Zinnov Zones 2019 ER&D Services

December 2019

Zinnov Proprietary Confidential 1 01 ER&D Services Market Overview

Ø Global Corporate ER&D Spend v Z1000 R&D Spend by vertical v Overall Digital Engineering Spend

02 Zinnov Zones ER&D Service provider Ratings 2019

Zinnov Proprietary Confidential 2 Global ER&D spend is resilient and has witnessed growth despite slowdown and geo-political factors

Global ER&D Spend – USD B DIGITAL ENGINEERING SPEND 2,155 GLOBALLEGACY ER&D SPEND

DIGITAL ENGINEERING SPEND

OVERALL ER&D SPEND

19% 1,358 53% 1141 OF ER&D SPEND 1,103 BY 2025 12% 404 204 1% 1% 2.8 X Increase in Digital Engineering spend by 2025 899 1014 954 Focus of ER&D Spenders Product Development Velocity Product Ownership Experience Alternate Revenue Streams 2013 2019 2025E Process & Quality Control Biz Model & Tech Convergence

Zinnov Proprietary Confidential Source: Zinnov Z1000 database, Zinnov Research & Analysis 3 Global ER&D spend is resilient and has witnessed growth despite slowdown and geo-political factors

All figures in USD B ER&D Spend (2019) 2018 2019 Y0Y 7% YoY USD 1,358 B

Software & Consumer Medical Automotive Telecom Industrial Semiconductor Aerospace Internet Electronics Devices

21% 4% 196 158 162 151 9% 5% 9% 8% 80 80 10% 5% 76 76 73 70 65 71 54 57 45 48

Zinnov Proprietary Confidential Source: Zinnov Z1000 database, Zinnov Research & Analysis 4 Growth in digital engineering spend is accelerating across industries

Enterprises continue to invest in digital engineering initiatives to stay relevant

CAGR USD B USD 404 B 19% 1,141 Digital Engineering Spend (2019) Digital Engineering Spend (2025E)

All figures in USD B

22% 527

16% 15% 16% 80 12% 10% 20% 160 60 32 33 24 24 32 13 12 11 19 11

Software & Internet Telecom Automotive Consumer Electronics Medical Devices Semiconductor Industrial

Zinnov Proprietary Confidential Source: Zinnov Z1000 database, Zinnov Research & Analysis 5 Engineering is a core function in services verticals

Digital Engineering Spend (All figures in USD B) DRIVING THE CORE BFSI Retail ORGANIZATION STRUCTURE

32 18% 87 19 21% 59 Created a streaming video unit in 2018 to embrace online video. Launched • Robo-Investment Advisory • Transformation of in-store ESPN Plus and Disney • Payments Tech shopping experience Plus 21% • Telematics based insurance • Connected products for • Fraud Detection Management monitoring and feedback Services-led • Customer Insights & • Omni-channel experiences Intelligence TARGETED INVESTMENTS verticals’ • Robotic automation share of 2019 Spends 11 B on tech 2025E annually and focus areas digital include AI, ML, block engineering Healthcare Payers & Providers Media & Technology chain, and big data spend by 18 19% 51 11 23% 39 2025 LEADERSHIP TO DRIVE INNOVATION • Remote patient monitoring • OTT • Diagnosis prediction • AI/ML based content Walmart appointed • Healthcare robots recommendation and tagging Suresh Kumar as CTO & • Patient experience platforms • Targeted advertising using CDO (ex- Google, • Physician assistance tech intelligent platforms Microsoft, Amazon, IBM)

Zinnov Proprietary Confidential Source: Zinnov Z1000 database, Zinnov Research & Analysis 6 Large IT Service Providers are betting on ER&D capabilities to drive growth

ACQUISITIONS IMPACT ER&D Services growth rate is consistently outpacing IT services’

• Acquired for USD 4.1 B in 2019 USD 4 B • Gained access to new verticals, • In combined revenues, making it a delivery geographies, and horizontals global leader for ER&D • “One stop shop” for full stack engineering & digital requirements

• New Brand launched “Cognizant • Acquired Softvision for ~USD 0.5 B in Softvision” 2018 • Access to Romania for digital • Enhanced capabilities in AI, VR, IoT, engineering talent etc. • Focus on developing platforms

• Fairway’s San Diego office is Accenture’s new “Engineering • Acquired Fairway Technologies, a US Innovation” center based firm with a focus on platform • Accenture has shown a strong focus engineering services on platform engineering services and has an 8,000 member team

Zinnov Proprietary Confidential Source: Zinnov M&A database 7 Large ER&D deals continue to sustain momentum

Drivers of Large ER&D deals Large ER&D deals ~USD 15 B Building the Digital TCV of large ER&D deals signed in the last ~3 years Core for Large 1 Enterprises

Carving Out Partner of Choice 44% Legacy Products for Enterprise Of large ER&D Deals had SOFTWARE in scope for Software Cos. & 2 3 GCoEs Enterprises

Globalization of IOT Managed Private Equity Services Related 17% Portfolio 4 5 Opportunities of large ER&D deals involved “BUILD THE NEW” Companies

Zinnov Proprietary Confidential Source: Zinnov Z1000 database, Zinnov Research & Analysis 8 Ø Overall ER&D Zones 2019 v ER&D Zones – Small and Medium Service providers 2019

Ø Horizontal Ratings v Design & Simulation engineering v User experience engineering v Platform engineering 01 ER&D Services Market Overview v Quality Assurance engineering Ø Vertical Ratings v Automotive v Aerospace v Construction & Heavy Machinery v Consumer Electronics v Consumer Software 02 Zinnov Zones ER&D Service provider Ratings 2019 v Enterprise Software v Energy & Utilities v Industrial Automation v Medical devices v Semiconductor v Telecommunication v Transport

Zinnov Proprietary Confidential 9 Overall ER&D Ratings 2019

Altran HCL Akka Technologies Alten TCS AF IAV L&T TS Wipro HARMAN* Bertrandt EDAG Cognizant Expansive GlobalLogic QuEST Global Itransition Cyient Tech Mahindra R Systems Capgemini Tata Technologies Infosys

Aspire Systems Mindteck Tata Elxsi EPAM Caresoft Global Tieto Persistent Systems UST Global Sasken Infogain eInfochips Mphasis KPIT Technologies Cerium Systems Happiest Minds e-Zest Sonata Software TO THE NEW Musala Soft VVDN Technologies Niche Embitel Net Solutions Dextra Technologies SoftDel PathPartner

Scale & Scalability, # of Verticals serviced, Client Spread Client serviced, Verticals of # Scalability, & Scale Daffodil Software

Service providers with dotted lines have been evaluated based on Emerging Established Zinnov’s analysis and understanding Specialization, R&D practice maturity (depth and maturity of services), Innovation & IP, Eco-System Linkages, Customer input

Zinnov Proprietary Confidential Source: Zinnov Research & Analysis *HARMAN Connected Services 10 ER&D Zones – Small and Medium Service providers 2019*

Infogain Sasken

VVDN Happiest Minds Technologies Leadership Zone Mphasis R Systems Itransition TO THE Expansive NEW Sonata Software Aspire Systems Mindteck

Caresoft Global

Cerium Systems Bristlecone Execution Zone Musala Soft Embitel e-Zest

Net Solutions Dextra Technologies

Niche SoftDel PathPartner Daffodil Software Breakout Zone Scale & Scalability, # of Verticals serviced, Client Spread Client serviced, Verticals of # Scalability, & Scale

Emerging Established Specialization, R&D practice maturity (depth and maturity of services), Innovation & IP, Eco-System Linkages, Customer input

Zinnov Proprietary Confidential *ER&D service revenue < $150M Source: Zinnov Research & Analysis 11 Ø Overall ER&D Zones 2019 v ER&D Zones – Small and Medium Service providers 2019

Zinnov Proprietary Confidential 12 Design and Simulation Engineering Ratings 2019

TCS Altran L&T TS HARMAN Alten Connected Wipro Expansive Services HCL Tech Mahindra Tata Technologies Capgemini Tata Elxsi QuEST Global Cognizant Cyient

GlobalLogic KPIT Technologies eInfochips EPAM UST Global Happiest Minds Caresoft Global Tieto PathPartner Niche Persistent Systems Mphasis VVDN technologies Scale & Scalability, # of Verticals serviced, Client Spread Client serviced, Verticals of # Scalability, & Scale

Zinnov Proprietary Confidential Source: Zinnov Research & Analysis 13 User Experience Engineering Ratings 2019

Accenture TCS

HCL Altran Expansive Capgemini Wipro Tech Mahindra Tata Elxsi EPAM Tieto HARMAN Connected GlobalLogic L&T TS Services Persistent Systems

KPIT Technologies Alten QuEST Global UST Global Cyient Mphasis Tata Technologies Niche Happiest Minds Infogain R Systems Softdel Itransition e-Zest Scale & Scalability, # of Verticals serviced, Client Spread Client serviced, Verticals of # Scalability, & Scale

Zinnov Proprietary Confidential Source: Zinnov Research & Analysis 14 Platform Engineering Ratings 2019

Accenture

HARMAN TCS Connected Wipro Services HCL Expansive Cognizant Altran Capgemini Persistent Systems Tech Mahindra L&T TS EPAM Tata Elxsi Alten

Tata Technologies QuEST Global GlobalLogic UST Global Happiest Minds KPIT Tieto Aspire Mphasis Systems Itransition R Systems Infogain Daffodil Software Musala Soft Sonata Software Niche Cyient Mindteck Net Solutions Dextra Caresoft Global Technologies

Scale & Scalability, # of Verticals serviced, Client Spread Client serviced, Verticals of # Scalability, & Scale Softdel

Zinnov Proprietary Confidential Source: Zinnov Research & Analysis 15 Quality Assurance Engineering Ratings 2019

TCS Alten Altran L&T TS Cognizant HCL Expansive Tech Mahindra Cigniti Wipro Capgemini HARMAN Connected Services Tata Elxsi EPAM

Tieto QuEST Global GlobalLogic Sonata Software Persistent UST Global R Systems Systems Itransition Mphasis Infogain Aspire Systems Niche Cyient Tata Happiest Minds Technologies Dextra Technologies Mindteck e-Zest Scale & Scalability, # of Verticals serviced, Client Spread Client serviced, Verticals of # Scalability, & Scale

Zinnov Proprietary Confidential Source: Zinnov Research & Analysis 16 Ø Overall ER&D Zones 2019 v ER&D Zones – Small and Medium Service providers 2019

Zinnov Proprietary Confidential 17 Automotive ER&D Ratings 2019

High Nurture Zone Breakout Zone Execution Zone Leadership Zone

Bertrandt Tata Technologies Altran L&T TS IAV Akka KPIT

AF Alten Wipro HCLTCS Tech Mahindra HARMAN Connected Tata Elxsi Services Capgemini Verticals serviced, Client Spread Client serviced, Verticals

- QuEST Global Scalability VVDN GlobalLogic Cognizant Technologies Caresoft Aspire eInfochips Global # of Sub

, Systems Itransition Tieto Net Solutions Mobica Sasken UST Global Happiest Minds SoftDEL Embitel Dextra Scale & Scalability & Scale

AUTOMOTIVE ER&D RATINGS 2019 RATINGS ER&D AUTOMOTIVE Technologies

Low Competency Service providers with dotted lines have been evaluated based on Capabilities, Innovation, Ecosystem Linkages, Infrastructure, Service Maturity Zinnov’s analysis and understanding

Zinnov Proprietary Confidential Source: Zinnov Research & Analysis 18 Aerospace ER&D Ratings 2019

High Nurture Zone Breakout Zone Execution Zone Leadership Zone

Alten

Akka Altran Capgemini Bertrandt HCL Wipro L&T TS TCSCyient QuEST Global Tata Technologies Tech Mahindra Tata Elxsi Verticals serviced, Client Spread Client serviced, Verticals - Scalability eInfochips # of Sub , Scale & Scalability & Scale AEROSPACE ER&D RATINGS 2019 RATINGS ER&D AEROSPACE

Low Competency Service providers with dotted lines have been evaluated based on Capabilities, Innovation, Ecosystem Linkages, Infrastructure, Service Maturity Zinnov’s analysis and understanding

Zinnov Proprietary Confidential Source: Zinnov Research & Analysis 19 Construction & Heavy Machinery (CHM) ER&D Ratings 2019

High Nurture Zone Breakout Zone Execution Zone Leadership Zone HCL L&T TS TCS Cyient Bertrandt

Capgemini Tata Technologies

Wipro Caresoft Global Cognizant Scalability Verticals serviced, Client Spread Client serviced, Verticals

- EPAM GlobalLogic # of Sub , UST Global CHM ER&D RATINGS 2019 ER&DRATINGS CHM Scale & Scalability & Scale

Low Competency Service providers with dotted lines have been evaluated based on Capabilities, Innovation, Ecosystem Linkages, Infrastructure, Service Maturity Zinnov’s analysis and understanding

Zinnov Proprietary Confidential Source: Zinnov Research & Analysis 20 Consumer Electronics ER&D Ratings 2019

High Nurture Zone Breakout Zone Execution Zone Leadership Zone

HCL Tata Elxsi Wipro L&T TS Tech Mahindra TCS HARMAN GlobalLogic Sasken QuEST Global Connected Services Altran UST Global Verticals serviced, Client Spread Client serviced, Verticals - Scalability eInfochips R Systems # of Sub

, EPAM Mphasis

Dextra Technologies

PathPartner Scale & Scalability & Scale Itransition CONSUMER ELECTRONICS ER&D RATINGS 2019 ER&DRATINGS ELECTRONICS CONSUMER

Low Competency Service providers with dotted lines have been evaluated based on Capabilities, Innovation, Ecosystem Linkages, Infrastructure, Service Maturity Zinnov’s analysis and understanding

Zinnov Proprietary Confidential Source: Zinnov Research & Analysis 21 Consumer Software ER&D Ratings 2019

High Nurture Zone Breakout Zone Execution Zone Leadership Zone EPAM HCL HARMAN GlobalLogic Connected Wipro Services Altran Infogain Persistent Systems

Aspire Systems Tech Mahindra Mphasis eInfochips Sonata Software TO THE NEW Happiest Minds Verticals serviced, Client Spread Client serviced, Verticals - Scalability Daffodil Software

# of Sub Mindteck , e-Zest Scale & Scalability & Scale CONSUMER SOFTWARE ER&D RATINGS 2019 ER&DRATINGS SOFTWARE CONSUMER

Low Competency Service providers with dotted lines have been evaluated based on Capabilities, Innovation, Ecosystem Linkages, Infrastructure, Service Maturity Zinnov’s analysis and understanding

Zinnov Proprietary Confidential Source: Zinnov Research & Analysis 22 Industrial Automation ER&D Ratings 2019

High Nurture Zone Breakout Zone Execution Zone Leadership Zone

HCL L&T TS

Capgemini Tech Mahindra TCS Altran Cognizant

Cyient HARMAN Connected Wipro Services Sasken QuEST Global Verticals serviced, Client Spread Client serviced, Verticals

- UST Global Scalability

Happiest Minds # of Sub

, eInfochips EPAM SoftDEL Scale & Scalability & Scale INDUSTRIAL AUTOMATION ER&D RATINGS 2019 ER&D RATINGS AUTOMATION INDUSTRIAL

Low Competency Service providers with dotted lines have been evaluated based on Capabilities, Innovation, Ecosystem Linkages, Infrastructure, Service Maturity Zinnov’s analysis and understanding

Zinnov Proprietary Confidential Source: Zinnov Research & Analysis 23 Enterprise Software ER&D Ratings 2019

Nurture Zone Breakout Zone Execution Zone Leadership Zone High Accenture EPAM Wipro HCL

HARMAN Tech Mahindra Connected TCS Services Persistent GlobalLogic Systems Infogain Altran TO THE Sonata Software UST Global NEW Itransition QuEST Global

Verticals serviced, Client Spread Client serviced, Verticals Musala Soft - Scalability e-Zest Happiest Minds Net Solutions Mindteck R Systems # of Sub ,

Dextra Technologies Scale & Scalability & Scale ENTERPRISE SOFTWARE ER&D RATINGS 2019 RATINGS ER&D SOFTWARE ENTERPRISE

Low Competency Service providers with dotted lines have been evaluated based on Capabilities, Innovation, Ecosystem Linkages, Infrastructure, Service Maturity Zinnov’s analysis and understanding

Zinnov Proprietary Confidential Source: Zinnov Research & Analysis 24 Energy & Utility ER&D Ratings 2019

High Nurture Zone Breakout Zone Execution Zone Leadership Zone AF

Altran TCS Alten Capgemini

QuEST Akka Global L&T TS Cyient Cognizant EPAM Wipro HARMAN Connected Services Tech Mahindra Verticals serviced, Client Spread Client serviced, Verticals - Scalability UST Global # of Sub ,

Happiest Minds Scale & Scalability & Scale ENERGY & UTILITY ER&D RATINGS 2019 RATINGS ER&D UTILITY & ENERGY

Low Competency Service providers with dotted lines have been evaluated based on Capabilities, Innovation, Ecosystem Linkages, Infrastructure, Service Maturity Zinnov’s analysis and understanding

Zinnov Proprietary Confidential Source: Zinnov Research & Analysis 25 Medical Devices ER&D Ratings 2019

High Nurture Zone Breakout Zone Execution Zone Leadership Zone

HCL Wipro TCS GlobalLogic Altran Capgemini L&T TS HARMAN Tata Elxsi Connected Tech Mahindra QuEST Global Services Alten Mindteck EPAM Cognizant

Itransition Cyient Verticals serviced, Client Spread Client serviced, Verticals - Scalability eInfochips Happiest Mphasis UST Global Minds # of Sub , Scale & Scalability & Scale MEDICAL DEVICES ER&D RATINGS 2019 DEVICESMEDICAL ER&D RATINGS

Low Competency Service providers with dotted lines have been evaluated based on Capabilities, Innovation, Ecosystem Linkages, Infrastructure, Service Maturity Zinnov’s analysis and understanding

Zinnov Proprietary Confidential Source: Zinnov Research & Analysis 26 Semiconductor ER&D Ratings 2019

High Nurture Zone Breakout Zone Execution Zone Leadership Zone

Altran HCL

Wipro HARMAN Connected L&T TS Sasken VVDN Services TCS Technologies eInfochips

Cyient Cerium Systems UST Global Verticals serviced, Client Spread Client serviced, Verticals - Scalability GlobalLogic Tata Elxsi Mphasis # of Sub , Mindteck PathPartner QuEST Global

Happiest Minds Dextra Technologies Scale & Scalability & Scale SEMICONDUCTOR ER&D RATINGS 2019 RATINGS ER&D SEMICONDUCTOR

Low Competency Service providers with dotted lines have been evaluated based on Capabilities, Innovation, Ecosystem Linkages, Infrastructure, Service Maturity Zinnov’s analysis and understanding

Zinnov Proprietary Confidential Source: Zinnov Research & Analysis 27 Telecommunication ER&D Ratings 2019

High Nurture Zone Breakout Zone Execution Zone Leadership Zone

HCL Wipro Altran

TCS L&T TS Cognizant HARMAN Connected Tech Mahindra Services Tieto Alten Verticals serviced, Client Spread Client serviced, Verticals

- GlobalLogic Scalability Capgemini # of Sub

, R Systems Itransition

Happiest Minds Scale & Scalability & Scale TELECOMMUNICATION ER&D RATINGS 2019 ER&DTELECOMMUNICATION RATINGS

Low Competency Service providers with dotted lines have been evaluated based on Capabilities, Innovation, Ecosystem Linkages, Infrastructure, Service Maturity Zinnov’s analysis and understanding

Zinnov Proprietary Confidential Source: Zinnov Research & Analysis 28 Transport ER&D Ratings 2019

High Nurture Zone Breakout Zone Execution Zone Leadership Zone

Akka

Cyient

Tech Mahindra Alten Altran L&T TS QuEST Global Tata Elxsi TCS HCL EPAM Wipro Verticals serviced, Client Spread Client serviced, Verticals - Scalability # of Sub , UST Global Scale & Scalability & Scale TRANSPORT ER&D RATINGS 2019 TRANSPORT ER&D RATINGS

Low Competency Service providers with dotted lines have been evaluated based on Capabilities, Innovation, Ecosystem Linkages, Infrastructure, Service Maturity Zinnov’s analysis and understanding

Zinnov Proprietary Confidential Source: Zinnov Research & Analysis 29 Zinnov Proprietary Confidential 30