Winning position in a new market Cyril Garcia, Strategy & Transformation Director WestLB Software & Services Day Zurich, June 7
Proposed agenda 1 2 Where we are Market dynamics 3 Toward new positionings 2
For our industry, very challenging years Combination of hardware and software create both cost savings and revenue! Big Bigisis beautiful? Clients want integrated services and innovation! The The one one stop stop shop shop dream dream? IPP will break the fortress Europe! «This This is isthe end end» for for the the european players? 3
Thanks to our I 3 program we are now positioned as a global leader IBM HP Accenture Capgemini Global reach Strong brand Leader in chosen segments Above market growth Differentiated IP Balance sheet to invest Lean cost structure Strong sales coverage 4 4
We are starting a journey far more complex, which mobilizes the group Manage the portfolio Capgemini Application lifecycle services Testing services Competition Acquisition Invest in new offerings Rebalance geographies Streamline cost structure ITS & Cloud BIM Smart energy Latam, APAC, India, Eastern Europe Rightshore India enabled transformation Lean Business analytics Cloud computing Smarter grid Cloud BRIC, Mexico, South Korea,China Leaner cost structure Layoffs plan Become strategic for clients Global and country managed accounts Diamond clients Sales coverage 5
Some areas of our portfolio are getting hot Pipeline growth Offerings Disciplines Geographies Sectors ITS SES ALS TST BIM BPO CC APAC Eastern Europe FS Manufacturing Utilities CRM Sogeti NA Nordics Gov US SCM 6
To benefit from an apparent resurgence we are driving both industrial and technology strategies New Business Models Sector Solutions IP Solutions Industrialised Offerings, Global Reach Globalisation, Scale Increasing Competition Uncertain Market Recovery Technology Leadership Emerging Technologies Capgemini must be ready to exploit market evolutions 7
Back Office industrialization will share the stage with technology drivers Growth New New custom custom softwares softwares Business maintenance and BO industrialization Tipping point Dispersed Dispersed device device systems systems Systems Systems of of systems systems 2010/2011? Time 8
Global delivery will be a strong differentiator in a thawing market Offshore is rebounding a driver we embrace 12% 10% 8% 6% 4% 2% 0% -2% -4% Offshore headcount growth q/q Q1'08 Q2'08 Q3'08 Q4'08 Q1'09 Q2'09 Q3'09 Q4'09 Q1'10 Capgemini Accenture Wipro (IT svces) Subcontractor model Volume driven Pure delivery Onshore responsibility 9 000 Kanbay 20 000 One team model Shared KPIs Client exposure Sales support Innovation Shared responsibility 25 300 28 000 36 000 2006 2007 2008 2009 2010 Offshore headcount Empowered model Shared client ownership Full responsibility Transversal expertise Most competitive pricing Capgemini has taken early steps and will keep its focus 9
Techno evolutions feed a disruptive world Virtualized Virtualized economy economy A world world of of cities cities Reality of Cloud offerings: external storage, processing and connectivity options at unit and usage costing Data generation continues to explode: analytics, BI, manipulation personal data management tools grow as a result, in memory Security Globalisation: international regulation, globalised markets and organisation structures continue apace Business Business decision decision making makingshifts east east A sustainable sustainable growth growth 10
Technology drivers are accelerating In-memory Real-Time Maturity Networked devices Iaas Green IT BI & analytics Portals MCommerce Cloud Virtualization Consumer technology & Web services Smart energy Mobility Collaboration Smart X Social web Smart transport Cloud services Apps Marketing Social CRM Capgemini builds on strong assets: Alliances, Technology Culture, Management Talent and a true Entrepreneurial Mindset 11
Clients are starting to adopt these drivers Shared resources Infrastructure Interaction platform IP Xaas Service platform Flexibility Saas+BPO End-to-end services Customed Services 12
These technology drivers are accelerating with different impact on industries Manufacturing Retail EUC FS Services GOV TME Level of change Smart meters & smart grid Online 2.0 Customer lifecycle management PLM Consolidation Multi-channel Customer analytics Emerging markets Network engineering & field management New entrants Billing & customer information systems Risks & regulation Consolidation Standardization Rail network management Diversification Consolidation ehealth Security systems Tax systems E-border Digital media Smartphones Billing Capgemini has some strong positions and consulting favors business alignment Long term growth 13
More than ever Capgemini is agile within its ecosystem Anticipate with innovators Tip of the spear with our very large partners Take the lift with fast growers 14
During the downturn we strengthened our relationship with Package leaders Integrated Enterprise BS 7 SAP/Microsoft integration Ready for Fusion Intelligent Enterprise SAP BOBJ SAP Smart Analytics with Teradata OBIEE Capgemini Flexible Enterprise AIA BPM Saas Vertical Expertise Oracle Tax & Global public sector Oracle Insurance & Financial Services Case management There is significant opportunity in 2010 and beyond 15
Clients are expecting new business models Models NEW End-to-end IT structure performance Complex Complexsystems Interaction Interaction services services End-to-end business outsourcing End-to-end IT applications Transactions Transactions Aas Aas OLD OLD NEW Businesses 16
How to win positions in this new market Economic Models NEW INVESTMENTS INVESTMENTS SECTOR SECTOR KNOWLEDGE KNOWLEDGE Alliances, Alliances, IP, IP, COEs COEs FS, FS, Telco,PS,EU Telco,PS,EU OLD TECHPLATFORM TECHPLATFORM BI, SES, Alliances BI, SES, Alliances OLD NEW Businesses 17
We are changing to build our leadership position Global reach Capgemini s current position Strong brand Leader in chosen segments Strengthen Core Business Renewed offshore drivers Lean supply chain Portfolio management Above market growth Differentiated IP Balance sheet to invest Lean cost structure New Growth Initiatives Emerging markets New business models Differentiated IP Strong sales coverage 18
This may trigger a new IT role where intelligence and services will be key differentiators Business Bundling BPO + Software platform Technology Aggregated Cloud services Sector expertises Partner resources Eveything as A service Integrator and Operator Own resources Alliances Partners Complex custom softwares Security SLAs Service Intelligence 19
Our acquisition program is aligned Expand IBX Offensive Long Term Smart X China Revenue Synergies Cost Synergies Short Term US portfolio Defensive Consolidate 20
We now are facing new challenges for 2013 Business partner New models Sector expertise Consulting Business technology Tech integrator Independent Industrialized Build & Operate Global Local Intimacy Rightshore Proximity Reactive Pervasive 21
Winning position in a new market Cyril Garcia, Strategy & Transformation Director WestLB Software & Services Day Zurich, June 7