SOPRA_STERIA_REGISTRATION_DOCUMENT_2017

INTRODUCTION TO SOPRA STERIA Overview of the digital services sector

2. Overview of the digital services sector 2.1. Main markets – Competitive environment of digital services sector In 2017, the digital services market in Western Europe was worth an estimated €270 billion (1) .

❙ DIGITAL SERVICES MARKET IN WESTERN EUROPE (EXCLUDING HARDWARE AND SOFTWARE)

Country (in billions of euros)

2017 estimates

France

35.1 84.9 44.6

United Kingdom

Germany

Rest of Europe

105.4 270.1

TOTAL

Source: Gartner, updated fourth quarter 2017, in constant 2013 US dollars.

❙ DIGITAL SERVICES MARKET IN WESTERN EUROPE (EXCLUDING HARDWARE AND SOFTWARE)

Business (in billions of euros)

2017 estimates

Consulting

56.6 73.5

Development and systems integration

Outsourced IT services

102.7

Business process outsourcing

37.2

TOTAL

270.1

Source: Gartner, updated fourth quarter 2017, in constant 2013 US dollars.

The European market has two main characteristics: p three countries alone (the United Kingdom, Germany and France) account for 61% of IT services spending in Europe (1) ; p outsourcing of technology services (application maintenance and infrastructure management) and business process outsourcing together account for a little over half of IT services spending by European companies (1) . In spite of the recent consolidations, the IT services market remains highly fragmented in Europe. The main competitors of Sopra Steria are divided into four categories: p players present on all continents, such as IBM, HP EDS, CSC, Accenture, CGI, Capgemini and Atos;

p Indian players such as TCS, Cognizant, Wipro and Infosys; p local players positioned in niche segments with high added value or general purpose services; p players in the consulting sector such as EY and BearingPoint; p software developers: Temenos, Alpha financial, etc. With 2017 revenue of €3.8 billion and a market share of around 2%, Sopra Steria is one of Europe’s ten largest digital services companies (excluding captive service providers and purely local players).

(1) Source: Gartner report, updated fourth quarter 2017.

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SOPRA STERIA REGISTRATION DOCUMENT 2017