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ration IBM Strategic Outsourcing Substantial market growth over last five years。 growth anticipated at 9% through 2023. IBM is a market share leader. Source: GMV 2H03 The Marketplace arkMarket Opportunity Customers Top two business priorities cost efficiency and revenue growth Servicessavvy customers。 increasing 3rd party involvement Sophisticated marketplace (customers, suppliers) CIOs playing a strong role in outsourcing decision making Increasing interest in On Demand Growing interest/expectation of a collaborative relationship Deals Price pressure – offshore acceptance Competition is fierce More plex deal structures 1 1 61 2 21 3 01 4 11 5 51 7 21 9 02 0 0 12 0 0 22 0 0 32 0 0 42 0 0 52 0 0 62 0 0 7$ B i l l i o n sSO is a Mainstream IT Solution 7 IBM Global Services Strategic Outsourcing 169。 2023 IBM Corporation IBM Strategic Outsourcing SO as percentage of IBM revenue 19% SO as percentage of IBM PTI 28% Other IBM SO SO as percentage of IBM employees 21% Strategic Outsourcing represents a major source of revenue and profit for IBM 8 IBM Global Services Strategic Outsourcing 169。 2023 IBM Corporation IBM Strategic Outsourcing B u s i n e s s F o c u sIT F o c u sF i n a n c i a lC r i t i c a l o p e r a t i o n a l t o o lS t r a t e g i c S o u r c e o f c o m p e t i t i v e a d v a n t a g eH o w t o r e s p o n d t o t h e n e e d s o f t h e b u s i n e s sH o w t o p r o a c t i v e l y b r i n g t e c h n o l o g y s o l u t i o n s a s t h e