The TPI Index provides insights on the global outsourcing market for the third quarter of 2012. Global ACV was down 6% year-over-year and 10% quarter-over-quarter, though year-to-date ACV was up 3%. New scope contracts saw 16% year-over-year growth while restructurings declined 33%. Large deals and the Asia Pacific region experienced significant growth compared to prior periods.

1. The TPI Index
Global Sourcing Market Data and Insights
Third Quarter 2012
Hosted by:
Moshe Katri,
Cowen and Company
15 October 2012

2. 2
Welcome to the 40th Quarterly Outsourcing Index Call
Covering the state of the outsourcing industry for global, commercial contracts.
John Keppel
Partner
Duncan Aitchison
Partner
Stanton Jones
Emerging Technology Analyst
© 2012
Information
Services Group, Inc.
All Rights Reserved
isg-one.com
*Contracts with ACV > $5M

3. 3
Milestones
40th quarterly presentation represents a decade of TPI Index conference calls
Spring Winter Summer Fall Spring
Today
2003 2004 2005 2008 2011
Inaugural Recognized 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 Contract KnowledgeBase®
All Rights Reserved
exceeds 24,000 contract records.
isg-one.com
*Contracts with ACV > $5M

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%
$71 $15
$65
$11
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 = $5B
All Rights Reserved Typical Annual ACV = $20B
isg-one.com
*Contracts with ACV > $5M

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 $ 4.8 -6% -10% $ 14.8 3%
New Scope $ 3.2 16% -19% $ 9.8 2%
Restructurings $ 1.6 -33% 17% $ 4.9 6%
Mega-Relationships $ 1.5 1% -26% $ 4.5 51%
ITO $ 3.2 -13% 8% $ 9.2 -3%
BPO $ 1.6 12% -32% $ 5.6 17%
© 2012
Americas $ 1.6 -11% -8% $ 5.4 2%
Information
Services Group, Inc. EMEA $ 2.5 -12% 14% $ 6.9 -8%
All Rights Reserved
Asia Pacific $ 0.7 55% -51% $ 2.4 72%
isg-one.com *See Appendix for TCV Score Card
*Contracts with ACV > $5M

6. 6
Broader Market Contract Award Trends
ACV was down 6% Y/Y and 10% Q/Q; YTD, ACV of $14.8B is up 3.5%.
Broader Market YTD ACV ($B)*
1H ACV 3Q ACV
$18
$15
$13 $4.1 $4.8
$3.8 $4.0 $5.1
$10 $3.4 $3.4 $2.5
$8 $4.0 $2.9
$5
$3
$0
2003 04 05 06 07 08 09 10 11 2012
Broader 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
Information
Services Group, Inc. -
All Rights Reserved 2003 04 05 06 07 08 09 10 11 2012
isg-one.com
*Contracts with ACV > $5M

7. 7
Broader Market Contract Trends for the Largest Deals
26 mega-relationships have been awarded YTD, surpassing total for all of 2011;
greater percentage of large deal activity occurring in emerging markets.
YTD Contracts Counts with ACV > $100M
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 > $50M
Emerging markets
16 e defined as outside
8 8 North American,
7 Western Europe
4
and ANZ markets.
© 2012
Information
Services Group, Inc.
All Rights Reserved 2008 2009 2010 2011 2012e
isg-one.com
*Contracts with ACV > $5M

8. 8
ITO Contract Award Trends
ITO ACV down 13% Y/Y but up 8% Q/Q; YTD, TCV is down slightly but performance
in the Americas and Asia Pacific are both up over 20%.
ITO YTD ACV ($B)*
1H ACV 3Q ACV
$12
$10 $3.0
$8
$2.3 $2.5 $2.9 $3.7 $3.2
$1.5 $1.9
$6 $3.1 $2.5
$4
$2
$0
2003 04 05 06 07 08 09 10 11 2012
ITO YTD Counts* ITO Regional YTD ACV ($B)*
1H Counts 3Q Counts Americas Asia Pacific EMEA
$500
$5.5
$400
138
$300
124 115 118 $4.1 $4.3
110 $3.1 $3.7
88 $3.3
$200
$100 $0.9
© 2012
$1.2
Information $0 $0.4
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 > $5M

9. 9
BPO Contract Award Trends
BPO ACV up 12% Y/Y but down 32% Q/Q; YTD, TCV is up 17% because of several
large contract awards; total number of contracts awarded has slowed.
BPO YTD ACV ($B)*
1H ACV 3Q ACV
$6
$5 $1.6
$4 $0.9 $1.3 $1.5
$3 $1.1
$1.1 $1.0 $1.0
$2 $1.0 $1.0
$1
$0
2003 04 05 06 07 08 09 10 11 2012
BPO YTD Counts* BPO Regional YTD ACV ($B)*
1H Counts 3Q Counts Americas Asia Pacific EMEA
350
300
250 105 $2.6
$2.3
200 74 69
69 72 $2.0 $1.7
150
59 $1.6
100 $1.1 $1.3
$0.5
© 2012
50
Information - $0.1
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 > $5M

10. 10
Top Service Providers Year-to-date
The 15 top service providers based on YTD 2012 ACV* awarded globally.
ITO Providers BPO Providers
ACV ACV
Accenture Accenture
CGI CGI
HCL HCL
HP HP
IBM IBM
Infosys Infosys
Mahindra Satyam Mahindra Satyam
Atos Genpact
BT ISS
Capgemini Johnson Controls
CSC Jones Lang Lasalle
Dell Mitie
Fujitsu Serco
TCS Sodexho
T-Systems Xchanging
© 2012
Information
Services Group, Inc.
All Rights Reserved
Note: Service providers in alphabetical order; no rankings implied.
isg-one.com Placements based on 2012 YTD commercial contract awards sourced from ISG contracts database.
*Contracts with ACV > $5M

11. 11
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
$7
$6 $1.8
$5 $1.2 $1.8 $1.1 $1.9
$2.4 $1.8 $1.6
$4
$0.9 $1.2
$3
$2
$1
$0
2003 04 05 06 07 08 09 10 11 2012
Americas YTD Counts* Americas New Scope vs. Restructuring YTD ACV ($B)*
1H Counts 3Q Counts YTD New Scope YTD Restructured
350
$4.9
300 $4.2
106 $3.8
250 86
79 77 $3.0
200 67
150 63
100 $2.3 $2.4
50 $1.4 $1.5
© 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 > $5M

12. 12
EMEA Contract Award Trends
EMEA ACV was down 12% Y/Y but up 14% Q/Q; both restructuring and new scope
activity is down year to date.
EMEA YTD ACV ($B)*
1H ACV (B) 3Q ACV
$8
$7
$6 $2.0 $2.8
$1.8 $2.5
$5 $1.4 $1.6
$4 $1.5 $1.9 $1.5
$3 $1.2
$2
$1
$0
2003 04 05 06 07 08 09 10 11 2012
EMEA YTD Counts* EMEA New Scope vs. Restructuring YTD ACV ($B)*
1H Counts 3Q Counts YTD New Scope YTD Restructured
400
300 $4.8
109 $4.1 $4.5 $4.5
93 80
200 87 85
60
100 $2.7
$0.4 $2.3 $2.4
© 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 > $5M

13. 13
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
$3.0
$2.5
$2.0 $0.67
$1.5 $0.55
$0.36 $0.19 $0.44 $0.43
$1.0 $0.58
$0.14 $0.45
$0.5 $0.27
$0.0
2003 04 05 06 07 08 09 10 11 2012
Asia Pacific YTD Counts* Asia Pacific New Scope vs. Restructuring YTD ACV ($B)*
1H Counts 3Q Counts YTD New Scope YTD Restructured
100
80 28 30 $2.28
60 24 18 $1.00
24 25 $0.41
40
20 $0.41 $0.14
© 2012
$0.01
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 > $5M

14. Special Topic for Third Quarter 2012
Stanton Jones
Emerging Technology Analyst

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
isg-one.com
*ISG Contracts Knowledgebase®
*Contracts with ACV > $5M

16. 16
Recognizing 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 realize 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 > $5M

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 modernization
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 Cannibalization of license clients
Information
Services Group, Inc. revenue streams
All Rights Reserved
isg-one.com
*Contracts with ACV > $5M

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 favor of dedicated, standardized and
virtualized 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
All Rights Reserved
isg-one.com
*Contracts with ACV > $5M

19. 19
3Q12 TPI Index Summary and Outlook
 Broader Market 3Q ACV down due to tough 3Q11 compare
 YTD ACV strengthened slightly on large contracts, BPO
market and Asia Pacific results
summary  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 $20 billion
© 2012
Information
Services Group, Inc.
All Rights Reserved
isg-one.com
*Contracts with ACV > $5M

20. 20
Learn More
Please contact us with your questions and comments.
► John Keppel ► Duncan Aitchison
Partner, ISG Partner, ISG
+44 (0)7879 432 212 +44 (0)7879 471 758
john.keppel@isg-one.com duncan.aitchison@isg-one.com
--- Media Contacts ---
► Andrew Park ► Gwennie Poor
Director, ISG Cohn & Wolfe for ISG
+1 919 259 9252 +1 212 798 9842
andrew.park@isg-one.com gwennie.poor@cohnwolfe.com
© 2012
Information
Services Group, Inc.
All Rights Reserved
isg-one.com blog.isg-one.com
*Contracts with ACV > $5M

21. Third Quarter 2012

22. 22
3Q12 TCV Scorecard
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 3Q12 3Q Y/Y 3Q Q/Q
Scorecard ($B)* Change Change Counts Change Change
Global Market $ 24.5 -12% flat 187 -23% -11%
Mega Deals $ 5.6 -22% -11% 4 300% -20%
New Scope $ 16.3 12% -13% 151 -21% -10%
Restructurings $ 8.2 -38% 31% 36 -31% -16%
ITO $ 15.8 -21% 7% 118 -14% -2%
BPO $ 8.7 10% -15% 69 -34% -23%
EMEA $ 12.6 -21% 18% 80 -27% -4%
Asia Pacific $ 3.1 37% -37% 30 7% -30%
Americas $ 8.9 -8% -6% 77 -27% -9%
© 2012
Information
Services Group, Inc.
All Rights Reserved
isg-one.com
*Contracts with ACV > $5M

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