Extensive study of true growth (organic, constant currency) across 19 IT services market segments indicates that the market grew by 2.1% Y/Y in the quarter ending March 2017, which is 2.4 percentage points lower than same period in 2016. The Y/Y deceleration was driven by growth deceleration in Infrastructure Outsourcing service line, Public sector vertical and Europe region. On a Q/Q basis (i.e., from December 2016 to March 2017), industry growth decelerated by 1.1 percentage point, down from 3.2%. Our Y/Y change in growth analysis reveals main weakness trending for the Infrastructure Heritage services firms. The organic, constant currency growth of the Infrastructure Heritage firms decelerated 3.0 percentage points annually. Similarly, the large Indian players’ growth has decelerated by 3.2 percentage point annually. Midsized players and Systems Integration Heritage players decelerated by 2.1 percentage points and 1.8 percentage points, respectively. Based on market analysis, we are revising up our next 12-months (NTM) forecast by 0.1% to 2.9%. We are keeping our following two years forecast unchanged at 1.9%. The bases of our forecasts encapsulate both secular and cyclical factors as observed from shifts in leading indicators as well as buyer behavior and their approach to contracting with service providers. The IT services industry is buffeted by ongoing changes, but the “black-box” nature of the industry makes it difficult for key stakeholders to answer basic – yet crucial – questions. To address these challenges, Everest Group has partnered with DeepDive to develop a systematic methodology to examine detailed industry growth trends, forecast industry & market segment growth rates, and measure & compare performance among major IT services providers. Membership(s) IT Services Forecaster

Extensive study of true growth (organic, constant currency) across 19 IT services market segments indicates that the market grew by 2.1% Y/Y in the quarter ending March 2017, which is 2.4 percentage points lower than same period in 2016. The Y/Y deceleration was driven by growth deceleration in Infrastructure Outsourcing service line, Public sector vertical and Europe region. Based on market analysis, we are revising up our next 12-months (NTM) forecast by 0.1% to 2.9%. We are keeping our following two years forecast unchanged at 1.9% ahead of the upcoming earnings season. The main reason for raising our NTM industry growth forecast is essentially near term signs of cyclical easing in banking, financial services, and insurance; healthcare and energy verticals. However, our near and long term forecasts are based on our ongoing premise that services industry growth is being pressured primarily by significant revenue compression on existing deals in the traditional services segments (i.e., Applications outsourcing, Infrastructure outsourcing, and Business process outsourcing). The IT services industry is buffeted by ongoing changes, but the “black-box” nature of the industry makes it difficult for key stakeholders to answer basic – yet crucial – questions. To address these challenges, Everest Group has partnered with DeepDive to develop a systematic methodology to examine detailed industry growth trends, forecast industry & market segment growth rates, and measure & compare performance among major IT services providers. Membership(s) IT Services Forecaster

Extensive study of true growth (organic, constant currency) across 19 IT services market segments indicates that the market grew by 2.1% Y/Y in the quarter ending March 2017, which is 2.4 percentage points lower than same period in 2016. The Y/Y deceleration was driven by growth deceleration in Infrastructure Outsourcing service line, Public sector vertical and Europe region. On a Q/Q basis (i.e., from December 2016 to March 2017), industry growth decelerated by 1.1 percentage point, down from 3.2%. This deceleration occurred across three of four service provider groups, six of seven verticals, four of six service types, and all four of the regions. Our Y/Y change in growth analysis reveals main weakness trending for the Infrastructure Heritage services firms. The organic, constant currency growth of the Infrastructure Heritage firms decelerated 3.0 percentage points annually. Similarly, the large Indian players’ growth has decelerated by 3.2 percentage point annually. Midsized players and Systems Integration Heritage players decelerated by 2.1 percentage points and 1.8 percentage points, respectively. The IT services industry is buffeted by ongoing changes, but the “black-box” nature of the industry makes it difficult for key stakeholders to answer basic – yet crucial – questions. To address these challenges, Everest Group has partnered with DeepDive to develop a systematic methodology to examine detailed industry growth trends, forecast industry & market segment growth rates, and measure & compare performance among major IT services providers. Membership(s) IT Services Forecaster

Extensive study of true growth (organic, constant currency) across 19 IT services market segments indicates that the market grew by 3.3% YOY in the quarter ending December 2016, which is at par for the same duration in 2015. The YOY deceleration experienced in consulting & systems Integration service line, banking, financial services & Insurance vertical and the European region were offset by YOY acceleration in infrastructure outsourcing service line, public sector vertical and the Americas. On a QOQ basis (i.e., from September to December 2016), industry growth accelerated by 0.2 percentage point, up from 3.1%. Our YOY change in growth analysis reveals main weakness trending for the large Indian IT services firms. The organic, constant currency growth of the large Indian IT services firms has weakened for six consecutive quarters, dropping from 13.2% in the June 2015 quarter to 7.7% in the December 2016 quarter. Similarly, the midsized players’ growth has decelerated by 0.7 percentage point annually and systems integration heritage players decelerated by 0.1 percentage point. On the other hand, the largest peer group, infrastructure heritage, showed a solid 1.3 percentage point YOY acceleration. Based on market analysis, we are keeping our industry growth forecasts unchanged ahead of the upcoming earnings season. Our next 12 months and the following two-year industry forecasts are at 2.8% and 1.9% respectively, based on both secular and cyclical factors as observed from shifts in leading indicators as well as buyer behavior and approach to contracting with service providers. The IT services industry is buffeted by ongoing changes, but the “black-box” nature of the industry makes it difficult for key stakeholders to answer basic – yet crucial – questions. To address these challenges, Everest Group has partnered with DeepDive to develop a systematic methodology to examine detailed industry growth trends, forecast industry & market segment growth rates, and measure & compare performance among major IT services providers. Membership(s) IT Services Forecaster

Extensive study of true growth (organic, constant currency) across 19 IT services market segments indicates that the market grew by 3.3% YOY in the quarter ending December 2016, which is equal to same period in 2015. The YOY deceleration experienced in Consulting & Systems Integration service line, Banking, Financial Services & Insurance vertical and Europe region were offset by YOY acceleration in Infrastructure Outsourcing service line, Public Sector vertical and Americas region. On a QOQ basis (i.e., from September to December 2016), industry growth accelerated by 0.2 percentage point, up from 3.1%. This acceleration occurred across two of four major service provider groups we track, and in six of the seven industry verticals, four of the six service types, and two of the four regions. Our YOY change in growth analysis reveals main weakness trending for the large Indian IT services firms. The organic, constant currency growth of the large Indian IT services firms has weakened for six consecutive quarters, dropping from 13.2% in the June 2015 quarter to 7.7% in the December 2016 quarter. Similarly, the Midsized players’ growth has decelerated by 0.7 percentage point annually and Systems Integration Heritage players decelerated by 0.1 percentage point. On the other hand, the largest peer group, Infrastructure Heritage, showed a solid 1.3 percentage point YOY acceleration. The IT services industry is buffeted by ongoing changes, but the “black-box” nature of the industry makes it difficult for key stakeholders to answer basic – yet crucial – questions. To address these challenges, Everest Group has partnered with DeepDive to develop a systematic methodology to examine detailed industry growth trends, forecast industry & market segment growth rates, and measure & compare performance among major IT services providers. Membership(s) IT Services Forecaster

Extensive study of true growth (organic, constant currency) across 19 IT services market segments indicates that the market grew by 3.3% YOY in the quarter ending December 2016, equal to the same period in 2015. The YOY deceleration experienced in Consulting & Systems Integration service line, Banking, Financial Services & Insurance vertical and Europe region were offset by YOY acceleration in Infrastructure Outsourcing service line, Public Sector vertical and Americas region. Based on market analysis, we are keeping our industry growth forecasts unchanged ahead of the upcoming earnings season. Our next 12 months and following 2-years industry forecasts are at 2.8% and 1.9% respectively, based on both secular and cyclical factors. The main reason for keeping our NTM industry growth forecast constant at 2.8% is essentially global “politics” offset by some pockets of cyclical easing in long suffering verticals like Public Sector and Energy, resources & Utilities. Our near and long term forecasts are based on our ongoing premise that services industry growth is being pressured primarily by significant revenue compression on existing deals in the traditional services segments (i.e., Applications outsourcing, Infrastructure outsourcing, and Business process outsourcing). Moreover, in recent quarters, cyclical demand pressures have impacted discretionary spending primarily in the financial services and healthcare verticals which account for 48% of total industry’s Y/Y growth. The IT services industry is buffeted by ongoing changes, but the “black-box” nature of the industry makes it difficult for key stakeholders to answer basic – yet crucial – questions. To address these challenges, Everest Group has partnered with DeepDive to develop a systematic methodology to examine detailed industry growth trends, forecast industry & market segment growth rates, and measure & compare performance among major IT services providers. Membership(s) IT Services Forecaster

Extensive study of true growth (organic, constant currency) across 19 IT services market segments indicates that the market grew by 3.1% YOY in the quarter ending September 2016, a 0.8 percentage point deceleration over the same period in 2015. The segments driving this deceleration were - Application outsourcing; Banking, financial services & insurance, and Europe. Based on market analysis, we are revising our industry growth forecast ahead of the upcoming earnings season. While we had earlier forecasted industry growth at 3.0% over the next 12 months, we are downgrading that figure to 2.8% at present, based on both secular and cyclical challenges. Our revised growth forecast is based on deteriorating leading indicators as well as changes in buyers’ behavior and their approaches to contracting with service providers. Our prior and latest forecasts are based on our ongoing premise that services industry growth is being pressured primarily by significant revenue compression on existing deals in the traditional services segments (i.e., Applications outsourcing, Infrastructure outsourcing, and Business process outsourcing). Moreover, there was an uptick in the overall cyclical demand pressures in the recent months, primarily in the financial services, healthcare, and retail verticals. The IT services industry is buffeted by ongoing changes, but the “black-box” nature of the industry makes it difficult for key stakeholders to answer basic – yet crucial – questions. To address these challenges, Everest Group has partnered with DeepDive to develop a systematic methodology to examine detailed industry growth trends, forecast industry & market segment growth rates, and measure & compare performance among major IT services providers. Membership(s) IT Services Forecaster

Extensive study of true growth (organic, constant currency) across 19 IT services market segments indicates that the market grew by 3.1% YOY in the quarter ending September 2016, a 0.8 percentage point deceleration over the same period in 2015. The segments driving this deceleration were - Application outsourcing; Banking, financial services & insurance, and Europe. On a QOQ basis (i.e., from June to September 2016), industry growth decelerated by 1.0 percentage points, down from 4.1%. This deceleration occurred across the four major service provider groups we track, and in five of the seven industry verticals, four of the six service types, and two of the four regions. Our YOY change in growth analysis reveals weakness trending for the large Indian IT services firms and Midsized service providers. The organic, constant currency growth of the large Indian IT services firms has weakened for five consecutive quarters, dropping from 13.2% in the June 2015 quarter to 7.8% in the September 2016 quarter. Similarly, the Midsized players’ growth has decelerated by 1.7 annually. On the other hand, the larger peer groups were more stable – Systems Integration Heritage players accelerated by 0.7 percentage points over the past year, while Infrastructure Heritage service providers were flat in terms of annual acceleration. The IT services industry is buffeted by ongoing changes, but the “black-box” nature of the industry makes it difficult for key stakeholders to answer basic – yet crucial – questions. To address these challenges, Everest Group has partnered with DeepDive to develop a systematic methodology to examine detailed industry growth trends, forecast industry & market segment growth rates, and measure & compare performance among major IT services providers. Membership(s) IT Services Forecaster

Extensive study of true growth (organic, constant currency) across 19 IT services market segments indicates that the market grew by 4.1% year-over-year in the quarter ending June 2016, a 1.1 percentage point improvement over the same period in 2015. This growth was based on “less poor” growth in the traditional IT infrastructure outsourcing market. Based on market analysis, we are revising our industry growth forecast ahead of the upcoming earnings season; while we previously forecast industry growth at 3.3% over the next 12 months, we are downgrading that forecast to 3.0% based on both secular and cyclical challenges. Our revised growth forecast is based on deteriorating leading indicators as well as changes in buyers’ behavior and their approaches to contracting with service providers. We should note that this forecast reduction is not due to widely recognized demand changes, such as BREXIT and banks’ spending softness; those demand changes were already largely accounted for in our earlier industry growth forecast. The IT services industry is buffeted by ongoing changes, but the “black-box” nature of the industry makes it difficult for key stakeholders to answer basic – yet crucial – questions. To address these challenges, Everest Group has partnered with DeepDive to develop a systematic methodology to examine detailed industry growth trends, forecast industry and market segment growth rates, and measure and compare performance among major IT services providers.

Extensive study of true growth (organic, constant currency) across 19 IT services market segments indicates that the market grew by 4.1% year-over-year in the quarter ending June 2016, a 1.1 percentage point improvement over the same period in 2015. This growth was based on “less poor” growth in the traditional IT infrastructure outsourcing market. That said, on a quarter-by-quarter basis (i.e., from March to June 2016), industry growth decelerated by 0.4 percentage points, down from 4.5%. This deceleration occurred across the four major service provider groups we track, and in four of seven industry verticals, four of six service types, and three of the four regions. Our year-over-year change in growth analysis reveals weakness trending for the large Indian IT services firms and Midsized service providers. The organic, constant currency growth of the large Indian IT services firms has weakened for four consecutive quarters, dropping from 13.2% in the June 2015 quarter to 9.5% in the June 2016 quarter. Similarly, the Midsized players’ growth has decelerated by 3.2 percentage points annually. On the other hand, the larger peer groups – Systems Integration Heritage and Infrastructure Heritage service providers have grown by 0.9 percentage points and 3.5 percentage points respectively over the past year. The IT services industry is buffeted by ongoing changes, but the “black-box” nature of the industry makes it difficult for key stakeholders to answer basic – yet crucial – questions. To address these challenges, Everest Group has partnered with DeepDive to develop a systematic methodology to examine detailed industry growth trends, forecast industry and market segment growth rates, and measure and compare performance among major IT services providers.