As the world adapts to a new COVID-19-induced reality, enterprises globally are accelerating their digital transformation efforts with a focus on consolidating disparate technologies and a renewed push for process transformation vis-à-vis the lift-and-shift approach.  While service providers and product vendors emerged as enterprises’ strategic partners during the pandemic’s peak, they have not been able to match enterprise expectations in terms of consulting and advisory services. The proportion of satisfied customers decreased by 15% over 2020-21, as opposed to a 27% increase in satisfaction levels over 2019-20. Enterprises feel that providers need to evolve their positioning from being implementation specialists to becoming transformation partners and help transform their processes and unlock future potential. This report is based on insights from 150+ structured interviews with enterprises referenced by the 35 global service providers assessed in this report. The study summarizes enterprise views on the capabilities of various enterprise platforms and the expectations from product vendors as enterprises look to scale up their investments. The report also lays out enterprises’ quantitative and qualitative inputs on their providers, their strengths, and limitations. Scope Advisory/consulting services, implementation services, maintenance, and support services across cloud and on-premise deployment of enterprise platforms  Enterprise platforms covered include Oracle Cloud ERP, SAP S/4 HANA, Pega, Dynamics 365, ServiceNow, and Salesforce Industry: market activity and investments of leading service providers and tech vendors across industries Geography: global Contents This report examines: Enterprise satisfaction with platforms Enterprise expectations from technology vendors Enterprise satisfaction with providers Enterprises’ satisfaction levels across platforms Enterprise perceptions of individual service providers Membership(s) Enterprise Platform Services (EPS) Sourcing and Vendor Management

Technology vendors emerged as true strategic partners to enterprises during COVID-19 in terms of helping them navigate the pandemic’s impact. These partnerships increased overall satisfaction levels by 21% in 2019 and 2020, versus a drop in satisfaction levels by 5% in 2018 and 2019, particularly due to a sudden shift in enterprise expectations in terms of adopting a digital-first working model and technology vendors’ investments in enhancing their cloud, digital, and data offerings. The findings in this report are based on insights from 523 structured interviews with enterprises that were suggested as references by the 68 global technology vendors assessed in this report. The study summarizes various enterprises’ views on their technology vendors’ capabilities across applications, digital, cloud and infrastructure, and enterprise platform services. The report also captures quantitative and qualitative insights across enterprises’ digital agendas and their perception of technology vendors. Scope All industries and geographies Contents In this report, we share: Enterprises’ business and technology priorities Enterprises’ satisfaction levels across years, geographies, and industries Enterprise perceptions of individual technology vendors Enterprise expectations from technology vendors Change in enterprises’ satisfaction levels vis-à-vis individual technology vendors Membership(s) Application Services Banking Information Technology Cloud and Infrastructure Services Digital Services Enterprise Platform Services (EPS) Healthcare Payer and Provider Information Technology Insurance Information Technology Life Sciences Information Technology Sourcing and Vendor Management

Insights from our research reveal that despite service providers investing heavily to enhance their capabilities, the proportion of satisfied customers has only marginally increased by two percentage points in the last two years. Service providers have not given adequate attention to certain key dimensions that influence customer satisfaction – innovation, talent, and strategic partnership. Additionally, the report details the technology investment priorities of enterprises and their perception of service provider capabilities. This report also focuses on the future of the service delivery model, given enterprises’ evolving expectations. Service providers need to align their offerings and capabilities to the future investment areas identified by enterprises. The objective of this report is to delve deeper into the mind of enterprises, as they embark on the digital transformation journey and to gauge their changing expectations and priorities. Scope of the research This report is based on insights from structured interviews with 272 enterprises that were shared as references by the service providers assessed in this report. The report gives a summary of the views of various enterprises regarding the capabilities of services providers they engage across applications, digital, cloud, and infrastructure services. The report also captures quantitative and qualitative insights across their technology priorities, digital agenda, outsourcing strategies, and perception of service providers. Contents Enterprises’ assessment of service provider capabilities Enterprises’ technology priorities Enterprises’ expectations from service providers Enterprises’ perception of individual service providers   Evolving demand-supply dynamics in the digital era   Framework to effectively engage with the rapidly evolving enterprise ecosystem A winning model for delivering IT services Membership(s) Application Services Banking & Financial Services (BFS) - IT Services (ITS) Cloud & Infrastructure Services Digital Services Healthcare & Life Sciences IT Outsourcing Insurance - IT Services (ITS)

Our recent digital services research reveals a sizable mismatch between digital demand and supply dynamics. Fifty seven percent of enterprise demand is digital-first in nature, but from a strategy perspective, 53% of enterprises choose to embark on the digital transformation journey alone (DIY) versus engaging external partners. Sixty-one percent of enterprises with a digital-first mandate are dissatisfied with their service providers, while traditional IT deals have a higher share of satisfaction (55%). Overall dissatisfaction levels increased to 54% in 2017 from 48% in 2016. Enterprises' internal organizational challenges have further reduced engagement opportunities for service providers. Our research also details enterprises' technology investment priorities and opportunity areas for service providers across legacy modernization, security, cognitive systems, automation, cloud, IoT, blockchain, and other similar themes. The research indicates that enterprises' primary expectations from a service provider revolve around proactiveness, next-generation technology expertise, and strategic partnership-driven approach. Service providers need to align their offerings and capabilities to the future investment areas identified by enterprises. Scope This report is based on insights from structured interviews with 230+ enterprises that were shared as references by the service providers assessed in this report. The report gives a summary of the views of various enterprises regarding the capabilities of services providers they engage across applications, digital, cloud, and infrastructure services The report also captures quantitative and qualitative insights across their technology priorities, digital agenda, outsourcing strategies, and perception of service providers. Contents Enterprises’ priorities and expectations Digital investment priorities Engagement expectations Enterprises’ assessment of service provider capabilities Experience of working with their service providers Service providers’ performance assessment Evolving demand-supply dynamics in the digital era Membership(s) Application Services Banking, Financial Services & Insurance (BFSI) - Information Technology Outsourcing (ITO) Cloud & Infrastructure Services Digital Services Healthcare & Life Sciences IT Outsourcing

Insights from our research reveal that almost 50% of the enterprises are dissatisfied with their service providers, whose average performance score as strategic partners is merely 5 on 10. Whereas service providers meet the technical requirements stated in the agreement, in reality, they seldom meet customer expectations on the softer engagement aspects. The enormous gap between the stated and the unstated expectations leaves the majority of the customers discontented with their service providers. Additionally, the report details the technology investment priorities of enterprises and opportunity areas for service providers across legacy modernization, security, cognitive systems, automation, cloud, digital, blockchain, and other similar themes. Around 67% of the enterprises consider innovation to be their primary focus, whereas the rest are concerned about operational efficiency as the biggest business driver. Service providers need to align their offerings and capabilities to the future investment areas identified by enterprises. One of the objectives of the report is to aid service providers in developing strategies to evolve their engagement approaches and prioritize investments to align with mounting customer expectations. Scope of the research This report is based on insights from structured interviews with 130+ enterprises that were shared as references by the service providers assessed in this report. The report give a summary of the views of various enterprises regarding the capabilities of services providers they engage across applications, digital, cloud, and infrastructure services. The report also captures quantitative and qualitative insights across their technology priorities, digital agenda, outsourcing strategies, and perception of service providers. Contents Enterprises’ assessment of service provider capabilities Enterprises’ experience of working with their service providers Service providers’ performance assessment Enterprises’ priorities and investments Enterprises’ investment priorities Enterprises’ investment objectives Membership(s) Application Services Banking, Financial Services & Insurance (BFSI) - Information Technology Outsourcing (ITO) Cloud & Infrastructure Services Digital Services Healthcare & Life Sciences IT Outsourcing