12 May 2008 TCS Analyst Day, New York
New Growth Markets: Asia PacificGirija PandeEVP & Head – Asia Pacific
12 May 2008
0
2
4
6
8
2006 2008 2010 2012
Asia Pacific ~ 7%
Africa ~5.8%
Middle East ~5.4%
Europe~ 3.2%
Western Hemisphere~3.4%
Expected GDP Growth
GD
P G
row
th ra
te
Source: IMF
Asia Pacific: Emerging Economic Powerhouse
12 May 2008
• Present in the region for 20 years- 15 Offices in 12 major economies
• Strong local staffing- Over 5,000 professionals
• Leveraging GNDMTM
- 5 Global Delivery Centers• Serving 160 clients
TCS In Asia Pacific: Strong And Growing Presence
87
122
206
2963.9 4.1
4.8 5.2
0
50
100
150
200
250
300
350
FY05 FY06 FY07 FY080
1
2
3
4
5
6
Revenue % of Total Revenues
49% CAGR: significant margin improvement
12 May 2008
Why Asia Pacific
• Global support for global customers• Access into an underserved region
- Every country has major organizations – Banks, Telcos, Government, Retail
- Small markets can be attractive- National Champions have
Regional and Global ambitions• Source and develop new talent pool• Diversify revenue base beyond mature markets
Accelerate company growth rate
12 May 2008
High
High
LowReview
Partnership
• PRC• ANZ• Singapore• Japan• Hong Kong
Selective
Focus
• Malaysia
• Indonesia• Thailand• Philippines
Mar
ket A
ttrac
tiven
ess
•Vietnam
•Rest of ASEAN
•Taiwan
•South Korea
Low TCS Strength
Australia China Hong Kong Indonesia Japan Malaysia New Zealand Philippines Singapore South Korea Taiwan Thailand
High Level Regional Strategy
12 May 2008
• Local delivery & sales capability
- 13 major countries
- Large number of talented local resources: 21 nationalities
• Regional Rollouts & regional networking support to global customers
- Facilitate customer regional expansion
• Focus on National Champions
- Regional and global IT support & world class solutions
• Role of regional vendor with global capability
- No credible regionally owned IT services provider
Investment in Asia Pacific ahead of Indian competition
Success In Asia Pacific
12 May 2008
• Operations opened in 2002; 4 GDCs• Current strength: 1200+ (92%+ local recruits)• Invited by Government to form JV• Strategy
- Develop China as part of GNDM- Allow Clients to De-risk- Multi-lingual support- Access large & growing domestic market
• Rapidly globalization• Need for world class IT solutions• Focus: BFSI, Telecom & Government
44% growth in FY 2008
Country Case Study: China
12 May 2008
• JV operational in Jan’07
• Bank of China and CFETS wins fuel domestic growth
2003 2004
Proven Excellence in Delivery
• Motorola relationship started
• Re-engineering projects for regional customers like AXA
2005
• Acquired many regional customers
• Dedicated centers for AXA, JCI & Motorola
• Expand GE & Motorola engagement
Sustained Growth
•Establishment•Internationalcustomers
Initial Success & Consolidation
2006 - today
Accelerated GrowthVision: “Be a Role Model IT Services Company in China”
5,000 Associates by 2011
China for Global
China for APAC
China for China
China: Bold Vision, Strong Foundation
12 May 2008
• Serving Australian Customers for 20 years
• Over 1800 consultants
• Strategy:
- Strategic acquisitions to strengthen Consulting and Solutions portfolio
• TCSM, a niche consulting firm, in 2006
• FNS, IT Solutions provider for BFS industry, in 2005
- Full services play to capture large deals
• CBA (largest bank), AGL Energy ( largest E & U organization), Qantas Airways
(largest airlines)
• Key Clients
National Champions Global/MNC’sANZ Bank, Commonwealth Bank of Australia, Woolworths, VCAA, Qantas Airways, AGL Energy
Macquarie Bank, Goldman Sachs, Hutch, Ford, Foxtel
Australia And New Zealand: 75% Growth In FY2008
12 May 2008
• First Indian IT Services firm to start operations: 1987
• 1600 associates
• Strategy:
- Provide local delivery capability for MNC customers investing in Japan
• Focus especially in BFSI
- Build relationships with large National Champions who are looking for transformation & global sourcing support
- Leverage India/China offshoring to offset skill shortage and rising costs in Japan
- Create unique capability in Embedded Systems delivery
• Innovations lab in Yokohama.
• Key Clients
National Champions Global/MNC’s
Shinsei Bank, Matsushita, Nihon Michelin, NISSAN, Toshiba, Daiwa Securities
AIG, Citi Group, Morgan Stanley
Japan: 25% Growth In FY 2008
12 May 2008
• 2nd Largest IT Services Market
• Offshoring is mainstream for National Champions- Offshoring to China and India
• Resource shortage in Embedded Systems- Shortage of 25,000 Embedded Engineers in Japan - Reduced Japanese language dependency in Embedded Software,
enabling higher offshoring.
Future Of Japan For TCS
12 May 2008
• Best Performing Company Award and Best HR Award– Hangzhou National Hi-tech Zone.
• IDC China ranked #1 TCS Bancs Core Banking Solution in China.
• Forbes Asia Fab 40, 2007• BusinessWeek’s Asia top 50 list in 2007
– Only Indian IT firm included• Fortune Asia Top 10 Regional IT Companies in 2007
• Best Performing Company Award and Best HR Award– Hangzhou National Hi-tech Zone.
• IDC China ranked #1 TCS Bancs Core Banking Solution in China.
• Forbes Asia Fab 40, 2007• BusinessWeek’s Asia top 50 list in 2007
– Only Indian IT firm included• Fortune Asia Top 10 Regional IT Companies in 2007
Recent Achievements
12 May 2008 TCS Analyst Day, New York
New Growth Markets: Asia PacificGirija PandeEVP & Head – Asia Pacific
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