Indian IT Providers Europe Business Analysis

Vendor Evaluation

Indian IT Service Providers Europe Business Performance

1. Indian Providers in Europe: Strategy

Cognizant had near-shore centers in Hungary, and France. When it comes to building local

teams in the respective countries, the company has followed organic as well as acquisition

approach.

Infosys had plans to double the revenue share from Europe to 40 per cent of its total sales by

the end of FY 2014 however the company had missed its goal. The company had planned

revenue mix of 40 per cent from Americas, 40 per cent from Europe and 20 per cent from Asia by

the end of fiscal 2014.

In 2009, India's TCS ranked just 21st in IT services revenue from Europe, the Middle East and

Africa, but rose to 11th at the end of 2012, according to PAC. Indian rivals Wipro and Infosys

ranked 18 and 23, respectively, in 2012, after not cracking the top 25 in 2009.

Public sources

2. Indian Providers in Europe: Acquisition

Infosys

Infosys had acquired Zurich-based Lodestone Holding AG, a leading management consultancy

firm, for 330 million Swiss francs ($345 million or Rs.1,925 crore). The Swiss company added

more than 200 clients from across several industry segments, to Infosys’ pool of over 700 clients.

The acquisition of Lodestone would strengthen its consulting and systems integration (C&SI)

capabilities, by adding more than 850 employees, including 750 experienced SAP consultants into

the company. Geographically, the acquisition augmented its presence in continental Europe and

emerging markets such as Latin America and Asia Pacific.

Tata Consultancy Services

Tata Consultancy Services bought French technology services company Alti SA for over 75 million

euro (Rs 530 crore) in a deal aimed at giving India's largest software company the competitive

edge in the European market. Alti, which has about 1,200 employees, counts Banque de France (

French central bank), BNP Paribas, Credit Agricole, and Societe Generale among its clients in

banking sector besides others such as Air France, L'Oreal and telecom company Orange.

Public sources

3. Europe Quarterly Revenue Growth

Providers Q1 2014 Q2 2014 Q3 2014 Q4 2014 FY 14 Total

FY 13 Total

YoY Increase

TCS 852 951 1,000 1,019 3,822 3,063 759

Cognizant 387 415 429 470 1,701 1,250 451

Infosys 470 496 523 527 2,016 1,710 306

Wipro 461 471 497 516 1,945 1,778 167

HCL 374 384 413 433 1,604 1,286 318


FY 12 Total

YoY Increase

TCS 725 758 784 796 3,063 2,578 485

Cognizant 283 302 317 348 1,250 1,144 106

Infosys 374 393 458 485 1,710 1,531 179

Wipro 425 434 467 452 1,778 1,676 102

HCL 302 311 329 344 1,286 1,090 196

All values in $ millions

3. Europe Annual Revenue Growth

2013

Providers Europe Rev Increase Europe Rev Increase (%) Continental Revenue

(approximate)

TCS 759 24.78% 1,911

Cognizant 451 36% 850

HCL 318 24.73% 802

Infosys 306 17.89% 1,008

Wipro 167 9.39% 972

Indian Providers Europe Revenue

1,284

1,234

1,709

1,778

3,101

0 500 1,000 1,500 2,000 2,500 3,000 3,500

HCL

Cognizant

Infosys

Wipro

TCS

$ Million

1604

1945

2016

3822

0 1000 2000 3000 4000 5000

HCL

Wipro

Infosys

TCS

$ Million

2014

Financial Reports

3. Europe Revenue Growth Percentage

Providers Q1 2014 Q2 2014 Q3 2014 Q4 2014 YoY

Growth

TCS 17.52% 25.46% 27.55% 28% 24.77%

Cognizant 36.75% 37.42% 35.33% 35% 36%

Infosys 25.67% 26.21% 14.19% 17.89% 17.89%

Wipro 8.47% 8.53% 6.42% 9.39% 9.39%

HCL 23.84% 23.47% 25.53% 24.72% 24.72%


Growth

TCS 19.24% 17.34% 18.43% 20.24% 18.81%

Cognizant 0.35% -0.66% 15.69% 22.54% 9.27%

Infosys 5.06% 9.78% 12.25% 18.58% 11.69%

Wipro 5.46% 2.36% 10.14% 6.35% 6.09%

HCL 16.15% 16.48% 20.07% 19.03% 17.98%



FY 12 Total

YoY Increase

TCS 725 758 784 796 3,063 2,578 485

Cognizant 283 302 317 348 1,250 1,144 106

Infosys 374 393 458 485 1,710 1,531 179

Wipro 425 434 467 452 1,778 1,676 102

HCL 302 311 329 344 1,286 1,090 196


FY 11 Total

YoY Increase

TCS 608 646 662 662 2,578 2,030 548

Cognizant 282 304 274 284 1,144 847 297

Infosys 356 358 408 409 1,531 1,298 233

Wipro 403 424 424 425 1,676 1,229 447

HCL 260 267 274 289 1,090 960 130


4. Europe Annual Revenue Growth

1133

1009

1545

1675

2542

0 500 1000 1500 2000 2500 3000

HCL

Cognizant

Infosys

Wipro

TCS

$ Million

2013 2012

Providers Europe Rev Increase

($ mn) Europe Rev Increase (%)

Continental Revenue

(approximate $ mn)

TCS 558 21.9% 1,550

Cognizant 213 20.8% 657

HCL 151 13.5% 889

Infosys 163 10.5% 854

Wipro 103 6.14% 642

Indian Providers Europe Revenue

1,284

1,234

1,709

1,778

3,101

0 500 1,000 1,500 2,000 2,500 3,000 3,500

HCL

Cognizant

Infosys

Wipro

TCS

$ Million

Financial Reports

4. Europe Revenue Growth Percentage


Growth

TCS 19.24% 17.34% 18.43% 20.24% 18.81%

Cognizant 0.35% -0.66% 15.69% 22.54% 9.27%

Infosys 5.06% 9.78% 12.25% 18.58% 11.69%

Wipro 5.46% 2.36% 10.14% 6.35% 6.09%

HCL 16.15% 16.48% 20.07% 19.03% 17.98%


Growth

TCS 27%

Cognizant 35%

Infosys 18%

Wipro 36%

HCL 13.5%



FY 11 Total

YoY Increase

TCS 608 646 662 662 2,578 2,030 548

Cognizant 282 304 274 284 1,144 847 297

Infosys 356 358 408 409 1,531 1,298 233

Wipro 403 424 424 425 1,676 1,229 447

HCL 260 267 274 289 1,090 960 130


5. Europe Annual Revenue Growth Indian Providers Europe Revenue

1133

1009

1545

1675

2542

0 500 1000 1500 2000 2500 3000

HCL

Cognizant

Infosys

Wipro

TCS

$ Million

960

847

1298

1229

2030

0 500 1000 1500 2000 2500

HCL

Cognizant

Infosys

Wipro

TCS

$ Million

2012 2011

Providers Europe Rev Increase

($ mn) Europe Rev Increase (%)

Continental Revenue

(approximate $ mn)

TCS 512 25.22% 1271

Wipro 446 36.28% 837.5

Infosys 247 19.02% 772.5

Cognizant 162 19.12% 504.5

HCL 173 18.02% 566.5 Financial Reports

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Indian IT Providers Europe Business Analysis

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