Transcript Analyst Meet 2003

Growing European Practice
Priti J. Rao
The Market in Europe
Europe - IT Services Market, 2003
Switzerland,
3%
Others, 16%
United
Kingdom, 30%
Nordic, 8%
BENELUX,
10%
Germany, 19%
France, 15%
» Market size is $160 bn, growth
forecast of 4.3% CAGR
» UK is the largest IT market in
Europe
» 3 countries contribute to 64% of
the European market
Europe IT Services - Segments, 2003
Process
Management
14%
Hardware
Maintenance &
Support
13%
Software
Maintenance &
Support
9%
Europe IT Services - Segment Growth
US$ mn
200,000
Process Management
IT Management
150,000
Development &
Integration
Consulting
100,000
Consulting
7%
IT Management
23%
Development
and Integration
34%
50,000
0
2002 2003 2004 2005 2006 2007
Software Maintenance &
Support
Hardware Maintenance &
Support
Source : Gartner
© Infosys Technologies Limited 2003-2004
Analyst Meet 2003
Slide 1
Business Environment & Trends
Environment
» Challenging European economy driving value consciousness
» Inclination towards strategic sourcing – better quality, higher
predictability
» “Do more with what we have” approach visible across the board
Trends
»
»
»
»
Need IT solutions for genuine business problems
Tactical projects – Buyers focused on TCO and ROI in 4 to 6 months
Strategic outsourcing projects – Highly competitive pricing
Longer sales cycles – Technical, Business and Reference checks
© Infosys Technologies Limited 2003-2004
Analyst Meet 2003
Slide 2
IT Services in UK & Continental Europe
» Synergetic appeal of Offshore - Combined leverage of BPO and
IT outsourcing
» UK much ahead in GDM adoption
» Culturally similar to US
» Favorable labor laws
» Significant growth expected in BPO
» Expansion of EU – Eastern European countries
» Opportunity of attractive sourcing channels
© Infosys Technologies Limited 2003-2004
Analyst Meet 2003
Slide 3
Competitive Landscape
Competition
Behavior
» Global majors across all countries
» Marketing message – shift from
business consulting to their core
strengths like integration,
development, maintenance, etc.,
» Local players in select geographies
» Niche players
» Pure-play offshore players
» Offerings based on industry
templates, standard packages, and
integration standards
» Announcing plans to build Indiabased delivery capability
» Sacrificing margins to improve
personnel utilization
» Investing in hiring people with a
strong combination of technical,
business and communication skills
» Alliances & partnerships
© Infosys Technologies Limited 2003-2004
Analyst Meet 2003
Slide 4
Challenges in Europe
» Each country a micro-market
» Cultural and language heterogeneity
» Complex visa regulations, long lead times
» Protectionist labor regulations
» Conservative vendor management practices
» Leveraging our brand
© Infosys Technologies Limited 2003-2004
Analyst Meet 2003
Slide 5
Our Journey So Far : CAGR of 85.22%
Financial Year
Europe Revenue
(US $ million)
Infosys total
Revenue
(US $ million)
Europe as a % of
total revenue
2002-2003
133.24
753.81
17.7
2001-2002
106.10
545.05
19.5
2000-2001
77.88
413.85
18.8
1999-2000
30.07
203.45
14.8
1998-1999
11.32
120.96
9.4
© Infosys Technologies Limited 2003-2004
Analyst Meet 2003
Slide 6
Forging Ahead : Enhancing Brand
Media relations
» 280 pieces of coverage in UK,
France & Germany. Steady stream
of 40 pieces per month
» Press information material and
datasheets
Analyst programs
» Gartner Outsourcing
» Giga World
» Periodic request based briefings
» Top management meetings
© Infosys Technologies Limited 2003-2004
Events
» Solutions showcase
» LTO for Apparel: London
» Offshore strategy: Frankfurt
» 36 new business opportunities
generated from 8 events
» Increased profile - Infosys private
CEO breakfast at WEF, Davos
Analyst Meet 2003
Slide 7
Forging Ahead : Sales & Client Relationships
Sales
Client relationships
» Expansion of sales team
» Milan in Europe
» UK, Germany, France, Belgium,
Sweden, Switzerland,
Netherlands
» Vertical segmentation and
targeting
» Piloting in the UK
» New markets – Italy
© Infosys Technologies Limited 2003-2004
» Board-level sponsor for key
relationships
» Key Account Management
» Account Management process
» Customer Satisfaction Action
Planning
» Local hires for local relationships
Analyst Meet 2003
Slide 8
Forging Ahead: Innovation in Offerings
Solutions
» IT Effectiveness
» Forecourt Retailing
» BASEL 2
» Enterprise platform migration
Alliances
» Strategic and Complementary
» Microsoft
» Informatica
» Oracle
» Tactical
Evangelizing new service offerings
» Independent Validation Services
» Infrastructure Management Services
» Systems Integration
» Business Process Management
© Infosys Technologies Limited 2003-2004
Analyst Meet 2003
Slide 9
Forging Ahead: Excellence in Execution
Excellence by design
Mauritius - Sourcing channel
» Metrics driven lifecycle processes
» Available talent and skills
» Dashboards for tangibalising client
benefits
» Fit with European markets
Quality and Productivity
People development
» Software component reuse
» Competency development –
Leadership, Interpersonal, Domain,
Technical
» Tools – InFlux, TCC, SEEC
» Controlling COQ
» Sarathi – mentoring program
» Focused Employee Satisfaction
initiative
© Infosys Technologies Limited 2003-2004
Analyst Meet 2003
Slide 10
Infosys in Europe : Recent Wins
» Leading bank in the UK
» Strategic sourcing for development
and re-engineering applications
» Leading sportswear manufacturer in
Germany
» Program management of web
applications
» SAP maintenance
» Leading specialty retailer in France
» Re-engineering of after-sales
service application
» Telecom major in Benelux
» Strategic sourcing for development
and re-engineering applications
© Infosys Technologies Limited 2003-2004
» Major food and confectionary maker
in the UK
» Portfolio analysis for offshore
outsourcing
» European logistics major in Germany
» Re-engineering of package sorting
application
» Shipping arm of an European oil and
gas major
» .NET development of marine asset
maintenance system
» Global investment banking firm in the
UK
» Development of back-office
application for regulatory
compliance
Analyst Meet 2003
Slide 11
Infosys Europe is well positioned…
» Highly receptive market
» Powerful value proposition
» Strong brand equity
» Mature client relationship framework
» Value-enhancing offerings
» Superior execution prowess
» Infosys’ European Practice – an engine for growth
© Infosys Technologies Limited 2003-2004
Analyst Meet 2003
Slide 12
Thank You
www.infosys.com