Investor Meet February Travel & Transportation. Madhu Kumar Global Vertical Head

Transcription

1 Investor Meet February 2012 Travel & Transportation Madhu Kumar Global Vertical Head

2 Safe Harbor Statement Certain statements on this presentation 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 forwardlooking 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, our ability to attract and retain highly skilled professionals, time and cost overruns on fixedprice, fixed-time frame contracts, client concentration, restrictions on immigration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks, our ability to successfully complete and integrate potential acquisitions, liability for damages on our service contracts, the success of the companies in which Hexaware has made strategic investments, withdrawal of governmental fiscal incentives, political instability, legal restrictions on raising capital or acquiring companies outside India, and unauthorized use of our intellectual property and general economic conditions affecting our industry 2

3 GTT Overview: Key Facts 45 Active Clients served worldwide (Dec 2011) 1265 Employees globally (Dec 2011) 23.2% Revenue Contribution (2011) 8 Million dollar clients (Dec 2011) 14 Countries serviced worldwide Certifications CMMI Level 5, ISO 27001, PCIDSS San Jose Chicago Mexico Toronto Boston New Jersey Atlanta Industry Recognitions London Paris Brussels Frankfurt Delivery centers in Mumbai, Chennai, Pune, Mexico, Bangalore, New Jersey Dubai Mumbai Nagpur Pune Bengaluru Chennai Bangkok Singapore Proximity Center Delivery Center Sales Office IATA Certified Strategic Partner for Simplify the Business Initiatives One of the acclaimed product vendor for Industry initiative on Ancillary Revenue, EMD Product Key Client Concentration 9 Global Airlines, 3 Large Service Providers 4 Rail Sector clients 5 Transportation Customers Sydney Tokyo 3

4 Dominance in Travel Industry Service offerings Airlines GDS, TMC s, SP s Rail Domain - Passenger Reservation DCS, Loyalty Ticketing, EMD E-Commerce Mobile devices - Cargo Services AWB / Warehouse Cargo Portal E-Freight - Passenger Inventory Reservation Fulfillment DCS Loyalty - Passenger E-Commerce Rail Retail Fulfillment Settlement Loyalty Mobile devices Automated Fare Collections 4

5 Differentiated Offerings Target Customer Needs Airlines, GDS & TMC s. Transportation, 3PL Sector Leadership Position End to End Service Offerings for all IT Services Needs Domain Competency highly skilled team on Business domain, legacy transaction services & stateof-the-art advanced technology skills Business Solutions Niche business solution offerings like EMD. FOCUS Growth Sector Niche service offerings, leveraging ERP Domain and business domain message interfaces Warehouse Analytics Highly skilled team on logistics and warehouse analytics, solving specific customer needs Market Alliances Key growth alliances with SAP, Oracle and Unisys. 5

6 The year gone by Increased the corporate share from 17% in 2009 to 23.2 % in 2011) Added 8 Marque global clients, 2 new countries, increasing the active clients serviced to 45 o Restructured the service line units Travel, Transportation (thereby enabling focus growth on revenue and client acquisitions will continue in 2012) o Established steady state on the previous year large global deal for the unit. Created Advanced Solutions Group, servicing the needs of industry business unit o Enabling Non-Linear revenues in 2012 and beyond 6

7 Travel Industry Birds Eye View Market Maturity Airlines, GDS, TMC s to increase spend on IT Application modernizations Rail Companies to get Govt. Funding on Modernization 2011 till 2013 Air Travel Growth of CAGR > 6% IT Spend Air Travel Sector Revenue (~500 B$ in 2009) : IT Spend (< 15 B$) GDS & Hosted Solution Providers to increase IT Spend to retain market share Airlines will require Services based IT products designed to maximize business revenue Rail IT Modernization including Advanced Information Systems will steer high spend Hexaware Focus Areas : 2012 Leverage the dominant positioning and also Strengthen solution offerings like EMD Focus on GDS / Hosted Solution Provider Spend, Partner to produce Non-Linear Revenue Streams Partner with Large Airlines (current customers) on Services based IT solutions 7

8 The word on the Street Customers have been under-investing in key customer facing areas budgets remain stable to higher Consolidation in industries like Airlines force clients to build Fast time to market application platforms that can handle acquisitions and growth The paradigm shift in consumer behavior towards social media and mobility is forcing technology change Clients are forced into multi vendor scenarios due to the lack of depth in key domain areas amongst Larger vendors 8

9 Addressing the market needs Focusing heavily on existing accounts and increasing our share of wallet and carve out long term large deals aligned Account Managers and Client Partners to all accounts to increase the level of engagement Investing in differentiated offerings in areas such as o ancillary revenue generating tools, o advanced analytics and o pricing and revenue management capability Choosing target customers carefully, generating detailed account plans and investing in sustained efforts. Consistent Marque clients wins against competition from scale players globally. 9

10 Organization Structure Travel & Transportation Travel & Transportation BU Head Advisory Council CIO View Sales & Client Mgmt (23 Global) Service Delivery Advanced Solutions Group (30+ Domain / Tech) Marketing (3) Dedicated Vertical teams in Americas and Europe Client Partner Roles aligned after internal Hexavarsity certifications SAU Structure for Top Clients Teams alignment based on vertical service offering, enabling sustainable growth Build and own business case for Solutions, alliances, R & D and product solutions Package relevant Hexaware Technical IP s and strengths Monitor market development, competition and Prospecting Own and Execute Global Marketing Activities 10

11 Dedicated Client Management Yielding Results Client Profile Current Growth ( FY 2011) Expansion Plans FY 2012 and beyond 1. Largest Global Airline Growth on new service lines Integration Services, part of multiple integration swim lanes Air Cargo, Crew Management, Passenger Applications Large Re-engineering of Legacy Application, Call Center Mgmt E-Commerce Initiatives largest spend for the next 3 to 5 years Modernization of Legacy PSS Applications Passenger Analytics, Quality Assurance and Infrastructure Management Services 2. Large Asian Carrier Growth on niche service lines Testing, QA services End-to-End application management for Freight management applications Data Migration Services Passenger Analytics, QA/Testing Services MRO migration, Data migration services 3. Largest Logistics provider Expansion into Application Development HR Applications SAP, multiple domain areas Development of State-ofthe-art Talent Management Applications, New Technologies Rapidly growing service lines into QA/Testing Services Analytic Solutions, BI Factory expansion Growth into Passenger services Apps, Mobility, Freight Management Visibility solutions. 11

12 2012 : Market Message Deep domain knowledge in Airline Customer and Operational functional areas) that enables us to deliver transformational programs Rail Industry Niche offerings to result in continued client acquisitions Strategic Alliances with o SAP ( Analytics), o Oracle ( Transportation Management), for joint GTM Invest in IP in the areas of Paperless Airline transactions, Advanced Analytics and Ready to Use Testing Suites 12

13 And finally Leverage undisputed Leadership position in Airline Service offerings for further expansion in 2012 Establish Non Linear Revenue Stream through multiple deployments of EMD Solution Create differentiated solutions on the T&L industry. Comfortably beat corporate growth % and increase the GTT contribution. 13

14 Our Product Offering Travel Airlines Products Development, Non-Linear Revenue Plans ( FY 2012) o Electronic Miscellaneous Documents Development complete, Marketing material in progress, planned launch Q Good traction on sales front & existing customers Vehicle for SaaS based customer acquisitions. 14

15 Thank You 15