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NEAT EVALUATION FOR INFOSYS:SAP HANA and S/4HANA ServicesMarket Segments: Overall, SAP HANA Focus, S/4HANA FocusIntroductionThis is a custom report for Infosys presenting the findings of the NelsonHall NEAT vendorevaluation for SAP HANA and S/4HANA Services in the Overall, SAP HANA Focus, and S/4HANAFocus market segments. It contains the NEAT graphs of vendor performance, a summaryvendor analysis of Infosys for SAP HANA and S/4HANA services, and the latest market analysissummary for SAP HANA and S/4HANA services.This NelsonHall Vendor Evaluation & Assessment Tool (NEAT) analyzes the performance ofvendors offering SAP HANA and S/4HANA services. The NEAT tool allows strategic sourcingmanagers to assess the capability of vendors across a range of criteria and business situationsand identify the best performing vendors overall, and with a specific focus on SAP HANA andS/4HANA services individually.Evaluating vendors on both their ‘ability to deliver immediate benefit’ and their ‘ability tomeet client future requirements’, vendors are identified in one of four categories: Leaders,High Achievers, Innovators, and Major Players.Vendors evaluated for this NEAT are: Accenture, Atos, Cognizant, DXC Technology, EPAMSystems, IBM, Infosys, LTI, NTT Data, TCS, Tech Mahindra, Tieto, Virtusa, Wipro, and YashTechnologies.Further explanation of the NEAT methodology is included at the end of the report. NelsonHall 20191Licensed for distributionApril 2019

NEAT Evaluation for Infosys: SAP HANA and S/4HANA ServicesNEAT Evaluation: SAP HANA and S/4HANA Services(Overall)NelsonHall has identified Infosys as a Leader in the Overall market segment, as shown in theNEAT graph. This market segment reflects Infosys’ overall ability to meet future clientrequirements as well as delivering immediate benefits to SAP HANA and S/4HANA servicesclients.Leaders are vendors that exhibit both a high ability relative to their peers to deliverimmediate benefit and a high capability relative to their peers to meet client futurerequirements.Buy-side organizations can access the SAP HANA and S/4HANA Services NEAT tool (Overall)here. NelsonHall 20192Licensed for distributionApril 2019

NEAT Evaluation for Infosys: SAP HANA and S/4HANA ServicesNEAT Evaluation: SAP HANA and S/4HANA Services(SAP HANA Focus)NelsonHall has identified Infosys as a Leader in the SAP HANA Focus market segment, asshown in the NEAT graph. This market segment reflects Infosys’ ability to meet future clientrequirements as well as delivering immediate benefits to clients with a specific focus on SAPHANA capability.Buy-side organizations can access the SAP HANA and S/4HANA Services NEAT tool (SAP HANAFocus) here. NelsonHall 20193Licensed for distributionApril 2019

NEAT Evaluation for Infosys: SAP HANA and S/4HANA ServicesNEAT Evaluation: SAP HANA and S/4HANA Services(S/4HANA Focus)NelsonHall has identified Infosys as a Leader in the S/4HANA Focus market segment, as shownin the NEAT graph. This market segment reflects Infosys’ ability to meet future clientrequirements as well as delivering immediate benefits to clients with a specific focus onS/4HANA capability.Buy-side organizations can access the SAP HANA and S/4HANA Services NEAT tool (S/4HANAFocus) here. NelsonHall 20194Licensed for distributionApril 2019

NEAT Evaluation for Infosys: SAP HANA and S/4HANA ServicesVendor Analysis Summary for InfosysOverviewHeadquartered in Bangalore, Infosys was founded in 1981 in Pune by a group of sevenprogrammers. It became a public limited company in India in June 1992 and was listed onNASDAQ in 1999, having set up development centers in several Indian cities to serve theglobal market.Infosys has had a relationship with SAP since 1997. It became a Global Services Partner in2008. It estimates that it has 450 SAP clients and 15.5k SAP skilled resources.Over the first half of 2018, Infosys saw a rise in the focus on adopting S/4HANA among itslarge enterprise client base and has been evolving how it positions its offerings. It is lookingto take a broader business outcome-centric approach with its clients rather than a strictlytechnical view of the S/4HANA migration. This is in alignment with clients increasingly lookingto use S/4HANA as a foundational element of a broader business transformation driven bychanging business models and a desire for simplified, standardized business processes.This approach has included incorporating broader Infosys capabilities with its SAP deliverycapabilities to provide broader bundled services to its clients. This can include using deepindustry expertise, UX-UI consulting and design thinking to define the end state experienceand roadmap as well as its NIA platform to support adoption and operations.To expand its SAP capabilities, Infosys has made the following acquisitions: Lodestone, in 2012: headquartered in Switzerland, Lodestone was founded in 2005 (thefounders' heritage was in PwC and IBM). It had 850 employees including 750 SAPconsultants, and 2011 revenues were 200m across 200 clients, concentrated in thelife sciences and automotive sectors, with 15% of revenues coming from the insurancesector Panaya: in 2015: Infosys' second largest acquisition since its purchase of Lodestone.Founded in 2005 (formerly known as ChangeSoft Technologies), Panaya is based inRa’anana, Israel and has 150 employees. Its flagship CloudQuality suite automates theassessment and migration of SAP environments.To support the increased use of design thinking sessions and UX-UI design in the delivery ofHANA and S/4HANA services, Infosys has made the following recent acquisitions: In September 2017, it completed acquisition of Brilliant Basics, a privately held Londonbased digital innovation and CX design firm. The acquisition added to Infosys' DigitalStudios capabilities for the financial, retail and telco sectors, primarily in the Europe andMiddle East region. In May 2018, Infosys completed its acquisition, for up to 75m including earnouts, ofWONGDOODY, a U.S.-based creative and consumer insights agency. Founded in 1993,WONGDOODY is headquartered in Seattle and has an office in Los Angeles. It has servedclients in the telecoms, media, consumer electronics, healthcare, consumer goods, andother sectors. Clients have included Amazon Fire TV.These acquisitions represent Infosys' further commitment to the expansion of a worldwide,connected network of Digital Studios. With Infosys Digital Studios spanning the globe – fromBangalore and Pune to New York, London, and Melbourne – the addition of WONGDOODYand Brilliant Basics strengthens Infosys’ ability to fulfill the needs of global clients. NelsonHall 20195Licensed for distributionApril 2019

NEAT Evaluation for Infosys: SAP HANA and S/4HANA ServicesFinancialsInfosys' total revenues for CY 2018 were 11.5bn.NelsonHall estimates that Infosys' SAP services revenues account for 17% of the totalrevenues ( 1.9bn). NelsonHall further estimates that CY 2018 HANA and S/4HANA revenuesaccount for 23% of SAP revenues, or 450m.Strengths CMO, S/4Assist and accelerator and migration toolset Catalyst industry offerings Complex, large enterprise HANA and S/4HANA adoption experience User and business objective centric approach Long-term, multi-faceted partnership with SAP Intelligent Enterprise offering.Challenges Limited focus on SMB client base slowing S/4HANA delivery growth SAP workforce is weighted toward India relative to competitors.Strategic DirectionInfosys has defined a strategy to grow its S/4HANA and HANA practice by focusing on thefollowing areas: Increase the skilled resource base Expand the Catalyst offering to new industries Develop Leonardo and NIA use cases.OutlookInfosys' efforts to build solutions to complement its core capabilities and re-skill functionalSAP consultants positions it to support its large enterprise client base as adoption havestarted to accelerate with the looming end of the ECC support deadline in 2025. More thandoubling its HANA and S/4HANA skilled workforce have provided Infosys with a significantfootprint of skills, even with a considerable proportion of these remotely based in its IndiaHANA CoE. Continuing to reskill its existing workforce and attracting and growing its clientproximate workforce to deliver industry-specific skills onsite with clients will be an importantfocus area going forward.To augment its still growing workforce, Infosys has invested heavily in building automatedtoolsets across the lifecycle of HANA and S/4HANA adoption. The use of S/4Assist, CMO,Panaya and other tools positions Infosys to both de-risk and accelerate its client's adoption NelsonHall 20196Licensed for distributionApril 2019

NEAT Evaluation for Infosys: SAP HANA and S/4HANA Servicesof S/4HANA. The use of Intelligent Enterprise in the operational phase enables it to applyintelligence to the automation of a broad set of use cases across industries.In addition to Intelligent Enterprise use cases, Infosys' Catalyst offerings and other industrytailored extensions also enable it to demonstrate to its targeted client base how itunderstands their needs and can support achieving their objectives. As new and emergingtechnologies mature, it is important for Infosys to continue to evolve these focused offerings,including incorporating Leonardo and NIA capabilities. NelsonHall 20197Licensed for distributionApril 2019

NEAT Evaluation for Infosys: SAP HANA and S/4HANA ServicesSAP HANA and S/4HANA Services Market SummaryOverviewNelsonHall estimates that 68% of migration and implementation work completed by ITservice vendors has been to Suite or BW on HANA rather than to S/4HANA, up from 27% in2016. For many organizations, however, this is the beginning of a multi-phase approach,ultimately leading to S/4HANA hosted in the cloud.With the introduction of S/4HANA 1809, combined with new migration paths (such as ahybrid bluefield approach), Model Company offerings and incremental capabilities,organizations are increasingly migrating directly to S/4HANA from legacy ERP landscapes.NelsonHall expects this to continue to accelerate as S/4HANA, Leonardo and C/4HANAofferings mature. By 2022, we expect 55% of IT service vendor SAP HANA or S/4HANArevenues to be derived from S/4HANA rather than BW or Suite on HANA.NelsonHall estimates that 65% of new S/4HANA adoptions are being completed through theimplementation of a new system, rather than migrating existing legacy ERP landscapes. Thisis driven by early S/4HANA adoption being dominated by new buyers (particularly small andmedium businesses) who can more easily adopt S/4HANA’s best practice business processesrather than organizations with large, customized, legacy ERPs.Organizations that have adopted SAP HANA have focused on simplifying their technicalenvironment to reduce costs and increase agility in accessing data.As S/4HANA adoption accelerates, organizations are increasingly using it to drive broaderbusiness change including introducing new business models and transforming businessprocesses. These broader benefits aren’t solely measured in traditional IT cost reduction butthrough greater agility within the business. However, S/4HANA’s simplified technicalarchitecture (data, custom object, etc.) are also driving IT cost benefits.Buy-Side DynamicsThe key capabilities sought by organizations in selecting a vendor to deliver SAP HANA andS/4HANA services are: Tying of fees to desired outcomes SAP technical delivery capabilities Local SAP HANA and S/4HANA consulting capabilities SAP functional delivery capabilities SAP HANA migration tools and accelerators.Market Size & GrowthThe global SAP HANA and S/4HANA services market is estimated by NelsonHall as 10,405min 2018. It is expected to grow at 21% CAGR to 29,765m by 2023. NelsonHall 20198Licensed for distributionApril 2019

NEAT Evaluation for Infosys: SAP HANA and S/4HANA ServicesSuccess FactorsThe key success factors for SAP HANA and S/4HANA services vendors include: Automated assessment, migration and roadmapping capabilities: successful vendorsoffer a portfolio of automated tools and methodologies to assess the impact of migrationon current ERPs (including custom objects and legacy data), develop a migrationroadmap and execute the migration of legacy objects and data including automatedcustom code modification Vertical-centric offerings: successful vendors develop a portfolio of offerings tocomplement core HANA and S/4HANA capabilities with tailored industry-centricapplications, analytics, and edge capabilities. These include proprietary migrationaccelerators (pre-configured industry blueprints), SAP Model Company offerings andindustry or LoB specific functional extensions Business Process and OCM Capabilities: as organizations look to use S/4HANA as acatalyst for modernizing and simplifying business processes, vendors need to be able toprovide the non-technical capabilities that help the client organization to migrate to thenew processes and organization in parallel to migrating to the new system Incorporating emerging technologies: successful vendors are looking to developofferings that incorporate new and emerging technologies such as those offered byLeonardo and C/4HANA. Building capabilities that incorporate IoT, AI/ML, analytics andblockchain to increase the value that organizations can realize by adopting S/4HANA Business case development capabilities: successful vendors use experiences andbenchmarks to help organizations shape a defined business case incorporating directcost reduction and indirect business value from enhanced capabilities and improvedprocesses Geographically diverse delivery team: successful vendors possess onshore resourcescapable of consulting with clients in initial stages (including migration, business process,OCM planning and business case development), coupled with strong offshore migrationand application management factories.OutlookCompanies that have already invested in legacy ERP are slow to migrate to S/4HANA. This canbe driven by concerns about the change required (see next slide) as well as the level of effortrequired to migrate. Migration effort is driven by the custom code changes required tooperate in the new environment and the level of configurations to tailor the system tooperate in the client’s industry.Where large enterprises were initially hesitant to adopt S/4HANA due to its impact oncustomized processes built over time in legacy ERPs, increasingly organizations are viewingS/4HANA as a way to transform the organization and processes in addition to modernizingtechnology. These organizations are looking to S/4HANA implementation vendors to helpguide them on this broader transformational journey instilling new business processes andmanaging related organizational and change management. NelsonHall 20199Licensed for distributionApril 2019

NEAT Evaluation for Infosys: SAP HANA and S/4HANA ServicesThe future direction for SAP HANA and S/4HANA service vendors include: Approach and objectives: Large enterprise adoption is driven by digital transformation objectives and the desirefor incorporating expanded capabilities such Leonardo’s IoT and AI/ML offerings andC/4HANAVendors continue to bolt on functionality to core S/4HANA capabilities, but focus onvalue-add functionality tailored specifically to client industry needs.Organizations use S/4HANA as a foundation to gain access to digital transformationtechnologies (IoT, machine learning) that expand their business case to increasedrevenues and improved customer serviceOld business models, processes and organizations are modernized and simplified toimprove agilityIncremental infrastructure cost saving realized through the use of cloud-hostedS/4HANA.Delivery model: Cloud based S/4HANA based on pre-configured industry templates becomes theprimary hosting approach to improve business caseBenefits: Large enterprise SoH and ECC clients accelerate replacing legacy with S/4HANA,focusing on simplifying custom business processes, organization and applicationlandscapesS/4HANA implementation is foundational step of a broader digital transformationroadmapAssessment, roadmapping, and code and data migration are primarily completed byautomated toolsMigration factories located primarily offshore accelerate the migration from ECC toS/4HANAOnshore consulting focus primarily on business process and organizationtransformation. NelsonHall 201910Licensed for distributionApril 2019

NEAT Evaluation for Infosys: SAP HANA and S/4HANA ServicesNEAT Methodology for SAP HANA and S/4HANAServicesNelsonHall’s (vendor) Evaluation & Assessment Tool (NEAT) is a method by which strategicsourcing managers can evaluate outsourcing vendors and is part of NelsonHall's Speed-toSource initiative. The NEAT tool sits at the front-end of the vendor screening process andconsists of a two-axis model: assessing vendors against their ‘ability to deliver immediatebenefit’ to buy-side organizations and their ‘ability to meet client future requirements’. Thelatter axis is a pragmatic assessment of the vendor's ability to take clients on an innovationjourney over the lifetime of their next contract.The ‘ability to deliver immediate benefit’ assessment is based on the criteria shown in Exhibit1, typically reflecting the current maturity of the vendor’s offerings, delivery capability,benefits achievement on behalf of clients, and customer presence.The ‘ability to meet client future requirements’ assessment is based on the criteria shown inExhibit 2, and provides a measure of the extent to which the supplier is well-positioned tosupport the customer journey over the life of a contract. This includes criteria such as thelevel of partnership established with clients, the mechanisms in place to drive innovation, thelevel of investment in the service, and the financial stability of the vendor.The vendors covered in NelsonHall NEAT projects are typically the leaders in their fields.However, within this context, the categorization of vendors within NelsonHall NEAT projectsis as follows: Leaders: vendors that exhibit both a high ability relative to their peers to deliverimmediate benefit and a high capability relative to their peers to meet client futurerequirements High Achievers: vendors that exhibit a high ability relative to their peers to deliverimmediate benefit but have scope to enhance their ability to meet client futurerequirements Innovators: vendors that exhibit a high capability relative to their peers to meet clientfuture requirements but have scope to enhance their ability to deliver immediate benefit Major Players: other significant vendors for this service type.The scoring of the vendors is based on a combination of analyst assessment, principallyaround measurements of the ability to deliver immediate benefit; and feedback frominterviewing of vendor clients, principally in support of measurements of levels of partnershipand ability to meet future client requirements. NelsonHall 201911Licensed for distributionApril 2019

NEAT Evaluation for Infosys: SAP HANA and S/4HANA ServicesExhibit 1‘Ability to deliver immediate benefit’: Assessment criteriaAssessment CategoryAssessment CriteriaOfferingsOverall HANA & S/4HANA CapabilityHANA migration capabilityS/4HANA implementation capabilityHANA & S/4HANA cloud offeringsLeonardo offeringsProprietary functional extensionsMigration toolsOngoing management capabilitiesModel companyDeliveryBreadth of HANA & S/4HANA capabilitiesHANA & S/4HANA consulting capabilitiesFunctional skilled resourcesTechnical skilled resourcesUse of ActivateN. AmericaEMEAAPACLATAMPresenceScale of operations - overallScale of operations - HANAScale of operations - S/4HANABenefits AchievedSkills & capabilitiesTimely project completionValue for money NelsonHall 201912Licensed for distributionApril 2019

NEAT Evaluation for Infosys: SAP HANA and S/4HANA ServicesExhibit 2‘Ability to meet client future requirements’: Assessment criteriaAssessment CategoryAssessment CriteriaFinancial ratingCommitment to S/4HANACommitment to innovation in S/4HANA servicesFuture CommitmentIn HANA capabilitiesIn S/4HANA migration capabilitiesIn proprietary offeringsIn geographic expansionInvestmentsAbility to Partner & EvolveServicesKey partnerAbility to evolve & use best practicesFor more information on other NelsonHall NEAT evaluations, please contact the NelsonHallrelationship manager listed below.Sales EnquiriesNelsonHall will be pleased to discuss how we can bring benefit to your organization. You can contactus via the following relationship manager:research.nelson-hall.comSimon Rodd at [email protected] NoticeCopyright 2019 by NelsonHall. All rights reserved. NelsonHall exercises its best efforts in preparation of the information provided in this reportand believes the information contained herein to be accurate. However, NelsonHall shall have no liability for any loss or expense that may resultfrom incompleteness or inaccuracy of the information provided. NelsonHall 201913Licensed for distributionApril 2019

SAP HANA and S/4HANA Services Market Segments: Overall, SAP HANA Focus, S/4HANA Focus . and roadmap as well as its NIA platform to support adoption and operations. . service vendors has been to Suite or BW on HANA rather than to S/4HANA, up from 27% in 2016. For many organizations, howe