The ISG Index for the second quarter of 2018 reports significant growth in the global commercial contracting market, with an overall annual contract value (ACV) increase of 31% year-over-year. As-a-service ACV experienced a notable surge of 51%, surpassing traditional sourcing, which also grew by 19%. EMEA showed strong recovery trends, particularly in traditional sourcing, while the Asia Pacific region observed the highest growth at 40%.

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Proprietary and Confidential. No part of this document may be reproduced in any form or by any electronic
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EMEA Sourcing and
As-a-Service Market Insights
Hosted by:
John King, Bank of America, Merrill Lynch
16 July 2018
SECOND QUARTER 2018

2. ISG Confidential. © 2018 Information Services Group, Inc. All Rights Reserved 2
EMEA 2Q 2018
Steve Hall
Partner and President
ISG
Covering the state of the
combined Traditional Sourcing
and As-a-Service industry for
the global & EMEA commercial
markets.
Welcome
to the 63rd
Quarterly
ISG Index Wayne Butterfield
Director, Robotics Process
Automation & AI
Barry Matthews
Partner, EMEA
Andreas Lueth
Partner, DACH

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EMEA 2Q 2018
*Contracts with ACV ≥ € 4M from the ISG Contracts Knowledgebase™
At a Glance2Q18 Combined Market ACV up 31% Y/Y;
As-a-Service ACV accelerates, while Traditional Sourcing
increases nearly 20%, surpassing € 5.6B
Americas ACV up 30%+, supported by As-a-Service
growth while Traditional Sourcing breaks through the
€2.4B ceiling for fourth straight quarter
EMEA ACV up 20%+ with As-a-Service now increasing at
a faster pace than in the Americas; Traditional Sourcing
rebounds and exceeds €2.4B in ACV for the first time in
almost two years
Asia Pacific ACV up 40%+, exceeding €1.5B; As-a-Service
ACV breaks through € 800M, while Traditional Sourcing
registers its best quarter since 2014
Scorecard 2Q18 2Q Y/Y 1H 1H
ACV (€B)* Change ACV (€B)* Change
Global Commercial Combined Market € 9.9 31% € 18.9 17%
By Type Traditional Sourcing € 5.6 19% € 10.8 5%
As-a-Service € 4.3 51% € 8.1 39%
By Region Americas Combined € 4.7 33% € 9.7 29%
EMEA Combined € 3.7 23% € 6.6 -4%
Asia-Pacific Combined € 1.5 44% € 2.6 45%

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EMEA 2Q 2018
€ 7.2
€ 2.7
€ 1.8
€ 2.6
€ 7.9
€ 2.4
€ 1.8
€ 4.0
€ 8.4
€ 2.4 € 2.2
€ 5.8
ITO BPO Saas IaaS
1H16 1H17 1H18
€ 4.6 € 5.4 € 4.7 € 6.1 € 5.3 € 4.6 € 4.8 € 4.6 € 5.6 € 4.7 € 4.9 € 5.1 € 5.2 € 5.6
€ 1.8
€ 1.7 € 1.9
€ 2.1
€ 2.2 € 2.2 € 2.6 € 2.9
€ 2.9
€ 2.9 € 3.3 € 3.3 € 3.7 € 4.3€ 6.4
€ 7.1
€ 6.6
€ 8.3 € 7.5 €6.8 € 7.4
€ 7.5 € 8.5
€ 7.6 € 8.2 € 8.4 € 8.9
€ 9.9
1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18
Traditional Sourcing As-a-Service
Global Commercial Sector Contracting Trends
Combined Market sees its fourth straight successive quarterly growth period, up 31% Y/Y with As-a-Service tracking the same growth curve;
Traditional Sourcing surpasses €5.6B mark for the first time since 2015, supported by growth in Applications Outsourcing.
Global Combined Market Quarterly ACV (€ B)
€ 9.9 € 10.3 € 10.8
€ 4.4
€ 5.8
€ 8.0
€ 14.3
€ 16.1
€ 18.8
1H16 1H17 1H18
Traditional Sourcing As-a-Service
Global Commercial Sector 1H ACV (€ B) Global Commercial Sector 1H ACV by Type (€ B)

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EMEA 2Q 2018
Smaller Contract Awards and Shorter Contract Durations
With Digital maturing and scaling, award sizes are starting to become large enough to make the ISG Index threshold, resulting in a sizable
increase in smaller contract awards; at the same time, clients are demanding shorter deal terms as they crave flexibility and speed to market.
38.6% 37.0% 40.4% 43.1%
48.9% 50.1% 55.0% 56.6% 61.0%
44.7% 48.6% 46.1% 44.1%
41.2% 40.4%
36.6% 36.5% 32.0%
16.6% 14.4% 13.6% 12.8% 9.8% 9.5% 8.4% 7.0% 7.0%
2002-03 2004-05 2006-07 2008-09 2010-11 2012-13 2014-15 2016-17 1H18
Two-Year View of the Percentage of Contract Awards by ACV Band
4.9 4.9 4.8
4.5 4.2 4.1
3.6
3.2
2002-03 2004-05 2006-07 2008-09 2010-11 2012-13 2014-15 2016-2017
Two-Year Contract Duration Trends (Years)
€ 4M – € 8M € 8M – € 32M Greater than € 32M

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EMEA 2Q 2018
€ 4.5 € 5.3 € 4.3
€ 1.0
€ 1.6 € 2.2
€ 5.5
€ 6.9 € 6.5
1H16 1H17 1H18
Traditional Sourcing As-a-Service
EMEA Commercial Sector Contracting Trends
Combined Market ACV in EMEA up 23% Y/Y with As-a-Service setting record highs and accounting for 33% of market activity;
Traditional Sourcing exceeds €2.5B in ACV for the first time since 1Q17 with strength in the Nordics and a rebound in the UK.
EMEA Commercial Sector 1H ACV (€ B)
EMEA Commercial Sector Quarterly ACV (€ B)
€ 3.3
€ 1.2 € 0.4 € 0.6
€ 3.8
€ 1.4 € 0.4
€ 1.1
€ 3.4
€ 0.9 € 0.6 € 1.7
ITO BPO SaaS IaaS
1H16 1H17 1H18
EMEA Commercial Sector 1H ACV by Type (€ B)
€ 2.1 € 2.5 € 2.3
€ 3.3
€ 2.6
€ 1.9
€ 2.5 € 2.2
€ 3.0
€ 2.2
€ 1.4 € 1.9 € 1.8
€ 2.5
€ 0.5
€ 0.5 € 0.5
€ 0.6
€ 0.5
€ 0.6
€ 0.6 € 0.7
€ 0.8
€ 0.8
€ 0.9
€ 1.0 € 1.0
€ 1.2
€ 2.6
€ 3.0
€ 2.8
€ 3.9
€ 3.1
€ 2.5
€ 3.1 € 3.1
€ 3.8
€ 3.0
€ 2.3
€ 2.9 € 2.9
€ 3.7
1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18
Traditional Sourcing As-a-Service

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EMEA 2Q 2018
€ 0.20€ 0.28€ 0.25
€ 0.14€ 0.20
€ 0.08
€ 0.55
€ 0.93
€ 0.72
€ 1.22
€ 1.45
€ 1.25
€ 0.14€ 0.16€ 0.22
€ 0.99
€ 0.65€ 0.65
€ 0.28
€ 0.12
€ 0.30
€ 0.54
€ 0.75
€ 0.26
€ 0.45
€ 0.70
€ 0.57
€ 0.27
€ 0.32
€ 0.53
€ 0.07
€ 0.10
€ 0.14
€ 0.05
€ 0.09
€ 0.11
€ 0.13
€ 0.23
€ 0.36
€ 0.10€ 0.14
€ 0.18
€ 0.15
€ 0.25€ 0.33
€ 0.08
€ 0.12
€ 0.16
€ 0.11
€ 0.14
€ 0.24
€ 0.11
€ 0.16
€ 0.21
€ 0.47
€ 0.60
€ 0.77
€ 0.22
€ 0.31
€ 0.22
€ 0.60
€ 1.02
€ 0.83
€ 1.35
€ 1.68
€ 1.62
€ 0.24
€ 0.30
€ 0.40
€ 1.14
€ 0.91
€ 0.98
€ 0.37
€ 0.24
€ 0.46
€ 0.64
€ 0.89
€ 0.50 € 0.56
€ 0.86
€ 0.78
1H16 1H17 1H18 1H16 1H17 1H18 1H16 1H17 1H18 1H16 1H17 1H18 1H16 1H17 1H18 1H16 1H17 1H18 1H16 1H17 1H18 1H16 1H17 1H18 1H16 1H17 1H18
Traditional Sourcing As-a-Service
EMEA Commercial Sector Industry Award Trends
All industry sectors in EMEA post positive growth in both Traditional Sourcing and As-a-Service;
Retail is the only sector to show positive growth in both As-a-Service and Traditional Sourcing.
EMEA Commercial Industries Half-Year ACV (€ B)
Financial
Services
Healthcare
& Pharma
Business
Services
Energy Telecom &
Media
RetailConsumer
Packaged Goods
Travel, Transport
& Leisure
Manufacturing

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EMEA 2Q 2018
EMEA Sub-Regions - Traditional Sourcing Only
2Q strength in the UK and DACH was not enough to counter their weak start to 2018, Half year ACV in France was dragged down by sluggish 2Q
contract activity; However, strength in the Nordics and the smaller EMEA markets lifted the regional results
€ 1.59
€ 1.09
€ 0.76
€ 0.18
€ 0.27
€ 0.38 € 0.19
€ 0.05
€ 2.37
€ 1.24
€ 0.51
€ 0.10
€ 0.41
€ 0.23
€ 0.30
€ 0.07
€ 1.42
€ 0.95
€ 0.75
€ 0.35 € 0.31
€ 0.26
€ 0.17
€ 0.10
UK & Ireland DACH Nordics Africa & Middle East France Southern Europe Benelux Eastern Europe
1H16 1H17 1H18
EMEA Commercial Sector Full Year ACV by Type (€ B)

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EMEA 2Q 2018
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 since 1Q18
Traditional Sourcing Market
Allgeier SE *
Avaloq *
Bouvet ASA *
Comparex AG
EXL
GFT Technologies
Ibermatica SA
Mindtree
NNIT A/S
Reply SpA
Verifone
Virtusa
As-a-Service Market
Interxion
LogMeIn
OVH
Traditional Sourcing Market
Bechtle
CGI *
Computacenter
Diebold Nixdorf
Econocom *
EVRY *
Giesecke & Devrient *
HCL
Indra Sistemas, S.A. *
Orange Business Services
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

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EMEA 2Q 2018
Americas Commercial Sector Contracting Trends
Combined Market ACV up over 30% Y/Y as the Americas registers strong results in both Traditional Sourcing and As-a-Service ACV;
Americas has fourth straight quarter with €2.5B+ in Traditional Sourcing ACV, supported by a surge in smaller deal activity.
€ 1.8
€ 2.4
€ 1.9
€ 2.3 € 2.3 € 2.2
€ 1.9 € 2.1 € 2.2
€ 1.9
€ 2.8 € 2.6
€ 3.0
€ 2.5
€ 1.0
€ 1.0
€ 1.2
€ 1.3 € 1.3 € 1.3 € 1.5 € 1.6 € 1.7
€ 1.6
€ 1.8 € 1.8
€ 2.0
€ 2.2
1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18
Traditional Sourcing As-a-Service
Americas Commercial Sector Quarterly ACV (€ B)
€ 3.4
€ 1.1 € 1.2
€ 1.4
€ 3.4
€ 0.8
€ 1.2
€ 2.1
€ 4.1
€ 1.4 € 1.4
€ 2.8
ITO BPO SaaS IaaS
1H16 1H17 1H18
Americas Commercial Sector 1H ACV by Type (€ B)
€ 4.6 € 4.2 € 5.4
€ 2.6 € 3.3
€ 4.2
€ 7.2 € 7.4
€ 9.7
1H16 1H17 1H18
Traditional Sourcing As-a-Service
Americas Commercial Sector 1H ACV (€ B)
€ 2.8
€ 3.4 € 3.1
€ 3.6 € 3.6 € 3.5 € 3.4 € 3.7 € 3.9
€ 3.5
€ 4.6 € 4.4
€ 5.0 € 4.7

11. ISG Confidential. © 2018 Information Services Group, Inc. All Rights Reserved 11
EMEA 2Q 2018
Asia Pacific Commercial Sector Contracting Trends
Combined Market up over 40% with As-a-Service ACV growing faster than any other region; Traditional Sourcing sees its best quarterly
performance since the beginning of 2014, driven by strength in ANZ and North Asia.
Asia Pacific Commercial Sector 1H ACV (€ B)
€ 0.66
€ 0.58
€ 0.46 € 0.46 € 0.38
€ 0.49 € 0.42 € 0.38
€ 0.28
€ 0.55 € 0.62
€ 0.48
€ 0.37
€ 0.69
€ 0.22
€ 0.22
€ 0.26 € 0.28 € 0.34
€ 0.34 € 0.39 € 0.45
€ 0.46
€ 0.52
€ 0.59
€ 0.61 € 0.72
€ 0.86€ 0.88
€ 0.80
€ 0.72 € 0.74 € 0.72
€ 0.83 € 0.81 € 0.83
€ 0.74
€ 1.07
€ 1.21
€ 1.09 € 1.09
€ 1.55
1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18
Traditional Sourcing As-a-Service
Asia Pacific Commercial Sector Quarterly ACV (€ B)
€ 0.49
€ 0.38 € 0.17 € 0.51
€ 0.70
€ 0.14 € 0.18
€ 0.81€ 0.86
€ 0.19 € 0.23
€ 1.34
ITO BPO SaaS IaaS
1H16 1H17 1H18
Asia Pacific Commercial Sector 1H ACV by Type (€ B)
€ 0.87 € 0.83 € 1.06
€ 0.69 € 0.98
€ 1.58€ 1.56
€ 1.81
€ 2.64
1H16 1H17 1H18
Traditional Sourcing As-a-Service

12. EMEA 2Q 2018
Tech Trends in BFS
2Q18 ISG Index™ Inside Track from
Barry Matthews
Partner, EMEA

13. ISG Confidential. © 2018 Information Services Group, Inc. All Rights Reserved 13
EMEA 2Q 2018
Business Imperatives
Enhance
Customer Experience Optimize Data
Improve
Income & Profit
 Customer expectations
(Millennials) – experience
& security. Easier to switch
 Means of differentiation
 Increases customer ‘stickiness’
and associated wallet share
 Social media / brand
reputation
 Data aggregation – single view
of customer
 Data management and
maintenance of data currency
 Data insights – data science
 Data monetization
 Long period of income
& profit stagnation
 New competitors – new banks,
FinTech firms, Amazon?
 Much cost cutting has already
been done since 2008
 Regulation – especially increased
capital requirements

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EMEA 2Q 2018
The Approach – How to Transform
Parallel Running
Progressive Renovation
A piecemeal or modular approach to transformation
that either runs from the core to the customer or vice
versa depending on the business/time imperatives.
Build/buy new platforms and adopt new technology
for new business/customers while maintaining legacy
platforms and technologies for existing customers.
Replace all legacy platforms and technology
in a single modernization program.
Big Bang

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EMEA 2Q 2018
Implications for Service Providers
Don’t present technology solutions, present business solutions.Don’t present technology solutions, present business
solutions.
Segment your clients according to the relative priority of their
3 Imperatives and their likely approach to transformation.
Be prepared to compete more often, more aggressively
against more competitors.
Proactively propose working with partners as part of an
ecosystem solution.
Understand the scale and complexity of the challenges
faced by BFS clients.
Don’t present technology solutions, present business solutions.

16. EMEA 2Q 2018
Industry Mega-Trends
2Q18 ISG Index™ Inside Track from
Wayne Butterfield
Director, Robotics Process
Automation & AI

17. ISG Confidential. © 2018 Information Services Group, Inc. All Rights Reserved 17
EMEA 2Q 2018
Digital Products Require a New Operating Model
• Lowering costs
• Improving productivity
• Increasing speed
Cloud
 Rapid adoption of public cloud
 IaaS = $3.9B in 2Q18, +56%
 IaaS market 50% larger than
ITO Infrastructure
Automation
 Application development is
automation nexus
 50‒70% productivity improvements
 New features being pushed
to customers faster
Agile & DevOps
 New way of working inside IT
 Customer feedback drives
rapid innovation
 2/3 Traditional today; 2/3 Agile
& DevOps in 18 months

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EMEA 2Q 2018
Creates Opportunity, and Disruption, for Providers
• Reducing cost and creating value now priorities
• Cloud + automation driving 50% cost reduction
• Reinvesting savings into new digital initiatives
• Renewal market will look different; sales cycles accelerate
• Overall pie getting bigger = cost + customer experience

19. ISG Confidential. © 2018 Information Services Group, Inc. All Rights Reserved 19
EMEA 2Q 2018
2Q 2018 ISG Index – Global Summary and Outlook
● We continue to observe robust market growth with an abundance of awards in As-a-Service, ADM
and Industry Specific BPO.
● Americas up 30% in 1H18 with surging As-a-Service ACV and Sourcing growth driven by smaller deals.
● EMEA growth rates in As-a-Service outpaces the Americas (although off a smaller base), while
Traditional Sourcing had its best quarter in a couple of years.
● Asia Pacific exceeds €1.5B in ACV with the strongest Traditional Sourcing result since 2014.
● The growth of public cloud is accelerating and will exceed 45% growth rate through the rest
of the year.
● We are increasing the SaaS forecast to 16% (previous forecast 14.8%) and the Traditional Sourcing
to 4.4% (previous forecast 2.4%)
Summary
Outlook

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EMEA 2Q 2018
isg-one.com
Will Thoretz
Americas Media Contact
+1 203 517 3119
will.thoretz@isg-one.com
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
Steven Hall
President, ISG EMEA
and Partner, ISG Digital Services
+44 7384 259676
steven.hall@isg-one.com
Denise Colgan
EMEA and AP Media Contact
+44 1737 371523
denise.colgan@isg-one.com

21. GLOBAL 4Q16
EMEA 2Q 2018
Appendix: Score Card for TCV
SECOND QUARTER 2018

22. ISG Confidential. © 2018 Information Services Group, Inc. All Rights Reserved 22
EMEA 2Q 2018
2Q 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 ≥ € 20M from the ISG Contracts Knowledgebase™
Scorecard
2Q18 2Q Y/Y 2Q Q/Q
TCV (€ B)* Change Change
Global Combined Market € 24.5 25% -3%
By Type Outsourcing € 17.8 19% -8%
As-a-Service € 6.7 45% 16%
ITO € 13.9 17% 0%
BPO € 3.8 23% -30%
IaaS € 3.1 58% 17%
SaaS € 3.6 35% 14%
By Region Americas € 10.6 31% -23%
EMEA € 11.0 29% 22%
Asia Pacific € 2.9 -3% 21%

23. 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
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.