The ISG Index for Q1 2018 reveals a significant increase in the global commercial combined market, with an 11% year-over-year growth, surpassing $12 billion in annual contract value (ACV). While traditional sourcing declined by 6%, as-a-service contracts surged by 40%, driven primarily by strong results in the Americas and Asia-Pacific. The report also highlights varying trends across regions, with the Americas showing robust growth, while EMEA experienced a decline in ACV due to weakening traditional sourcing activity.

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Global Sourcing and
As-a-Service Market Insights
Hosted by:
Rishi Jhunjhunwala, IIFL Institutional Equities
April 11, 2018
FIRST QUARTER 2018

2. ISG Confidential. © 2018 Information Services Group, Inc. All Rights Reserved 2
GLOBAL 1Q18
Steve Hall
Partner and President
ISG
Covering the state of the
combined Traditional Sourcing
and As-a-Service industry for
the global commercial market.
Welcome
to the 62nd
Quarterly
ISG Index
Esteban Herrera
Partner and Global Leader
ISG Research
Dave Muller
Partner, ISG Network
Advisory Services
Stanton Jones
Director and Principal Analyst
ISG Research

3. ISG Confidential. © 2018 Information Services Group, Inc. All Rights Reserved 3
GLOBAL 1Q18
*Contracts with ACV ≥ $5M from the ISG Contracts Knowledgebase™
At a GlanceCommercial Combined Market ACV,
up 11% Y/Y, surpasses $12B for the first time ever
Traditional Sourcing declines moderately at 6% Y/Y,
while As-a-Service increases 40% Y/Y
Americas ACV up 32% Y/Y as both Traditional Sourcing
and As-a-Service generates strong results; Traditional
Sourcing sees strength in Applications and many BPO
functional areas
EMEA ACV down 20% Y/Y; Traditional Sourcing weighs
down results with weakness in UK and DACH
Asia Pacific ACV up 62% Y/Y versus a soft 1Q17;
Traditional Sourcing up on strength in Applications and
SE Asia and China activity; As-a-Service ACV breaks
through $1B for the first time
Scorecard 1Q18 1Q Y/Y TTM TTM
ACV ($B)* Change ACV ($B)* Change
Global Commercial Combined Market $ 12.2 11% $ 43.4 13%
By Type Traditional Sourcing $ 6.3 -6% $ 24.5 1%
As-a-Service $ 5.9 40% $ 18.8 32%
By Region Americas Combined $ 6.9 32% $ 23.3 24%
EMEA Combined $ 3.8 -20% $ 14.3 -9%
Asia-Pacific Combined $ 1.5 62% $ 5.7 46%

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GLOBAL 1Q18
$19.7
$7.0
$4.1
$6.4
$17.4
$6.8
$4.4
$9.8
$19.0
$5.5 $4.6
$14.3
ITO BPO Saas IaaS
2Q15-1Q16 2Q16-1Q17 2Q17-1Q18
$5.6 $6.6 $5.9
$7.5 $6.6 $5.8 $6.0 $5.7 $6.8 $5.9 $6.1 $6.2 $6.3
$2.5
$2.2 $2.8
$2.8
$2.8
$2.8 $3.2 $4.0
$4.1
$3.8 $4.4 $4.7 $5.9
$8.1
$8.8 $8.7
$10.3
$9.4
$8.6 $9.2 $9.7
$10.9
$9.7
$10.5 $10.9
$12.2
1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18
Traditional Sourcing As-a-Service
Global Commercial Sector Contracting Trends
Combined Market up 11% Y/Y, surpassing $12B in ACV; Traditional Sourcing has its third straight quarter over $6B but pulls back slightly Y/Y;
As-a-Service ACV breaks through the $5B level for the first time with stepped-up activity in the Public Cloud market segment.
Global Combined Market Quarterly ACV ($B)
$26.6 $24.2 $24.6
$10.6 $14.2
$18.8
$37.2 $38.4
$43.4
2Q15-1Q16 2Q16-1Q17 2Q17-1Q18
Traditional Sourcing As-a-Service
Global Commercial Sector TTM ACV ($B) Global Commercial Sector TTM ACV by Type ($B)

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GLOBAL 1Q18
ITO Award Trends – ADM/Infrastructure
ADM shows strength across all three regions as ACV and number of awards are up 22% and 49% Y/Y, respectively; at the same time,
Infrastructure Outsourcing ACV and number of awards fall 17% and 27% Y/Y, respectively, with weakness in EMEA and Asia/Pacific.
166
112 97 110 137 164 149 149
204
163 176 172
127
180 191
140 142 132
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18
Applications Infrastructure
Traditional Sourcing – Quarterly ADM/Infrastructure (Number of Awards)
$2.1
$1.5 $1,3 $1.4 $1.8 $1.7 $1.8 $2.0 $2.2
$2.7 $2.8
$3.4
$2.2
$3.2 $3.2 $2.9 $2.6 $2.6
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18
Applications Infrastructure
Traditional Sourcing – Quarterly ADM/Infrastructure ACV ($B)

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GLOBAL 1Q18
Americas Commercial Sector Contracting Trends
Combined Market ACV up 32% Y/Y as the Americas registers strong results in both Traditional Sourcing and As-a-Service ACV; robust
applications contracting and across the board in many BPO functional areas, while Public Cloud growth remains on a high trajectory
$2.3
$2.9
$2.4
$2.9 $2.9 $2.8
$2.4 $2.6 $2.8 $2.5
$3.6 $3.3
$3.7$1.5
$1.3 $1.7
$1.7 $1.7 $1.7 $1.9
$2.3 $2.4
$2.1
$2.4 $2.6
$3.2
$3.8
$4.2 $4.1
$4.6 $4.6 $4.5 $4.3
$4.9 $5.2
$4.6
$6.0 $5.9
$6.9
1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18
Traditional Sourcing As-a-Service
Americas Commercial Sector Quarterly ACV ($B)
$8.3
$2.9 $2.8
$3.6
$7.6
$2.9 $3.0
$5.3
$9.9
$3.1 $3.0
$7.3
ITO BPO SaaS IaaS
2Q15-1Q16 2Q16-1Q17 2Q17-1Q18
Americas Commercial Sector TTM ACV by Type ($B)
$11.2 $10.5 $13.0
$6.4 $8.3
$10.3
$17.6
$18.8
$23.3
2Q15-1Q16 2Q16-1Q17 2Q17-1Q18
Traditional Sourcing As-a-Service
Americas Commercial Sector TTM ACV ($B)

7. ISG Confidential. © 2018 Information Services Group, Inc. All Rights Reserved 7
GLOBAL 1Q18
Our Contracts Knowledgebase™
is used to determine placements
based on the annual value
of commercial contracts
awarded in the past 12 months.
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
* New to leaderboard
Traditional Sourcing Market
C3/CustomerContactChannels
CSG Systems
Ensono
EXL *
Hexaware
HGS *
KPIT Technologies *
Mindtree
StarTek *
Syntel
Virtusa
As-a-Service Market
Coresite
CyrusOne
IPSoft *
LogMeIn
Traditional Sourcing Market
Alliance Data Systems *
Black Knight Inc.
Cerner *
Global Payments *
HCL
OptumInsight *
Tech Mahindra *
Total System Services
Unisys
Vantiv *
Wipro
As-a-Service Market
Adobe Systems
Digital Realty
Equinix
Iron Mountain
Traditional Sourcing Market
Accenture *
AT&T *
Atos
Capgemini
Cognizant
DXC Technology
IBM
Infosys
NTT DATA
TCS
As-a-Service Market
Amazon Web Services
Google
Microsoft
Oracle
Salesforce

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GLOBAL 1Q18
Asia Pacific Commercial Sector Contracting Trends
Combined Market up 62% versus a soft 1Q17; As-a-Service ACV passes $1B for the first time and now accounts for nearly 70% of market
activity; Traditional Sourcing sees stepped-up activity in Applications contracting as well the China and Southeast Asia regions.
AP Commercial Sector TTM ACV ($B)
$0.82
$0.72
$0.58 $0.55 $0.48
$0.60
$0.52 $0.47
$0.34
$0.69
$0.77
$0.61
$0.46
$0.32
$0.27
$0.36 $0.39 $0.46
$0.40 $0.46 $0.55
$0.58
$0.65
$0.74
$0.79 $1.02
$1.14
$0.99 $0.94 $0.94 $0.94 $1.00 $0.98 $1.02
$0.92
$1.34
$1.51
$1.40
$1.48
1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18
Traditional Sourcing As-a-Service
AP Commercial Sector Quarterly ACV ($B)
$1.54
$0.79 $0.41
$1.08
$1.51
$0.44
$0.42
$1.56
$1.88
$0.65
$0.45
$2.75
ITO BPO SaaS IaaS
2Q15-1Q16 2Q16-1Q17 2Q17-1Q18
AP Commercial Sector TTM ACV by Type ($B)
$2.33 $1.95 $2.53
$1.49 $1.98
$3.20
$3.82 $3.93
$5.73
2Q15-1Q16 2Q16-1Q17 2Q17-1Q18
Traditional Sourcing As-a-Service

9. ISG Confidential. © 2018 Information Services Group, Inc. All Rights Reserved 9
GLOBAL 1Q18
Our Contracts Knowledgebase™
is used to determine placements
based on the annual value of
commercial contracts
awarded in the past 12 months.
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
* New to leaderboard
Traditional Sourcing Market
Beyondsoft *
Chinasoft *
Data#3 *
Hexaware
Ness Technologies
Posco ICT
Shinsegae I&C *
SsangYong Information & Comm.
Transperfect Global *
Virtusa
WNS
As-a-Service Market
IPSoft *
Kingdee
LogMeIn
Veeva Systems
Traditional Sourcing Market
Amdocs
Genpact *
Harman International
HCL
JLL *
Nomura Research Inst. *
NS Solutions *
Samsung SDS *
Sutherland Global
Tech Mahindra
Telstra
Unisys
Wipro
As-a-Service Market
Adobe Systems
Equinix
Traditional Sourcing Market
Accenture
Cognizant
DXC Technology
IBM
NEC *
Nokia
NTT Data *
Ricoh *
TCS
As-a-Service Market
Alibaba
Amazon Web Services
Google
Microsoft
Oracle
Tencent *

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GLOBAL 1Q18
$13.1 $11.7 $9.0
$2.7 $3.9
$5.3
$15.8 $15.6 $14.3
2Q15-1Q16 2Q16-1Q17 2Q17-1Q18
Traditional Sourcing As-a-Service
EMEA Commercial Sector Contracting Trends
Combined Market ACV in EMEA retracts 20% Y/Y as Traditional Sourcing sees its third straight weaker quarterly result on tepid activity in the UK
and DACH; As-a-Service ACV remains on slow but steady journey upward but not enough to make up for slowing sourcing results.
EMEA Commercial Sector TTM ACV ($B)
$2.5
$3.0 $2.8
$4.0
$3.2
$2.4
$3.0
$2.7
$3.6
$2.7
$1.8
$2.3 $2.1
$0.7
$0.6 $0.8
$0.7
$0.7
$0.7
$0.9 $1.1
$1.2
$1.1
$1.2
$1.4 $1.7
$3.2
$3.6 $3.6
$4.7
$3.9
$3.1
$3.9 $3.8
$4.8
$3.8
$3.0
$3.7 $3.8
1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18
Traditional Sourcing As-a-Service
EMEA Commercial Sector Quarterly ACV ($B)
$9.8
$3.2 $1.0 $1.8
$8.3
$3.4
$1.0
$2.9
$7.3
$1.7 $1.1 $4.2
ITO BPO SaaS IaaS
2Q15-1Q16 2Q16-1Q17 2Q17-1Q18
EMEA Commercial Sector TTM ACV by Type ($B)

11. ISG Confidential. © 2018 Information Services Group, Inc. All Rights Reserved 11
GLOBAL 1Q18
Our Contracts Knowledgebase™
is used to determine placements
based on the annual value of
commercial contracts
awarded in the past 12 months.
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
* New to leaderboard
Traditional Sourcing Market
Adare Group
Comparex AG *
EXL *
GFT Technologies
Hexaware
Ibermatica SA *
Maykor *
Mindtree *
NNIT A/S
Reply SpA *
Verifone *
Virtusa
As-a-Service Market
Interxion
LogMeIn
OVH
Traditional Sourcing Market
Axians IT Solutions *
Bechtle *
Computacenter *
Diebold Nixdorf
HCL
Interserve
Orange Business Services *
Sopra Steria
Tech Mahindra
Teleperformance *
Unisys
Wipro
As-a-Service Market
Adobe Systems
Equinix
United Internet
Traditional Sourcing Market
Accenture
AT&T
Atos
BT
Capgemini
Cognizant
DXC Technology
IBM
Infosys
TCS
T-Systems
As-a-Service Market
Amazon Web Services
Google
Microsoft
Oracle

12. GLOBAL 1Q18
Dave Muller
Partner, ISG Network
Advisory Services
Software Defined Networking Trends
1Q18 Index Inside Track from

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GLOBAL 1Q18
Networking Enables Digital Transformation
50% to 70% of enterprise
workloads are As-a-Service
The Internet of Things (IoT)
swallows Enterprise IT and moves
to integrated Platforms
Digital becomes The Business as IT
helps Revenue Generation Engine
20% to 40% of labor removed
through extensive Automation
Agile Enterprise becomes the
dominant operating model
Five Mega-trends impacting the Industry
FLEXIBILE,
SECURE, AND
EFFICIENT
NETWORK
PLATFORM

14. ISG Confidential. © 2018 Information Services Group, Inc. All Rights Reserved 14
GLOBAL 1Q18
Special Topic Title SlideSD-WAN May Be the Way to Go
SD-WAN is the FutureBandwidth is Key Network As-a-Service
SD-WAN
Digital business strategies requiring
agile, high-performance networks
Enterprises looking to double
network capacity to handle
expanding As-a-Service
business model
Public internet is now accepted
component of enterprise networks
Network As-a-Service is gaining
popularity as a comprehensive
managed network service
NaaS solutions can take over all
network components, including
transport, equipment, management,
and end-user support under
a usage-based pricing model
Most global carriers offering NaaS
Enables better application
performance through centralized
and real-time routing control
Hybrid-WAN a good (cost-saving) first
step toward transition to SD-WAN
No time to wait: now is time to
review current network design and
establish a roadmap to eventual
network transformation
NaaS

15. ISG Confidential. © 2018 Information Services Group, Inc. All Rights Reserved 15
GLOBAL 1Q18
Special Topic Title SlideTelecom Market Trends
Broadband Has the Edge Competition Favors Buyers M&A Trend
Enterprises moving to
broadband internet, which
offers sizable cost savings,
increased bandwidth
and availability
More SD-WAN technology
options increases
competition, which lowers
rates and brings about
better contract terms
Mergers & Acquisition
activity in new network
technology arena, as
established companies
look to buy vs. build
Digital business is driving change in network requirements

16. GLOBAL 1Q18
Blockchain
Stanton Jones
Research Director
and Principal Analyst
1Q18 Index Inside Track from

17. ISG Confidential. © 2018 Information Services Group, Inc. All Rights Reserved 17
GLOBAL 1Q18
Blockchain EcoStack
Distributed Nodes
Individual computers that participate
in the blockchain network, providing
transaction recording and cryptographic
effort to validate transactions
Level
Blockchain Enabled
Applications
Cryptocurrencies, Smart Contracts, Transaction
Processing, Settlement, Supply Chain
Transparency, Digital Rights Management
Level
Blockchain Platforms
Public, Federated,
Private
Bitcoin, Ethereum, Microsoft, Corda R3, IBM
Level

18. ISG Confidential. © 2018 Information Services Group, Inc. All Rights Reserved 18
GLOBAL 1Q18
Blockchain Market Size Blockchain As-a-Service Players Blockchain Across Industries
$400-800M
$10-50B
potentialcurrent
Enterprise use cases increasingly
focused on supply chain, logistics
and smart contracts.
Verified
Blockchain Market
Blockchain Ecosystem
2,000 startups
1,000 investors

19. ISG Confidential. © 2018 Information Services Group, Inc. All Rights Reserved 19
GLOBAL 1Q18
Blockchain Market
Blockchain Deployment Phases Maturation Will Parallel Cloud Market
1. Primarily BFSI use cases such as payment
systems and transaction settlement
2. Pilots outside of financial services,
including supply chain, point of sale
and smart contracts
3. Pilots realize value and move into
production while technology and
operating model matures
• Massive As-a-Service platforms
democratize access
• Developers leading the charge in
building next generation applications
• Will require operating model re-think
within enterprises, resulting in need
for new type of managed service

20. ISG Confidential. © 2018 Information Services Group, Inc. All Rights Reserved 20
GLOBAL 1Q18
1Q 2018 ISG Index – Global Summary and Outlook
● Combined Commercial Market ACV continued to see double-digit Y/Y growth, surpassing $12B for the
first time ever
● Regional results were uneven as the Americas generated strong growth in both Traditional Sourcing
and As-a-Service, while Asia Pacific generated very high growth but against a soft Y/Y compare
● EMEA saw its third straight weaker quarter in Traditional Sourcing, and even though As-a-Service
activity continued to rise, it wasn’t enough to offset the pullback in key markets like the UK and DACH
● Continue to forecast As-a-Service growth of 20%+ being led by growth in Public Cloud (30%+)
and SaaS growth of 15%
● Traditional Sourcing growth forecast of 2% with uneven results across both the regions and industries
Summary
Outlook

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GLOBAL 1Q18
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GLOBAL 1Q18
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Learn More
Esteban Herrera
Partner, Global Leader
ISG Research
+1 972 730 1749
esteban.herrera@isg-one.com
Paul Reynolds
Partner, Chief Research Officer
ISG Momentum
+1 508 488 6361
paul.reynolds@isg-one.com
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and Partner, ISG Digital Services
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23. GLOBAL 4Q16
GLOBAL 1Q18
Appendix: Score Card for TCV
FIRST QUARTER 2018

24. ISG Confidential. © 2018 Information Services Group, Inc. All Rights Reserved 24
GLOBAL 1Q18
1Q 2018 TCV Scorecard
The ISG 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 ≥ $25M from the ISG Contracts Knowledgebase™
Scorecard
1Q18 1Q Y/Y 1Q Q/Q
TCV ($B)* Change Change
Global Combined Market $ 31.7 2% -2%
By Type Outsourcing $ 23.2 -6% -8%
As-a-Service $ 8.5 32% 22%
ITO $ 17.0 3% -5%
BPO $ 6.3 -23% -16%
IaaS $ 4.6 48% 26%
SaaS $ 3.9 18% 18%
By Region Americas $ 17.9 41% 10%
EMEA $ 10.7 -35% -13%
Asia Pacific $ 3.1 68% -14%

25. ISG Confidential. © 2018 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
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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
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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
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