Cloud Adoption Continues to Drive Global Sourcing Market

1Q2017

Hot Industries: Financial Services, Business Services,

Telecom & Media

As-a-Service

$2.4B 29%

Combined Market

RECORD $5B 11%

Asia Pacific

Regional Markets (Commercial)Americas

EMEA

The ISG Index™ provides a quarterly review of the latest sourcing industry data and trends for clients, service providers, analysts and the media. For nearly 15 years, it has been the authoritative source for marketplace intelligence related to outsourcing transaction structures and terms, industry adoption, geographic prevalence and service provider performance.

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2017 Global Forecast (Commercial)

As-a-Service and traditional markets now evenly split

Hot Industries: Financial Services, Telecom & Media

As-a-Service

$1.2B 48%

Combined Market

$4.4B 13%Region still weighted more heavily

toward traditional sourcing (74% of market)

Hot Industries: Telecom & Media, Financial Services,

Business Services, Retail

As-a-Service

$0.7B 59%

Combined Market

$1.1B 16%As-a-Service nearly 2X larger

than traditional sourcing in 1Q17

High single-digit growth in all 3 regions, fueled by As-a-Service

Occasional strong quarters in traditional sourcing (volume, mega-deals)

Global Market (Commercial)

Commercial sourcing market $10.5B 12%

Cloud-based solutions 39%AS-A-SERVICE CONTINUES TO CLOSE GAP with traditional sourcing

All three regions UP DOUBLE-DIGITS

Global Market (Public Sector)

Combined Public Sector $12.9B 21%on lack of large awards and softness in the Americas and EMEA

As-a-Service 31% but represents only 3.1% of combined sourcing spend

GOVERNMENTS SLOWER TO ADOPT CLOUD SOLUTIONS than the commercial sector