european markets b. g. srinivas vice president and head – european practice b. g. srinivas vice...
Post on 18-Dec-2015
219 Views
Preview:
TRANSCRIPT
European marketsEuropean marketsB. G. Srinivas
Vice President and Head – European PracticeB. G. Srinivas
Vice President and Head – European Practice
© Infosys Technologies Limited 2004-2005 Analyst Meet 2004 | New Game. New Rules.
Safe HarborSafe Harbor
Certain statements made in this Analyst Meet concerning our future growth prospects are forward-looking statements, which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, intense competition in IT services including those factors which may affect our cost advantage, wage increases in India, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, restrictions on immigration, industry segment concentration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks or system failures, our ability to successfully complete and integrate potential acquisitions, liability for damages on our service contracts, the success of the companies in which Infosys has made strategic investments, withdrawal of governmental fiscal incentives, political instability and regional conflicts, legal restrictions on raising capital or acquiring companies outside India, and unauthorized use of our intellectual property and general economic conditions affecting our industry. Additional risks that could affect our future operating results are more fully described in our United States Securities and Exchange Commission filings including our Annual Report on Form 20-F for the fiscal year ended March 31, 2004 and quarterly report on Form 6-K for the quarter ended June 30, 2004. These filings are available at www.sec.gov. Infosys may, from time to time, make additional written and oral forward-looking statements, including statements contained in the company's filings with the Securities and Exchange Commission and our reports to shareholders. The company does not undertake to update any forward-looking statements that may be made from time to time by or on behalf of the company.
Slide 2
© Infosys Technologies Limited 2004-2005 Analyst Meet 2004 | New Game. New Rules.
AgendaAgenda
» Infosys in Europe
» A brief historical perspective on Europe
» The Market Place
» Market overview - the fastest growing segments
» Market characteristics
» What Sells
» A profile of services
» Strategy for growth
» Core principles for the next phase of growth
Slide 3
© Infosys Technologies Limited 2004-2005 Analyst Meet 2004 | New Game. New Rules.
Europe : A key engine of growth for InfosysEurope : A key engine of growth for Infosys
» Infosys serves Europe clients in all verticals – BFSI, Telecom, Manufacturing, Retail and Others
1130
78
108
133
204
238
9%
15%
19%18%
21%19%19%
0
50
100
150
200
250
FY 99 FY 00 FY 01 FY 02 FY 03 FY 04 LTM June04
Year
Re
ve
nu
es
($
m)
0%
5%
10%
15%
20%
25%
% o
f In
fos
ys
' re
ve
nu
es
CAGR = 80%
CAGR = 80%
Slide 4
© Infosys Technologies Limited 2004-2005 Analyst Meet 2004 | New Game. New Rules.
Infosys Europe : a historical perspectiveInfosys Europe : a historical perspective
UK was the firstInfosys office inEurope
UK Office
France Office
Germany Office
Benelux Office
Nordic Office
Opened in 1996
Opened in1999
2001 Paris office established
1999 - Belgium
2001 - Office in Sweden
Swiss Office 2002 - Office opened in Zurich
Grow
th
Continuous investment in Europe has led to accelerated growth
Slide 5
© Infosys Technologies Limited 2004-2005 Analyst Meet 2004 | New Game. New Rules.
Local presence in EuropeLocal presence in Europe
» Service capability in 14 countries» Belgium, Czech Republic, Denmark,
Finland, France, Germany, Ireland, Italy, Netherlands, Norway, Spain, Sweden, Switzerland and UK
» Serviced by 9 sales offices and one Development Centre
» Amsterdam (Netherlands)» Brussels (Belgium)» Milano (Italy) » London (UK) – HQ & Development
Centre» Frankfurt (Germany)» Stuttgart (Germany)» Paris (France)» Stockholm (Sweden) » Zurich (Switzerland)
» Strategy of direct marketing through dedicated offices and local presence, delivers growth and differentiation
Slide 6
© Infosys Technologies Limited 2004-2005 Analyst Meet 2004 | New Game. New Rules.
AgendaAgenda
» Infosys in Europe
» A brief historical perspective on Europe
» The Market Place
» Market overview - the fastest growing segments
» Market characteristics
» What Sells
» A profile of services
» Strategy for growth
» Core principles for the next phase of growth
Slide 7
© Infosys Technologies Limited 2004-2005 Analyst Meet 2004 | New Game. New Rules.
European IT services market – considerable room for growthEuropean IT services market – considerable room for growth
TPI reports a surge in outsourcing deals signed in H1 04 as compared to H2 03
1910 124
44
32
23
1910 124
44
34
24
1911 134
48
36
27
20
11 144
51
39
31
20
12 155
55
42
34
0
20
40
60
80
100
120
140
160
180
200
2001 2002 2003 2004 2005
Europe IT Services-Segment ($ Bn)
Biz ProcessMgt
ITManagement
Development& Integration
Education &Training
Consulting
SoftwareMaintenance
HardwareMaintenance
144147
158171
183
Source: Gartner
Slide 8
© Infosys Technologies Limited 2004-2005 Analyst Meet 2004 | New Game. New Rules.
European IT services market by geography (Year 2005)European IT services market by geography (Year 2005)
48
34
27
1713
85 5
26
0
5
10
15
20
25
30
35
40
45
50IT
Sp
end
ing
($b
n)
UK
Ger
man
y
Fran
ce
Italy
Net
herla
nds
Sw
eden
Bel
gium
Sw
itzer
land
Oth
er
Source: Gartner
Slide 9
© Infosys Technologies Limited 2004-2005 Analyst Meet 2004 | New Game. New Rules.
Our approach to EuropeOur approach to Europe
Today’s challenges
» Distinct streams of consumer behaviour across Europe
» Europe is highly regulated
» Cost is not the only driver for outsourcing in Europe
» The shift towards global sourcing presents a significant challenge in Europe
» Outsourcing is frequently associated with staff augmentation in Europe
Infosys’ Differentiators» Increased local presence, hiring local
talent, developing language skills, near-shore development centres
» Strict compliance with regulatory terms, proactive work with government bodies
» Providing a flexible, modular, value driven proposition, tailoring our services to European clients
» Providing an innovative modular sourcing solution, combined with proactive human resource re-deployment approach
» Infosys has shifted the paradigm in the market place away from “body-shopping” towards a more mature, managed services approach
Slide 10
© Infosys Technologies Limited 2004-2005 Analyst Meet 2004 | New Game. New Rules.
AgendaAgenda
» Infosys in Europe
» A brief historical perspective on Europe
» The Market Place
» Market overview - the fastest growing segments
» Market characteristics
» What Sells
» A profile of services
» Strategy for growth
» Core principles for the next phase of growth
Slide 11
© Infosys Technologies Limited 2004-2005 Analyst Meet 2004 | New Game. New Rules.
A full spectrum of services for European clientsA full spectrum of services for European clients
Infosys Europe has matured its service offering to provide the full spectrum of capabilities to European clients
Enterprise Application Integration
Strategy & IT Consulting
Systems Integration
IT Outsourcing
Re-engineering and Maintenance
EnterpriseArchitecture
Definition
BusinessProcess
Reengineeringe-Businesse-Business
IntegratedRoadmap
m-Businessm-Business
Package Evaluation & Implementation
Custom Application Development
CRMCRM SCMSCM ERPERP E-ProcurementE-Procurement
DesignDesign DevelopDevelop TestTest DeployDeploy
Industry Specific Processes Cross-industry Processes
TOTAL
OUTSOURCING
SOLUTION
Business Process ManagementProgeon Ltd. – An Infosys subsidiary
Slide 12
© Infosys Technologies Limited 2004-2005 Analyst Meet 2004 | New Game. New Rules.
Delivering tangible value to clients in RetailDelivering tangible value to clients in Retail
Challenge» A leading food and grocery retailer needed to transition the maintenance and
support of over 100 applications from several other IT vendors» Many of the applications were business critical» Had to be achieved in under 6 months, and without any impact on the service
levels to the end users
Solution» Infosys deployed tried and trusted transition methodologies» Providing 24 x 7 Production support, Maintenance, Enhancements and Bug
fixes, System Testing, Regression Testing, Performance Testing, Support for Integration Testing and Support for Production Implementation
Benefit» Improved service levels, with ‘Priority 1’ response time as low as 15 min» Freeing up key resources within the client, redeployed for business initiatives» Approximate saving of ₤ 1.9 m per annum» Flexibility to cope with fluctuating requirements at short notice
Slide 13
© Infosys Technologies Limited 2004-2005 Analyst Meet 2004 | New Game. New Rules.
Delivering tangible value to clients in Financial ServicesDelivering tangible value to clients in Financial Services
Challenge» One of Europe’s largest Financial Services organizations» Retain and expand the customer base whilst continuously improving the quality
of service» Needed to improve the cost-to-income ratio
Solution» Engaged in application development/enhancement of core banking systems,
cards, payments and other retail systems, leveraging expertise in other areas like infrastructure management, business consulting and IT process consulting
» Working with the bank to help meet regulatory requirements including CP186 and Basel II compliance
Benefit» Delivered systems that enabled the bank to launch an offset banking product in
time to remain competitive in the market» Predictable delivery - 100% milestone adherence, zero budget variance» Cost benefits of up to 60% as compared to internal development
Slide 14
© Infosys Technologies Limited 2004-2005 Analyst Meet 2004 | New Game. New Rules.
Delivering tangible value to Automotive clientsDelivering tangible value to Automotive clients
Challenge» A leading automobile manufacturer» Needed to extend its application support capability to encompass
diverse technologies for Sales and Marketing, Manufacturing and Dealers
» Includes highly critical and complex plant floor applications
Solution» Infosys leveraged its experience in manufacturing and sales
environment to provide an improved support service» Carried out system enhancements where necessary
Benefit» Upgraded service to be available 24 X 7» Cost savings to date of over € 460,000
Slide 15
© Infosys Technologies Limited 2004-2005 Analyst Meet 2004 | New Game. New Rules.
Delivering tangible value to clients in TelecomDelivering tangible value to clients in TelecomChallenge» A telecommunication company based in Europe, providing telephony, internet
and television services» In a highly competitive environment, the client wanted to improve back-end
systems to deliver competitive advantages and efficiency gains
Solution» Deployed web based operations support system, linked to online provisioning
and real-time technician allocation» Infosys handles maintenance, help desk, development, re-engineering and
package implementation work for the customer
Benefit» Reduced bad debt rate, improved collection process and eliminated data entry
of 100 paper contracts per day on an average» Online provisioning and real-time technician allocation reduced cycle time from
3-5 days to a few minutes» Automated back-office operations has enabled the customer to re-deploy nearly
10% of its resources to serve its expansion plans
Slide 16
© Infosys Technologies Limited 2004-2005 Analyst Meet 2004 | New Game. New Rules.
AgendaAgenda
» Infosys in Europe
» A brief historical perspective on Europe
» The Market Place
» Market overview - the fastest growing segments
» Market characteristics
» What Sells
» A profile of services
» Strategy for growth
» Core principles for the next phase of growth
Slide 17
© Infosys Technologies Limited 2004-2005 Analyst Meet 2004 | New Game. New Rules.
Core principle 1 - Structured solutions approachCore principle 1 - Structured solutions approach
» Europe is a highly fragmented market. Legislation, changes in market dynamics and political change are pushing European companies to reduce fragmentation
» Strong pace of change makes Europe an ideal place to develop solutions
» There are some specific opportunities within Europe that Infosys has identified, built solutions for and successfully marketed.
» Solutions are being developed for horizontal & vertical market segments» In Financial Services
» Financial messaging
» Compliance – e.g. Basel II
» In Retail» RFID
» Distributed Order Management
» Lead Time Optimisation
» Across sectors, Infosys is developing solutions to deploy, migrate and integrate between technologies and versions of technologies
Slide 18
© Infosys Technologies Limited 2004-2005 Analyst Meet 2004 | New Game. New Rules.
Core principle 2 - Deeper, targeted Alliance partnershipsCore principle 2 - Deeper, targeted Alliance partnerships
» Infosys Europe is deriving growth and differentiation through strategic relationships with key partners such as Microsoft, SAP, Informatica, Oracle and Yantra
» Joint business planning and joint go-to-market strategies with key alliance partners is resulting in rapid scaling and rapid result
» Joint solution development bring rapid benefits to clients from our solution delivery capabilities and our alliance partners’ technology solutions
» Treating alliance partners like we treat clients brings differentiation through jointly planning targets and replicating well honed skills
Slide 19
© Infosys Technologies Limited 2004-2005 Analyst Meet 2004 | New Game. New Rules.
Core principle 3 - Strengthened focus on key verticalsCore principle 3 - Strengthened focus on key verticals
» Infosys has developed additional capabilities for distinct markets such as the Automotive and Telecommunications sectors
» Infosys has been able to penetrate into these sectors by developing the required specialist skill sets and applying Global Delivery Model methodologies
» Infosys is able to cross sell and up sell solutions, ensuring the market potential is maximised
» Capability and solutions are being developed for these markets
» CAD-CAM
» Finite element analysis
Slide 20
© Infosys Technologies Limited 2004-2005 Analyst Meet 2004 | New Game. New Rules.
Core principle 4 - Focus on Consulting Core principle 4 - Focus on Consulting
» Consulting services provide a high value-add to our clients
» Such engagements generate larger downstream opportunities, and provide a valuable insight into the business of our clients
» Consulting in Europe mixes a local talent pool with the power of the Global Delivery Model to provide superior services
» Strong differentiator for Infosys against its competitors
» Providing a mix of on-site and offshore consulting capability
» Bringing rich mix of consulting skill and delivery resource, managing the risk of offshore deployments for clients, resulting in rapid scaling and mitigating the risk of failure
Slide 21
© Infosys Technologies Limited 2004-2005 Analyst Meet 2004 | New Game. New Rules.
Core principle 5 - Portfolio approach to managing Europe
Core principle 5 - Portfolio approach to managing Europe
Invest
» Growth markets include Financial Services, Retail, Manufacturing, Automotive & Aerospace, Telecom
» More aggressive localisation plans» Near shore options» Solutions and alliances orientated
towards these markets
Sustain» Sustaining business levels in
selected geographies» Apply best practices from ‘Invest’
markets» Focus on maintaining revenue
streams and profitability
Others» Pursue opportunities in new
geographies, new verticals» Start-up in potentially lucrative new
markets and treat according to segment
Regenerate
» Utilities, Pharma» Develop specialized services» Kick-start through alternate
strategies, then build incrementally
Slide 22
© Infosys Technologies Limited 2004-2005 Analyst Meet 2004 | New Game. New Rules.
Open to questions…Open to questions…
Slide 23
top related