($B) Public Sector TTM ACV ($B) Public Sector TTM ACV by Type ($B) $39.1 $52.1 $40.4 $13.2 $14.2 $14.3 $0.2 $0.3 $0.3 $0.5 $0.7 $1.0 2Q16 - 1Q17 2Q16 - 1Q172Q14 - 1Q15 ITO BPO SaaS IaaS Public Sector TTM ACV by Region ($B) Traditional Sourcing As-a-Service Traditional Sourcing TTM As-a-Service TTM $12.5$10.6 $14.5$17.1$15.9 $11.8 $19.8$18.9 $13.3$14.4$14.1 $10.5$9.7 $0.4 $0.4 $0.3 $2.0 $0.3 $0.2 $0.3$0.2 $0.2$0.2$0.2 $0.2 $0.1 $12.9 $11.0 $14.8 $17.3$16.2 $12.0 $20.1$19.1 $13.5$14.6 $14.3 $10.7$9.8 1Q174Q3Q2Q1Q164Q3Q2Q1Q154Q3Q2Q1Q14 As-a-Service ACV Outsourcing ACVTraditional Sourcing As-a-Service Traditional Sourcing TTM As-a-Service TTM $38.8 $10.5 $3.8 $49.3 $15.4 $2.7 $44.8 $7.9 $3.3 Americas EMEA Asia Pacific 2Q14 - 1Q15 2Q15 - 1Q16 2Q16 - 1Q17 $54.7 $66.4 $52.4 $1.3 $1.0 $0.7 $56.0 $67.4 $53.1 2Q16 - 1Q172Q15 - 1Q162Q14 - 1Q15 Traditional Sourcing TTM As-a-Service TTM
ISG Confidential. © 2017 Information Services Group, Inc. All Rights Reserved 15 GLOBAL 1Q17 Our Contracts Knowledgebase™ is used to determine placements based on the annual value of public sector contracts awarded in the past 12 months. Traditional Sourcing Market Accenture CSC Fujitsu HPE Leidos NEC NTT DATA PwC Telstra Thales As-a-Service Market Alibaba Amazon Web Services IBM Google Microsoft Traditional Sourcing Market Accenture Atea Capgemini Capita Fujitsu HPE IBM Serco SopraSteria T-Systems As-a-Service Market Amazon Web Services (IaaS) Deutsche Telekom Google IBM Microsoft Traditional Sourcing Market Booz Allen CACI International CSRA General Dynamics HPE Leidos Mantech Northrop Grumman Raytheon SAIC As-a-Service Market Amazon Web Services Google IBM Iron Mountain Microsoft EMEA Asia PacificAmericas Sourcing Standouts Public Sector Providers in alphabetical order; no rankings implied. Placements based on counts of public sector contract awards sourced from ISG Contracts Knowledgebase™. the ISG15
GLOBAL 1Q17 SaaS Remakes the HRO Market Stanton Jones Research Director and Principal Analyst 1Q17 Index Inside Track from
ISG Confidential. © 2017 Information Services Group, Inc. All Rights Reserved 17 GLOBAL 1Q17 The shift to HR SaaS is not a question of “if” but “when.” by 2020 >50% of enterprises will use SaaS HR Tech Enterprises Describe their Evolving HR Technology Models • Traditional HRO require extensive customization • High profile implementation failures • Providers stretched beyond core competencies • Failures undermined buyers’ confidence Businesses seek out the implementation and services providers that fit a SaaS technology strategy Traditional HRO involves large, multi-process technology and services deals Industry sees increased adoption of innovative HR SaaS platforms, decoupling the services from the technology. Why the Shift to SaaS? 12% 27% 32%10% 18% 21% 9% 6% 12% 25% 24% 15% 45% 25% 20% 2016 2018 2020 Licensed software on-premise Licensed software hosted Internally Developed System Hybrid SaaS subscription-based
ISG Confidential. © 2017 Information Services Group, Inc. All Rights Reserved 18 GLOBAL 1Q17 For High-growth Companies It’s About Talent and Engagement Providers that specialize in platforms in high demand Implementation services experience strong demand Managed HRO services providers are gaining market share and acquiring smaller implementation firms HR Tech Buyer Behavior is Changing ImportantTechnology to increase employee engagement Important Compelling user experience Less important Reduce Total Cost of Ownership The SaaS Impact on Providers HR SaaS is a leading indicator for the global technology market SaaS is the single biggest opportunity for companies to transform HR service delivery Manage and extend the chosen technology Cloud technology used to transform delivery models Finding providers that know how to implement Get the larger research report from ISG Insights™
ISG Confidential. © 2017 Information Services Group, Inc. All Rights Reserved 19 GLOBAL 1Q17 1Q 2017 ISG Index - Global Summary and Outlook ● Double digit Y/Y growth in each of the three regional commercial markets ● Each region is in varying degrees of cloud adoption with EMEA in early stages, the Americas seeing an equal split and Asia-Pacific being more heavily weighted toward As-a-Service ● Several Industries drive growth, including Financial Services, Telecom and Business Services, the latter experiencing simultaneous annual ACV gains in both Traditional Sourcing and As-a-Service ● Public sector contracting pulls back due to softness in the U.S. and Europe ● Continue to forecast high single-digit gains in each of the geographies ● Growth driven by increasing As-a-Service activity ● Occasional strong quarters in Traditional Sourcing space due to high volumes or large deal flow Summary Outlook
ISG Confidential. © 2017 Information Services Group, Inc. All Rights Reserved 20 GLOBAL 1Q17 Your Webcast Screen 1 4 2 3 Click the "Listen by phone“ button. The phone number and passcode will appear, and the web streaming to your computer will be automatically muted. After you dial in, the operator will ask your name and company. Now press *1 to be added to the queue. Ask a Question 1 Q 1 7
ISG Confidential. © 2017 Information Services Group, Inc. All Rights Reserved 21 GLOBAL 1Q17 isg-one.com Learn More Paul Reynolds Partner, Chief Research Officer ISG Momentum +1 508 625 2194 paul.reynolds@isg-one.com John Keppel Partner and President +44 (0)7879 432 212 john.keppel@isg-one.com Will Thoretz Americas Media Contact +1 203 517 3119 will.thoretz@isg-one.com Denise Colgan EMEA and AP Media Contact +44 1737 371523 denise.colgan@isg-one.com Bill McNee Partner, ISG Insights +1 203 820 8987 bill.mcnee@isg-one.com
GLOBAL 4Q16 GLOBAL 1Q17 Appendix: Score Card for TCV FIRST QUARTER 2017
ISG Confidential. © 2017 Information Services Group, Inc. All Rights Reserved 23 GLOBAL 1Q17 1Q 2017 TCV Scorecard – Traditional Sourcing Market Only The ISG Outsourcing Index has moved to ACV 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. *Contracts with TCV ≥ $25M from the ISG Contracts Knowledgebase™ Scorecard 1Q17 1Q Y/Y 1Q Q/Q TCV ($B)* Change Change Global Commercial Combined Market $ 28.8 12% 26% By Type Outsourcing $ 21.7 11% 34% As-a-Service $ 7.1 13% 8% ITO $ 15.5 29% 54% BPO $ 6.2 -17% 1% IaaS $ 3.6 76% 9% SaaS $ 3.5 -18% 6% By Region Americas Commercial $ 12.0 12% 25% EMEA Commercial $ 14.6 27% 33% Asia Pacific Commercial $ 2.2 -39% 2%
ISG Confidential. © 2017 Information Services Group, Inc. All Rights Reserved. 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. isg-one.com 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 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 automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; technology strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,300 professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data.

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1Q17 Global ISG Index

  • 1.
    ISG Confidential. ©2017 Information Services Group, Inc. All Rights Reserved. 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. Global Combined Sourcing and As-a-Service Market Insights Hosted by: Moshe Katri, Wedbush Securities 12 April 2017 FIRST QUARTER 2017
  • 2.
    ISG Confidential. ©2017 Information Services Group, Inc. All Rights Reserved 2 GLOBAL 1Q17 Covering the state of the combined sourcing and as-a- service industry for global, commercial and public sector contracts. Welcome to the 58th Quarterly ISG Index John Keppel Partner and President Esteban Herrera Partner Stanton Jones Research Director and Principal Analyst
  • 3.
    ISG Confidential. ©2017 Information Services Group, Inc. All Rights Reserved 3 GLOBAL 1Q17 *Contracts with ACV ≥ $5M from the ISG Contracts Knowledgebase™ At a Glance Commercial Combined Market up 12% as Traditional Sourcing remains flat Y/Y and As-a-Service growth continues Record quarter for Americas Commercial Combined Market; As-a-Service strength offsets slight Y/Y drop in Traditional Sourcing As-a-Service propels EMEA's near-record quarter; Traditional Sourcing rises slightly Asia Pacific sees four consecutive $1B-plus quarters; As-a-Service far surpasses Traditional Sourcing Combined Public Sector ACV down on lack of large awards and softness in the Americas and EMEA Scorecard 1Q17 1Q Y/Y 1Q Q/Q ACV ($B)* Change Change Global Commercial Combined Market $ 10.5 12% 13% By Type Traditional Sourcing $ 6.1 -1% 17% As-a-Service $ 4.4 39% 9% By Region Americas Commercial $ 5.0 11% 11% EMEA Commercial $ 4.4 13% 19% AP Commercial $ 1.1 16% 1% Global Public Sector Combined Market $ 12.9 -21% 17% By Type Traditional Sourcing $ 12.5 -22% 17% As-a-Service $ 0.4 31% 8%
  • 4.
    ISG Confidential. ©2017 Information Services Group, Inc. All Rights Reserved 4 GLOBAL 1Q17 $77.4 $92.1 $77.2 $15.9 $11.9 $8.5 $93.3 $104.0 $85.7 2Q16 - 1Q172Q15 - 1Q162Q14 - 1Q15 Outsourcing As-a-Service $18.6$15.9 $20.2$22.6$22.1$19.0 $25.6$25.4 $18.5$21.2$20.0$17.5$16.3 $4.8 $4.4 $3.6 $3.2$3.4 $3.2 $3.0$2.3 $2.1 $2.1$2.1 $2.3$1.8 $23.4 $20.3 $23.8$25.8$25.5 $22.2 $28.6$27.7 $20.6 $23.3$22.1 $19.8$18.1 1Q174Q3Q2Q1Q164Q3Q2Q1Q154Q3Q2Q1Q14 As-a-Service Outsourcing Global Commercial and Public Sector Contracting Trends Industry Details for Trailing 12 Months Global Combined Market TTM ACV ($B)Global Combined Market Quarterly ACV ($B) Combined Market down 9% Y/Y with weakness in Traditional Sourcing segment, which undermines strong As-a-Service gains across each region. Traditional Sourcing As-a-Service Traditional Sourcing As-a-Service $5.9 $3.7 $2.1 $3.3 $2.5 $1.9 $1.5 $0.9 $1.0 $2.5 $2.0 $3.5 $1.8 $0.7 $1.1 $1.2 $1.1 $0.9 $8.4 $5.6 $5.5 $5.1 $3.2 $3.0 $2.7 $2.0 $1.9 $- $2.0 $4.0 $6.0 $8.0 Financial Services Manufacturing Business Services Telecom & Media Energy Travel, Transport & Leisure Healthcare & Pharma Retail Consumer Packaged Goods Combined Prior TTM Outsourcing Current TTM As-a-Service Current TTMTraditional Sourcing TTM As-a-Service TTM $54.7 $22.7 $1.3 $14.6 $56.0 $37.3 Public Sector Commercial Sector
  • 5.
    ISG Confidential. ©2017 Information Services Group, Inc. All Rights Reserved 5 GLOBAL 1Q17 $9.8$10.7$10.2 $8.3$6.4 $4.5 $18.1$17.2 $14.7 2Q16 - 1Q172Q15 - 1Q162Q14 - 1Q15 Outsourcing TTM As-a-Service TTM Americas Commercial Sector Contracting Trends Combined Market ACV up 11% Y/Y as Americas registers its best-ever quarter. Both Traditional Sourcing and As-a-Service markets are running nearly parallel with each other in ACV volume. Americas Commercial Sector Quarterly ACV ($B) Americas Commercial Sector TTM ACV ($B) Americas Commercial Sector TTM ACV by Type ($B) $2.6$2.3$2.2$2.7$2.7$2.7$2.4$2.9 $2.2$2.7$2.6$2.6$2.2 $2.4 $2.3$1.9 $1.7$1.9$1.7 $1.6$1.2 $1.1 $1.1$1.1$1.2 $1.0 $5.0 $4.6 $4.1$4.4$4.6$4.4 $4.0$4.1 $3.3 $3.8$3.7$3.8 $3.2 1Q174Q3Q2Q1Q164Q3Q2Q1Q154Q3Q2Q1Q14 As-a-Service ACV Outsourcing ACVTraditional Sourcing As-a-Service Traditional Sourcing As-a-Service $6.5 $7.9 $7.1 $3.6 $2.8 $2.7 $1.8 $2.9 $2.6 $2.7 $3.5 $5.7 2Q16 - 1Q17 2Q16 - 1Q172Q14 - 1Q15 ITO BPO SaaS IaaS
  • 6.
    ISG Confidential. ©2017 Information Services Group, Inc. All Rights Reserved 6 GLOBAL 1Q17 Americas Commercial Sector Industry Award Trends Financial Services and Business Services drive ACV growth in the Americas with gains in both Traditional Sourcing and As-a-Service segments. Traditional Sourcing TTM ACV ($B) Americas Commercial Industries As-a-Service TTM ACV ($B) Americas Commercial Industries $2.40 $1.49 $1.11 $1.32 $0.93 $0.62 $0.67 $0.75 $0.51 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 Financial Services Manufacturing Healthcare & Pharma Business Services Telecom & Media Energy Travel, Transport & Leisure Consumer Packaged Goods Retail Range of 3 TTMs Avg of 3 TTMs 2Q15 - 1Q16 2Q16 - 1Q17 $1.42 $1.05 $0.73 $2.08 $1.05 $0.35 $0.58 $0.48 $0.59 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 Financial Services Manufacturing Healthcare & Pharma Business Services Telecom & Media Energy Travel, Transport & Leisure Consumer Packaged Goods Retail Range of 3 TTMs Avg of 3 TTMs 2Q15 - 1Q16 2Q16 - 1Q17
  • 7.
    ISG Confidential. ©2017 Information Services Group, Inc. All Rights Reserved 7 GLOBAL 1Q17 Our Contracts Knowledgebase™ is used to determine placements based on the annual value of commercial contracts awarded in the past 12 months. Traditional Sourcing Market Atento Ensono Hexaware Hinduja Global Solutions KPIT Technologies L&T Infotech Luxoft Mindtree Mphasis Softtek StarTek Synacor VirtusaPolaris As-a-Service Market CyrusOne IPsoft Traditional Sourcing Market CGI CSC Concentrix DST Systems Genpact HCL Sutherland Global TeleTech Unisys WEX Wipro As-a-Service Market Adobe Systems Equinix Iron Mountain Salesforce.com Traditional Sourcing Market Accenture Atos BT Capgemini Cognizant HPE IBM Infosys NTT DATA TCS T-Systems As-a-Service Market Amazon Web Services Google Microsoft Oracle The Building 15 The Breakthrough 15The Big 15 Co. Revenues > $10 B Sourcing Standouts AMERICAS Co. Revenues $1 -10 B Co. Revenues < $1 B Providers in alphabetical order; no rankings implied. Revenues sourced from Hoovers and individual company financial fillings. the ISG15
  • 8.
    ISG Confidential. ©2017 Information Services Group, Inc. All Rights Reserved 8 GLOBAL 1Q17 $1.9$2.2 $2.8 $2.4$1.5 $1.1 $4.3 $3.7$3.9 2Q16 - 1Q172Q15 - 1Q162Q14 - 1Q15 Outsourcing As-a-Service Asia Pacific Commercial Sector Contracting Trends Combined Market ACV up 16% Y/Y as quarterly ACV surpassed $1B for the fourth consecutive quarter; As-a-Service ACV now has overtaken the output of Traditional Sourcing. AP Commercial Sector Quarterly ACV ($B) AP Commercial Sector TTM ACV ($B) AP Commercial Sector TTM ACV by Type ($B) $2.3 $1.4 $1.5 $0.4 $0.8 $0.4 $0.3 $0.4 $0.4 $0.8 $1.1 $2.0 2Q15 - 1Q16 2Q16 - 1Q172Q14 - 1Q15 ITO BPO SaaS IaaS Traditional Sourcing As-a-Service $0.35$0.41$0.52$0.60$0.48$0.52$0.56$0.61$0.56 $0.73 $0.46 $1.00$1.02 $0.73$0.66$0.54$0.47 $0.46$0.42$0.40$0.28$0.29 $0.28 $0.26 $0.28$0.21 $1.08$1.07$1.06$1.07 $0.94$0.94$0.96$0.89$0.85 $1.00 $0.72 $1.28$1.23 1Q174Q3Q2Q1Q164Q3Q2Q1Q154Q3Q2Q1Q14 As-a-Service ACV Outsourcing ACV
  • 9.
    ISG Confidential. ©2017 Information Services Group, Inc. All Rights Reserved 9 GLOBAL 1Q17 Asia Pacific Commercial Sector Industry Award Trends Strong As-a-Service results drive growth in the larger verticals such as Telco and Business Services, with Manufacturing still experiencing some headwinds due to softness in Traditional Sourcing. Traditional Sourcing TTM ACV ($B) Asia Pacific Commercial Industries As-a-Service TTM ACV ($B) Asia Pacific Commercial Industries $0.39 $0.58 $0.29 $0.23 $0.19 $0.13 $0.01 $0.04 $0.03$0.0 $0.2 $0.4 $0.6 $0.8 $1.0 Financial Services Telecom & Media Manufacturing Travel, Transport & Leisure Energy Business Services Consumer Packaged Goods Healthcare & Pharma Retail Range of 3 TTMs Avg of 3 TTMs 2Q15 - 1Q16 2Q16 - 1Q17 $0.39 $0.27 $0.32 $0.17 $0.11 $0.66 $0.14 $0.17 $0.17 $0.0 $0.1 $0.2 $0.3 $0.4 $0.5 $0.6 $0.7 Financial Services Telecom & Media Manufacturing Travel, Transport & Leisure Energy Business Services Consumer Packaged Goods Healthcare & Pharma Retail Range of 3 TTMs Avg of 3 TTMs 2Q15 - 1Q16 2Q16 - 1Q17
  • 10.
    ISG Confidential. ©2017 Information Services Group, Inc. All Rights Reserved 10 GLOBAL 1Q17 Our Contracts Knowledgebase™ is used to determine placements based on the annual value of commercial contracts awarded in the past 12 months. Traditional Sourcing Market Ajilon Cross-Tab Marketing Services Data #3 Group Datacom Ebix Firstsource Solutions FPT Software Insurity Luxoft Mindpearl Posco ICT VirtusaPolaris As-a-Service Market IPsoft Xero Zoho Traditional Sourcing Market Amadeus HCL Sabre Singtel Optus SK C&C Co. Sutherland Global Tech Mahindra Unisys WEX Wipro As-a-Service Market Adobe Systems Equinix FIS Global Iron Mountain Salesforce.com Traditional Sourcing Market Accenture BT Cognizant HPE IBM Infosys NEC NTT DATA TCS Telstra As-a-Service Market Amazon Web Services Google Microsoft Oracle SAP The Building 15 The Breakthrough 15The Big 15 Co. Revenues > $10 B Sourcing Standouts Asia Pacific Co. Revenues $1 -10 B Co. Revenues < $1 B Providers in alphabetical order; no rankings implied. Revenues sourced from Hoovers and individual company financial fillings. the ISG15
  • 11.
    ISG Confidential. ©2017 Information Services Group, Inc. All Rights Reserved 11 GLOBAL 1Q17 $3.2$2.6$2.9$2.4 $3.1 $3.9 $2.8$3.0$2.4 $3.4 $2.7 $3.4$3.4 $1.2 $1.1$0.8 $0.7 $0.8 $0.8 $0.7$0.5 $0.6 $0.5 $0.5 $0.6$0.4 $4.4 $3.7$3.7 $3.1 $3.9 $4.7 $3.6$3.5 $3.0 $3.9 $3.3 $4.0$3.8 1Q174Q3Q2Q1Q164Q3Q2Q1Q154Q3Q2Q1Q14 As-a-Service ACV Outsourcing ACV $11.1 $12.8$11.9 $3.8$2.9$2.2 $14.9$15.7 $14.1 2Q16 - 1Q172Q15 - 1Q162Q14 - 1Q15 Outsourcing As-a-Service EMEA Commercial Sector Contracting Trends Combined Market in EMEA surpasses $4B level, up 13% Y/Y as EMEA registers second-best quarter ever; Traditional Sourcing sees slight growth Y/Y, while As-a-Service rises nearly 50% off a smaller base. EMEA Commercial Sector Quarterly ACV ($B) EMEA Commercial Sector TTM ACV ($B) EMEA Commercial Sector TTM ACV by Type ($B) $9.3 $9.6 $7.9 $2.6 $3.2 $3.2 $0.7 $1.1 $1.0 $1.5 $1.7 $2.8 2Q15 - 1Q16 2Q16 - 1Q172Q14 - 1Q15 ITO BPO SaaS IaaS Traditional Sourcing As-a-Service Traditional Sourcing As-a-Service
  • 12.
    ISG Confidential. ©2017 Information Services Group, Inc. All Rights Reserved 12 GLOBAL 1Q17 EMEA Commercial Sector Industry Award Trends Telco and Financial Services ACV up notably, while Manufacturing, weighed down by Traditional Sourcing, trails its prior year’s result. Traditional Sourcing TTM ACV ($B) EMEA Commercial Industries As-a-Service TTM ACV ($B) EMEA Commercial Industries $3.15 $1.87 $1.69 $1.00 $1.82 $0.62 $0.34 $0.22 $0.37 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 Financial Services Manufacturing Energy Travel, Transport & Leisure Telecom & Media Business Services Healthcare & Pharma Consumer Packaged Goods Retail Range of Prior 4 TTMs Avg of Prior 4 TTMs 2Q15 - 1Q16 2Q16 - 1Q17 $0.67 $0.58 $0.20 $0.33 $0.45 $0.71 $0.31 $0.26 $0.31 $0.0 $0.5 $1.0 $1.5 $2.0 Financial Services Manufacturing Energy Travel, Transport & Leisure Telecom & Media Business Services Healthcare & Pharma Consumer Packaged Goods Retail Range of Prior 4 TTMs Avg of Prior 4 TTMs 2Q15 - 1Q16 2Q16 - 1Q17
  • 13.
    ISG Confidential. ©2017 Information Services Group, Inc. All Rights Reserved 13 GLOBAL 1Q17 Our Contracts Knowledgebase™ is used to determine placements based on the annual value of commercial contracts awarded in the past 12 months. Traditional Sourcing Market Atento Coor Service Management Datagroup EPAM Systems Firstsource Solutions Hexaware KMD A/S L&T Infotech Luxoft Mindtree NNIT A/S SIA VirtusaPolaris Webhelp WNS As-a-Service Market - Traditional Sourcing Market Amdocs Capita Carillion CGI CSC Emcor Group EVRY Genpact HCL Interserve Orange Business Services Tech Mahindra Tieto Wipro As-a-Service Market Equinix Traditional Sourcing Market Accenture Atos BT Capgemini Cognizant Fujitsu HPE IBM Infosys TCS T-Systems As-a-Service Market Amazon Web Services Google IBM Microsoft The Building 15 The Breakthrough 15The Big 15 Co. Revenues > $10 B Sourcing Standouts EMEA Co. Revenues $1 -10 B Co. Revenues < $1 B Providers in alphabetical order; no rankings implied. Revenues sourced from Hoovers and individual company financial fillings. the ISG15
  • 14.
    ISG Confidential. ©2017 Information Services Group, Inc. All Rights Reserved 14 GLOBAL 1Q17 Public Sector Contracting Trends Combined Public Sector Market ACV lower Y/Y for fourth consecutive quarter due to weak results in Americas and EMEA; As-a-Service boasts strong quarterly gains off a relatively small base. Public Sector Quarterly ACV ($B) Public Sector TTM ACV ($B) Public Sector TTM ACV by Type ($B) $39.1 $52.1 $40.4 $13.2 $14.2 $14.3 $0.2 $0.3 $0.3 $0.5 $0.7 $1.0 2Q16 - 1Q17 2Q16 - 1Q172Q14 - 1Q15 ITO BPO SaaS IaaS Public Sector TTM ACV by Region ($B) Traditional Sourcing As-a-Service Traditional Sourcing TTM As-a-Service TTM $12.5$10.6 $14.5$17.1$15.9 $11.8 $19.8$18.9 $13.3$14.4$14.1 $10.5$9.7 $0.4 $0.4 $0.3 $2.0 $0.3 $0.2 $0.3$0.2 $0.2$0.2$0.2 $0.2 $0.1 $12.9 $11.0 $14.8 $17.3$16.2 $12.0 $20.1$19.1 $13.5$14.6 $14.3 $10.7$9.8 1Q174Q3Q2Q1Q164Q3Q2Q1Q154Q3Q2Q1Q14 As-a-Service ACV Outsourcing ACVTraditional Sourcing As-a-Service Traditional Sourcing TTM As-a-Service TTM $38.8 $10.5 $3.8 $49.3 $15.4 $2.7 $44.8 $7.9 $3.3 Americas EMEA Asia Pacific 2Q14 - 1Q15 2Q15 - 1Q16 2Q16 - 1Q17 $54.7 $66.4 $52.4 $1.3 $1.0 $0.7 $56.0 $67.4 $53.1 2Q16 - 1Q172Q15 - 1Q162Q14 - 1Q15 Traditional Sourcing TTM As-a-Service TTM
  • 15.
    ISG Confidential. ©2017 Information Services Group, Inc. All Rights Reserved 15 GLOBAL 1Q17 Our Contracts Knowledgebase™ is used to determine placements based on the annual value of public sector contracts awarded in the past 12 months. Traditional Sourcing Market Accenture CSC Fujitsu HPE Leidos NEC NTT DATA PwC Telstra Thales As-a-Service Market Alibaba Amazon Web Services IBM Google Microsoft Traditional Sourcing Market Accenture Atea Capgemini Capita Fujitsu HPE IBM Serco SopraSteria T-Systems As-a-Service Market Amazon Web Services (IaaS) Deutsche Telekom Google IBM Microsoft Traditional Sourcing Market Booz Allen CACI International CSRA General Dynamics HPE Leidos Mantech Northrop Grumman Raytheon SAIC As-a-Service Market Amazon Web Services Google IBM Iron Mountain Microsoft EMEA Asia PacificAmericas Sourcing Standouts Public Sector Providers in alphabetical order; no rankings implied. Placements based on counts of public sector contract awards sourced from ISG Contracts Knowledgebase™. the ISG15
  • 16.
    GLOBAL 1Q17 SaaS Remakesthe HRO Market Stanton Jones Research Director and Principal Analyst 1Q17 Index Inside Track from
  • 17.
    ISG Confidential. ©2017 Information Services Group, Inc. All Rights Reserved 17 GLOBAL 1Q17 The shift to HR SaaS is not a question of “if” but “when.” by 2020 >50% of enterprises will use SaaS HR Tech Enterprises Describe their Evolving HR Technology Models • Traditional HRO require extensive customization • High profile implementation failures • Providers stretched beyond core competencies • Failures undermined buyers’ confidence Businesses seek out the implementation and services providers that fit a SaaS technology strategy Traditional HRO involves large, multi-process technology and services deals Industry sees increased adoption of innovative HR SaaS platforms, decoupling the services from the technology. Why the Shift to SaaS? 12% 27% 32%10% 18% 21% 9% 6% 12% 25% 24% 15% 45% 25% 20% 2016 2018 2020 Licensed software on-premise Licensed software hosted Internally Developed System Hybrid SaaS subscription-based
  • 18.
    ISG Confidential. ©2017 Information Services Group, Inc. All Rights Reserved 18 GLOBAL 1Q17 For High-growth Companies It’s About Talent and Engagement Providers that specialize in platforms in high demand Implementation services experience strong demand Managed HRO services providers are gaining market share and acquiring smaller implementation firms HR Tech Buyer Behavior is Changing ImportantTechnology to increase employee engagement Important Compelling user experience Less important Reduce Total Cost of Ownership The SaaS Impact on Providers HR SaaS is a leading indicator for the global technology market SaaS is the single biggest opportunity for companies to transform HR service delivery Manage and extend the chosen technology Cloud technology used to transform delivery models Finding providers that know how to implement Get the larger research report from ISG Insights™
  • 19.
    ISG Confidential. ©2017 Information Services Group, Inc. All Rights Reserved 19 GLOBAL 1Q17 1Q 2017 ISG Index - Global Summary and Outlook ● Double digit Y/Y growth in each of the three regional commercial markets ● Each region is in varying degrees of cloud adoption with EMEA in early stages, the Americas seeing an equal split and Asia-Pacific being more heavily weighted toward As-a-Service ● Several Industries drive growth, including Financial Services, Telecom and Business Services, the latter experiencing simultaneous annual ACV gains in both Traditional Sourcing and As-a-Service ● Public sector contracting pulls back due to softness in the U.S. and Europe ● Continue to forecast high single-digit gains in each of the geographies ● Growth driven by increasing As-a-Service activity ● Occasional strong quarters in Traditional Sourcing space due to high volumes or large deal flow Summary Outlook
  • 20.
    ISG Confidential. ©2017 Information Services Group, Inc. All Rights Reserved 20 GLOBAL 1Q17 Your Webcast Screen 1 4 2 3 Click the "Listen by phone“ button. The phone number and passcode will appear, and the web streaming to your computer will be automatically muted. After you dial in, the operator will ask your name and company. Now press *1 to be added to the queue. Ask a Question 1 Q 1 7
  • 21.
    ISG Confidential. ©2017 Information Services Group, Inc. All Rights Reserved 21 GLOBAL 1Q17 isg-one.com Learn More Paul Reynolds Partner, Chief Research Officer ISG Momentum +1 508 625 2194 paul.reynolds@isg-one.com John Keppel Partner and President +44 (0)7879 432 212 john.keppel@isg-one.com Will Thoretz Americas Media Contact +1 203 517 3119 will.thoretz@isg-one.com Denise Colgan EMEA and AP Media Contact +44 1737 371523 denise.colgan@isg-one.com Bill McNee Partner, ISG Insights +1 203 820 8987 bill.mcnee@isg-one.com
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    GLOBAL 4Q16 GLOBAL 1Q17 Appendix:Score Card for TCV FIRST QUARTER 2017
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    ISG Confidential. ©2017 Information Services Group, Inc. All Rights Reserved 23 GLOBAL 1Q17 1Q 2017 TCV Scorecard – Traditional Sourcing Market Only The ISG Outsourcing Index has moved to ACV 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. *Contracts with TCV ≥ $25M from the ISG Contracts Knowledgebase™ Scorecard 1Q17 1Q Y/Y 1Q Q/Q TCV ($B)* Change Change Global Commercial Combined Market $ 28.8 12% 26% By Type Outsourcing $ 21.7 11% 34% As-a-Service $ 7.1 13% 8% ITO $ 15.5 29% 54% BPO $ 6.2 -17% 1% IaaS $ 3.6 76% 9% SaaS $ 3.5 -18% 6% By Region Americas Commercial $ 12.0 12% 25% EMEA Commercial $ 14.6 27% 33% Asia Pacific Commercial $ 2.2 -39% 2%
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    ISG Confidential. ©2017 Information Services Group, Inc. All Rights Reserved. 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. isg-one.com 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 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 automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; technology strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,300 professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data.