The document provides an overview of outsourcing market data and insights for the third quarter of 2012. Key points include: - Global outsourcing market contract awards (ACV) were down 6% year-over-year but up 3% year-to-date. - EMEA outsourcing market contract awards were down 12% year-over-year and 8% year-to-date. Financial services was the top industry. - The Americas outsourcing market contract awards were flat year-to-date, with the US market becoming predominantly restructuring-based.

1. The TPI EMEA Index
EMEA Outsourcing Market Data and Insights
Third Quarter 2012
Hosted by:
John King
Barclays Capital
19 October 2012

2. 2
Welcome to the 40th Quarterly Outsourcing Index Call
Covering the state of the outsourcing industry for global, commercial contracts.
Duncan Aitchison
Partner
Bernd Schaefer
Partner
© 2012
Information
Services Group, Inc.
All Rights Reserved
isg-one.com
*Contracts with ACV > €4M

3. 3
Milestones
40th quarterly presentation signals a decade of TPI Index Conference Calls
Spring Winter Summer Fall Spring
Today
2003 2004 2005 2008 2011
Inaugural Recognised Identified the Led in calling Identified the
Global and India-heritage growing influence out the growing shift of
EMEA providers as an of restructurings, industry-wide sourcing growth
Index Calls emerging entity and their impact on sourcing towards emerging
that would affect service providers downturn markets
how SPs compete
The Index audience routinely includes 250 analysts,
clients and service providers.
© 2012
Information
Services Group, Inc. The ISG Contracts Knowledgebase®
All Rights Reserved
exceeds 24,000 contract records.
isg-one.com
*Contracts with ACV > €4M

4. 4
Refocusing on ACV as the Primary Measure of the Market
Going forward, an ACV-based analysis of the market will avoid masking the effects of
declining contract durations on TCV.
TCV Change Over Time ACV Change Over Time
Year-to-date at 3Q Year-to-date at 3Q
Growth since 2003 = 9% Growth since 2003 = 40%
€ 57 € 12
€ 52
€8
2003 04 05 06 07 08 09 10 11 2012 2003 04 05 06 07 08 09 10 11 2012
© 2012
Information
Services Group, Inc.
Typical Quarterly ACV = €4B
All Rights Reserved Typical Annual ACV = €16B
isg-one.com
*Contracts with ACV > €4M

5. 5
At A Glance
3Q12 ACV 3Q Y/Y 3Q Q/Q YTD ACV YTD Y/Y
Scorecard (€B)* Change Change (€B)* Change
Global Market € 3.8 -6% -10% € 11.8 3%
New Scope € 2.6 16% -19% € 7.9 2%
Restructurings € 1.2 -33% 17% € 4.0 6%
Mega-Relationships € 1.2 1% -26% € 3.6 51%
ITO € 2.5 -13% 8% € 7.3 -3%
BPO € 1.3 12% -32% € 4.5 17%
© 2012
EMEA € 2.0 -12% 14% € 5.5 -8%
Information
Services Group, Inc.
Americas € 1.3 -11% -8% € 4.3 2%
All Rights Reserved
Asia Pacific € 0.5 55% -51% € 1.9 72%
isg-one.com *See Appendix for TCV Scorecard
*Contracts with ACV > €4M

6. 6
Global Market Contract Award Trends
ACV was down 6% Y/Y and 10% Q/Q; YTD, ACV of $14.8B is up 3.5%.
Global Market YTD ACV (€B)*
$15
1H ACV 3Q ACV
$13
$10 € 3.2 € 4.1 € 3.8
€ 2.7 € 3.0 € 3.2
$8 € 2.7 € 2.0 € 2.3
€ 3.2
$5
$3
$0
2003 04 05 06 07 08 09 10 11 2012
Global Market YTD Counts*
800
1H Counts 3Q Counts
700
600 243
500 196 189 187
400 179
112 129 147
300
115 80
200
© 2012 100
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Services Group, Inc. -
All Rights Reserved
2003 04 05 06 07 08 09 10 11 2012
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*Contracts with ACV > €4M

7. 7
Global Market Contract Trends for the Largest Deals
26 mega-relationships have been awarded YTD, surpassing total for all of 2011;
greater percentage of larger deal activity occurring in emerging markets.
YTD Contracts Counts with ACV > €80M
1H Counts 3Q Counts
30
3 6 8
20 9 10 5 6
4 4
10 5
0
2003 04 05 06 07 08 09 10 11 2012
Emerging Markets
Contract Counts with ACV > €40M
Emerging Markets
16 e defined as outside
8 8 North
7 American, Western
4
Europe and ANZ
© 2012 markets.
Information
Services Group, Inc.
All Rights Reserved
2008 2009 2010 2011 2012e
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*Contracts with ACV > €4M

8. 8
EMEA Contract Award Trends
EMEA ACV was down 13% Y/Y but up 18% Q/Q; both restructuring and new scope
activity is down year to date.
EMEA YTD ACV (€B)*
1H ACV 3Q ACV
$8
$6
€ 1.6 € 1.4 € 2.3
$4
€ 2.0
€ 1.1 € 1.3
€ 1.2 € 1.5 € 1.0 € 1.2
$2
$0
2003 04 05 06 07 08 09 10 11 2012
EMEA YTD Counts* EMEA New Scope vs. Restructuring YTD ACV (€B)*
1H Counts 3Q Counts YTD New Scope YTD Restructured
400
€ 3.9
300
109 € 3.2 € 3.6 € 3.6
93 80
200 87 85
60
100
€ 0.3 € 1.9 € 2.2 € 1.9
© 2012
Information -
Services Group, Inc.
All Rights Reserved 07 08 09 10 11 2012 2003 04 05 06 07 08 09 10 11 2012
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*Contracts with ACV > €4M

9. 9
EMEA Country Details in Contract Award Trends
ACV awards in the UK rose substantially YTD, while DACH fell almost 40% on a
tough compare with 2011 and Nordics dropped by 17%
YTD Sub-regions for EMEA - ACV (€B)*
Low Average 3Q11 YTD 3Q12 YTD
€ 3.0
€ 2.8
€ 2.5
€ 2.40
€ 2.3
€ 2.0
€ 1.8
€ 1.5
€ 1.3
€ 1.0 € 1.05
€ 0.83
€ 0.8
€ 0.61
€ 0.5
€ 0.3 € 0.22 € 0.09
€ 0.16 € 0.17
€-
© 2012
Information UK & Ireland DACH Scandinavia Benelux France Southern Africa & E. Europe &
Services Group, Inc.
All Rights Reserved Europe Middle East Russia
isg-one.com
*Contracts with ACV > €4M

10. 10
EMEA ITO Contract Award Trends
Third quarter ITO ACV was one of the strongest on record, up 40% Q/Q . Year to
date ACV is down around 20%, while contract numbers fell 24%
EMEA ITO YTD ACV (€B)*
1H ACV 3Q ACV
€5
Top EMEA ITO
€ 1.1
€4 € 1.1
€ 1.9 Providers
€ 0.9
€3
€ 0.9
€ 1.1 € 1.4 by YTD ACV*
€2 € 1.0 € 1.3
€ 0.5 Accenture
€1 Atos
€0 BT
2003 04 05 06 07 08 09 10 11 2012
Capgemini
CSC
Fujitsu
EMEA ITO YTD Counts* HCL
1H Counts 3Q Counts HP
250 IBM
Infosys
200
69 Mahindra Satyam
70
150 59 61 56 Orange
100 37 TCS
21 31 T-Systems
29 32
50 Wipro
© 2012
Information -
Services Group, Inc.
All Rights Reserved 2003 04 05 06 07 08 09 10 11 2012 Note: Service providers in alphabetical
order; no rankings implied.
isg-one.com
*Contracts with ACV > €4M

11. 11
EMEA BPO Contract Award Trends
Year to Date ACV in 2012 has been the highest ever in EMEA, though the pace of
contract awards has slowed.
EMEA BPO YTD ACV (€B)*
1H ACV 3Q ACV
€ 2.5 Top EMEA BPO
€ 2.0
€ 0.61 Providers
€ 1.5
€ 0.47 € 0.41 by YTD ACV*
€ 1.0 € 0.44
€ 0.23 € 0.26 € 0.20 € 0.18 Accenture
€ 0.5 € 0.32 € 0.35
Capgemini
€ 0.0 CGI
2003 04 05 06 07 08 09 10 11 2012 HCL
HP
EMEA BPO YTD Counts* Infosys
Interserve Plc
1H Counts 3Q Counts ISS Global A/S
125 Johnson Controls
Jones Lang LaSalle
100
40 Mahindra Satyam
24
75
33
Mitie
50 28 23 24 Serco
12 14 23 Sodexho
25 11
© 2012 Xchanging
Information -
Services Group, Inc.
All Rights Reserved 2003 04 05 06 07 08 09 10 11 2012 Note: Service providers in alphabetical
order; no rankings implied.
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*Contracts with ACV > €4M

12. 12
EMEA Industry Details in Contract Award Trends
The Financial Services sector accounted for the lion’s share of contract awards in
2012, up almost 60% Y/Y.
YTD Industry Details for EMEA - ACV (€B)*
Low Average 3Q11 YTD 3Q12 YTD
€ 2.5
€ 2.0 € 1.95
€ 1.5
€ 1.22
€ 1.0
€ 0.86
€ 0.5 € 0.56
€ 0.41
€ 0.20 € 0.21
€ 0.12
€-
© 2012
Information
Services Group, Inc.
All Rights Reserved
isg-one.com
*Contracts with ACV > €4M

13. 13
Americas Contract Award Trends
Americas ACV was down 11% Y/Y and 8% Q/Q; YTD, ACV is flat; the U.S. is becoming
a predominantly restructuring-based market.
Americas YTD ACV (€B)*
1H ACV 3Q ACV
€8
€6
€ 1.4
€4 € 0.9 € 1.4 € 0.9 € 1.5
€ 1.9 € 1.5 € 1.3
€ 0.8 € 1.0
€2
€0
2003 04 05 06 07 08 09 10 11 2012
Americas YTD Counts* Americas New Scope vs. Restructuring YTD ACV (€B)*
1H Counts 3Q Counts YTD New Scope YTD Restructured
350
300
106 € 3.4 € 3.9
250 86 € 3.0
79 77
200 67 € 2.4
150 63
100
€ 1.9 € 1.9
50 € 1.1 € 1.2
© 2012
Information -
Services Group, Inc.
All Rights Reserved 07 08 09 10 11 2012 2003 04 05 06 07 08 09 10 11 2012
isg-one.com
*Contracts with ACV > €4M

14. 14
Asia Pacific Contract Award Trends
Asia Pacific ACV was up Y/Y and Q/Q; YTD, ACV is up significantly; over 90% of YTD
awards are new scope.
Asia Pacific YTD ACV (€B)*
1H ACV 3Q ACV
€ 2.5
€ 2.0
€ 1.5
€ 0.54
€ 0.44
€ 1.0 € 0.29 € 0.15 € 0.35 € 0.35
€ 0.46
€ 0.5 € 0.36
€ 0.12 € 0.22
€ 0.0
2003 04 05 06 07 08 09 10 11 2012
Asia Pacific YTD Counts* Asia Pacific New Scope vs. Restructuring YTD ACV (€B)*
1H Counts 3Q Counts YTD New Scope YTD Restructured
100
80 28 30 € 1.83
60 24 18 € 0.80
24 25 € 0.33
40
20 € 0.01 € 0.33 € 0.11
© 2012
Information -
Services Group, Inc.
All Rights Reserved 07 08 09 10 11 2012 2003 04 05 06 07 08 09 10 11 2012
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*Contracts with ACV > €4M

15. 15
Assessing the Level of Cloud Adoption
1 Percentage of ISG Advised
Contracts with Cloud in Scope
27%
2 Number of Industrywide
Contracts with Cloud in Scope*
20% ↑100% 300e
9% 220
110
2010 2011 2012 YTD 2010 2011 2012e
3 ISG Quarterly Provider Survey: Cloud Computing
Provider Pipeline
► Half have cloud scope in 25% of their pipeline opportunities
► Cloud-based opportunities are up over previous periods
► All providers expect cloud services to grow faster than traditional
ITO, predominantly in the U.S. market
© 2012
Information
Services Group, Inc.
All Rights Reserved
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*ISG Contracts Knowledgebase®
*Contracts with ACV > €4M

16. 16
Recognising the Realities of Cloud Deployment
Cloud
Strategy
Cloud Deployment Models
Public Cloud Private Cloud
Shared Infrastructure Dedicated Infrastructure
Opportunity Perceived Risk Caution!
• Economies Security & data Does not fully
of Scale privacy concerns realise cloud’s
• Standard promise
• Modern
Converged / Utility / Dynamic
IaaS SaaS BPaaS
Computing
© 2012
Information
Services Group, Inc.
All Rights Reserved
Cloud Service Models
isg-one.com
*Contracts with ACV > €4M

17. 17
Opportunities and Challenges in the Provider Community
Traditional Multinational
Providers
Expansion of existing ITO
business
India-heritage
Pure-play SaaS and IaaS Providers
Integrating acquisitions
Providers
Application
Unbound by legacy 1 transformation and
constraints modernisation
2
5
Security and privacy Solution Reliance on infrastructure
concerns Assessment partners
4 Mid-market
Traditional Software 3 Hosting Providers
Companies
Innovative shared hosting
Existing relationship with platforms
IT and procurement
Supporting large, complex
© 2012 Cannibalisation of licence clients
Information
Services Group, Inc. revenue streams
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*Contracts with ACV > €4M

18. 18
Cloud Trends
Cloud’s disruptive effects on sourcing will accelerate, especially for the sourcing
market’s traditional IT providers.
Less
Disruptive
Trends
IaaS will lag in favour of dedicated, standardised and
virtualised infrastructure services
Cloud growth will be choppy at the enterprise level with
SaaS leading the way in HR, CRM and collaboration
Traditional IT providers face significant pressure from well-
known software vendors, nimble mid-market players and
emerging pure-play infrastructure and SaaS providers
Buyer type shifting from the IT department to the functional
business units, especially SaaS-based HR and CRM
Highly
© 2012 Disruptive
Information
Services Group, Inc. Trends
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*Contracts with ACV > €4M

19. 19
3Q12 TPI Index Summary and Outlook
 EMEA ACV rose 14% Q/Q but year-to-date is down 8%
 Broader Market 3Q ACV down due to tough 3Q11 compare
market  YTD ACV strengthened slightly on larger contracts, BPO
summary and Asia Pacific results
 Contract counts fell Q/Q and year-to-date from 2011 but
remain within broader historical norms
 While TCV performance may lag, from an ACV perspective,
market the end result will likely be in line with recent year’s
outlook performance of approximately €16 billion
© 2012
Information
Services Group, Inc.
All Rights Reserved
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*Contracts with ACV > €4M

20. 20
Learn More
Please contact us with your questions and comments.
► John Keppel ► Duncan Aitchison
Partner & President Research & Partner & President
Managed Services and Chief North Europe, ISG
Marketing Officer +44 7879 471 758
+44 7879 432 212 duncan.aitchison@isg-one.com
john.keppel@isg-one.com
--- Media Contacts ---
► Denise Colgan ► Louise Fernley
Marketing Director, EMEA, ISG Cohn & Wolfe for ISG
+44 1737 371523 +44 207 331 5365
denise.colgan@isg-one.com louise.fernley@cohnwolfe.com
© 2012
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All Rights Reserved
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*Contracts with ACV > €4M

21. Third Quarter 2012

22. 22
3Q12 TCV Score Card
The TPI Index has moved to ACV as the primary measure of the Broader Market. In
transition, we will continue to provide a high-level TCV view of the market via a
Scorecard analysis.
3Q12 TCV 3Q Y/Y 3Q Q/Q YTD TCV YTD Y/Y
Scorecard (€B)* Change Change (€B)* Change
Global Market € 19.6 -12% -2% € 57.1 -3%
Mega Deals € 4.5 -22% -11% € 10.8 0%
New Scope € 13.0 12% -13% € 38.4 -3%
Restructurings € 6.6 -38% 31% € 18.7 -2%
ITO € 12.7 -21% 7% € 36.2 -7%
BPO € 6.9 10% -15% € 20.9 6%
EMEA € 10.0 -21% 18% € 27.1 -15%
Americas € 7.1 -8% -6% € 22.2 4%
Asia Pacific € 2.5 37% -37% € 7.8 45%
© 2012
Information
Services Group, Inc.
All Rights Reserved
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*Contracts with ACV > €4M

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