4Q 2018 EMEA ISG Index™

ISG Confidential. © 2019 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.
EMEA Sourcing and
As-a-Service Market Insights
Hosted by:
John King, Bank of America, Merrill Lynch
January 16, 2019
FOURTH QUARTER AND FULL YEAR 2018

ISG Confidential. © 2019 Information Services Group, Inc. All Rights Reserved
2
EMEA 4Q18
Covering the state of the
combined Traditional Sourcing
and As-a-Service industry for
the global commercial market.
Welcome
to the 65th
Quarterly
ISG Index
Steve Hall
Partner and President
ISG
Phil Scone
Director
ISG
Barry Matthews
Partner
North Europe ISG

3
EMEA 4Q18
The World We Live In
ITO/BPO Services Projected
3-Year CAGR: 4.5%
As-a-Service Projected
3-Year CAGR: 25%
Labor Market Tightness:
EU Rate of 6.7%
Is Lowest Since 2000;
US Unemployment
Rate of 3.7%,
Lowest Since 1960
Volatile Equity
Markets:
Nasdaq Declines
15%-20% Off
All-Time High
US 3Q GDP Advanced
an Annualized 3.4%
While Emerging
Markets Suffer From
China Slowdown
Central Banks
Tightening: US Fed
Benchmark Funds Rate
Up to 2.5% With
2 More Hikes
Expected in 2019
Foreign Exchange
Volatility: Strengthening
Dollar Versus British
Pound and
Other Currencies
European Tribulations:
France’s Anti-Macron Riots,
Italian Debt & UK Delaying
Parliamentary Vote
on Brexit Deal
Trade/Tariff Turbulence:
US Trade Deficit
With China Approaches
€ 320 Billion
for 2018

4
EMEA 4Q18
*Contracts with ACV ≥ €4M from the ISG Contracts Knowledgebase™
At a Glance4Q18 ACV up 18% Y/Y with As-a-Service establishing
new highs; Traditional Sourcing ACV up slightly
on record number of contract awards.
EMEA ACV up slightly Y/Y; As-a-Service exceeds € 1.2B
for the third straight quarter; Traditional Sourcing
declines Y/Y on weakness in UK and DACH.
Americas ACV produced best quarter ever;
As-a-Service continues quarterly record-setting pace;
Traditional Sourcing up 9% Y/Y with strong results
in Applications and several BPO functions.
Asia Pacific up significantly Y/Y; As-a-Service ACV
remains above $1B, accounting for over
60% of market; Traditional Sourcing rebounds,
up 20% on strong results in ANZ and Japan.
By total contracts awarded, 2018 was the
most bullish year in outsourcing history;
ITO and BPO also reached all-time highs.
Scorecard 4Q18 4Q Y/Y Full Year Full Year
ACV (€ B)* Change ACV (€ B)* Change
Global Commercial Combined Market € 9.8 18% € 38.2 18%
By Type Traditional Sourcing € 5.1 2% € 20.8 2%
As-a-Service € 4.7 44% € 17.4 43%
By Region EMEA Combined € 3.0 5% € 12.9 9%
Americas Combined € 5.4 23% € 20.0 21%
Asia-Pacific Combined € 1.4 35% € 5.4 30%

5
EMEA 4Q18
19.4 20.2 20.8
9.8
12.2
17.4
29.1
32.4
38.2
2016 2017 2018
Traditional Sourcing As-a-Service
13.8
5.5
3.6
6.2
15.4 4.9
3.6
8.6
16.0
4.8 4.8 12.6
ITO BPO Saas IaaS
2016 2017 2018
4.5 5.4 4.8 6.1 5.3 4.6 4.8 4.6 5.6 4.8 4.8 5.0 5.3 5.6 4.8 5.1
1.8
1.7 1.9
2.1
2.2 2.2 2.6 2.8
2.9
2.9 3.1 3.3 3.8 4.4 4.6 4.76.2
7.0 6.7
8.2
7.4 6.9 7.4 7.4
8.5 7.7 7.9 8.3 9.0
10.0 9.4 9.8
1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18
Global Commercial Sector Contracting Trends
4Q18 Combined Market ACV up 18% Y/Y with As-a-Service sector reaching new heights and Traditional Sourcing up 2% Y/Y;
full-year 2018 Combined Market at record levels driven by 40% As-a-Service growth, while Traditional Sourcing remains in a tight range.
Global Combined Market Quarterly ACV (€ B)
Global Commercial Sector Full Year ACV (€ B) Global Commercial Sector Full Year ACV by Type (€ B)

6
EMEA 4Q18
9.3 8.5 8.0
2.4 3.3 4.9
11.7 11.8 12.9
2016 2017 2018
EMEA Commercial Sector Contracting Trends
4Q18 Combined Market ACV up 5% Y/Y as strength in As-a-Service was weighed down by 12% Y/Y decline in Traditional Sourcing.
Full-year 2018 Combined Market ACV driven by 40%+ growth in SaaS and IaaS; Traditional Sourcing down 7% on weakness in BPO.
EMEA Commercial Sector Full Year ACV (€ B)
EMEA Commercial Sector Quarterly ACV (€ B)
6.6
2.6 0.8
1.7
6.3
2.2
0.9 2.5
6.4
1.5
1.2 3.7
ITO BPO SaaS IaaS
2016 2017 2018
EMEA Commercial Sector Full Year ACV by Type (€ B)
2.0 2.3 2.3
3.2
2.6
2.0 2.5 2.2
3.0
2.2
1.3
1.9 1.8
2.4 2.0 1.7
0.5
0.5 0.5
0.6
0.5
0.6
0.6 0.7
0.8
0.8
0.9
0.9 1.0
1.3
1.3
1.3
2.5
2.8 2.8
3.8
3.0
2.6
3.1 3.0
3.8
3.0
2.2
2.8 2.9
3.7
3.3
3.0

7
EMEA 4Q18
0.47 0.47 0.45
0.21 0.31 0.28
1.28
1.53
0.96
2.46 2.47
2.70
0.30 0.29 0.35
1.85
1.10 1.30
0.41
0.19
0.43
1.42
1.11
0.55
0.82
1.03 0.91
0.59 0.74
1.12
0.17
0.22 0.31
0.13
0.18
0.24
0.34 0.51
0.78
0.23 0.28
0.40
0.35
0.51
0.74
0.19
0.26
0.34
0.25
0.31
0.48
0.26
0.34 0.49
1.06
1.21
1.57
0.38
0.53 0.59
1.41
1.71
1.20
2.80
2.98
3.48
0.53 0.57
0.75
2.20
1.61
2.04
0.60
0.45
0.77
1.66
1.42
1.03 1.08
1.37 1.40
2016 2017 2018 2016 2017 2018 2016 2017 2018 2016 2017 2018 2016 2017 2018 2016 2017 2018 2016 2017 2018 2016 2017 2018 2016 2017 2018
EMEA Commercial Sector Industry Award Trends
As-a-Service ACV grows across all sectors. Financial Services leads among industry verticals with growth in Traditional Sourcing and As-a-
Service. Manufacturing , Retail and Healthcare & Pharma also post growth in both measures.
EMEA Commercial Industries YTD ACV (€ B)
Financial
Services
Healthcare
& Pharma
Business
Services Energy
Telecom
& MediaRetail
Consumer
Packaged Goods
Travel, Transport
& Leisure
Manufacturing

8
EMEA 4Q18
EMEA Sub-Regions - Traditional Sourcing Only
Macro-economic factors dragged Traditional Sourcing ACV in the UK, DACH and France in 2018. The Nordics and the smaller sub-regional
markets posted gains on the back of robust contracting activity.
€ 2.77
€ 2.61
€ 1.18
€ 0.36 € 0.62
€ 1.19
€ 0.38
€ 0.11
€ 3.46
€ 2.06
€ 0.87
€ 0.19
€ 0.66
€ 0.39
€ 0.72
€ 0.16
€ 2.53
€ 1.97
€ 1.05
€ 0.45
€ 0.64 € 0.57
€ 0.39 € 0.35
UK & Ireland DACH Nordics Africa & Middle East France Southern Europe Benelux Eastern Europe
2016 2017 2018
EMEA Commercial Sector Full Year ACV by Type (€ B)

9
EMEA 4Q18
Sourcing Standouts
EMEA
Our Contracts Knowledgebase™ is used to determine
placements based on the annual value of commercial
contracts awarded in the past 12 months.the
ISG15 Providers in alphabetical order; no rankings implied. Revenues
sourced from Hoovers and individual company financial fillings.
* New to leaderboard since 3Q18.
Traditional Sourcing Market
Allgeier SE
Bouvet ASA
Comarch
Comparex AG
Datagroup *
Ibermatica SA
Luxoft
Mindtree
NNIT A/S
QIWI *
Reply SpA
SVA System Vertrieb Alexander *
Virtusa
As-a-Service Market
Interxion
OVH
The Booming 15
Alten SA
Altran
Asseco *
Axians
Cancom
Diebold Nixdorf
EVRY ASA
GFI Informatique
Giesecke & Devrient
JLL
Mitie *
Tieto
Unisys
Webhelp
As-a-Service Market
Autodesk *
The Breakthrough 15
Amdocs *
Bechtle
CGI
Computacenter
Econocom
HCL Technologies
Indra Sistemas
Orange Business Services
Serco Group
SopraSteria
Tech Mahindra
Wipro
As-a-Service Market
Adobe Systems
Equinix
United Internet
The Building 15
Accenture
Atos
BT
Capgemini
CBRE
Cognizant
DXC Technology
IBM
Infosys
ISS A/S *
TCS
As-a-Service Market
Amazon Web Services
Google
Microsoft
SAP
The Big 15
Co. Revenues > $10 B Co. Revenues < $1 BCo. Revenues $1 - $3 BCo. Revenues $3 - $10 B

10
EMEA 4Q18
6.1
2.4 2.4
3.3
7.4
2.3 2.4
4.3
7.9
2.9 3.0
6.2
ITO BPO SaaS IaaS
2016 2017 2018
Americas Commercial Sector Contracting Trends
4Q18 Combined Market ACV up 23% Y/Y supported by 45%+ growth in As-a-Service and nearly 10% growth in Traditional Sourcing;
full-year 2018, Combined Market ACV up 21% on record highs in Traditional Sourcing and As-a-Service ACV.
1.8
2.4
2.0
2.4 2.3 2.2
1.9 2.1 2.2 2.0
2.9
2.6
3.0
2.5 2.5
2.91.0
1.0
1.2
1.3 1.3 1.4
1.4
1.6 1.7 1.6
1.7 1.8
2.0
2.2 2.4
2.6
Americas Commercial Sector Quarterly ACV (€ B)
Americas Commercial Sector Full Year ACV by Type (€ B)
8.5 9.8 10.8
5.7 6.7
9.2
14.2
16.5
20.0
2016 2017 2018
Americas Commercial Sector Full Year ACV (€ B)
2.8
3.4 3.2
3.7 3.6 3.6 3.3
3.7 3.9
3.6
4.6 4.4
5.0
4.7
5.4
4.9

11
EMEA 4Q18
Asia Pacific Commercial Sector Contracting Trends
4Q18 Combined Market ACV rebounds, up 35%; both Traditional Sourcing and As-a-Service segments up 35%+; full-year 2018, Combined
Market ACV up 30% with As-a-Service ACV doubling in past two years; Traditional Sourcing ACV up 3%, remaining in a tight range.
0.66 0.59
0.46 0.46
0.38
0.49 0.42 0.38
0.27
0.55
0.64
0.48
0.38
0.67
0.38
0.58
0.22 0.22
0.26 0.29 0.34
0.34 0.39 0.45
0.46
0.52
0.56
0.61 0.73
0.87
0.84
0.900.88 0.81
0.72 0.75 0.72
0.83 0.81 0.83
0.73
1.07
1.20 1.09 1.11
1.54
1.22
1.48
Asia Pacific Commercial Sector Quarterly ACV (€ B)
1.16 0.50
0.36
1.16
1.49
0.46
0.36
1.79
1.62
0.39 0.52
2.83
ITO BPO SaaS IaaS
2016 2017 2018
Asia Pacific Commercial Sector Full Year ACV by Type (€ B)
1.66 1.95 2.01
1.52
2.15
3.35
3.18
4.10
5.36
2016 2017 2018
Asia Pacific Commercial Sector Full Year ACV (€ B)

EMEA 4Q18
Life Sciences
4Q18 ISG Index™ Inside Track from
Barry Matthews
Partner, North Europe ISG

13
EMEA 4Q18
Life Sciences: Industry Trends
Life Sciences has tended to lag behind other regulated industries in taking advantage of efficiencies available through automation, but that is now changing.
Pre-clinical and Clinical Trials
Leading biopharma innovators are exploring
AI to manage and evaluate data and increase
operational efficiency
Manufacturing and Distribution
Blockchain for securing payments, inventory
management; adoption still early among
Manufacturers and Distributors
Recent track and trace regulations are
leading pharma companies to invest
in serialization solutions and investigate
opportunities to use blockchain
Regulatory Considerations
Healthcare Providers
Major institutions using blockchain
for managing and sharing electronic
health records
Consumer Interactions
Growing adoption of wearables
to keep track of patient health
Research and Development
AI being used to automate and improve
throughput and accuracy of Discovery and
Development

14
EMEA 4Q18
Adoption
Level
Life Sciences: Technology Drivers
Clients are investing heavily in improving the efficiency of drug development through the use of several digital enablers.
Going Virtual a Reality
in Clinical Trials
Very Low Low Medium High Very High
Adoption
Level
Digital Supply
Networks (DSN)
Very Low Low Medium High Very High Very Low Low Medium High Very High
Blockchain
Technology and Life
Sciences Innovation
Current AdoptionHistorical Adoption (24-36 months)
Very Low Low Medium High Very High Very Low Low Medium High Very High
AI in Drug Discovery
and Drug
Development
Regulations Driving
Track and Trace
Serialization Market
Very Low Low Medium High Very High
Other Emerging
Technologies
Source: ISG Research

15
EMEA 4Q18
Life Sciences enterprises look
to Service Providers for system
integrations, best practices, technology
skills and strategic relationships.
Providers with System Integration and
Automation and Robotics Solutions
coupled with Cloud Expertise are set
to capture significant new revenue
in the digital-enabled world.
Life Sciences: Service Provider Opportunities
Clients aren’t totally moving away from traditional areas, but are looking for more efficient solutions with Pharmacovigilance being an early focus.
MORE SPENDING ON R&D
IS RESULTING IN GROWING OPPORTUNITIES
TO AUTOMATE WITH AI AND RPA
$B
2017
70
45
2010
$B
R&D
spending
increased
+55%

EMEA 4Q18
Agile and DevOps
4Q18 ISG Index™ Inside Track from
Phil Scone
Director, ISG

17
EMEA 4Q18
Agile and DevOps: What’s Changing?
Requires cultural and organizational transformation, but changes are occurring rapidly.
Agile
• Interaction over process
• Working software over
comprehensive documentation
• Collaboration over contracts
• Responds to change
DevOps
• Combines functions of
software development and
IT operations to create better
applications and systems
• Automation can make things
faster and more consistent
49%
of companies
52%
59%
Agree that Agile
is part of their
company culture
Agree their
technology platform
supports their
business needs
Agree that they
can create new
products faster
of companies
of companies
Source: ISG Insights 2018 Agile and DevOps in Enterprise Study, n=322

18
EMEA 4Q18
Agile and DevOps: Adoption Trends
Enterprise adoption varies by region and industry vertical.
AGILE ENABLES PROVIDERS
TO DEPLOY SOFTWARE FASTER
BFSI companies value Enterprise Agility.
The BFSI sector is not replacing legacy systems
but is instead launching new platforms
along side them.
European companies are lagging
in automation adoption and
have exhibited organizational
resistance to change.
American companies have
higher levels of automation
in their software
development lifecycle.
››

19
EMEA 4Q18
Agile and DevOps: Service Provider Impact
More enterprises are wanting to incorporate Agile and DevOps but are Service Providers ready to meet those needs?
Resources don’t have to be co-located. Globally
distributed Agile, which is using Agile principles
but doing it with resources across different time
zones, is growing rapidly, and based on our
experience with clients, it works.
story
pointspods
incorporated
in contracts
ENTERPRISE
NEED FOR
AGILE AND
DEVOPS
SERVICE
PROVIDER
CAPABILITIES

20
EMEA 4Q18
4Q 2018 ISG Index – Global Summary and Outlook
● Macro forces are more volatile than a year ago but the demand environment remains quite strong.
● Each region generated highs in Combined Market ACV; path to achieve growth was different for each.
● As-a-Service segment saw record highs in each region for 2018; growth led by Asia Pacific and EMEA.
● In Traditional Sourcing, the Americas saw record-setting highs in 2018 on strength in Applications and
BPO; Asia Pacific saw marginal gains with strength in the South Korea/Japan corridor; EMEA fell back
with pockets of weakness in the UK, Telco and Energy and the BPO market.
● For the overall As-a-Service market, we forecast a 25% blended growth rate with Public Cloud
Infrastructure growing at 42% and SaaS projected up 17%.
● Even with ongoing macro-economic challenges in 2019, digital tailwinds will continue to push
the Traditional Sourcing market forward at a 4.5% growth rate.
Summary
Outlook

21
EMEA 4Q18
isg-one.com
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
Steven Hall
President, ISG EMEA
and Partner, ISG Digital Services
+44 7384 259676
steven.hall@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
Stanton Jones
Director, Principal Analyst
ISG Research
+1 281 795 2636
stanton.jones@isg-one.com

GLOBAL 4Q16
EMEA 4Q18
Appendix: Score Card for TCV and
Sourcing Standouts by Region
FOURTH QUARTER 2018

23
EMEA 4Q18
4Q 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
4Q18 4Q Y/Y Full Year Y/Y
TCV (€ B)* Change TCV (€ B)* Change
Global Commercial Combined Market € 24.2 -6% € 95.4 1%
By Type Traditional Sourcing € 17.0 -18% € 68.5 -9%
As-a-Service € 7.3 42% € 27.0 40%
ITO € 10.2 -29% € 49.6 -6%
BPO € 6.7 5% € 18.9 -17%
IaaS € 3.4 45% € 12.6 47%
SaaS € 3.8 40% € 14.3 34%
By Region EMEA Commercial € 7.8 -22% € 35.8 -8%
Americas Commercial € 13.4 2% € 49.0 10%
Asia Pacific Commercial € 3.0 8% € 10.6 -3%

24
EMEA 4Q18
Sourcing Standouts
AMERICAS
contracts awarded in the past 12 months.the
Birlasoft/KPIT
EXL
FirstSource Solutions
Hexaware
Luxoft
Mindtree
StarTek
Virtusa
As-a-Service Market
Blackbaud
CyrusOne
IPSoft
LogMeIn
Proofpoint *
RealPage
RingCentral *
ASGN Incorporated
Diebold Nixdorf
Genpact
Groupe Acticall *
InnerWorkings *
LTI
Mphasis
Pitney Bowes
TTEC
Unisys
WEX
As-a-Service Market
Autodesk *
Digital Realty
ServiceNow
Workday
Alliance Data Systems
Alorica *
Cerner Corporation
Conduent
First Data
FIS Global *
HCL Technologies
OptumInsight
Tech Mahindra
Total System Services
Wipro
Worldpay
As-a-Service Market
Adobe Systems
Equinix
Iron Mountain
Accenture
BNY Mellon
Capgemini
CBRE
Cognizant
DXC Technology
IBM
Infosys
NTT DATA
TCS
As-a-Service Market
Amazon Web Services
Google
Microsoft
Oracle
Salesforce
The Booming 15The Breakthrough 15The Building 15The Big 15

25
EMEA 4Q18
contracts awarded in the past 12 months.
Sourcing Standouts
Asia Pacificthe
Aspen Technology
Beyondsoft
Chinasoft
CSG Systems
Datacom
Fuji Soft
HGS *
Luxoft
Neusoft
PLDT
Relia
Shinsegae I&C *
Sichuan Troy Information Tech
As-a-Service Market
Atlassian *
Kingdee
Chinasoft
Diebold Nixdorf *
Digital China
Genpact
JLL
Konica Minolta
Nihon Unisys
Sumitomo SCSK
Sutherland Global Services
transcosmos
Unisys
As-a-Service Market
Autodesk
PTC
Sage *
ServiceNow
Amdocs
CGI
First Data
HCL Technologies
IT Holdings (TIS)
ITOCHU Techno-Solutions
JLL *
Nomura Research Institute
Sabre
Samsung SDS
Tech Mahindra
Telstra
Wipro
As-a-Service Market
Adobe Systems
Equinix
Accenture
CBRE
Cognizant
DXC Technology
Hitachi *
IBM
Infosys
NTT Data
TCS *
As-a-Service Market
Alibaba
Amazon Web Services
China Telecom *
Google
Microsoft
Tencent
The Booming 15The Breakthrough 15The Building 15The Big 15

ISG Confidential. © 2019 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.
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A trusted business partner to more than 700 clients, including 75 of the top 100 enterprises in the
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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.

4Q 2018 EMEA ISG Index™

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