Global IT-BPO outsourcing deals analysis

Global IT-BPO outsourcing deals analysis 3Q16 analysis 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. 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 Kartik Ramakrishnan (kartikramakrishnan@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

Table of contents Section 1: Global deals: An overview Section 2: 3Q16 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 3Q16, 243 ITO contracts worth USD13.0 billion and 13 BPO contracts worth USD973 million were signed, worldwide Globally 19 IT-BPO bundled deals were signed in 3Q16 with contract value worth USD2.3 billion In terms of value, approximately 40.2 percent of deals originated from the United States, followed by Australia at 9.1 percent. India and the United Kingdom were two other key outsourcing markets The average deal tenure decreased to 4 years in 3Q16 from 5 years 5 months in 2Q16 Telecom and Government sectors were the top consumers of IT-BPO services contributing to 24 percent and 22 percent in terms of value of outsourcing deals signed in 3Q16. Defense sector was the next big contributor in terms of deal value IT Bundled Services and CRM contributed approximately USD4.3 billion and USD706.8 million respectively and were the largest procured services globally within ITO and BPO services, respectively Average annualized contract value in 3Q16 was USD16.4 million as compared to USD23.0 million in 2Q16 showing a decrease of 29 percent between the two quarters Source: IDC (www.idc.com), Contract Database, Nov 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* Deal value 3Q15 58% 3Q16 299 20.3 Number of deals 1,473 422 426 Total deal value USD145.5 billion 53.3 43.9-22% 326 270-17% 28.0 25.2 Number of deals 1,144 316 324 Total deal value USD120.4 billion 39.8 29.1-22% 32% 245 259 26.4 21.8 Number of deals 891 Total deal value USD159.1 billion 334 253 75.9 112 38.8 22.8 228 340 39.9 41.3 No. of deals 275 3Q16 9% 3Q15 16.3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 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, Nov 2016, KPMG member firms research & analysis based on the IDC contract database 3Q16 witnessed a sharp drop in deal activity as compared to 2Q16. There was a decrease of 61 percent in total contract value and 19 percent decrease in total number of deals in 3Q16 as compared to 2Q16 The average contract value also decreased by 51 percent in 3Q16 as compared to 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. 6

Q-o-Q comparison Annualized Contract Value (ACV) Annualized* contract value comparison per quarter 16.4 55% decrease 3Q16 4,515 51% decrease 3Q16 0.36 4 years 0 months 281.0 36.4 3Q15 9,212 3Q15 4 years 3 months 14% increase 0.85 24.9 1,000.0 3Q14 8,067 3Q14 4 years 7 months - 2,000 4,000 6,000 8,000 10,000 Total Annualized Contract Value (USD million) 0.57 Minimum annualized contract value 265.7 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, Nov 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 3Q16 decreased by 51 percent as compared to 3Q15. The average annualized contract value also decreased by 55 percent during the same period The average contract tenure decreased by 3 months to 4 years in 3Q16 as compared to 3Q15 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 3Q15 -> 4Q15 4Q15 -> 1Q16 Trends in deal movement from 3Q15 to 3Q16 1Q16 -> 2Q16 2Q16 -> 3Q16 3Q15 -> 4Q15 4Q15 -> 1Q16 1Q16 -> 2Q16 2Q16 -> 3Q16 3Q15 -> 4Q15 4Q15 -> 1Q16 1Q16 -> 2Q16 2Q16 -> 3Q16 3055% 46% 3055% 99% 863% 99% 863% 72% 33% 0% 33% 0% 40% 14% 40% 4632% 46% 4632% 99% 451% 99% 451% 67% 360% 54% 121% 54% 121% 63% 63% 2% 53% 15% 157% 53% 157% 64% 167% 64% 299% 1% 14% 1% 63% 14% 62% 63% 100% 63% 25228% 100% 25228% 70% 70% 38% 53% 97% 1900% 97% 1900% 35% 35% 17% 22% 96% 1166% 96% 1166% 72% 72% 18% 87% 27% 87% 3% 463% 3% 463% 74% 42% 20% 14% 42% 14% 22% 36% 22% 78% 6% 78% 13% 207% 13% 207% 59% 51% 19% 689% 19% 689% 3% 87% 3% 36% 22% 156% 36% 156% 287% 287% 49% 60% 86% 208% 86% 208% 27% 74% 27% 1107% 115% 115% 71% 7.73E 01 71% 3.26E+00 77% 71% 0% 250% 71% 250% 14% 25% 14% 1107% 651% 651% 92% 80% 92% 468% 80% 70% 4% 70% 33% 33% 51% 18% 51% 68% 38% 68% 86% 271% 86% 271% 31% 30% 5% 28% 5% 24% 28% 24% 19% 933% 99% 933% 50% 148% 50% 209% 148% 100% 82% 100% 50% 233% 50% 233% 10% 416% 97% 416% 0% 49% 0% 243% 49% 100% 72% NA 100% NA 40% 40% 21% 100% 78% NA 100% NA 100% 100% 50% 100% 26% NA 100% NA 70% 143% 70% 52% 5% 74% 5% 180% 74% 180% 51% 10% 22% 22% 14% 650% 14% 650% 27% 69% 35% 77% 35% 77% 49% 34% 49% 105% 5% 80% 5% 335% 80% 335% 20% 35% 3% 30% 35% 30% 53% 53% 4% 98% 47% 72% 47% 134% 72% 134% 23% 114% 371% 114% 75% 167% 75% 167% 49% 0% 70% 70% 75% 57% 75% 371% 114% 114% 17% 17% 62% 62% 20% 81% 17% 17% 6% 118% 6% 118% 59% 34% 52% 150% 52% 150% 64% 33% 64% 71% 75% 62% 75% 62% 52% 39% 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, Nov 2016, KPMG member firms research & analysis based on the IDC contract database Decrease >=25% Decrease <25% No change Increase <25% Increase >=25% In 3Q16, Defense, Insurance and Pharma & Healthcare sectors have shown an increase in total contract value of more than 25 percent as compared to 2Q16. Most other sectors have had a decrease in total contract value during the same period Banking & Financial services, Defense and Telecom sectors have shown an increase in total number of contracts. All other sectors have had a reduced number of contracts signed in the quarter as compared to 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. 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 Total Contract Value Total Number of Contracts Average Contract Value 3Q15 -> 4Q15 4Q15 -> 1Q16 Trends in deal movement from 3Q15 to 3Q16 1Q16 -> 2Q16 2Q16 -> 3Q16 3Q15 -> 4Q15 4Q15 -> 1Q16 1Q16 -> 2Q16 2Q16 -> 3Q16 3Q15 -> 4Q15 4Q15 -> 1Q16 1Q16 -> 2Q16 2Q16 -> 3Q16 42% 51% 42% 90% 11% 90% 68% 11% 13% 56% 101% 56% 101% 59% 22% 59% 44% 32% 32% 5% 30% 5% 30% 58% 75% 40% 178% 75% 178% 76% 76% 32% 68% 57% 120% 57% 120% 5% 38% 5% 42% 87% 42% 26% 75% 26% 113% 75% 21% 90% 77% 90% 25% 77% 387% 25% 38% 0% 120% 38% 120% 27% 138% 27% 204% 21% 204% 90% 90% 4% 105% 4% 64% 20% 64% 98% 57% 98% 21% 57% 25% 56% 56% 84% 69% 84% 69% 4% 18% 6% 18% 7% 8% 17% 7% 59% 44% 150% 59% 150% 17% 43% 17% 25% 60% 152% 60% 152% 19% 49% 19% 25% 2% 1% 2% 2% 1% 12% 2% 23% 56% 23% 46% 15% 46% 89% 15% 27% 8% 150% 27% 150% 85% 0% 52% 6% 42% 6% 42% 15% 15% 25% 66% 45% 78% 45% 78% 34% 321% 34% 25% 33% 33% 57% 117% 57% 117% 31% 117% 55% 117% 49% 38% 49% 222% 38% 12% 7% 12% 25% 12% 25% 0% 56% 3% 56% 98% 21% 98% 21% 5% 100% 10% 100% 55% 38% 55% 38% 5% 75% 66% 435% 75% 435% 22% 87% 22% 71% 69% 380% 69% 142% 380% 142% 69% 21% 18% 21% 11% 49% 11% 49% 57% Source: IDC (www.idc.com), Contract Database, Nov 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 over 25 percent decrease in total contract value, both BPO and bundled deals increased by over 25 percent in 3Q16 over 2Q16 Continuous growth over last two quarters in terms of both number and total contact value was observed in shorter tenure deals (deals with tenure less than one year) indicating that organizations preferred short-term outsourcing The average contract value of long tenure (more than five years) deals has decreased consistently by over 25 percent in the last two quarters 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 97.5 211 64.9 31.3 118 112 24.7 7.0 3Q14 2014 3Q15 2015 3Q16 47.5 45.1 93 126 87 ASPAC 6.2 7.9 5.2 3Q14 2014 3Q15 2015 3Q16 97 122 20 48 16.5 37 8.0 6.1 2.2 4.1 3Q14 2014 3Q15 2015 3Q16 Total contract value (USD billion) No. of contracts * Deals originating from the geography Source: IDC (www.idc.com), Contract Database, Nov 2016, KPMG member firms research & analysis based on the IDC contract database AMERICAS continue to be the major outsourcing region contributing 43 percent of the total deal value in 3Q16 Share of EMA and ASPAC regions has increased in terms of deal value to 32 percent from 16 per cent and to 25 percent from 9 percent respectively as compared to 2Q16 AMERICAS experienced a sharp drop (77 percent) in total contract value as compared to 2Q16. The decrease in total contract value for EMA was comparatively lesser (24 percent decrease) during the same period 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 (4Q15 to 3Q16) TCV : USD 16.3 billion No. of contracts: 275 116 Deal value (USD billion) 6.6 21 18 15 18 18 13 2.6 10 11 11 10 2.3 8 7 7 8 7 9 7 7 6 7 9 7 4 6 1.4 6 1.2 1.3 4 6 4 4 1.0 1.0 2 3 0.7 0.8 1.0 0.1 0.4 0.7 0.9 1.1 1.4 2 2 0.8 0.2 0.6 0.2 0.5 0.1 0.1 0.2 0.10.20.5-0.1 0.1 0.1 0.70.20.5 0.2 Banking and Financial Services 48 Insurance Automotive and Aerospace Travel and Logistics 26 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, Nov 2016, KPMG member firms research & analysis based on the IDC contract database 5.7 20 14 1.1 26 4.9 27 3.9 10 25 36 1.4 2 0.7 0.7 0.6 0.03 6.9 2.1 26.0 26.9 3.3 2.8 3.5 Retail Telecom Others * Defense Government 24 40 42 32 82 Q4-2015 Q1-2016 Q2-2016 Q3-2016 No. of contracts 49 59 The Government and Telecom sector lead deal activity, contributing to 24 percent and 22 percent in terms of value of outsourcing deals signed in 3Q16 Defense sector is the next big contributor in terms of deal value, with a contribution of 17 percent to the total deal value of deals signed in 3Q16 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 Analysis of new and renewal* deals 50.5 All deals ITO BPO 45.1 17.6 38.7 35.1 31.8 12.3 2.9 1.1 3.6 3.9 Q3 Q3 Q3 Q3 2013 2014 2015 2016 16.8 9.9 2.4 0.4 1.1 3.1 Q3 Q3 Q3 Q3 2013 2014 2015 2016 4.4 2.4 0.3 0.3 2.1 0.4 0.6 Q3 Q3 Q3 Q3 2013 2014 2015 2016 * Renewal deals include contracts which have been extended, expanded, extended & expanded and renegotiated Source: IDC (www.idc.com), Contract Database, Nov 2016, KPMG member firms research & analysis based on the IDC contract database Total contract value (in USD bn) New Renewal An analysis of new deals vs renewed deals show that the drop in deal activity in 3Q16 is majorly due to fewer new deals signed. The total contract value of renewed deals showed a slight increase as compared 3Q15 Total contract value of renewed BPO deals in 3Q16 is more than that of new BPO deals signed in the quarter 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 3Q16 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 3Q16 (Total contract value: USD16.3 billion) 100% 90% 80% Bundled 2.3 BPO 1.0 ASPAC 4.1 More than USD 500 MN 2.2 More than 5- years 3.9 Others, 0.5 Time & Material 1.6 Hybrid # 1.4 Total contract value USD 16.3 billion 70% 60% 50% 40% 30% 20% 10% 0% ITO 13.0 EMA 5.2 AMERICAS 7.0 Between USD 100-500 MN 8.8 Less than USD 100 MN 5.3 Between 1 to 5- years 11.9 Fixed Price 12.8 Less than 1-year 0.5 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, Nov 2016, KPMG member firms research & analysis based on the IDC contract database ITO deals continue to dominate the outsourcing space with a contribution of 80 percent to the total deal value signed in 3Q16 AMERICAS continue to be the major outsourcing region contributing 43 percent of the total deal value signed in 3Q16. EMA and ASPAC contribute 32 percent and 25 percent respectively Fixed price contracting model showed dominance, contributing over 79 percent of the deal value in 3Q16 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 3Q16 (Total number of contracts: 275) Total contracts 275 100% 90% 80% 70% 60% 50% 40% Bundled 19 BPO 13 ITO 243 ASPAC 37 EMA 126 More than USD 500 MN 3 Between USD 100-500 MN 38 Less than USD 100 MN 234 More than 5- years 36 Between 1 to 5- years 222 Others, 16 Time & Material 28 Hybrid # 17 Fixed Price 214 30% 20% AMERICAS 112 10% 0% Less than 1-year 17 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, Nov 2016, KPMG member firms research & analysis based on the IDC contract database ITO deals and BPO deals contribute to 88 percent and 5 percent respectively in terms of number of deals signed in 3Q16 Clients preferred mid tenure deals of length between one to five years, which contributed to 81 percent of the total number of deals signed in 3Q16 85 percent of the deals, in terms of number of deals signed in 3Q16, were of value less than USD100 million. Only three of the deals signed in 3Q16, were of value more than USD500 million 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 5 Analysis of ITO deals 3Q16 0.2 Total Value of Contracts (USD billion) 5 4 4 3 3 2 2 Other IT 0 Services, 0% 1 IT Consulting 2% 1 ERP 3% IT Infrastructure 5% SI 8% SMAC 16% Number of Deals IT Bundled services 18% ICT Services 18% 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 Source: IDC (www.idc.com), Contract Database, Nov 2016, KPMG member firms research & analysis based on the IDC contract database ADM 29% 0 10 IT Products 20 30 40 50 60 70 80 1% 1.8 0.4 3.0 4.3 0.33 0.3 0.1 Value of contracts (USD billion) 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, Nov 2016, KPMG member firms research & analysis based on the IDC contract database 0.4 2.3 13.0 ADM ERP ICT IT IT IT IT SI SMAC Other IT Total Bundled Conslt. Infra. Products Services ITO ICT Services and IT Bundled together contributed to 56 percent of all ITO deals in terms of value and 35 percent in terms of number of deals during 3Q16 SMAC and ADM services are other key contributors to the ITO deals in 3Q16 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 800 Analysis of BPO deals 3Q16 CRM 46% Total Value of Contracts (USD million) 700 600 500 400 300 200 100 0 F&A 8% BPO Bundled services 23% SCM 23% 0 1 2 3 4 5 6 7 Number of Deals 122 707 91 54 BPO Bundled CRM F&A SCM Services Value of contracts (USD million) 973 Total BPO Note: Size of bubble indicates per centage share of the total number of BPO deals Other BPO services Data management, etc. Source: IDC (www.idc.com), Contract Database, Nov 2016, KPMG member firms research & analysis based on the IDC contract database 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, Nov 2016, KPMG member firms research & analysis based on the IDC contract database CRM deals contributed to the most deal activity amongst BPO deals 73 percent of all BPO deals in terms of value and 46 percent in terms of number of deals during 3Q16 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 3Q16 witnessed a sharp drop in deal activity as compared to 2Q16. There was a decrease of 61 percent in total contract value and 19 percent decrease in total number of deals in 3Q16 as compared to 2Q16 Organizations are moving from a traditional silo-based and transactional outsourcing services, to more of a holistic end-to-end approach through bundled deals We are seeing a reducing dominance of AMERICAS in the global buyer market for outsourcing services although it continues to be the major outsourcing region contributing 43 percent of the total deal value in 3Q16. EMA is gaining momentum gradually with ASPAC fast catching up SMAC services and automation are major drivers for the commoditization of the outsourcing services and this is especially true for IT services. SMAC deals are increasingly replacing IT infrastructure deals within IT outsourcing space Telecom sector is continuously featuring amongst the top contributors to outsourcing industry for the last two quarters. It is mostly leveraging ICT and SMAC services from service providers and is expected to continue so Traditional pricing models are relatively highly prevalent as compared to a hybrid model which has been the trend in the last few years. While this may indicate a reduced risk appetite of the vendors, the deal activity indicates that organizations are experimenting with multiple pricing models. 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 Global Business Services point of view series Climbing the service delivery maturity ladder toward exceptional value Working to deliver competitive advantage with intelligent services governance 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 Arun Nair Partner Advisory Services KPMG in India +91 80 3065 4913 arunnair@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 contacts: Kartik Ramakrishnan KPMG in India T: +91 80 3065 4440 E: kartikramakrishnan@kpmg.com 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 endeavor 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. 2016 KPMG International Cooperative ( KPMG International ), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. 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