New Growth Markets: Asia Pacific Girija Pande EVP & Head Asia Pacific TCS Analyst Day, New York
Asia Pacific: Emerging Economic Powerhouse GDP Growth rate 8 6 4 2 Expected GDP Growth Asia Pacific ~ 7% Africa ~5.8% Middle East ~5.4% Europe~ 3.2% 0 Source: IMF 2006 2008 2010 2012 Western Hemisphere ~3.4%
TCS In Asia Pacific: Strong And Growing Presence 350 6 Present in the region for 20 years - 15 Offices in 12 major economies Strong local staffing - Over 5,000 professionals 300 250 200 150 100 3.9 87 4.1 122 4.8 5.2 296 206 5 4 3 2 Leveraging GNDM TM 50 1-5 Global Delivery Centers 0 0 Serving 160 clients FY05 FY06 FY07 FY08 Revenue % of Total Revenues 49% CAGR: significant margin improvement
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
High Level Regional Strategy Partnership Focus Market Attractiveness High Taiwan South Korea Vietnam Rest of ASEAN PRC ANZ Singapore Japan Hong Kong Malaysia Indonesia Thailand Philippines Low Review Selective Low TCS Strength High Australia China Hong Kong New Zealand Philippines Singapore Indonesia Japan Malaysia South Korea Taiwan Thailand
Success In Asia Pacific 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
Country Case Study: China 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
China: Bold Vision, Strong Foundation China for China Vision: Be a Role Model IT Services Company in China Accelerated Growth 5,000 Associates by 2011 China for Global Initial Success & Consolidation Establishment International customers Proven Excellence in Delivery Motorola relationship started Re-engineering projects for regional customers like AXA China for APAC Sustained Growth Acquired many regional customers Dedicated centers for AXA, JCI & Motorola Expand GE & Motorola engagement JV operational in Jan 07 Bank of China and CFETS wins fuel domestic growth 2003 2004 2005 2006 - today
Australia And New Zealand: 75% Growth In FY2008 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 ANZ Bank, Commonwealth Bank of Australia, Woolworths, VCAA, Qantas Airways, AGL Energy Global/MNC s Macquarie Bank, Goldman Sachs, Hutch, Ford, Foxtel
Japan: 25% Growth In FY 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 Shinsei Bank, Matsushita, Nihon Michelin, NISSAN, Toshiba, Daiwa Securities Global/MNC s AIG, Citi Group, Morgan Stanley
Future Of Japan For TCS 2 nd 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.
Recent Achievements 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
New Growth Markets: Asia Pacific Girija Pande EVP & Head Asia Pacific TCS Analyst Day, New York