Global IT BPM Market Perspective by Dolat Capital with special coverage on cloud computing

Nov 2019
Global IT-BPM Market Perspectives
www.dolat.capital

 Global Cloud Infrastructure & Services – Key Market Trends
 Indian IT-BPM Market – Latest Quarterly Financial Analysis
 Global IT-BPM Market – Public Market Valuation
 Global IT-BPM Market – Global M&A Transaction Activity
 Dolat Capital – Introduction
Table of Contents
2

3
Executive Summary
 Cloud Technology is gaining ubiquitous status with growing adoption across both large and small enterprises
 The market for Cloud Infrastructure and Services is growing at 17% CAGR to reach US$ 350bn by 2022 and IaaS
(Infrastructure-as-a-service) segment to grow fastest with 27% CAGR
 This technology is gaining mainstream status as businesses and consumers are both embracing more agile and
connected interactions which is inefficiently serviced by traditional computing technology
Cloud Infrastructure
& Services Market to
double in next 4 years
 Multi-cloud/Hybrid-Cloud strategy is gaining prominence among large enterprises with 80% of Global 2000
already managing more than one cloud
 Cloud management, governance & brokerage solutions is becoming a key focus areas for leading Cloud SI players
like Accenture, TCS etc.
Ubiquity of Hybrid
Cloud among large
enterprises
 With abstraction of physical infrastructure enabled by cloud, DevOps & micro-services based architecture are
becoming mainstream for application development
 Cloud Service Providers (CSPs) are also increasing offering newer tools and solutions as part of cloud offering to
drive emerging tech (IoT, Blockchain, AI etc.) initiatives for enterprises
Cloud enabling digital
transformation and
adoption of emerging
technologies
 With evolving service offerings, there is growing M&A activity with >50 acquisitions by Cloud System Integrators
(SIs) like Accenture, Cognizant since 2015
 Cloud SIs are interested in assets who have built in-house IPs/automation tools as well as possess teams with
specializations in one of the leading CSPs like AWS, Azure, Google Cloud etc.
Cloud space
witnessing strong
M&A activity

Cloud Services – A paradigm shit in IT Management
4
Cloud Infrastructure & Services – An Overview
74
41
15
57
187
137
106
33
78
354
SaaS IaaS PaaS Others Total
2018
2022
22%
17%
17%
27%
Global Cloud Infrastructure & Services Spending to Double by 2022 IT management value chain changing fundamentally due to Cloud adoption
• IaaS (Cloud) segment to
register fastest growth
• Fresh computing
infrastructure spend on
cloud
• New enterprise IT systems
completely hosted on
cloud
• Transition of legacy to
cloud and incremental IT
spend to drive Cloud
adoption
• On demand IT systems & services orchestration now possible through cloud
• Strong momentum of cloud adoption seen across the value chain (IaaS to SaaS)
• Cloud system evolution lending to creation of new-age & deep tech services
• Enterprises increasingly engaging in custom development through SaaS platforms
USD bn
17%

5
Cloud Adoption across enterprise & IT processes
Enterprise Process Cloud Adoption Pace of Adoption
IT Management
Customer management
Marketing
Sales
Finance & Accounting
Supply Chain & Logistics
Human Resources
Procurement
Research & Development
Manufacturing & Operations
Cloud Adoption Across Key Enterprise Process
Hybrid IT environments with cloud enablement across processes & workloads becoming the new norm for all enterprises
IT Management & Customer management impacted most
Development & Testing, Enterprise Applications & Web portals – major workload
segments witnessing highest Cloud penetration
Low High
Penetration
LowMediumHigh
GrowthinAdoption
Medium
Cloud Adoption Across IT Workloads
Storage / Backup
Development & Testing
Workplace productivity
(email, spreadsheets etc.)
Web & Portals
Communications
(Email, messaging etc.)
Enterprise Applications
(ERP, CRM)
Collaboration
(web/video conferencing,
document sharing etc.)
Analytics
Emerging Technologies
(IoT, AI, Blockchain)

Trend Description Implication
Multi-cloud strategy
being favoured by
Enterprises
• Pick and choose clouds for different capabilities (e.g. AWS for cost, GCP for AI &
data pipelines, Azure for legacy app migration)
• Enterprises are reducing dependence on one cloud provider as a risk mitigation
strategy
• Optimizing costs by running workloads wherever its cheaper
• Hybrid Cloud model most preferred choice amongst enterprises
within multi-cloud strategy
• Enterprise multi-cloud strategy to consider constraints around legacy
applications, compliance & security issues, etc.
Public cloud
providers building
on premise
capabilities
• Enterprises likely to continue leveraging on-premises infrastructure instead of
transitioning completely to a public cloud environment
• Organizations with cloud based architecture demanding public cloud capabilities
for their on-premise infrastructure
CSPs expanding capabilities through partnerships / acquisitions
o AWS partnership with VMWare, AWS Outposts announcement
o Microsoft’s Azure Stack
o Google Kubernetes Engine
o IBM’s acquisition of Red Hat
Fundamental shift
App. Development
and computing
practices
• DevOps & new integration technologies in cloud coming up:
o Container platforms & microservices architectures
o Infrastructure-as-code solutions
o Software-defined networking and storage
o Continuous integration/continuous delivery
o AI/ML
• Enablement of flexible, cost effective, cutting-edge application
development and infrastructure deployment methodologies
Cloud enabling
Automation & other
emerging
technologies
• Key cloud technologies gaining traction are:
o Serverless: Code execution without infrastructure provisioning
o Managed containers: allowing distributed applications deployment on any
environment in a more lightweight fashion vs traditional virtualized software
o Microservices: Enterprises move away from “monolithic” application
frameworks to smaller, interconnected services
Enterprises are experiencing following benefits:
o Speed and agility at scale
o Improved security and reliability
o Abstraction of Physical Infrastructure
6
Key Trends in Cloud Services and Infrastructure

7
Newer Cloud service offerings focused on Private & Hybrid environments
Public Cloud Transformation Services
Consulting Implementation
Managed Public Cloud Services
Professional services
mgmt. & monitoring of CPU, storage,
memory, databases, OS, micro services
Upgrades & Patching
OS, middleware and Apps
Service portals
(IT Service / expense / identity mgmt)
Governance & Compliance
management
Virtual machine & Container Services
Support services like incident
mgmt, configuration, security
services & automation setup
PaaS – Application Development Platforms
Middleware & Persistent Resources Business Process Management
Collaboration Networks Databases
Analytics & Machine Learning App Marketplaces
IaaS (Hyperscale) Infrastructure as a Service
Public Cloud Offerings
Private & Hybrid Cloud Services
Managed Services
Large Scale Consolidation Virtualization
Software Defined Cloud Enablement
Managed Hosting
Enterprise grade hosting
infrastructure
Data center equipment
maintenance
Managed Security Services
Security Consulting Spam Detection & Prevention
Security & penetration testing Firewall Management
Intrusion Detection / Prevention Identity Access Management
Managed Container as a Service
Monitoring Logging
Patching Predictive Analysis
Colocation Services
Hybrid Cloud Management Platforms
Software Defined Data Centers Serverless Infrastructures
Fabric-based computing (cluster management)
Hyper Converged Systems
Complexity
Service Provider FocusLow
LowHigh
High

8
Cloud SIs rapidly evolving their offerings to remain relevant in the market
Cloud Related
Functions
Cloud SI
Focus
Representative New Roles Prominent Cloud SIs
Cloud Spend
Optimization,
Integration &
Brokerage
High
Cloud Broker Manager
Cloud Spend Analyst
Cloud Optimization Analyst
Cloud Pricing Analyst
Cloud Commercial Models Manager
Cloud brokerage integrations developer
Cloud
Governance
& Planning
Medium
Cloud Evangelist
Cloud Governance Lead
Cloud Capacity Planner
Cloud Governor
Cloud
Automation
Low
Cloud Automation Specialist
Automation Lead
Cloud Automation & Security Specialist
Cloud
Orchestration
Multi-cloud Spend
Management
Cloud Brokerage
management
Migration Planning
Cloud Advisory &
Strategy
Migration
Implementation
Support
Compliance
Advisory
Service
Optimization
Managed Security
Cloud SIs growing service offerings
• Hybrid and multi-cloud capabilities being sought by clients / enterprises
• Cloud System Integrators (SIs) like TCS, Wipro & Infosys are expanding
their portfolio to offer hybrid/multi-cloud related services
• Newer roles (given below) being built within the teams to cater to the
changing requirements
Traditional Services New Cloud-specific Service Offerings

M&A transactions in the Cloud Ecosystem
9
Cloud SIs acquiring CSP Specific Specialist firms
2018
SAP
2018
Oracle
2018
Oracle
2018
AWS
2016
Oracle
Public clouds like AWS, Oracle, Azure & SAP gaining market share
SIs with specialist expertise/ certification likely to be acquired
CSPs acquiring Hybrid / Multi-Cloud capabilities
2017
2018
2017
2018
2018
2018
Cost & workload management capabilities to attract buyer interest
Open Source & Low Code development tools to fetch a premium
Buyer
Target
CSP

Indian IT-BPM Market – Latest Quarterly Financial Analysis
10

Indian IT Services Ecosystem – Q1FY20* Financial Review (1/3)
11
YoY Growth % QoQ Revenue Growth %
EBITDA Margins % PAT Margins %
1.5%
2.4%
0.8%
2.0%
1.3%
FY20 Q1FY19 Q4FY19 Q3FY19 Q2FY19 Q1
22.3%
22.7%
23.1%
23.3%
23.1%
16.1%
16.5%
17.4%
16.7%
16.5%
6.8%
1QFY20 vs
1QFY19
6.7%
4QFY19 vs
4QFY18
8.0%
FY19 vs FY18
Revenue growth to remain key concern for the Industry
• Indian IT Services Industry continued its sub-10% growth with Q1FY20 below 7% YoY primarily due to company specific growth issues as well as softening of IT
spends across select verticals like BFSI
• On the margin front, there is contraction due to wage hike impact in the Q1FY20 along with lower incremental margin on newer contracts
• Industry overall is witnessing flattish to –ve growth trajectory on legacy IT business while new age digital segments are growing at over 25%
• Indian IT Industry to continue to witness growth challenges on the back of structural shift towards digital services leading to lower TCV of new business and
contraction/margin pressure in the legacy IT services business
* Financial Year Ending March

Indian IT Services Ecosystem – Q1FY20* Large Cap Cos. Financial Review (2/3)
12
1QFY20 vs 1QFY19 YoY Growth % QoQ Revenue Growth % - 1QFY20 vs 4QFY19
EBITDA Margins % - 1QFY20 PAT Margins % - 1QFY20
15%
10%
7% 7%
3%
2% 1%
HCL Tech Infosys TCS Industry Cognizant Wipro Tech Mahindra
3.8%
2.6%
1.7% 1.5%
0.8%
-0.6%
-1.4%
HCL Tech Infosys TCS Industry Cognizant Wipro Tech Mahindra
26%
24% 22% 22% 21% 20%
15%
TCS Infosys Industry Cognizant HCL Tech Wipro Tech Mahindra
21%
17% 16% 16%
14% 12%
11%
TCS Infosys Industry Wipro HCL Tech Cognizant Tech Mahindra
Sharp revenue growth divide seen among Large Cap IT Services firms
• Among Large cap Indian IT services companies, HCL Tech, Infosys and TCS outperformed the industry growth despite large revenue scale demonstrating strong
ability to win new contracts and grow their digital offerings
• Cognizant, Wipro and Tech Mahindra on the other hand grew much below industry growth challenged mainly due to client/vertical specific issues
• Any economic slowdown concerns in US and Europe to weigh heavily on the growth outlook of the Large Cap Indian IT Services firms

Indian IT Services Ecosystem – Q1FY20* Mid Cap Cos. Financial Review (3/3)
13
1QFY20 vs 1QFY19 YoY Growth % QoQ Revenue Growth % - 1QFY20 vs 4QFY19
EBITDA Margins % - 1QFY20 PAT Margins % - 1QFY20
4.9%
3.2%
1.5% 1.3% 1.0%
0.3%
Hexaware Mphasis Industry LTI Mindtree NIIT Technologies
13%
11% 11%
9%
8%
7%
NIIT Technologies LTI Hexaware Mphasis Mindtree Industry
22%
18% 18%
17%
14%
10%
Industry LTI Mphasis Hexaware NIIT Technologies Mindtree
16%
14%
13%
12%
9.3%
5%
Industry LTI Mphasis Hexaware NIIT Technologies Mindtree
Revenue and Margin both under pressure for select players
• Indian Mid-Cap IT Services companies while growing above Industry growth have not been able to outperform considerably despite their lower revenue base
• A much narrow revenue YoY growth range (8% - 13%) among the leading mid-cap players indicate structural growth challenges which can be addressed through
rapid enhancement of capabilities across digital and other new age technology services
• Among the players, Hexaware lead the growth with 5% QoQ growth and 11% YoY growth while Mindtree dipped both on revenue growth as well as margin front

IT-BPM Sector: Public Market Valuation
14

IT-BPM Sector: Public Market Valuation Scoreboard
15
IT Services
Margins % Growth % Trading Multiples
EBITDA PAT Revenue 3 yr PAT EV/Sales EV/EBITDA P/E
IT Services players - Global 16% 9% 0% 15% 1.2x 8.0x 12.0x
Outsourced Product Engineering players – Global 18% 12% 21% 14% 2.2x 13.0x 19.5x
IT Services players – Europe 11% 4% 5% 28% 0.6x 6.8x 12.7x
Large IT Services players - India 22% 16% 15% 12% 2.2x 10.2x 16.0x
Mid-cap IT Services players - India 17% 12% 23% 15% 2.1x 12.0x 16.0x
Business Process Management
BPM Onshore – Global 13% 5% 4% 21% 1.2x 9.6x 19.8x
BPM Offshore - Global 17% 11% 12% 19% 2.3x 13.6x 19.0x
Software Product
Software Product companies - India 13% 5% 4% 21% 1.2x 9.6x 19.8x
All figures related to FY19 (ending March)

IT Services players - Global
16
Company
Mcap
(US$ mn)
Current Price
(US$)
EV/Revenue EV/EBITDA P/E FY19
FY18 FY19 FY20E FY18 FY19 FY20E FY18 FY19 FY20E Sales EBITDA PAT
Accenture 117,455 184 2.7x 2.6x 2.4x 16.5x 15.5x 14.5x 24.6x 24.6x 23.3x 43,247 7,199 4,779
Capgemini 19,643 117 1.4x 1.3x 1.3x 12.1x 8.7x 8.2x 24.1x 15.8x 14.5x 15,824 2,407 1,243
Atos 8,119 74 1.0x 1.1x 1.0x 8.7x 7.4x 7.1x 11.6x 8.2x 7.5x 12,886 1,842 994
DXC Technology 7,330 28 0.5x 0.6x 0.6x 3.3x 2.5x 2.7x 5.8x 3.1x 3.8x 20,787 4,780 2,345
Mean 1.4x 1.4x 1.3x 10.2x 8.5x 8.1x 16.5x 12.9x 12.3x
Median 1.2x 1.2x 1.1x 10.4x 8.0x 7.6x 17.8x 12.0x 11.0x
Company
Sales Growth % EBITDA Margins % PAT Margins % ROAE %
FY18 FY19 FY20E FY18 FY19 FY20E FY18 FY19 FY20E FY18 FY19 FY20E
Accenture 13% 4% 6% 16% 17% 17% 11% 11% 11% 49% 41% 37%
Capgemini 5% 7% 5% 12% 15% 15% 6% 8% 8% 10% 14% 15%
Atos 2% -6% 2% 11% 14% 15% 5% 8% 8% 12% 14% 13%
DXC Technology -14% -4% -2% 16% 23% 21% 6% 11% 9% 10% 19% 16%
Mean 2% 0.0% 3% 14% 17% 17% 7% 9% 9% 20% 22% 20%
Median 4% 0.0% 4% 14% 16% 16% 6% 9% 9% 11% 17% 15%
Source: Bloomberg ; Financial Year Ending March
Price as on 24th Oct, 2019
Figures in USD mn, unless mentioned otherwise

Outsourced Product Engineering players – Global
17
Company
Mcap
(US$ mn)
Current Price
(US$)
EPAM Systems 9,426 172 4.7x 3.8x 3.2x 30.7x 20.3x 16.5x 39.2x 30.9x 25.1x 2,272 427 305
Altran Technologies 4,058 16 1.7x 1.5x 1.5x 19.4x 9.9x 9.1x 45.1x 17.9x 14.8x 3,618 562 227
Globant 3,253 89 6.1x 4.8x 3.9x 36.3x 23.8x 19.4x 63.0x 38.4x 30.8x 658 133 85
L&T Technology Services 2,180 21 3.9x 2.9x 2.6x 25.6x 16.0x 13.2x 20.2x 21.1x 19.1x 714 130 103
Cyient 649 6 1.1x 0.9x 0.9x 7.9x 6.5x 6.3x 9.6x 10.5x 10.2x 657 92 62
Persistent Systems 653 9 1.2x 1.1x 1.0x 7.7x 6.0x 6.6x 13.2x 12.7x 12.9x 479 85 51
Mean 3.1x 2.5x 2.2x 21.3x 13.8x 11.9x 31.7x 21.9x 18.8x
Company
EPAM Systems 27% 23% 21% 15% 19% 19% 13% 13% 14% NA 22% 22%
Altran Technologies 28% 11% 5% 9% 16% 16% 3% 6% 7% NA 12% 14%
Globant 26% 26% 23% 17% 20% 20% 10% 13% 13% NA 23% 23%
L&T Technology Services 15% 35% 12% 15% 18% 20% 20% 14% 14% NA 34% 31%
Cyient 9% 19% 0% 14% 14% 14% 12% 9% 10% 21% 18% 17%
Persistent Systems 5% 12% 4% 15% 18% 16% 12% 11% 10% 17% 17% 15%
Mean 18% 21% 11% 14% 17% 18% 12% 11% 11% 19% 21% 20%
Median 21% 21% 9% 15% 18% 18% 12% 12% 12% 19% 20% 20%

IT Services players – Europe
18
Company
Mcap
(US$ mn)
Current Price
(US$)
Sopra Steria Group 2,785 136 0.8x 0.7x 0.7x 10.3x 6.8x 6.1x 20.0x 12.7x 10.3x 4,859 511 215
Indra Sistemas 1,644 9 0.6x 0.6x 0.6x 6.7x 5.5x 5.2x 12.3x 10.7x 9.2x 3,537 389 152
Allgeier 283 25 0.6x 0.6x 0.5x 14.5x 7.8x 6.5x 41.0x 25.4x 15.7x 859 62 11
Mean 0.7x 0.6x 0.6x 10.5x 6.7x 5.9x 24.4x 16.3x 11.7x
Company
Sopra Steria Group 7% 8% 5% 7% 11% 11% 3% 4% 5% 10% 14% 16%
Indra Sistemas 3% 4% 3% 9% 11% 11% 4% 4% 5% 19% 19% 19%
Allgeier 18% 14% 8% 4% 7% 8% 1% 1% 2% 6% 8% 10%
Mean 9% 9% 6% 7% 10% 10% 3% 3% 4% 11% 14% 15%
Median 7% 8% 5% 7% 11% 11% 3% 4% 5% 10% 14% 16%

Large IT Services players - India
19
Company
Mcap
(US$ mn)
Current Price
(US$)
Tata Consultancy Services 109,460 29 6.0x 5.0x 4.7x 22.6x 18.4x 17.5x 24.7x 24.7x 23.6x 20,641 5,618 4,439
Infosys 38,668 9 3.5x 3.0x 2.7x 13.0x 11.7x 11.0x 17.8x 17.4x 16.7x 11,663 2,985 2,227
Cognizant Technology Solutions 33,331 60 1.8x 1.8x 1.7x 9.0x 8.9x 8.4x 15.9x 14.9x 13.9x 16,688 3,315 2,241
HCL Technologies 21,425 16 2.9x 2.4x 2.1x 12.9x 10.3x 9.1x 15.1x 15.0x 14.7x 8,515 1,981 1,429
Wipro 20,177 4 2.1x 2.0x 1.9x 11.1x 9.8x 9.3x 15.9x 15.7x 14.6x 8,287 1,655 1,282
Tech Mahindra 9,971 10 2.1x 1.8x 1.8x 13.7x 10.0x 10.5x 16.5x 16.3x 16.7x 4,926 908 613
Mean 3.1x 2.7x 2.5x 13.7x 11.5x 11.0x 17.6x 17.3x 16.7x
Company
Tata Consultancy Services 4% 19% 7% 26% 27% 27% 26% 22% 21% 36% 36% 35%
Infosys 3% 17% 10% 27% 26% 25% 22% 19% 18% 23% 25% 26%
Cognizant Technology Solutions 9% 3% 5% 20% 20% 20% 13% 13% 14% 19% 20% 20%
HCL Technologies 6% 19% 16% 22% 23% 23% 20% 17% 15% 29% 26% 23%
Wipro -1% 8% 3% 19% 20% 20% 17% 15% 16% 18% 18% 19%
Tech Mahindra 6% 14% 5% 15% 18% 17% 14% 12% 12% 24% 21% 18%
Mean 5% 13% 8% 22% 22% 22% 18% 16% 16% 25% 24% 23%
Median 5% 15% 6% 21% 22% 22% 18% 16% 15% 24% 23% 21%

Mid-cap IT Services players - India
20
Company
Mcap
(US$ mn)
Current Price
(US$)
Larsen & Toubro Infotech 4,081 23 3.7x 2.8x 2.6x 22.6x 14.0x 13.6x 19.1x 18.9x 19.2x 1,337 269 215
Mphasis 2,436 13 2.5x 2.1x 1.9x 15.2x 12.0x 10.1x 16.1x 16.0x 15.2x 1,095 189 152
Mindtree 1,669 10 2.0x 1.6x 1.4x 14.7x 10.1x 10.5x 15.7x 15.7x 19.3x 989 151 106
Hexaware Technologies 1,459 5 2.1x 1.7x 1.5x 13.0x 11.0x 9.4x 17.7x 15.8x 13.8x 789 123 92
NIIT Technologies 1,299 21 2.8x 2.3x 2.0x 16.6x 12.6x 11.3x 22.8x 22.3x 19.8x 521 93 58
Mean 2.6x 2.1x 1.9x 16.4x 12.0x 11.0x 18.3x 17.8x 17.5x
Company
Larsen & Toubro Infotech 12% 30% 10% 16% 20% 19% 21% 16% 14% 43% 35% 29%
Mphasis 8% 19% 12% 16% 17% 18% 16% 14% 13% 18% 21% 21%
Mindtree 4% 28% 10% 14% 15% 13% 14% 11% 8% 28% 25% 18%
Hexaware Technologies 18% 20% 17% 16% 16% 16% 13% 12% 11% 27% 25% 25%
NIIT Technologies 7% 23% 13% 17% 18% 18% 13% 11% 11% 23% 22% 21%
Mean 10% 24% 12% 16% 17% 17% 15% 13% 12% 28% 26% 23%
Median 8% 23% 12% 16% 17% 18% 14% 12% 11% 27% 25% 21%

BPM Onshore – Global
21
Company
Mcap
(US$ mn)
Current Price
(US$)
Teleperformance 13,188 225 3.1x 2.6x 2.4x 19.0x 13.5x 12.3x 37.9x 24.9x 22.4x 5,959 1,150 529
Capita 3,736 224 0.9x 1.0x 1.0x 17.3x 7.9x 7.0x 10.7x 14.6x 11.9x 4,741 589 256
TTEC Holdings 2,164 47 1.6x 1.5x 1.4x 14.7x 11.3x 10.5x 60.4x 25.9x 22.9x 1,629 211 84
Sykes Enterprises 1,278 31 0.8x 0.8x 0.7x 9.2x 7.3x 6.7x 26.1x 14.5x 13.8x 1,628 171 88
Mean 1.6x 1.5x 1.4x 15.0x 10.0x 9.1x 33.8x 20.0x 17.8x
Company
Teleperformance 6% 20% 7% 16% 19% 20% 7% 9% 9% 15% 20% 20%
Capita -7% -6% 0% 5% 12% 14% 7% 5% 7% NM 147% 86%
TTEC Holdings 2% 8% 6% 11% 13% 13% 2% 5% 5% 10% NA NA
Sykes Enterprises 3% 0% 4% 8% 11% 11% 3% 5% 5% 6% NA NA
Mean 1% 5% 4% 10% 14% 15% 5% 6% 7% 10% 84% 53%
Median 2% 4% 5% 10% 13% 14% 5% 5% 6% 10% 84% 53%

BPM Offshore – Global
22
Company
Mcap
(US$ mn)
Current Price
(US$)
Genpact 7,254 38 2.7x 2.3x 2.1x 18.1x 13.4x 12.1x 25.7x 18.5x 16.5x 3,488 612 392
WNS Holdings 3,094 62 4.0x 3.8x 3.4x 26.0x 15.5x 11.8x 29.3x 22.4x 19.8x 796 194 138
ExlService Holdings 2,178 64 2.5x 2.2x 2.1x 22.2x 13.6x 11.7x 38.4x 21.4x 19.0x 987 161 102
iEnergizer 696 366 4.5x 4.1x 3.6x 18.3x 14.5x 12.9x 21.9x 19.6x 17.7x 172 48 36
Firstsource Solutions 492 1 1.2x 1.1x 1.0x 8.9x 7.9x 6.4x 11.1x 9.3x 9.0x 539 73 53
Hinduja Global Solutions 164 8 NA NA NA NA NA NA 6.0x 6.9x 5.9x 666 52 24
Mean 3.0x 2.7x 2.4x 18.7x 13.0x 11.0x 22.1x 16.3x 14.6x
Company
Genpact 10% 16% 9% 15% 18% 18% 9% 11% 12% 20% 25% 23%
WNS Holdings 26% 5% 12% 15% 24% 29% 14% 17% 18% 23% 27% 31%
ExlService Holdings 16% 12% 7% 11% 16% 18% 6% 10% 11% 9% 16% 16%
iEnergizer 6% 10% 12% 24% 28% 28% 20% 21% 20% 32% NA NA
Firstsource Solutions -1% 11% 6% 13% 13% 16% 9% 10% 10% 14% 15% 14%
Hinduja Global Solutions 4% 23% 14% 11% 8% 11% 5% 4% 4% 13% NA NA
Mean 10% 13% 10% 15% 18% 20% 11% 12% 12% 19% 21% 21%
Median 8% 12% 10% 14% 17% 18% 9% 11% 11% 17% 21% 20%

Software Product Companies - India
23
Company
Mcap
(US$ mn)
Current Price
(US$)
Oracle Financial Services Software 3,710 43 5.2x 4.7x 4.4x 13.0x 11.0x 10.0x 19.0x 18.8x 16.3x 707 301 197
Intellect Design Arena 338 3 2.2x 1.6x 1.4x 25.9x 17.4x 11.9x 18.2x 20.7x 19.6x 205 19 16
Newgen Software Technologies 183 3 2.2x 1.8x 1.6x 11.8x 8.7x 7.6x 12.7x 13.1x 12.3x 90 19 14
Majesco 165 6 1.0x 0.8x 0.7x 34.1x 7.6x 6.1x 21.7x 17.9x 18.2x 140 14 9
Nucleus Software Exports 125 4 1.6x 1.3x 1.2x 10.9x 7.9x 7.0x 11.9x 11.3x 10.8x 68 11 11
Mean 2.4x 2.0x 1.9x 19.1x 10.5x 8.5x 16.7x 16.4x 15.5x
Company
Oracle Financial Services Software 2% 11% 5% 40% 43% 44% 31% 28% 30% 35% 35% 43%
Intellect Design Arena 19% 34% 14% 9% 9% 12% 12% 8% 7% 18% 12% 11%
Newgen Software Technologies 20% 25% 12% 19% 21% 21% 20% 15% 15% 31% 22% 20%
Majesco -2% 23% 10% 3% 10% 12% 7% 7% 6% 13% 11% 9%
Nucleus Software Exports 11% 18% 12% 14% 17% 17% 18% 16% 15% 15% 16% 15%
Mean 10% 22% 11% 17% 20% 21% 17% 15% 15% 22% 19% 20%
Median 11% 23% 12% 14% 17% 17% 18% 15% 15% 18% 16% 15%

IT-BPM Sector – Global M&A Transaction Activity
24

Top M&A Themes playing out in IT-BPM Sector
25
Heightened M&A activity in DeepTech (AI, IoT) Large & Mid-Tier Indian IT going after capability M&A
Strong focus on Digital Experience Consolidation in European IT space gathers momentum

IT-BPM Sector – Global M&A Transaction Activity YTD 2019 (1/3)
26
Announced
Date
Target Name Acquirer Name Segment
Deal Value
($mn)
EV/Sales EV/EBITDA Target description
Oct-19 Silicus Technologies Infogain IT Services N/A N/A N/A
US based cloud and Internet of Things (IoT) services firm
with 500+ employees
Oct-19 Powerupcloud L&T Infotech IT Services 15 4.3x N/A
India based fast-growing AWS Partner cloud consulting
company
Oct-19 Rightpoint Genpact IT Services N/A N/A N/A
US Based Digital Consultancy Firm focused on Customer
Experience
Oct-19 Eishtec Infosys BPM N/A N/A N/A Ireland based contact center company with 1400 employees
Sep-19 Pragsis Technologies SL Accenture PLC IT Services N/A N/A N/A
Spain based big data, AI and advanced analytics solutions
provider with 200 employees
Aug-19 Syscom AS DXC Technology Co IT Services N/A N/A N/A
Norway based leading ServiceNow partner and an independent
provider of service management and security consulting and
solutions in Norway
Aug-19 Fairway Technologies Inc Accenture PLC IT Services N/A N/A N/A US based provider of engineering services
Aug-19 Analytics 8 Pty Ltd Accenture PLC IT Services N/A N/A N/A Australia based Data management & analytics provider
Aug-19 SeaLights Technologies Ltd UST Global Inc IT Services N/A N/A N/A US based cloud-based testing automation software provider
Aug-19 Belatrix Software Inc Globant SA IT Services 70 N/A N/A
Spain based outsourced software development company with
600 professionals
Aug-19 Connective DX Inc ProKarma Inc IT Services N/A N/A N/A
US based Digital agency focused on building unique customer
experiences
Jul-19 Veracity Consulting Group RGP Inc. IT Services 30 1.4x N/A US based digital transformation firm
Jul-19 MAD Pow Media Solutions LLC Tech Mahindra Ltd IT Services 17 1.5x 10.0x
US based Design Consultancy with expertise in customer
experience and digital transformation
Jul-19 Lymbyc Solutions Pvt Ltd Larsen & Toubro Infotech Ltd IT Services 6 5.5x N/A
India based AI/ML company with expertise in Natural Language
Processing (NLP) and Data Visualization
Jun-19 Sab Sopra Steria Group IT Services N/A N/A N/A France's leading Core retail banking software company
Jun-19 Youperience GmbH Persistent Systems Ltd IT Services 5 N/A N/A Germany based leading Salesforce implementation services firm
Jun-19 Altran Technologies Capgemini SE IT Services 5,590 1.7x 11.5x France based engineering & IT services company

27
Announced
Date
Deal Value
($mn)
Jun-19 Vanick Group LLC ProKarma Inc IT Services N/A N/A N/A US based outsourced software development company
Jun-19 Zenith Technologies Ltd
Cognizant Technology
Solutions Corp
IT Services N/A N/A N/A
Ireland based IT services provider specializing in life science
vertical
Jun-19 Deja VU Security LLC Accenture PLC IT Services N/A N/A N/A
US based enterprise security company with expertise in security
design and testing of enterprise software platforms and internet
of things (IoT) technologies
Jun-19 EVRY Tieto IT Services 2,193 1.1x 10.6x
Norway based IT services with ~9,000 employees and focus on
BFSI segment
Jun-19 Mobiquity Inc Hexaware Technologies Ltd IT Services 182 2.6x 21.4x
US based Mobiquity is one of the largest independent customer
experience consulting firms with 650 employees
Jun-19 International TechneGroup Inc Wipro Ltd IT Services 45 2.0x N/A
US based Gobal digital engineering and manufacturing solutions
company with 130 employees. A world leader in Computer Aided
Design (CAD) and Product Lifecycle Management (PLM)
Jun-19 BRIDGE Energy Group Inc Accenture PLC IT Services N/A N/A N/A
US based consulting and systems integration firm that provides
grid modernization, analytics and security services to utilities in
North America
May-19 Gamma Partners LLC ProKarma Inc IT Services N/A N/A N/A
US based provider of integrated digital services with an emphasis
on marketing, e-commerce, analytics, and mobile development for
Fortune 500 companies
May-19
Sime Darby Global Services
Centre Sdn Bhd
DXC Technology Co BPM N/A N/A N/A Malayasia based captive BPM unit of Sime Darby group
Apr-19 Zielpuls GmbH Accenture PLC IT Services N/A N/A N/A
Germany based IT Services firm focused on automotive vertical
offering design and engineering
Apr-19 Innova Solutions Inc American Cybersystems Inc IT Services N/A N/A N/A
US based IT services company focused on Cloud transformation
and Data services
Apr-19 Weaveability Ltd NTT Data Corp IT Services N/A N/A N/A UK based IT services firm - SAP Global premium partner
Apr-19 NIIT Technologies Barings Private Equity Asia IT Services 1,250 2.4x 13.5x India based IT services firm focused on Travel and BFSI segments
Apr-19 Whishworks NIIT Tech IT Services 41 2.9x 19.3x India based Mulesoft ® & Big Data specialist
Mar-19 Storm Digital BV Accenture PLC IT Services N/A N/A N/A
Netherlands based full service digital marketing agency
specializing in search, social and programmatic advertising services

28
Announced
Date
Deal Value
($mn)
Mar-19
Strong-Bridge Consulting
LLC
HCL Technologies Ltd IT Services 45 1.0x N/A
US based digital consulting firm with 200 employees specializing
in customer experience strategy, business transformation and
change management
Mar-19 Acando AB CGI Inc IT Services 430 1.4x N/A Sweden based IT Services company
Mar-19 Hjaltelin Stahl KS Accenture PLC IT Services N/A N/A N/A
Denmark based one of the biggest creative agency providing
cross-media experiences for its clients
Mar-19 Merit Software Ltd
Solutions Corp
IT Services N/A N/A N/A Ireland based BPaaS provider for BFSI segment
Feb-19 ConnectWise, Inc Thoma Bravo LLC IT Services 1,500 N/A N/A
US based business management & IT software automation
company
Feb-19
Nielsen+Partner
Unternehmensberater
GmbH
Larsen & Toubro Infotech
Ltd
IT Services 32 2.9x N/A
Germany based Temenos WealthSuite implementation
specialist
Jan-19 Oy Samlink AB
Solutions Corp
IT Services N/A N/A N/A
Finland based IT services provider with an expertise in Financial
services (core banking platform based on Temenos) & e-
commerce
Jan-19
Ruletronics Ltd,Ruletronics
Systems Inc,Ruletronics
Systems Pvt Ltd
Larsen & Toubro Infotech
Ltd
IT Services 7 2.2x N/A
US based Pureplay Pega consulting providing innovative BPM
and CRM solutions
Jan-19 Orbium Holding AG Accenture PLC IT Services N/A N/A N/A
Switzerland based world's largest services provider for the
Avaloq Banking Suite
Jan-19 Competentum EPAM Systems Inc IT Services N/A N/A N/A US based education content services company
Jan-19 riskCanvas Holdings LLC Genpact Ltd IT Services N/A N/A N/A
US based financial crime compliance practice, which offers both
consulting services and, riskCanvasTM, an, end-to-end
comprehensive software suite of anti-money laundering (AML)
solutions
Jan-19 Luxoft Holding Inc DXC Technology Co IT Services 1,890 2.1x 18.7x Switzerland based global outsourced product engineering firm

Dolat Capital - Introduction
29

Dolat Capital – Focused Exclusively on Technology
Mergers & Acquisitions
Domestic & Cross-Border M&A
Capital Market
IPO, QIP, Private Placement
Dolat Capital is a leading full service Investment Banking
advisory firm serving middle market corporates and their
owners
• Part of Dolat Group which is India’s oldest Alternate
Investment Group with 60+ years of heritage
• Dolat Group employs over 600 professionals with
interests in Institutional Equities, High Frequency
Trading, Arbitrage & Algorithmic Trading etc.
• Indian Regulator SEBI Registered Category 1 Merchant
Banker
• Strong Focus on Technology Sector – IT, BPM and
Software
Fund Raising
Private Equity and Venture Capital
Our Services

 Dolat Group has 60+ years of experience in Financial Markets in India
 Promoted, owned and privately held by 3rd generation of seasoned bankers
 The group has expanded its operations to include Investment Banking,
Institutional Equities, High Frequency Trading, Forex Broking, Arbitrage & NBFC
 The group has a prop-book worth over USD 1 bn and facilitates execution of
trades worth USD 3 bn on a daily basis (3-5% of Indian market volume)
 De-facto powerhouse behind H.F.T, Derivatives, ETF’s & Arbitrage Funds
Dolat Group – Introduction
One of India’s Oldest Alternative Investment Group
Investment Banking Institutional Equities
Prop Trading Arbitrage & Algo Trading
Group Interests
6 Decades of
Excellence
Enjoying leading position in
financial services
600+
Employees
Employees across verticals
Leading Market
Makers
Leading market makers for
ETFs
USD 3
Billion
Daily volume traded:
3-5% of market volume
Derivatives
Pioneers
Market Leaders in Derivate
Based Strategies
Arbitrage & HFT
Specialists
One of the largest executor of
algorithm trading strategies
Pioneering the Indian Financial Markets since 1950s Our Market Positioning
Institutional
Equities
Investment
Banking
Arbitrage &
Algo Trading
 Mid-cap specialist with track record of identifying
numerous multi-baggers across consumer,
healthcare, agrochemicals etc.
 Technology, Healthcare & Consumer focused M&A
and Private Equity advisory practice
 SEBI Registered Category I Merchant Bankers
 Largest Market Share in trade execution for Arbitrage
Mutual Funds in India
 Pioneer of High Frequency Trading & Algorithmic
Trading in India

Technology Investment Banking – Our Focused Segments
Unlocking Value For Clients By Leveraging The Team Expertise And Dolat Research Platform
ENTERPRISE TECHNOLOGY & SERVICES
CONSUMER TECHNOLOGY
Emerging TechnologiesTechnology Ecosystem Coverage
IT Services
Software
BPM
Digital Media

Past Experience
Technology Banking – Leadership Team Profile
33
• Technology Sector Specialist Banker with extensive experience in global M&A and fund raise
across entire value chain of Technology Sector
• Strong relationships across global technology companies and leading technology investors in
India, US and China
• Authored several research papers and articles in areas like SaaS, IT Services, Healthcare BPO
segments published by leading technology magazines
Mohit Agarwal, CFA - Head, Investment Banking Functional Expertise
IT SaaS BPM
E-Commerce ConsumerTech
Outsourced Software development
Agile Analytics AI/ML
Education
B.E (Hons) – Computer Science
Punjab Engineering College, Chandigarh
Masters in Business Administration
SJ School of Management, IIT Bombay
Research & Publications
Human Capital
RPO in IT Cos.
SaaS
Ecosystem
Disease
Management
Topics
Magazine
Investment Banking Management Consulting Technology Consulting
• India’s leading mid-market investment
banking firm
• Almost a decade of Investment Banking
experience in technology and business
services sector
• Swedish MNC in telecom and networking
• World Leading Communication Software
Specialist
• Telecom consulting, software development
and implementation
• US HQ Global management consulting firm in
technology and outsourcing
• Advised Accenture on competitive
benchmarking and best practices for its IT
delivery centre in India
Client
Relationships
Client
Relationships
Affiliations
Member Corporate Member
Client
Relationships

Corporate relationship access across Indian and Global Technology players
Strong corporate relationships with the entire buyer universe in Domestic & Global Markets
IT Services
Large Cap
IT Services
Mid Cap
Software BPO / BPM
OthersTechnologyResearchCoverageUniverse
• Deep industry connects with leading
publicly listed corporates and private
companies in Technology Sector
• Built a network of industry experts,
business leaders and consultants to gain
industry knowledge and latest trends
• Strong relationship coverage across large
global technology companies through
partner network
• Deep domain expertise in sub-segments
like SaaS, AI, DevOps, Cloud, IoT, Digital,
Analytics etc.

Mohit Agarwal
M: 9740439944
mohitagarwal@dolatcapital.com
Akshit Sandooja
M: 8571843385
akshits@dolatcapital.com
28th Floor, Sunshine Towers,
Senapati Bapat Marg, Parel,
Mumbai – 400013 India
Tel : +91 22 4096 9700
Contact Us
www.dolat.capital

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