Winning position in a new market - Capgemini

WestLB Software & Services DayZurich, June 7


Cyril Garcia, Strategy & Transformation Director

Winning position in a new market

Together. Free your energies2

WestLB Software & Services Day – June 7, 2010

Proposed agenda

Where we are Market dynamics

Toward new positionings

1 2

3



For our industry, very challenging years…

“Combination of hardware and software create both cost

savings and revenue !”

“Clients want integrated services and innovation !”

“ IPP will break the fortress Europe !”

Big is beautiful ?Big is beautiful ?

The one stop shop dream ?

The one stop shop dream ?

« This is the end »for the european

players ?

« This is the end »for the european

players ?



Thanks to our I 3 program we are now positioned as a global leader

4

Global reach

Strong brand

Leader in chosen segments

Above market growth

Strong sales coverage

Balance sheet to invest

Differentiated IP

Lean cost structure

AccentureHPIBM Capgemini



Global and country managed accounts

We are starting a journey far more complex, which mobilizes the group

Manage the portfolio

Rebalance geographies

Invest in new offerings

Capgemini

Become strategic for clients

Streamline cost structure

Competition

Acquisition

Business analyticsCloud computingSmarter gridCloud

Diamond clientsSales coverage

BRIC, Mexico, South Korea,China

Leaner cost structureLayoffs plan

Latam, APAC, India, Eastern Europe

ITS & CloudBIMSmart energy

Application lifecycle servicesTesting services

RightshoreIndia enabled transformationLean



Some areas of our portfolio are getting hot

Pipeline growth

ALS

BIMTST

SESITS

CC

Sogeti

SCM

CRM

FS

Gov US

Manufacturing

NA

Nordics

APAC

Eastern Europe

Utilities

Offerings Disciplines Geographies Sectors

BPO



To benefit from an apparent resurgence we are driving both industrial and technology strategies

Capgemini must be ready to exploit market evolutions

New Business Models

Increasing Competition

Uncertain Market RecoveryGlobalisation,

ScaleGlobalisation,

ScaleEmerging

TechnologiesEmerging

Technologies

IP SolutionsIP Solutions

Technology LeadershipTechnology Leadership

Sector SolutionsSector Solutions

Industrialised Offerings, Global Reach

Industrialised Offerings, Global Reach



Back Office industrialization will share the stage with technology

drivers

Growth

Time

Business maintenance and BO industrialization

New custom softwares

New custom softwares

Disperseddevice

systems

Disperseddevice

systems

Systems of systems

Systems of systems

2010/2011 ?

Tipping point



Global delivery will be a strong differentiator in a thawing market

Offshore is rebounding…

-4%

-2%

0%

2%

4%

6%

8%

10%

12%

Q1'08 Q2'08 Q3'08 Q4'08 Q1'09 Q2'09 Q3'09 Q4'09 Q1'10

Offshore headcount growth q/q

Capgemini Accenture Wipro (IT svces)

Capgemini has taken early steps and will keep its fo cus

…a driver we embrace

9 000

20 00025 300 28 000

36 000

2006 2007 2008 2009 2010

Offshore headcount

Subcontractormodel

�Volume driven

�Pure delivery�Onshore

responsibility

One teammodel

�Shared KPIs�Client exposure�Sales support� Innovation�Shared

responsibility

Kanbay

Empoweredmodel

�Shared client ownership

�Full responsibility

�Transversal expertise

�Most competitive pricing



• 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

Techno evolutions feed a disruptive world

Virtualizedeconomy

Virtualizedeconomy A world of

citiesA world of

cities

Business decision

making shifts east

Business decision

making shifts east

A sustainablegrowth

A sustainablegrowth



Technology drivers are accelerating

Networked devices

Consumer technology

& Webservices

Capgemini builds on strong assets: Alliances, Techno logy Culture, Management Talent and a true Entrepreneurial Mindset

Smart X

Smart energy

Smart transport

Cloud

Cloud services

IaasGreen IT

Virtualization

Collaboration

Social CRMMarketing

Social web

MobilityApps

MCommerce

In-memory

BI & analytics

Real-Time

Portals

Maturity

12

Together. Free your energies WestLB Software & Services Day – June 7, 2010

Clients are starting to adopt these drivers

CustomedServices

Shared resources

IP

Infrastructure

End-to-endservices

Flexibility

Saas+BPO

Service platform

Interaction platform

Xaas

13


These technology drivers are accelerating with diff erent impact on industries

GOV TME

Risks & regulation

Online 2.0

Rail network management

PLM

Consolidation

Customer lifecycle

management

Emerging markets

Customer analytics

Multi-channel

Billing & customer

information systems

New entrants

Smart meters & smart grid

E-border

eHealth

Tax systems

Billing

Smartphones

Digital media

Level of change

Security systems

Network engineering &

field management

ConsolidationStandardization

Diversification

Consolidation

Retail EUC FS ServicesManufacturing

Long term growthCapgemini has some strong positions and consulting favors business alignment



More than ever Capgemini is agile within its ecosystem

Tip of the spear with our very

large partners

Take the lift with

fast growers

Anticipate withinnovators



During the downturn we strengthened our relationship with Package leaders

Capgemini

Integrated Enterprise

BS 7SAP/Microsoft integrationReady for Fusion

Intelligent Enterprise

SAP BOBJSAP Smart Analytics with TeradataOBIEE

Flexible Enterprise

AIABPMSaas

VerticalExpertise

Oracle Tax & Global public sectorOracle Insurance & Financial ServicesCase management

There is significant opportunity in 2010 and beyond

16


Clients are expecting new business models

Businesses

Models

OLD NEW

OLD

NEW

Complex systemsComplex systems

TransactionsAas

TransactionsAas

Interaction servicesInteraction services

End-to-end IT

applications

End-to-end IT

structure

performance

End-to-end

business

outsourcing

17


How to win positions in this new market

Businesses

EconomicModels

OLD NEW

OLD

NEW

TECHPLATFORMTECHPLATFORM

SECTOR KNOWLEDGESECTOR KNOWLEDGE

INVESTMENTSINVESTMENTS

BI, SES, Alliances…BI, SES,

Alliances…

FS, Telco,PS,EUFS, Telco,PS,EU

Alliances, IP, COEs

Alliances, IP, COEs



We are changing to build our leadership position

Global reach

Strong brand

Leader in chosen segments

Above market growth

Strong sales coverage

Balance sheet to invest

Differentiated IP

Lean cost structure

� Renewed offshore drivers� Lean supply chain� Portfolio management

� Emerging markets� New business models� Differentiated IP

Capgemini’s current position

Strengthen Core

Business

New Growth

Initiatives

19


This may trigger a new IT role where intelligence a nd services will be key differentiators

AggregatedCloud services

AlliancesPartners

Bundling BPO + Software platform

TechnologyBusiness

IntelligenceService

Integrator andOperator

Complex customsoftwares

Security SLAs

Sector expertises

Partner resources

Eveything as A service Own resources



Our acquisition program is aligned

Expand

Consolidate

Long Term Short Term

IBX

China

US portfolio

Smart X RevenueSynergies

Offensive

Defensive

CostSynergies



We now are facing new challenges for 2013

Business partner

Global

Local

Businesstechnology Tech integrator

Proximity

Intimacy Rightshore

IndependentIndustrializedBuild & Operate

Reactive Pervasive

New modelsSector expertiseConsulting



Cyril Garcia, Strategy & Transformation Director

Winning position in a new market

Documents

Winning position in a new market - Capgemini