Top 100 CDIBE Global Service Providers 2019 CDIBE: Consulting, Design, IT, BPO & Engineering

October 2020

Author: Pareekh Jain, Founder and Lead Analyst, EIIRTrend

Welcome to the first edition of the Top 100 CDIBE global service providers. In this study, we define the scope and structure of CDIBE services (management consulting, design interactive, IT, BPO, and engineering across public and private sector) and provide a list of the top 100 service providers based on 2019 revenue.

Top 100 CDIBE Global Service Providers 2019 2

Exhibit 1: EIIRTrend CDIBE Services Global Top 100 Rankings 2019

Rank Company Name Sales (B$) Rank Company Name Sales (B$) 1 Accenture 44.3 52 Indra Sistemas 3.6 2 IBM 44.0 53 Genpact 3.5 3 Fujitsu 29.1 54 econocom 3.3 4 TCS 21.9 55 Orange Business 3.2 5 NTT DATA 20.8 56 Oracle 3.2 6 DXC 20.0 57 Maximus 3.0 7 Deloitte 19.8 58 Alten 2.9

8 Cognizant 16.8 59 Transcosmos 2.9 9 Capgemini 15.8 60 LG CNS 2.8

10 PwC 14.7 61 SCSK 2.7 11 EY 14.6 62 Alorica 2.7

12 ADP 14.5 63 Alight 2.6 13 Cisco 13.1 64 Unisys 2.6 14 NEC 12.9 65 NCR 2.5 15 Infosys 12.6 66 FTI Consulting 2.4 16 Atos 12.5 67 EPAM 2.3 17 CGI 12.2 68 ManTech International 2.2 18 KPMG 11.2 69 AVL 2.2 19 Leidos 11.1 70 SK C&C 2.2 20 McKinsey 10.5 71 Oliver Wyman 2.1 21 Samsung SDS 9.2 72 Publicis Sapient 2.1 22 HCL 8.7 73 Grant Thornton 2.1 23 BCG 8.5 74 Hitachi 2.1 24 General Dynamics 8.4 75 BDO Consulting 2.0 25 Wipro 8.3 76 AKKA 2.0 26 T-Systems 7.6 77 TietoEVRY 1.9 27 Booz Allen Hamilton 7.2 78 Wunderman Thompson 1.9 28 Computacenter 7.0 79 Webhelp 1.8 29 SAIC 6.3 80 GFI Informatique 1.8 30 BT Global 6.0 81 Atento 1.7 31 Microsoft 6.0 82 Sitel 1.7 32 Teleperformance 6.0 83 TTEC 1.6 33 CACI 5.4 84 Skyes 1.6 34 Tech Mahindra 5.2 85 Fidelity 1.6 35 SAP 5.1 86 Exela 1.6 36 Mercer 5.0 87 Google 1.5 37 AWS 5.0 88 LTI 1.5 38 NRI 4.8 89 Kearney 1.4 39 Concentrix 4.7 90 Sutherland 1.4 40 Capita 4.7 91 Virtusa 1.3 41 Bain 4.5 92 Mphasis 1.2 42 Perspecta 4.5 93 Neusoft 1.2 43 Conduent 4.5 94 Epsilon 1.2 44 Insperity 4.3 95 FPT 1.2 45 Iron Mountain 4.3 96 Bertrandt 1.2 46 Sopra Steria 4.2 97 Aon Hewitt 1.2 47 Arvato 4.2 98 IAV 1.1 48 Northrop Grumman 4.1 99 UST Global 1.1 49 Paychex 4.1 100 Stefanni 1.1 50 Gartner 3.8 100 Mindtree 1.1 51 Altran 3.6 100 AFRY 1.1

Source: Company Financials, Media Reports, EIIRTrend Estimates

Definitions and Market Structure Today, the lines between services are blurred and most large IT service providers offer services across management consulting, design or interactive, IT, BPO, and engineering. They, in turn, compete with specialist service providers in each of these services. We decided to perform a detailed study on these sectors to map the landscape of the 100 largest service providers.

We divided the global services spectrum into five major segments, as shown in Exhibit 2. The definition of the segments are:

Exhibit 2: Scope of Services

Management consulting

BPO IT Global Services

Design/ Engineering Interactive

Source: EIIRTrend

Management consulting: Includes strategic and technology consulting across industries, business functions, and technology areas. This encompasses large enterprise transformation projects to technology landscape analysis and roadmap identification. This segment includes pure-play management consulting firms to technology and audit firms that provide management consulting services.

Design/Interactive: Includes services in the areas of campaign/advertising design, and customer experience solutions among others. This segment includes pure-play advertising firms to technology providers that provide solutions and/or services in these areas.

IT: Includes IT technology services primarily related to IT application, IT infrastructure, system integration, and digital technologies. IT application includes application development, testing, integration, and maintenance. IT infrastructure includes IT infrastructure management, technical support, and upgrading. System integration includes deployment and support of enterprise applications including ERP, CRM, HCM, and SCM. Digital technologies include deployment of cloud, mobility, analytics, automation, AI, and cybersecurity.

BPO: Includes services related to contact center operations, technical support and business processes. Business processes include services related to horizontal functions such as finance, HR, and procurement. Also, there are services related to different verticals such as telecom, financial services, insurance, banking, healthcare, lifesciences, retail, manufacturing, and utilities. The firms in this segment are typically IT services providers and BPO providers that provide voice and non-voice services.

Engineering: Includes firms that are focusing on the consulting, design and development, deployment, and support services in the areas of mechanical engineering, embedded engineering, software product engineering, product lifecycle management (PLM) services, IoT, and Industry 4.0 areas. These engineering services span different industries such as automotive, aerospace, industrial equipment, process manufacturing, telecom, ISV, energy and utilities, construction, and railways. The firms in this segment include pure-play engineering services and IT service providers that provide engineering services.

The services are divided into three broad categories based on revenue, as shown in Exhibit 3.

Exhibit 3: Top 100 CDIBE Service Providers Segmentation Based on 2019 Revenue

Mega Providers

20 Firms $10B+

Large Players

17 Firms $5B - $10B

Global Aspirants 63 Firms $1.1B - $5B Source: EIIRTrend

The three categories are:

Mega Providers: These enterprises have services revenue that currently exceeds US$10 billion. There are twenty such service providers including Accenture, IBM, Fujitsu, TCS, NTT DATA, DXC, Deloitte, Cognizant, Capgemini, PwC, and Infosys among others. Except for McKinsey (strategic consulting) and Cisco (ISV), the rest are technology services companies and Big 4 auditing firms that provide technology and business advisory.

Large Players: These enterprises have services revenue between US$5 billion and US$10 billion. There are a total of seventeen enterprises in this category, as described in Exhibit 3. Some of the enterprises include Samsung SDS, HCL, BCG, General Dynamics, Wipro, T-Systems, Booz Allen Hamilton, and Computacenter among others. This segment includes representatives from different players such as the in-house services arm of large companies, service providers, hyperscalers and other ISVs, sectoral firms, and management consulting companies.

Global Aspirants: These enterprises have services revenue between US$1.1 billion and US$5 billion. The majority of the top 100 enterprises (total 63 enterprises) are in this category. Some of the enterprises include Nomura Research Institute (NRI), Concentrix, Capita, Bain, Perspecta, Conduent, Insperity, Iron Mountain, and Arvato among others. This segment is majorly dominated by IT and BPO service providers, which are also associated with technology consulting.

EIIRTrend CDIBE Services Global Top 100 Details EIIRTrend CDIBE Services Global Top 100 2019 list includes public and private service providers shown in Exhibit 4. For service providers whose financial details were not available, we provided estimates.

Exhibit 4: EIIRTRend CDIBE Services Global Top 100 2019 Details

Sales Public/ Management Design/ Rank Company Name HQ Details IT BPO Engineering (B$) Estimated Consulting Interactive 1 Accenture*** Ireland 44.3 Total Public ✓ ✓ ✓ ✓ ✓ Global Business 2 IBM United States 44.0 Services and Global Public ✓ ✓ ✓ ✓ ✓ Technology Services Technology 3 Fujitsu Japan 29.1 Public solutions ✓ ✓ ✓ 4 TCS India 21.9 Total Public ✓ ✓ ✓ ✓ ✓ 5 NTT DATA Japan 20.8 Total Public ✓ ✓ ✓ ✓ 6 DXC United States 20.0 Total Public ✓ ✓ ✓ ✓ ✓ 7 Deloitte United Kingdom 19.8 Consulting/Advisory Public ✓ ✓ ✓ ✓ 8 Cognizant United States 16.8 Total Public ✓ ✓ ✓ ✓ ✓ 9 Capgemini France 15.8 Total Public ✓ ✓ ✓ ✓ ✓ 10 PwC United Kingdom 14.7 Consulting/Advisory Public ✓ ✓ ✓ ✓ 11 EY United Kingdom 14.6 Consulting/Advisory Public ✓ ✓ ✓ ✓ 12 ADP United States 14.5 Total Public ✓ ✓ 13 Cisco*** United States 13.1 Services/Consulting Public ✓ ✓ ✓ 14 NEC Japan 12.9 Public + Enterprise Public ✓ ✓ ✓ ✓ 15 Infosys India 12.6 Total Public ✓ ✓ ✓ ✓ ✓ 16 Atos France 12.5 Total Public ✓ ✓ ✓ ✓ 17 CGI Canada 12.2 Total Public ✓ ✓ ✓ ✓ ✓ 18 KPMG Netherlands 11.2 Consulting/Advisory Public ✓ ✓ ✓ ✓ 19 Leidos United States 11.1 Total Public ✓ ✓ 20 McKinsey United States 10.5 Total Estimated** ✓ 21 Samsung SDS South Korea 9.2 Total Public ✓ ✓ ✓ ✓ Total - Products & 22 HCL India 8.7 Public Platforms ✓ ✓ ✓ ✓ ✓ 23 BCG United States 8.5 Total Public ✓ General Information 24 United States 8.4 Public Dynamics Technology ✓ ✓ 25 Wipro India 8.3 Total Public ✓ ✓ ✓ ✓ ✓ 26 T-Systems Germany 7.6 Total Public ✓ ✓ ✓ Booz Allen 27 United States 7.2 Total Public Hamilton ✓ ✓ ✓ 28 Computacenter United Kingdom 7.0 Total Public ✓ 29 SAIC*** United States 6.3 Total Public ✓ ✓ BT Global United 30 6.0 Total Public Services Kingdom ✓ ✓

Sales Public/ Management Design/ Rank Company Name HQ Details IT BPO Engineering (B$) Estimated Consulting Interactive 31 Microsoft United States 6.0 Services Estimated** ✓ ✓ ✓ ✓ 32 Teleperformance France 6.0 Total Public ✓ ✓ 33 CACI United States 5.4 Total Public ✓ ✓ 34 Tech Mahindra India 5.2 Total Public ✓ ✓ ✓ ✓ ✓ 35 SAP Germany 5.1 Services/Consulting Public ✓ ✓ ✓ 36 Mercer United States 5.0 Total Estimated** ✓ ✓ 37 AWS United States 5.0 Services Estimated** ✓ ✓ ✓ ✓ Nomura 38 Research Japan 4.8 Total Public ✓ ✓ Institute (NRI) 39 Concentrix United States 4.7 Total Public ✓ ✓ ✓ ✓ 40 Capita United Kingdom 4.7 Total Public ✓ ✓ ✓ ✓ Bain & 41 United States 4.5 Total Estimated** Company ✓ 42 Perspecta United States 4.5 Total Public ✓ ✓ ✓ 43 Conduent United States 4.5 Total Public ✓ 44 Insperity United States 4.3 Total Public ✓ 45 Iron Mountain United States 4.3 Total Public ✓ ✓ ✓ 46 Sopra Steria France 5.0 Total - Solutions Public ✓ ✓ ✓ ✓ 47 Arvato Germany 4.2 Total Public ✓ ✓ ✓ Northrop 48 United States 4.1 Technology Services Public Grumman ✓ ✓ 49 Paychex*** United States 4.1 Total Public ✓ ✓ Research & 50 Gartner United States 3.8 Public Consulting ✓ 51 Altran France 3.6 Total Public ✓ ✓ ✓ ✓ 52 Indra Sistemas Spain 3.6 Total Public ✓ ✓ ✓ 53 Genpact United States 3.5 Total Public ✓ ✓ ✓ ✓ ✓ 54 econocom France 3.3 Total Public ✓ Orange 55 Business France 3.2 IT & Integration Estimated** ✓ ✓ Services 56 Oracle*** United States 3.2 Services/Consulting Public ✓ ✓ 57 Maximus United States 3.0 Total Public ✓ ✓ 58 Alten France 2.9 Total Public ✓ ✓ ✓ ✓ 59 Transcosmos Japan 2.9 Total Estimated** ✓ ✓ 60 LG CNS South Korea 2.8 Total Public ✓ ✓ ✓ ✓ SCSK Total – Software/ 61 Japan 3.5 Public Corporation Hardware ✓ ✓ ✓ ✓ 62 Alorica United States 2.7 Total Estimated** ✓ 63 Alight Solutions United States 2.6 Total Estimated** ✓ ✓ 64 Unisys United States 2.6 Total Public ✓ NCR 65 United States 2.5 Services Public Corporation ✓ ✓ ✓ 66 FTI Consulting United States 2.4 Total Public ✓ ✓ 67 EPAM United States 2.3 Total Public ✓ ✓ ✓ ✓ ManTech 68 United States 2.2 Total Public International ✓ ✓ ✓ 69 AVL Austria 2.2 Total Public ✓ ✓ 70 SK C&C South Korea 2.2 Total Public ✓ ✓ ✓ ✓ ✓ 71 Oliver Wyman United States 2.1 Total Estimated** ✓ 72 Publicis Sapient United States 2.1 Total Estimated** ✓ ✓ ✓ ✓

Sales Public/ Management Design/ Rank Company Name HQ Details IT BPO Engineering (B$) Estimated Consulting Interactive 73 Grant Thornton United States 2.1 Advisory Estimated** ✓ Information & 74 Hitachi Japan 2.1 Telecommunication Public ✓ ✓ ✓ ✓ Systems 75 BDO Consulting United States 2.0 Advisory Estimated** ✓ ✓ AKKA 76 Belgium 2.0 Total Public Technologies ✓ ✓ ✓ 77 TietoEVRY Finland 1.9 Total Public ✓ ✓ ✓ ✓ Wunderman 78 United States 1.9 Digital Estimated** Thompson ✓ ✓ ✓ 79 Webhelp France 1.8 Total Estimated** ✓ ✓ ✓ ✓ GFI 80 France 1.8 Total Public Informatique ✓ ✓ ✓ 81 Atento Luxembourg 1.7 Total Public ✓ 82 Sitel United States 1.7 Total Public ✓ 83 TTEC United States 1.6 Total Public ✓ ✓ 84 Sykes United States 1.6 Total Public ✓ ✓ 85 Fidelity United States 1.6 HR Services Estimated** ✓ Exela 86 United States 1.6 Total Public Technologies ✓ ✓ 87 Google United States 1.5 Services Estimated** ✓ ✓ ✓ ✓ 88 LTI India 1.5 Total Public ✓ ✓ ✓ ✓ 89 Kearney United States 1.4 Total Estimated** ✓ 90 Sutherland United States 1.4 Total Estimated** ✓ ✓ ✓ ✓ 91 Virtusa United States 1.3 Total Public ✓ ✓ ✓ ✓ ✓ 92 Mphasis India 1.2 Total Public ✓ ✓ ✓ ✓ 93 Neusoft China 1.2 Total Public ✓ ✓ ✓ ✓ ✓ 94 Epsilon United States 1.2 Total Estimated** ✓ ✓ 95 FPT Vietnam 1.2 Total Public ✓ ✓ ✓ ✓ ✓ 96 Bertrandt Germany 1.2 Total Public ✓ ✓ Aon Hewitt 97 (Data & Analytic United States 1.2 Total Public ✓ ✓ ✓ Services) 98 IAV Germany 1.1 Total Public ✓ 99 UST Global United States 1.1 Total Estimated** ✓ ✓ ✓ ✓ 100 Stefanni Brazil 1.1 Total Estimated** ✓ ✓ ✓ 100 Mindtree India 1.1 Total Public ✓ ✓ ✓ Management Consulting Division AFRY (AF 100 Sweden 1.1 + Industrial & Digital Public Poyry) ✓ ✓ ✓ Solutions + Process Industries Source: Company Financials, Media Reports, EIIRTrend Estimates

**Estimated by EIIRTrend. These numbers are not endorsed by the enterprises and EIIRTrend could not verify the correctness of these numbers independently. ***Accenture, Cisco, Oracle, Paychex, and SAIC do not have quarter start in January, so we have taken the average monthly revenue of the associated quarter for the spillover months. * Companies that report financial results in VND, EUR, GBP, SEK, Yen, KRW, and CNY. They have been converted into USD at appropriate exchange rates.

Key Observations

• Overall, the enterprises are from diverse sectors and span the globe (North America, Europe, APAC, and LATAM). Though the US firms dominated the list, European firms secured four spots in the top 10, whereas APAC and US firms secured three spots each.

• Every major geographical region including Asia Pacific, Europe, North America, and Latin Amera has one or more service providers. The only major region missing in this list is Middle East and Africa.

• Most large countries house the headquarters of one or more service providers including the US, Canada, Brazil, the UK, Germany, France, Sweden, Spain, Finland, Austria, Belgium, Ireland, Luxembourg, the Netherlands, Japan, China, South Korea, Vietnam, and India.

• The top two firms, Accenture and IBM, have shown a lot of similarities. Both companies had new CEOs recently and announced a new growth model and organizational changes. In January 2020, Accenture announced that it will organize its market-leading capabilities into four services: Strategy & Consulting, Interactive, Technology, and Operations. The company will manage its business through three geographic markets—North America, Europe, and Growth Markets— instead of operating groups. In October 2020, IBM announced that it will accelerate its hybrid cloud growth strategy to drive digital transformations for its clients. Additionally, it will separate the Managed Infrastructure Services unit from its Global Technology Services division and create a new public company ("NewCo"). This will create two industry-leading companies, each with a strategic focus and flexibility to drive client and shareholder value.

• Most enterprises have a presence in more than one segment except for the pure-play strategic consulting and research firms. Their razor-sharp focus and supremacy of knowledge makes them unique in the market. McKinsey is also featured in the top 20 positions.

• The services arm of large enterprises such as Nomura Research Institute (NRI), Samsung SDS, BT Global Services, and Orange Business Services have significant services revenue.

• The Big 4 auditing firms remain focused on the technology consulting business. Their decision to move away from providing their advisory business to auditing clients can impact revenue growth in the short term, but they remain committed in terms of technology investments and initiatives.

• Pure-play engineering services are visible in the list, but mostly in the global aspirant group.

• The services arms of ISVs and hyperscalers are present in all categories of mega providers, large players, and global aspirants.

What to Expect in 2020 Rankings?

• Overall, the technology outsourcing industry will face revenue stagnancy due to COVID-19. So the entry criteria of US$1.1 Billion remains more or less same.

• Rankings will change because of acquisitions and divestures. Acquisition remains an effective way to increase overall business. For example, Accenture continues to invest to expand its overall digital portfolio (cloud, Industry 4.0, etc.). Infosys, HCL, and Cognizant also continued M&A activities during the pandemic as they acquired Kaleidoscope Innovation, DWS, and 10th Magnitude respectively. Capgemini completed the Altran acquisition in 2020, so its ranking in 2020 will be close to the top six positions. IBM’s two firms could be in the top six positions.

• We believe that, in the near future, the service arms of hyperscalers and ISVs will rise in ranking as they focus more on technology consulting. For example, Microsoft has prioritized consulting services as a growth initiative.

Bottom line: Rise of mega providers in the digital economy Overall, digital spending will increase across the entire spectrum i.e. both from a business and technology point of view. To capture this digital spend, service providers will offer services across all CDIBE segments. Mega providers who will develop capability internally or through acquisitions, will increase their size and market share. Already, all the leading global and Indian IT service providers offer services in all CDIBE segments. They will scale it further. The remaining providers will also aspire to increase their scale and breadth. This will lead to the rise of more mega providers. Simultaneously, scaled niche service providers will exist in each CDIBE segment, and they will also build scale within their segments with acquisitions for diffent subservices or geographies. It is going to be interesting to be a part of this rapidly changing ecosystem with the possibility of lots of ups and downs in the enterprise ranking in services in 2020.

Note: While every effort has been taken to ensure the accuracy of this research, if there is any scope for improvement or corrections, please send your suggestions to [email protected] and we will consider it for the next edition.

About the Author

Pareekh Jain

Pareekh Jain is Founder and Lead Analyst of EIIRTrend and Pareekh Consulting.

EIIRTrend.com is a neutral platform to discover emerging engineering, IoT, Industry 4.0 and R&D (EIIR) trends across 12 industry verticals. Pareekh Consulting is a focused analyst and advisory firm for EIIR.

A seasoned EIIR professional, Pareekh has seen the EIIR industry from four perspectives: service provider, sourcing advisor, enterprise buyer, and industry analyst.

He is regularly quoted in the media on engineering services, IoT, and outsourcing trends, including Harvard Business Review (HBR), NDTV, Times of India, Economic Times, Business Standard, Hindu, Business Line, Livemint, Financial Express, Rediff, Voice of America, and Business Insider.

Pareekh is a thought leader, having authored various publications on topics related to EIIR outsourcing. He loves business fiction writing in his free time, and has authored a novel, Who Is That Lady?

Pareekh received his MBA from the Indian Institute of Management (IIM), Bangalore and his Bachelor of Technology degree from the Indian Institute of Technology (IIT) Delhi.

Pareekh can be reached at [email protected]. Follow him on twitter @pareekhjain.