docPh. Donche-Gay at CM-CIC
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Ph. Donche-Gay at CM-CIC
Capgemini Philippe Donche-Gay The stock market meets IT sector companies Paris 2006 The recovery of Capgemini group Operating margin % Group revenue evolution 8000 12,0% 10,0% 6000 8,0% R CAG +10% 4000 6,0% 4,0% 2,0% 2000 0,0% 0 1999 2000 2001 2002 2003 2004 2005 F 2006 2000 2001 2002 2003 2004 2005 2006 Restructuring Costs Cash evolution 500 1200 400 1000 800 300 600 200 400 100 200 0 0 2001 2002 2003 2004 2005 2006 F 2000 2001 2002 2003 2004 2005 2006 F The stock market meets IT vendors companies 2 Back to basics everywhere Average staff Productivity rate Group TS 98,0 97,5 97,0 70000 96,5 96,0 95,5 60000 95,0 2 003 2 004 2 005 H1 2006 Support Function Costs 50000 2006 F SBUs 20% 40000 15% ` 10% 30000 2000 2001 2002 2003 2004 2005 2006 F 5% H1 04 The stock market meets IT vendors companies H2 04 H1 05 H2 05 3 H1 06 H2 06 F 3 structural achievements The Outsourcing play The Rightshore acceleration The renaissance of North America The stock market meets IT vendors companies 4 Outsourcing transformed the revenue mix 2001 Mix 22% 2005 Mix 38% OS The stock market meets IT vendors companies 5 Rightshore : acceleration 2001 Mix Capgemini India 22% 2006 x 50 2001 12 000 2005 Mix 38% 6000 3679 1934 226 OS 412 1126 2001 2002 2003 2004 2005 2006 The stock market meets IT vendors companies 6 Renaissance of Capgemini North America 2001 Mix Capgemini India 22% 2006 P&C Revenue 300 200 100 x 50 2001 0 H1 2005 12 000 2005 Mix 38% H1 2006 P&C GOP % 10 6000 3679 1934 226 412 1126 5 0 -5 -10 H1 2005 OS H2 2005 2001 2002 2003 2004 2005 2006 The stock market meets IT vendors companies 7 H2 2005 H1 2006 Kanbay : A major acquisition underway A leading sector focused IT services firm Dublin London Chicago Headquarters Office Offshore delivery center Boston Atlanta Data center India New York Phoenix Washington, DC Pune Hyderabad Hong Kong Tampa Miami Chennai Singapore Melbourne Founded in 1989; US headquarters with 16 locations Approximately 6,900 professionals (5,000 India, 1,600 US, 300 ROW) 3 offshore delivery centers & 2 world class data centers 245 active clients The stock market meets IT vendors companies 8 Capgemini France also managed a recovery P&C Revenue Divisional margin 100 1000 75 750 50 500 25 250 0 0 -25 2003 2004 2005 Utilization F 2006 2003 2004 2005 F 2006 Support Function Costs CS TS 20% 84,0% 82,0% 15% 80,0% 78,0% ` 10% 76,0% 74,0% 5% 72,0% 0% 70,0% H1 03 H2 03 H1 04 H2 04 H1 05 H2 05 H1 06 H2 06 F H1 04 The stock market meets IT vendors companies H2 04 H1 05 9 H2 05 H1 06 H2 06 F Capgemini Consulting leads the pack in France PANORAMA Market evolution * * 1 Capgemini Consulting 2500 2 3 4 5 6 7 8 9 10 11 12 13 14 15 McKinsey (dont BTO) Boston Consulting Group Accenture CSC IBM BCS BearingPoint AT Kearney Ineumconsulting Sopra Group Eurogroup Roland Berger Bain Mercer Management Consulting Unilog Management 2000 Growth 5% year 1500 1000 500 0 2005 2006 2007 2008 2009 Thought leadership Transformation International practices HR : Talent’s battle * Results from the PAC 2006 study "Panorama du conseil en France : Analyse du marché et positionnement des acteurs 2005-2009" The stock market meets IT vendors companies 10 Offshore is picking up in France India Offshore seats August 2006 Lille Paris Nantes Clermont-Ferrand Grenoble Toulouse FRANCE 5% Sogeti 3% NA Mumb ai Pune Bangalor e Clermont-Ferrand (Cobol) Kolkat a Hyderaba d Chenna i Nantes (Finance Mainframe) Grenoble (BI) Paris (ADC) Lille (Oracle) Toulouse (SAP) 19% OSE 20% 19% NEA 33% NA OS + CGE The stock market meets IT vendors companies 1% CSE 11 Capgemini “Rightshore” strategy is paying off Recent WIns Lille Paris Nantes AM Clermont-Ferrand IM Packages Grenoble Toulouse Mumb ai Pune Bangalor e Kolkat a Hyderaba d Chenna i Clermont-Ferrand (Cobol) Nantes (Finance Mainframe) Grenoble (BI) Paris (ADC) Lille (Oracle) Toulouse (SAP) The stock market meets IT vendors companies 12 Custom Devpt SOA is key to Financial Institutions Before : Product centric model Customers Customers Customers After : Customer centric model Reduce cost Customer P Real time intelligent interaction - Distributor P P PERSONAL ACCOUNT CONSUMER LOANS Third party MORTGAGE Producteur Differentiate P Producteur Mortgage factory The stock market meets IT vendors companies 13 Third party Consumer Loans factory Are we in the upper part of a cycle ? 10 “e-bubble bursts” 8 6 10% ERP + Y2K + volume 4 +7% a year 2 0 95 96 97 98 99 '00 '01 '02' '03 '04 '05 '06 '07 -2 -4 -6 The stock market meets IT vendors companies 14 '08 '09 '10 IT is expanding everywhere ! NETWORK ERA HTTP HTML OBJECT MOBILITY ENTREPRISES MICRO-COMPUTER ERA MAINFRAME ERA 3270 XHTML CSS C/S The stock market meets IT vendors companies 15 Internet evolution – Web 2.0 The stock market meets IT vendors companies 16 Industrial (r)evolution of software development Software development : a new “assembly line” Design Business Processes Task Job Business analyst Expertise Sectorial process knowledge Assemble: translate process into services New job ! Assembler Business + architecture understanding build / bespoke services Off the shelf services Design Execution Of services Developer Sectorial KM Software architect Java.net, legacy KM Engine (ESB, Netweaver,…)+ sectorial understanding Sector Sectorexpertise expertiseis iskey key The stock market meets IT vendors companies 17 We are launching a transformation program Intimacy Higher Share of wallet Better Retention Leveraging references Leadership << Growth Profitability Industrialization Lower costs Higher productivity Consistent quality The stock market meets IT vendors companies Innovation Higher mark-up Sector dominance Faster diffusion 18 Our Mission : Capgemini enables its clients to transform and perform through technologies. The stock market meets IT vendors companies 19