Information Services Group, Inc. · NASDAQ:III
Information Services — Q2 2017 Earnings Presentation
22 slides from Information Services's earnings presentation, Jul 12, 2017
Slide 1: Global Sourcing and As-a-Service Market Insights
Global Sourcing and As-a-Service Market Insights SECOND QUARTER AND FIRST HALF 2017 Hosted by: Joe Foresi, Cantor Fitzgerald & Co. 12 July 2017 ISG Confidential. © 2017 Information Services Group, Inc. All Rights Reserved. Proprietary and Confidential. No part of this document may be reproduced in a
Slide 2: Welcome to the 59th Quarterly ISG Index
Welcome Steven Hall Partner and Global Leader ISG Index to the 59th Quarterly Esteban Herrera ISG Index Partner and Global Leader ISG Research Covering the state of the combined traditional sourcing and as-a-service Stanton Jones industry for the global, Research Director and commercial market. Prin
Slide 3: At a Glance
‘‘ At a Glance Global As-a-Service Approaching Parity with Traditional Sourcing 2Q17 2Q Y/Y 1H17 1H Y/Y Scorecard ACV ($B)* Change ACV (B)* Change As-as-Service now 41% of global market Global Commercial Combined Market $ 9.3 9% $ 19.8 10% and growing By Type Traditional Sourcing $ 5.5 -3% $ 11.7 -2
Slide 4: Global Commercial Sector Contracting Trends
Global Commercial Sector Contracting Trends 2Q17 Combined Market ACV up 9% Y/Y on strength in As-a-service; second-highest ever quarterly number of awards in Traditional Sourcing; YTD, Combined Market ACV up 10% with As-a-Service increasing 36%, offsetting 2% decline in Traditional Sourcing. Global
Slide 5: Americas Commercial Sector Contracting Trends
Americas Commercial Sector Contracting Trends Commercial Market ACV is up 2% Y/Y; As-a-Service markets’ 27% increase is unable to offset the 13% Y/Y drop in Traditional Sourcing due to lack of large contract awards. Americas Commercial Sector Quarterly ACV ($B) Traditional Sourcing As-a-Service $5.0
Slide 6: Americas Commercial Sector Industry Award Trends
Americas Commercial Sector Industry Award Trends Telecom, Healthcare and CPG mar good performance of Financial Services and smaller industries; all industries in As-a-Service register double-digit growth. Range of 3 Prior 1Hs Avg of 3 Prior 1Hs 1H16 1H17 $1.28 $1.4 Traditional $1.15 $1.2 Sourcing $1
Slide 7: ISG 15 Americas
AMERICAS The Big 15 The Building 15 The Breakthrough 15 Sourcing Standouts Co. Revenues > $10 B Co. Revenues $1 -10 B Co. Revenues < $1 B Traditional Sourcing Market Traditional Sourcing Market Traditional Sourcing Market Accenture Concentrix Atento Atos Genpact Ensono the BT HCL Hexaware ISG15 Capg
Slide 8: Asia Pacific Commercial Sector Contracting Trends
Asia Pacific Commercial Sector Contracting Trends Combined Market ACV up 24% Y/Y; Traditional Sourcing ACV sees its best quarter since 2014 and sets all-time high in contract count. AP Commercial Sector Quarterly ACV ($B) Traditional Sourcing As-a-Service $1.34 $1.24 $1.24 $1.02 $1.08 $1.06 $1.09 $1
Slide 9: Asia Pacific Commercial Sector Industry Award Trends
Asia Pacific Commercial Sector Industry Award Trends Strong ITO and IaaS drive growth in the larger verticals of Financial Services and Energy; drop in Traditional Sourcing impacts Telecom and Manufacturing. Range of 3 Prior 1Hs Avg of 3 Prior 1Hs 1H16 1H17 $0.4 Traditional $0.3 Sourcing $0.3 $0.22
Slide 10: ISG 15 Asia Pacific
Asia Pacific The Big 15 The Building 15 The Breakthrough 15 Sourcing Standouts Co. Revenues > $10 B Co. Revenues $1 -10 B Co. Revenues < $1 B Traditional Sourcing Market Traditional Sourcing Market Traditional Sourcing Market Accenture Harman International Datacom BT HCL Ebix the Capgemini Samsung S
Slide 11: EMEA Commercial Sector Contracting Trends
EMEA Commercial Sector Contracting Trends Combined Market in EMEA rises 13% Y/Y with As-a-Service increase of 40% Y/Y; Traditional Sourcing’s 5% growth Y/Y is boosted by a surge in ITO activity. EMEA Commercial Sector Quarterly ACV ($B) TraditionalSourcing Traditional Sourcing As-a-Service As-a-Serv
Slide 12: EMEA Commercial Sector Industry Award Trends
EMEA Commercial Sector Industry Award Trends YTD, most major sectors generate ACV growth in Traditional Sourcing and As-a-Service; Manufacturing and Retail are the exceptions. Range of 3 Prior 1Hs Avg of 3 Prior 1Hs 1H16 1H17 $1.84 Traditional $2.0 Sourcing $1.5 TTM ACV ($B) $0.96 $1.0 $0.77 EMEA $0
Slide 13: ISG 15 EMEA
EMEA The Big 15 The Building 15 The Breakthrough 15 Sourcing Standouts Co. Revenues > $10 B Co. Revenues $1 -10 B Co. Revenues < $1 B Traditional Sourcing Market Traditional Sourcing Market Traditional Sourcing Market Accenture Capita Atento Atos Carillion DATAGROUP SE the BT Emcor Group EPAM System
Slide 14: The Next Wave of Digitization and Automation
2Q17 Index Inside Track from The Next Wave of Digitization and Automation Stanton Jones Research Director and Principal Analyst GLOBAL 2Q17
Slide 15: Automation Effect is Kicking In
Automation Effect is Kicking In Digitization Impacts Providers Provider are Employing Big Levers Staff Needs to Automation Revenue growth slowing Skill-up Average revenue per employee down Net income percentage declining Buyers Demand Increased Productivity and Cost Avoidance 2X Double investm
Slide 16: Build or Partner?
Build or Partner? Services providers need automation capabilities. Do they build it, find a partner or do both? Business Process Automation Capability IT Ops Automation Capability Cognitive Automation Capability Replicate every human action Replicate service desk agents, DBAs Natural Language
Slide 17: 2Q and 1H 2017 ISG Index - Global Summary and Outlook
2Q and 1H 2017 ISG Index - Global Summary and Outlook ● Y/Y, 2Q Commercial EMEA and Asia Pacific growth in double-digits, with marginal Americas growth ● YTD, IaaS grows by mid-double digits across all regions, while ITO had moderate gains in both EMEA and Asia Pacific. Summary ● Several industries
Slide 18: Ask a Question
Ask a Question Your Webcast Screen 1 Click the "Listen by phone“ button. The phone number and passcode will appear, and the web 2 streaming to your computer will be automatically muted. 3 After you dial in, the operator will ask your name and company. 4 Now press *1 to be added to the queue. GLOBAL
Slide 19: Learn More
Learn More Steven Hall Will Thoretz Denise Colgan Partner & Global Leader ISG Index Americas Media Contact EMEA and AP Media Contact +1 303 748 6599 +1 203 517 3119 +44 1737 371523 [email protected] [email protected] [email protected] isg-one.com Bill McNee Paul Reynolds Partner
Slide 20: Appendix: Score Card for TCV
Appendix: Score Card for TCV SECOND QUARTER AND HALF YEAR 2017 GLOBAL 4Q16 GLOBAL 2Q17
Slide 21: 2Q and 1H 2017 TCV Scorecard
2Q and 1H 2017 TCV Scorecard The ISG Index has moved to ACV as the primary measure of the Broader Market. We will continue to provide a high-level TCV view of the market via a Scorecard analysis. 2Q17 2Q Y/Y 1H17 Y/Y Scorecard TCV ($B)* Change TCV ($B)* Change Global Commercial Combined Market $ 23.
Slide 22: About ISG
ISG (Information Services Group) (NASDAQ: III) is a leading global technology research and advisory firm. A trusted business partner to more than 700 clients, including 75 of the top 100 enterprises in the world, ISG is committed to helping corporations, public sector organizations, and service and
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