Global IT Consulting Landscape

1. OF IT Consulting Changing Landscape Of Taking The Next Step…

3. Reduce time spent negotiating with buyers for another (Small) fixed price projects. Instead consider growing your market share by investing in development of differentiating consulting service offerings to win clients, or add new talents to your consultants base in a global market of 73 billion that is forecast to grow 9% in 2011 compared to 6.2% in 2010.

6. Cutting overhead cost

7. Rebalancing project tasks across global workforce

9. In 2011 Enterprise cost takeout and business process improvement are in the scope of many consulting projects.

10. Apart from price pressure from the consulting day rates and frequent changes to business conditions and technology the global consulting service providers are facing challenges from competitive technologies, software enabled business models and business process simulations.

11. Consulting firms strategically acquire competitors, presenting an opportunity to grow their global scale and revenue in 2011-2012.

12. Value Driven Approach

13. Efficient Use of Resources

14. Business-led, IT enabled approach to engagements

15. Depth in verticals industries and business process

16. Breadth of Service & Skills

17. Relative Immaturity of global delivery capability

18. Dependence on Suppliers

19. Over Dependence on customers

20. Global Association structure

21. Increasing demand for compliance solutions

23. Green Agenda

24. Pattern based strategy

25. Mid Market Penetration

26. Other high growth sectors

27. Industry Consolidation Challenges

28. Rapid Technological Changes

29. Competitive Pressure

30. Government Regulations

31. Global Economic SlowdownT O

32. Competitive Landscape The IT Consulting Market has an intense competitive landscape given the number of Mega-vendors and the startups that have entered or likely to enter the space . Two Types of competition emerging among the consulting firms Between the Established Mega Vendors & pure play IT Service firms Between different business consulting and Technology consulting The IT Consulting Market will be shaped as much by the demands of the stake holder as by platform vendor action . Consulting Firms has to focus on Four critical Elements of their business to succeed. Build a robust Offering Monetize Effectively Deliver Extensive Value Added Service Drive Ecosystem Growth Success Mantra! Large Customers Typical Customers Non Addressable Customers Newly Addressable Market

34. Six outperformers exceeded the worldwide market average of negative 9% in 2009 in the top 10 list: Deloitte, PWC, Ernst & Young, KPMG, CSC & Fujitsu.

35. Fujitsu with negative 5.7% and CSC with negative 8.2% outperformed the market average by negative 9%

36. Overall big four coped relatively well in the global consulting market . Since the financial crisis in 2008 CFO’s are considerably influential to CIO and overall for the business and IT consulting investments of an organization.

38. No provider in the world and European top 10 lists achieved flat (0.0%) or positive revenue growth in 2009. In contrast , five providers operating in Japanese market grew their consulting service revenue, thereby outperforming the global market peers.

39. IBM has unique presence: It is listed among the 10 largest consulting service providers in all five geographical regions.

40. Other provider populates the top 10 lists in multiple regions and domestic providers appear on regional lists, For example Logica appears in Europe’s list Samsung SDS in Asia Pacific and NEC in Japan’s list.

41. The underweighted average revenue declined for top 10 providers varies significantly and it is as low as 2.3% for Asia and as high as negative 12.4% in Europe.

42. Asia Pacific lower decline in revenue indicated that smaller marker recovers faster from an economic crisis.Europe Asia Pacific Japan

44. Manufacturing

46. Scope: Advisors operating initiatives for buyers on a global scale have the ability to offer a broad array of consulting services addressing this initiatives; broad scope in the advise offered is critically important.

47. Skills: Consultancies need the right mix of skills such as multicultural and multi-domain change management , while at the same time offering a deep business process understanding for a large number of industries.

48. Stability: A solid balance sheet and financial stability of the business and IT consulting service providers are critical because the buying organizations must mitigate the risk of failing to complete a project initiative.

49. Strategy: consulting service providers continually evolve their business strategy through reorganizing, “deskilling” of their resources and redefining the service outcome.Operating complexity for organizations has increased the demand for advice. Potential buyers of consulting services often don't have sufficient in-house expertise to address the issue completely. It is therefore nor surprise that some of the consultancy service firms that specialize in addressing complex business conditions were asked to assist their clients in the business operations restructuring etc. In difficult and uncertain times such as 2009, buyers preferred to work with established providers to attain advice they need. Consulting is relatively immune from the economic effects, even in a global contracting market. Consulting and advisory service providers are more resilient if they had an established relationship and could demonstrate their business value –add to clients. Server & Storage Consolidation IT Policies & Procedure Network Design & Implementation Technology Selection & Migration Virtualization Backup Plan & Strategy Cloud Computing

50. Top Tech. Mergers & Acquisitions (2009-2010) Dell-Perot Systems: $3.9 billion Dell's purchase can be seen as a response to rival HP's $13.9 billion acquisition the previous year of EDS -- another services company founded by Perot. Xerox-Affiliated Computer Services: $6.4 billion Xerox believes ACS will help it penetrate new markets without huge amounts of overlap, saying that only about 20% of the companies‘ customers are common to both businesses. The acquisition, could have both a direct and indirect impact on Cisco's bottom line, because expanded use of videoconferencing may increase network traffic, letting Cisco sell more switches and routers. Cisco-Tandberg: $3.4 billion IBM is spending more than $1 billion to expand its analytics software capabilities, with SPSS and its predictive analytics tools that help companies mine historical business data to identify future trends. IBM-SPSS: $1.2 billion HP-3Com: $2.7 billion The deal, gives HP a core switch, the H3C 12500, to compete against Cisco's Nexus 7000, as well as significant market presence in China. Cisco- Starent Networks: $2.9 billion The deal boosts the vendor's Ipbased mobile infrastructure for several types of wireless networks, including LTE and WiMAX.

51. Generic Trends Six Technology trends as key to reshaping the delivery of critical IT consulting Cloud Computing will accelerate from pilots to production, with private clouds leading the way. Over the next 12 months organizations will implement private cloud computing environments for specific production-based applications. Consumerization of IT trends will continue to accelerate within corporate IT environments, as new generations of powerful consumer mobile devices such as smart phones, net books, and tablet devices continue to proliferate, displacing PCs and laptops as technologies of choice among business users. This will result in significant changes to end-user support and customer interaction support requirements within the enterprise as more of these consumer devices are being used to access mission-critical applications beyond corporate e-mail and voice. Social Computing will move beyond marketing and increasingly be used both as a productivity tool within the enterprise and as a way to revolutionize client engagement. Organizations will tap social computing tools for broad-based knowledge management initiatives that drive greater time- and cost-efficient collaboration across their global workforce. In addition, organizations will integrate social computing tools with transactional business applications to bring greater richness and depth to interactions with clients and partners. Smart Computing will gain popularity as a way to automate and simplify IT systems. Using intelligent analytics and other advanced automation tools, organizations will establish “sense-and-respond” systems to automate complex back-end processes that manage devices within the data center and in the distributed environment. Cash Management 5. “Fit for Purpose” Appliance Offerings will grow in popularity as the computing platforms of choice for specialized applications. Appliances are turnkey computing devices that bundle all the necessary hardware and software for handling specialized tasks such as database management, security, Web commerce, voice mail, and ERP packaged software. Unisys expects to see appliances emerge for industry-specific applications such as voice messaging, air cargo management, healthcare, and other specialized industry functions. 6. Cybersecurity technologies such as biometrics and sophisticated monitoring applications will move to the forefront of the security discussion. Government agencies, financial institutions, and airports – to invest in advanced identity and credentialing and secure supply chain systems. As cyber crime grows more sophisticated and IT infrastructures become more complex, organizations will take a more holistic, integrated approach to security across the enterprise. Turnaround Business Valuation Cost Controlling Potential Valuation Profit Controlling Market Development Management Reporting Solutions Business Models Business Development SAP Consulting Cross Border Consulting

53. Banking and securities, and communications, media and services will experience the greatest growth through 2014, growing at 2009-2014 compound annual growth rates (CAGRs) of 5.2 percent and 4.6 percent, respectively. Manufacturing and natural resources, and wholesale trade will experience the weakest growth through 2014, growing at 2009-2014 CAGRs of 3.0 percent and 3.1 percent, respectively.

55. companies such as Dell, HP, Sun, and Intel will gain some traction in the market as they offer services around datacenter energy efficiency.

57. By 2015, new revenue generated each year by IT will determine the annual compensation of most new Global 2000 CIOs.

58. By 2015, information-smart businesses will increase recognized IT spending per head by 60 percent.

59. By 2015, tools and automation will eliminate 25 percent of labor hours associated with IT services.

60. By 2015, 20 percent of non-IT Global 500 companies will be cloud service providers.

61. By 2014, 90 percent of organizations will support corporate applications on personal devices.

62. By 2013, 80 percent of businesses will support a workforce using tablets.

64. Thank You Mouli Bhattacharyya Sen