Gabriel Rozman – President, Iberoamerica
Girija Pande – Regional Director, Asia Pacific
Tanmoy Chakrabarty – Vice President & Head, Global Government Industry Group
Analyst Day, Mumbai
12 February 2008
Leading in Challenging Times
New Growth Markets
- 1 -
TCS Vision of New Growth Markets
• Several Tiers in this Market
• Faster Growth than traditional markets
• Underserved by the Global IT Industry
• Every Country has Major Organizations
• Small Countries need Ready Made Solutions
• Emerging markets may not follow traditional recession patterns
Today these markets are contributing substantial revenues to TCS
New Growth Markets
A Clear Differentiating Strategy to Expand Revenues
in Regions of High Growth
- 3 -
TCS Iberoamerica - A Success Story
Operations across 12 countries in Latin
America, Spain and Portugal
• Founded in 2002, 3 years ago
• 700 professionals, 1000+ by FY2005
• Strong local country staffing (over 95%)
• Experienced Latin region management team
• 2 CMM Level 5 centers by 2004
• Serving over 50 clients from Latin America,
Europe and the US
Covering the Region from four Delivery Centers
Argentina
Brazil
Costa Rica
Chile
Colombia
Mexico
Peru
Portugal
Spain
Trinidad & Tobago
Uruguay
Venezuela
- 4 -
Early Inroads through Long Term Visioning
• Initial Success in Iberoamerica - 2002
• Replicable success in Brazil, Chile & Mexico
• 18-24 Month Success in such Diverse Markets as Portugal and Colombia
• An Expertise which is a Competitive Advantage
• Substantial advantages of being the first mover
• Concentrate on specific verticals and geographies
Success being emulated in our new growth markets strategies
- 5 -
Global vs Local Markets
• Our Customers themselves are Expanding Rapidly into Emerging Markets and need IT
Support
• Global Customers Expect Global Support
• Replicate Solutions in Emerging Markets
• Even small local markets can be very attractive
– Saudi Telecom
– Banco Pichincha
– Mexico Social Security
– Chile Civil Registry
• Local presence the key to long term success strategy
Being global but playing local
- 6 -
Supports our Global Network Delivery Model™ (GNDM )
• Growth in Emerging Markets will lead to possible new centers which will build local capacity
• Systems implementations for our customers require local support - expensive to do it from
India
• Harnessing new talent which is possible in new markets
• Language capability an integral capability available in such markets
Enhancing delivery capability in line with our clients’ strategies
APAC - The China Initiative
- 8 -
China - TCS Global Delivery Network Model™ Driving Growth
• Hangzhou - Global Delivery Centre & CoE (IBM AS 400)
• Beijing - Sales, Delivery & CoE (Microsoft)
• Shanghai - Sales, Delivery & CoE (SAP & Oracle)
• Current Strength - 1100+ (+92% Local Recruits)
• Institutionalized security compliance and IPR Protection
• Serving 30 customers from Financial Services, Telecom, Manufacturing and Government
verticals
• Multilingual support for large customers
• Relationship through value and trust
“We can see the value the TCS Consultants bring to us and to China ERP market. Their
consultants bring in best practices and experience from their global repository”
Lawrence Chee
Motorola Corporation, China
- 9 -
Case Study - Bank of China
Business Drivers
• Listing of Bank of China
• Foreign bank entry in 2008, increase service
levels, improve risk management and improve
cost to income ratio.
• Requirement for a 1st world system that will allow
BoC to continue to dominate the market
Project Information
• The Largest Banking implementation ever
undertaken
–380 Mill accounts, 22,000 branches,
205,000 front line users
–Covers retail, commercial, cards, channels,
payments, AML and over 300 interfaces
• Project cost is $US 97 M for a roll out of 4 out of
32 regions
Delivery Timelines
• First phase pilot in June/July - Roll out up to the
Olympics in August 2008. Roll out continues after
Olympics.
• Project payback to the Bank is estimated at just
over 2 years after completion.
TCS won because of…
• Proven local expertise, proven SI capabilities,
performance, functionality & multilingual
capabilities.
• Pioneered Global Network Delivery Model™
• TCS Integrated Full Services play
–Provide full SI Services - local experienced
resources, international resources with
similar experience (SBI), the products, the
methodologies, the corporate strength to
see it through
- 10 -
China Foreign Exchange Trading Systems (CFETS)
About CFETS
• An arm of the People’s Bank of China
• Provides systems for interbank foreign exchange
(FX) trading, RMB lending and bond trading;
organizing interbank FX trading; prompting the
clearing of RMB lending and bond trading;
providing an online commercial paper quotation
system; providing information on the FX, bond
and money market.
Business Drivers
• The New Generation CNY Trading System
(NGCNYTS) is part of CFETS overall efforts to
implement more strategic IT systems
• China gets ready to be fully integrated into world
financial markets and its agreement with the
World Trade Organization.
• Secure, efficient, convenient and low-cost service
to CFETS members.
• Easy addition of new instruments and markets
TCS Solution
• The proposed solution will be based on TradeX -
TCS’ futuristic Trading Solution.
• The deal paves the way for TCS to implement a
forward-looking CNY (China Renminbi) trading
system for CFETS.
Benefits
• Lower time-to-market for new instruments
• Integrated system for multiple asset-
class/markets
• Reduced cost of maintenance
• Help CFETS to align itself with international best
practices
- 11 -
JV Vision as Seen by the Chinese Government (NDRC)
• To be a Role Model for Chinese IT Industry & establish global offshoring industry in IT/BPO
sector
• Will be the only one of its kind to be set-up and supported by NDRC (e.g. Motorola,
Microsoft)
• To become the largest software services and solutions company in China to provide the
domestic market with choices
• TCS WOFE will be merged into the JV before end of 2008
• JV expected to scale up to 5000 Associates by end of FY 11
• Microsoft to join the JV by March 2008
Current Structure
Chinese
Parties,
27.78%
TCS, 72.22%
Proposed Structure
Chinese
Parties,
25.00%
Microsoft,
10%
TCS, 65.00%
Planned merger of TITL & exit of
Microsoft 3 years
TCS, 90.00%
NDRC, 10%
- 12 -
China Growth Path
0
5
10
15
20
25
30
35
40
FY 06-07 FY 07-08
Revenues
All figures in US $ Millions
TCS Global Government Industry Group
Emerging IT Services Player in New Growth Markets
- 14 -
Analyst Opinion
TCS differentiates itself from its
competition by focusing its sales
messaging on outcomes for
government, rather than technology
Gartner, IT Services Providers , APAC
32% Share in Government IT Services in India # 1 in India
Top 10 IT Service Provider in APAC for Government
- 15 -
2007 Government Technology Awards bestowed on our client - Gujarat Government for TCS developed
Integrated Workflow and Documentation Management System under the “Connected Government”
Category
DigitalGov - The Gujarat Experience
The Gujarat State Government is at the threshold of
e-Governance and IWDMS (DigiGov) will prove a
catalyst for taking the e-Governance a step ahead
for better delivery to citizens at large and improve
the overall efficiency of the working in the
Secretariat -Victor Mecwan, Under Secr, Dept of
Science & Tech, GoG
E-literacy and e-usage increased from 20% to 95% in 2300 strong workforce
10 tonnes of paper saved in 18 months using this solution
1800 Acts/Rules and 1000 Government Orders are now available
in the knowledge repository for ready access and sharing
• File processing touch points reduced from 46 to 12
• File cycle time reduced from 1412 to 285 minutes
- 16 -
AP Online
- 17 -
MCA21 - Ministry of Corporate Affairs
• Peak portal hits: 14 mln
• Max docs filed in a day: 41800
• Total filings till date: 3.4 mln (avg. 1.2 Mb)
• Companies registered online: 63353
• 52 front offices
• Name approval from 7 days to 1
• Company incorporation from 15 days to 1-5
• Annual return from 60 days to instant
• Balance sheet from 60 days to instant
• Change in directors from 60 days to 3
Covers all India
- 18 -
TCS Global Government Industry Group Strategy - New Growth
Markets
New Growth Markets
Framework Oriented Approach - FOA Alliances• SAP• IBM• Microsoft• HP• Oracle • Sun
• AP Online
• DigiGov
• Unemployment Taxand Insurance
• VAT & Tax
• MCA
• Public Works
• Municipality
• Healthcare
Holistic
Approach
Reactive
• Bespoke Solution
• System Integration
Proactive
• Frameworks
• Services
• EU
• World Bank
• UN
• AfDB
• ADB
Robust Strategy - Delivering Value
Replicable Offerings
Leading in Challenging Times
New Growth Markets