At broader level, IT budgets are flat-to-growing. However, the key components of IT spend are undergoing change with commoditised services like ADM remaining under pressure, the share of digital transformation is on the rise. Clearly, SMAC is much more than a fad' and in fact, it has become the mainstream, with all new deals having an inherent digital component. In 1HCY16, the proportion of digital/SMAC in total contract value surged >40% yoy to US$5.4bn (vs. US$3.8bn in 1HCY15), while as a % of contract value, it rose to 32% vs. 25%. We expect this trend to continue over next 4-5 years. Nonetheless, volatility remains amid an uncertain business environment,...