Global IT-BPO outsourcing deals analysis

Global IT-BPO outsourcing deals analysis 2Q16 analysis August 2016 KPMG.com/in 2016 KPMG International Cooperative ( KPMG International ). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. All rights reserved. 1

About global IT-BPO outsourcing deals analysis KPMG s Shared Services and Outsourcing Advisory (SSOA) practice publishes a quarterly analysis on Information Technology and Business Process Outsourcing (IT-BPO) contracts signed across industries and geographies, with a Total Contract Value (TCV) of USD5 million and above per deal. Methodology and limitations of the study: The analysis and findings presented in this report are based on select third party deals database including, publicly available outsourcing data as identified throughout this presentation. It does not include contract information gathered from KPMG Sourcing Advisory business engagements. The count and value of the deals may vary notably in reality and is only indicative of market movements and trends in the IT-BPO space. Readers are requested to use their discretion while assessing the global IT-BPO market accordingly. For more information on this market research, please get in touch with Shailesh Narwaiye (snarwaiye@kpmg.com). 2016 KPMG International Cooperative ( KPMG International ). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. All rights reserved. 2

Contents Section 1: Global deals: An overview Section 2: 2Q16 deal analysis Section 3: IT-BPO outsourcing outlook

Section 1 Global deals: an overview 2016 KPMG International Cooperative ( KPMG International ). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. All rights reserved. 4

A summary In 2Q16, 311 ITO contracts worth USD40.1 billion and 21 BPO contracts worth USD739 million were signed, worldwide Globally 8 IT-BPO bundled deals were signed in 2Q16 with contract value worth USD463 million In terms of value, approximately 71 per cent of deals originated from the United States, followed by the United Kingdom at 5 per cent. China and Australia were two other key outsourcing marets The average deal tenure increased to 5 years 5 months in 2Q16 from 4 years 11 months in 1Q16 Government and Telecom sectors were the top consumers of IT-BPO services contributing to 65 per cent and 12 per cent in terms of value of outsourcing deals signed in 2Q16. Defense sector was the next big contributor in terms of deal value IT Bundled Services and CRM contributed approximately USD31.4 billion and USD378.5 million respectively and were the largest procured services globally within ITO and BPO outsourced services, respectively Average annualized contract value in 2Q16 was USD23.0 million as compared to USD27.3 million in 1Q16 showing a decrease of 16 per cent between the two quarters Source: IDC (www.idc.com), Contract Database, Jul 2016, KPMG member firms research & analysis based on the IDC contract database 2016 KPMG International Cooperative ( KPMG International ). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. All rights reserved. 5

Snapshot Quarterly deal movements Quarterly movements of global IT-BPO deals* 516 Number of deals 1,473-22% Number of deals 1,144-22% Number of deals 891 426 422 Total deal value No. of deals 2Q16 46% 2Q15 Deal value 55.9 299 20.3 Total deal value USD145.5 billion 53.3 43.9 326 316 324 270-17% Total deal value USD120.4 billion 39.8 28.0 25.2 29.1 USD159.1 billion 334 25932% 75.9 253 192 112 38.8 26.4 21.8 22.8 340 228 39.9 41.3 2Q16 2Q15 2% Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2012 2013 2014 2015 2016 Value (USD billion) No. of deals *The term deals is interchangeably used with contracts throughout the analysis unless otherwise specified. Deals analyzed are global sourcing contracts of size USD5.0 million and above only. Source: IDC (www.idc.com), Contract Database, Jul 2016, KPMG member firms research & analysis based on the IDC contract database 2Q16 was almost consistent with 1Q16 in terms of total contract value as compared to 1Q16 whilst there was a 49 per cent increase in the total number of deals, indicating that the average deal size has gone down considerable (34 per cent over 1Q16) 2016 KPMG International Cooperative ( KPMG International ). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. All rights reserved. 6

Q-o-Q comparison Annualized Contract Value (ACV) Annualized* contract value comparison per quarter 22.98 53% decrease 2Q16 7,812 53% decrease 2Q16 0.78 5 years 5 months 1,532.4 49.34 2Q15 16,479 2Q15 4 years 9 months 159% increase 0.78 20.16 5271.4 2Q14 6,371 2Q14 4 years 6 months 3,500 8,500 13,500 18,500 Total Annualized Contract Value (USD million) 0.44 Minimum annualized contract value 389.6 Maximum annualized contract value * Annualized contract value = ( total value of a contract / tenure in months ) x 12 Contract value for contracts having tenure less than 1 year is considered as annualized value for the analysis. Graph is not to scale and only represents the division across different parameters Source: IDC (www.idc.com), Contract Database, Jul 2016, KPMG member firms research & analysis based on the IDC contract database Note: All values in USD million unless otherwise specified Average annualized contract value (USD million) Average tenure per contract Total annualized contract value in 2Q16 decreased by 53 per cent as compared to 2Q15. The average annualized contract value also decreased by 53 per cent during the same period The average contract tenure increased by 9 months to 5 years 5 months in 2Q16 over 2Q15 2016 KPMG International Cooperative ( KPMG International ). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. All rights reserved. 7

Q-o-Q comparison Deals analysis by sector Sector Automotive & Aerospace Banking & Financial Services Defense Energy & Utilities Government Insurance Manufacturing Pharma & Healthcare Publishing, Media & Entertainment Retail Telecom Travel & Logistics Others* Total Contract Value Total Number of Contracts Average Contract Value 2Q15 -> 3Q15 3Q15 -> 4Q15 Trends in deal movement from 2Q15 to 2Q16 4Q15 -> 1Q16 1Q16 -> 2Q16 2Q15 -> 3Q15 3Q15 -> 4Q15 4Q15 -> 1Q16 1Q16 -> 2Q16 2Q15 -> 3Q15 3Q15 -> 4Q15 4Q15 -> 1Q16 1Q16 -> 2Q16 4.55E 01 46% 3055% 99% 863% 0% 33% 0% 40% 46% 4632% 99% 451% 360% 54% 121% 63% 15% 53% 157% 64% 299% 1% 14% 63% 63% 100% 25228% 70% 53% 97% 1900% 35% 22% 96% 1166% 72% 27% 87% 3% 463% 20% 42% 14% 22% 6% 78% 13% 207% 51% 19% 689% 3% 22% 36% 156% 287% 60% 86% 208% 27% 1107% 115% 71% 7.73E 01 77% 0% 71% 250% 14% 1107% 651% 92% 80% 4% 70% 33% 51% 38% 68% 86% 271% 30% 5% 28% 24% 99% 933% 50% 148% 82% 100% 50% 233% 97% 416% 0% 49% 72% 100% NA 40% 78% 100% NA 100% 26% 100% NA 70% 52% 5% 74% 180% 10% 22% 14% 650% 69% 35% 77% 49% 105% 5% 80% 335% 3% 35% 30% 53% 98% 47% 72% 134% 371% 114% 75% 167% 0% 0% 70% 75% 371% 114% 17% 62% 81% 17% 6% 118% 34% 52% 150% 64% 71% 75% 62% 52% *Others: Construction, Consumer and Recreational Services, Education, Professional services, Securities and investment services, Social services, Trade unions, Technology, Wholesale Source: IDC (www.idc.com), Contract Database, Jul 2016, KPMG member firms research & analysis based on the IDC contract database Decrease >=25% Decrease <25% No change Increase <25% Increase >=25% In 2Q16, many sectors have shown an increase in total contract value but Banking & Financial Services, Defense, Insurance and Publishing, Media & Entertainment have shown a decrease in total contract value of more than 25 per cent as compared to 1Q16, along with corresponding decreasing trend in the Average Contract Value 2016 KPMG International Cooperative ( KPMG International ). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. All rights reserved. 8

Q-o-Q comparison Deals analysis by category Deal Type ITO BPO Bundled Less than USD 100 mn Between USD 100-500 mn More than USD 500 mn Less than 1-year Between 1 to 5-years More than 5-years Trends in deal movement from 2Q15 to 2Q16 Total Contract Value Total Number of Contracts Average Contract Value 2Q15 -> 3Q15 3Q15 -> 4Q15 4Q15 -> 1Q16 1Q16 -> 2Q16 2Q15 -> 3Q15 3Q15 -> 4Q15 4Q15 -> 1Q16 1Q16 -> 2Q16 2Q15 -> 3Q15 3Q15 -> 4Q15 4Q15 -> 1Q16 1Q16 -> 2Q16 51% 42% 90% 11% 13% 56% 101% 59% 44% 32% 5% 30% 51% 42% 90% 11% 13% 56% 101% 59% 44% 32% 5% 30% 40% 75% 178% 76% 40% 75% 178% 76% 68% 68% 57% 57% 120% 120% 5% 87% 42% 26% 75% 5% 87% 42% 26% 75% 21% 90% 77% 25% 0% 21% 90% 77% 25% 0% 38% 38% 120% 120% 27% 27% 21% 204% 90% 4% 21% 204% 90% 4% 20% 20% 64% 64% 98% 98% 57% 57% 25% 56% 84% 69% 6% 6% 18% 18% 8% 8% 7% 7% 44% 59% 150% 17% 25% 60% 152% 19% 25% 2% 1% 2% 56% 23% 46% 15% 8% 27% 150% 0% 52% 6% 42% 15% 66% 45% 78% 34% 25% 33% 57% 117% 55% 117% 49% 38% 7% 12% 12% 25% 3% 56% 98% 21% 10% 100% 55% 38% 66% 75% 435% 22% 71% 69% 380% 142% 18% 21% 11% 49% Source: IDC (www.idc.com), Contract Database, Jul 2016, KPMG member firms research & analysis based on the IDC contract database Decrease >=25% Decrease <25% No change Increase <25% Increase >=25% Whilst ITO deals showed an increase both in terms of value and numbers in 2Q16 over 1Q16, BPO deals and Bundled deals showed a decrease in terms of value and numbers 2Q16 shows higher deal activity in terms of both number and total contact value of shorter tenure deals (deals less than one year) indicating that organizations preferred short-term outsourcing The average contract value of deals has decreased across all categories except for Bundled deals 2016 KPMG International Cooperative ( KPMG International ). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. All rights reserved. 9

IT-BPO deals across geographies: Q-o-Q comparison Geography analysis 649 AMERICAS Geography-wise break-up of deals* 398 EMA 316 453 47.5 45.1 206 204 64.9 63.2 97.5 209 81 93 94 10.4 9.6 6.8 2Q14 2014 2Q15 2015 2Q16 97 ASPAC 122 17.4 30.7 2Q14 2014 2Q15 2015 2Q16 Total contract value (USD billion) No. of contracts * Deals originating from the geography Source: IDC (www.idc.com), Contract Database, Jul 2016, KPMG member firms research & analysis based on the IDC contract database 29 37 16.5 37 8.0 2.1 2.2 2Q14 2014 2Q15 2015 2Q16 0.8 AMERICAS continues to be the major outsourcing region contributing 74 per cent of the total deal value and 62 per cent of total number of deals in 2Q16. EMA and ASPAC regions contribute to 16 per cent and 9 per cent respectively in terms of deal value While AMERICAS and EMA experienced to very minimal growth in deal value as compared to 1Q16, ASPAC experienced a multi-fold growth of more than 376 per cent in 2Q16 vis-à-vis 1Q16 2016 KPMG International Cooperative ( KPMG International ). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. All rights reserved. 10

IT-BPO deals across sectors by value and numbers Sector analysis Sector-wise break-up of deals (3Q15 to 2Q16) TCV : USD 41.3 billion No. of contracts: 340 116 Deal Value (USD billion) 40 42 36 31 26 32 26.9 26 6.0 5.7 20.7 6.9 26.0 4.9 25 6.6 22 21 20 21 15 14 10 18 18 13 3.3 15 12 2.8 2.5 2.6 10 10 10 11 10 9 2.3 8 7 7 7 8 7 2.2 7 7 7 2.1 6 1.4 6 4 1.2 1.3 4 6 4 4 1.4 1.0 1.1 2 3 1.1 1.1 0.7 0.8 1.0 2 2 2 0.2 0.7 0.7 0.9 0.8 0.01 0.1 0.6 0.8 2 0.2 0.1 0.4 0.1 0.1 0.10.2 0.5-0.1 0.1 0.70.2 0.5 0.7 0.7 0.03 Banking and Financial Services Insurance Automotive and Aerospace Travel and Logistics Manufacturing Energy and Utilities Pharma and Healthcare Publishing, Media and Entertainment * Others: Construction, Consumer and Recreational Services, Education, Professional services, Securities and investment services, Social services, Trade unions, Technology, Wholesale Graph is not to scale and only represents the division across different parameters. Figures may not add up to 100 per cent due to rounding off Source: IDC (www.idc.com), Contract Database, Jul 2016, KPMG member firms research & analysis based on the IDC contract database Retail Telecom Others * Defense Government 66 50 82 Q3-2015 Q4-2015 Q1-2016 Q2-2016 No. of contracts The Government and Defense sector lead deal activity, contributing to more than 70 per cent of the total deal value in 2Q16. While not all sectors showed an increased deal activity in terms of deal value, all sectors showed an increase in number of deals 2Q16 vis-à-vis 1Q16 2016 KPMG International Cooperative ( KPMG International ). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. All rights reserved. 11

Q-o-Q comparison New and renewal* deal analysis 73.7 Analysis of new and renewal* deals All deals ITO BPO 65.6 7.3 42.7 39.7 33.3 38.7 5.0 23.9 21.6 1.3 5.2 2.2 1.6 0.5 4.0 1.0 1.4 0.3 1.1 0.5 0.2 0.2 Q2 Q2 Q2 Q2 2013 2014 2015 2016 Q2 Q2 Q2 Q2 2013 2014 2015 2016 Q2 Q2 Q2 Q2 2013 2014 2015 2016 * Renewal deals include contracts which have been extended, expanded, extended & expanded and renegotiated Source: IDC (www.idc.com), Contract Database, Jul 2016, KPMG member firms research & analysis based on the IDC contract database Total contract value (in USD bn) New Renewal After having seen the highest deal activity over the last four years in 1Q16, 2Q16 saw a dip in all the segments ITO, BPO and Bundled There has been remarkable few new BPO deals in 2Q16 as compared to 2Q15 when there was a significantly large number of new deals 2Q16 looks very similar to 2Q14 in this trend 2016 KPMG International Cooperative ( KPMG International ). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. All rights reserved. 12

Section 2 2Q16 deal analysis 2016 KPMG International Cooperative ( KPMG International ). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. All rights reserved. 13

Deal value IT-BPO deals* signed in 2Q16(Total contract value: USD41.3 billion) 100% 90% Bundled 0.5 BPO 0.7 ASPAC 3.8 2.2 Time & Material Total contract value USD 41.3 billion 80% 70% 60% 50% 40% 30% ITO 40.1 EMA 6.8 Americas 30.7 More than USD 500 MN 19.1 Between USD 100-500 MN 15.6 More than 5-years 29.2 Hybrid 26.4 # 20% 10% 0% Less than USD 100 MN 6.6 Between 1 to 5-years 11.9 Fixed Price 12.7 Less than 1-year Services Region Contract Value 0.1 Tenure Pricing * Deals analyzed are USD5.0 million and above only, throughout the analysis. Graph is not to scale and only represents the division across different parameters. Figures may not add up to 100 per cent due to rounding off # Hybrid pricing includes a combination of various pricing mechanisms Source: IDC (www.idc.com), Contract Database, Jul 2016, KPMG member firms research & analysis based on the IDC contract database ITO deals continue to dominate the outsourcing space with a contribution of 97 per cent to the total deal value signed in 2Q16 AMERICAS continues to be the major outsourcing region contributing 74 per cent of the total deal value in 2Q16. EMA and ASPAC contribute 16 per cent and 9 per cent respectively 2Q16 saw a significantly high number of hybrid pricing deals the highest witnessed since 2013 2016 KPMG International Cooperative ( KPMG International ). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. All rights reserved. 14

Number of deals IT-BPO deals* signed in 2Q16 (Total number of contracts: 340) Total contracts 340 100% 90% 80% 70% 60% 50% 40% 30% 20% Bundled 8 BPO 22 ITO 311 ASPAC 37 EMA 94 Americas 209 More than USD 500 MN 20 Between USD 100-500 MN 75 Less than USD 100 MN 245 More than 5-years 116 Between 1 to 5-years 211 Time & Material 67 Hybrid# 96 Fixed Price 177 10% 0% Less than 1-year 13 Services Region Contract Value Tenure Pricing * Deals analyzed are USD5.0 million and above only, throughout the analysis. Graph is not to scale and only represents the division across different parameters. Figures may not add up to 100 per cent due to rounding off # Hybrid pricing includes a combination of various pricing mechanisms Source: IDC (www.idc.com), Contract Database, Jul 2016, KPMG member firms research & analysis based on the IDC contract database ITO deals and BPO deals contribute to 91 per cent and 6 per cent respectively in terms of number of deals signed in 2Q16 72 per cent of the deals, in terms of number of deals signed in 2Q16, were of value less than USD100 million Deals with tenure between one to five years were largest in number, comprising 61 per cent to the deals signed in 2Q16 2016 KPMG International Cooperative ( KPMG International ). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. All rights reserved. 15

Services segmentation Total Value of contracts (USD Billion) 35 30 25 20 15 10 5 IT Products 4% 0 Other IT Services, 1% IT Infrastructure 5% ERP 1% SI 6% ADM 5% ICT Services 15% SMAC 19% Number of Deals Note: Size of bubble indicates per centage share of the total number of ITO deals SI System Integration, Other IT services Software testing, IT Education and Training, SaaS Source: IDC (www.idc.com), Contract Database, Jul 2016, KPMG member firms research & analysis based on the IDC contract database Analysis of ITO deals 2Q16 IT Bundled services 43% 0 10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 0.4 0.1 2.9 31.4 0.00 0.9 0.4 Value of contracts (USD Billion) 0.7 3.1 Note: All values in USD billion. Scale of graph is just representative to illustrate the division across different parameters. Figures may not add up to 100 per cent due to rounding off. Refer L.H.S. figure for legend Source: IDC (www.idc.com), Contract Database, Jul 2016, KPMG member firms research & analysis based on the IDC contract database 0.1 40.1 ADM ERP ICT IT IT IT IT SI SMAC Other IT Total Bundled Conslt. Infra. Products Services ITO There have been many large IT Bundled Deals because of which though this service segment contributes to only 43 per cent in terms of deal numbers, it contributes to 73 per cent of all ITO deals in terms of value SMAC and ICT Services are other key contributors to the ITO deals in 2Q16 2016 KPMG International Cooperative ( KPMG International ). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. All rights reserved. 16

Services segmentation Total Value of contracts (USD Million) 450 400 350 300 250 200 150 100 50 CRM 9% BPO Bundled services 14% F&A 18% Analysis of BPO deals 2Q16 SCM 18% HRO 23% 0 0 1 2 3 Other BPO 4 5 6 Services Number of Deals 18% Note: Size of bubble indicates per centage share of the total number of BPO deals Other BPO services Data management, logistics etc. Source: IDC (www.idc.com), Contract Database, Jul 2016, KPMG member firms research & analysis based on the IDC contract database 100 BPO Bundled Services 379 11 45 CRM F&A HRO Value of contracts (USD Million) 32 Other BPO Services 100 SCM 739 Total BPO Note: All values in USD million. Scale of graph is just representative to illustrate the division across different parameters. Figures may not add up to 100 per cent due to rounding off. Refer L.H.S. figure for legend Source: IDC (www.idc.com), Contract Database, Jul 2016, KPMG member firms research & analysis based on the IDC contract database CRM deals contributed to the most deal activity amongst BPO deals - more than 50 per cent of all BPO deals in terms of value and 29 per cent both consolidated in terms of number of deals during 2Q16 2016 KPMG International Cooperative ( KPMG International ). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. All rights reserved. 17

Section 3 IT-BPO outsourcing outlook 2016 KPMG International Cooperative ( KPMG International ). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. All rights reserved. 18

Global outsourcing industry Outlook 2Q16 also showed a deal activity similar to 1Q16 while over the years we have seen that the second quarter is always the strongest quarter of the year IT outsourcing clearly dominated 2Q16 deal activity with BPO deals and Bundled deals having very minimal activity The value of renewal deals is miniscule as compared to new deals with many organizations actively exploring outsourcing as a part of their business transformation efforts from a more wide-ranging process standpoint Government and Defense sectors are the main consumers of IT&BPO services after a slump in 4Q15, the sector has shown quite an improvement over 1Q16 and 2Q16 Unlike previous quarters where traditional pricing models were relatively highly prevalent as compared to a hybrid model, 2Q16 showed organizations exploring hybrid pricing more than fixed pricing While EMA is continuing to gain outsourcing momentum, 2Q16 deal activity has been driven by the AMERICAS which continues to be the major outsourcer SMAC services and automation are major drivers for the commoditization of the outsourcing services and this is especially true for IT services. There are still only a few stand-alone SMAC deals but are now becoming a common part of bundled deals 2016 KPMG International Cooperative ( KPMG International ). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. All rights reserved. 19

KPMG Shared Services and Outsourcing Advisory (SSOA) research Latest from the KPMG Shared Services and Outsourcing Institute GBS 2020 Webcast: A vision for the future of Global Business Services KPMG Global Insights Pulse: The need for GBS maturity Global IT-BPO outsourcing deals analysis: 1Q16 analysis - January to March About KPMG Institutes KPMG Institutes is dedicated to helping organisations and their stakeholders identify and understand emerging trends, risks and opportunities. We do this by creating an open forum where peers can exchange insights, share leading practices, and access the latest thought leadership publications. As a result, corporate executives, business managers, industry leaders, government officials, academics, and others have access to the thought leadership documents and knowledge which they can use to make better informed decisions and meet their marketplace challenges. To learn more, log on to http://www.kpmg-institutes.com/institutes/shared-services-outsourcing-institute.html Advice Worth Keeping Blog: http://blog.equaterra.com/ Advice Worth Keeping podcast series: http://www.kpmginstitutes.com/shared-services-outsourcing-institute/events/podcast_series/advice-worth-keeping-podcast-series.aspx Global IT-BPO Outsourcing Deals Analysis: http://www.kpmg.com/in/en/issuesandinsights/articlespublications/kpmg-deal-tracker/pages/default.aspx 2016 KPMG International Cooperative ( KPMG International ). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. All rights reserved. 20

Glossary (1/2) Terms Definition ACV Annualized Contract Value = ( total value of a contract/tenure in months ) x 12 AMERICAS ASPAC BPO EMA ITO TCV North America and South America Asia and Oceania Business Process Outsourcing Europe, Middle East and Africa Information Technology Outsourcing Total Contract Value 2016 KPMG International Cooperative ( KPMG International ). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. All rights reserved. 21

Glossary (2/2) Terms ITO Services ADM ERP ICT Services IT Bundled Services IT Consulting IT Infrastructure IT Products Other IT Services SMAC System Integration BPO Services BPO Bundled Services Content Management CRM F&A HRO KPO Other BPO Services SCM Definition Application Development and Maintenance Enterprise Resource Planning implementation and support services Information and Communication Technology services (e.g. contact center technology, telecommunication, and related services) Any combination of two or more IT services mentioned above Information Technology Consulting services IT hardware deployment (e.g. data center outsourcing, network management, hardware deploy and support, hosting services, etc.) Software products typically developed and branded by IT companies and sold as own Intellectual Property Typically services that do not fall in other buckets (e.g. Software testing, IT helpdesk support services, Cyber security) Social, Mobile, Analytics and Cloud services (i.e. Social Media, Mobility, Analytics and Cloud computing) IT system integration services (application or enterprise system integration services) Any combination of two or more BPO services mentioned above Data management services (e.g. document management, print management, etc.) Customer Relationship Management solutions and services Finance and Accounting services Human Resource Outsourcing services Knowledge Process Outsourcing services Typically services that do not fall in other buckets (e.g. Industry specific processes, Facilities Management) Supply Chain Management services (including procurement, logistics etc.) 2016 KPMG International Cooperative ( KPMG International ). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. All rights reserved. 22

KPMG contacts Stan Lepeak Director Global Research, Management Consulting KPMG in the US +1 203 458 0677 slepeak@kpmg.com Viral Thakker Partner Advisory Services KPMG in India +91 22 3090 1730 vthakker@kpmg.com Jehil Thakkar Partner Advisory Services KPMG in India +91 22 3090 1670 jthakkar@kpmg.com 2016 KPMG International Cooperative ( KPMG International ). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. All rights reserved. 23

Thank you Analyst Team Contact: Shailesh Narwaiye KPMG in India T: +91 20 3050 4000 E: snarwaiye@kpmg.com Analysts (KPMG in India): Esther Jaydevi Swati Kumari The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. The KPMG name and logo are registered trademarks or trademarks of KPMG International. This document is meant for e-communications only. 2016 KPMG International Cooperative ( KPMG International ). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. All rights reserved. 24