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Trends & Benchmarking – India v/s Brazil

Presented by – Homi, Diretor TI (TCS Brazil) 10th May 2006

BRIC’s GDP exceeds G6’s GDP

India - Economic Indicators

World’s 4th largest economy by PPP index

- GDP Purchasing Power Parity: US$ 3.319 trillion

- GDP Purchasing Power Parity, per capita: US$ 3,100

Per Capita Income (at current prices) US$ 627

Estimated GDP growth in 2004-05 6.9%

Expected GDP growth in 2005-06 7.2%

Exports of goods* US$ 81 bn

Imports of goods* US$ 119 bn

Inflation (WPI) 4.1%

Sources: Economic Survey, 2004-05/CSO statistics

, the CIA government factbook and CII

* (April 2004-March2005)

Indian Exports- a key source of demand growth

Annual Growth Rates

6.2

4.5

16.5

15.3

10.6

5.0 6.4

16.7

9.1

5.3

0.0

4.08.0

12.016.0

20.0

Pvt Cons Govt Cons Exports of

Goods &

Services

Imports of

Goods &

Services

Investment

Gro

wth

(%

)

93-94/96-97 97-98/02-03

Source: CSO, Government of India

Source: IMD Competitiveness Yearbook 2003Source: UN, Morgan Stanley

India - Growing Knowledge Pool

India - Huge and Growing IT Market

Share of IT and BPO 1.4% of GDP

2008 projection 7%

Exports projected (2005-06) US$ 17,7 bn

Growth projection 26-28%

Gwowth expectation (2010) US$ 60 bn

CAGR (since 1999) 46%

Employment Over 650,000

Brazil Exports

Estimated in 2005 US$ 300 mn

Projected in 2007 US$ 2 bn

India x Brazil - Bilateral Trade

Year 2005Indian Exports = US$ 1.202 billionIndian Imports = US$ 1.136 billionTotal: US$ 2.338 billion

Year 2004 Indian Exports = US$ 539 millionIndian Imports = US$ 640 millionTotal: US$ 1.179 billion

Year 2003Indian Exports = US$ 486 milllionIndian Imports = US$ 553 millionTotal: US$ 1.039 billion

Brazil GDP per capita - CAGR

Brazil Productivity Growth - Barriers

Summary: Brazil's government should establish conditions for fair competition in

domestic sectors and enhance international competitiveness of the economy as a

whole to benefit its export businesses

Offshoring - Market perspective

Wages – Current & Future inflation estimates

India: SWOT Analysis

Brazil: Competitiveness

• Skilled labour available

• Less time difference between Brazil and US/Europe

• Economic conditions generate strong experience on account of

– People start working at an early age

– Study and work at the same time

• Less contraints of visas for Europe and LatAm countries.

• Creative and Innovative

• Labour laws are very strong in Brazil e.g. Extra hours

• Recruitment costs are significantly higher in Brazil e.g. CLT

• Educational incentives need to be strengthened

• USD to Real conversion – Stronger Real makes exports less lucrative

• Lack of English Language pose significant challenges for international exports

• Culture

– Need to distinguish Flexibility v/s Discipline

– Tendency to see work “done in front of eyes”

• Lack of significant government incentives for export processing

• Perception is more important than numbers at times

Brazil: Some alerts

Maior Grupo Econômico Privado da Índia

Fundado em 1868

Faturamento de US$ 17,8 bilhões

Mais de 220.000 colaboradores

3% do PIB da Índia

2 milhões de acionistas

SIDERURGIA

TATA STEEL

MAIOR

INDIANA

TECNOLOGIA

DA

INFORMAÇÃO

TCS

MAIOR

ASIÁTICA

ENERGIA

ELÉTRICA

TATA POWER

MAIOR

INDIANA

AUTOMÓVEIS

TATA MOTORS

MAIOR

INDIANA

INDÚSTRIA

QUÍMICA

TATA CHEMICALS

MAIOR

INDIANA

SERVIÇOS

INDIAN HOTELS

MAIOR

INDIANA

BENS DE

CONSUMO

TATA TEA

NÚMERO 2

MUNDIAL

Grupo TATA

Tata Consultancy Services (TCS)

Leading Global IT Services Firm

Established in 1968

Over 70,000 Employees, serving over 1000 clients

Operations in 45 countries across 6 continents

Revenues of USD 2.97 Billion in FY 05-06

World’s first Enterprise wide CMMi level 5 & PCMM Level 5 company

4 Centers at CMM Level 5 in Latin America

1 BPO center in Chile with 1300 employees

Hangzhou, China

Atendendo China

Várias localidades,

EUA e Canadá

Atendendo América

Do Norte

Yokohama, Japão

• Atendendo Japão

Melbourne, Austrália

Atendendo

Australia/NZ

Budapest, Hungria

Atendendo Europa

Continental

Montevideo, Uruguai

Atendendo América

Latina

Guildford, UK

Atendendo Reino Unido

e Irlanda

Global Delivery Centers

Ahmedabad

Bangalore

Chandigarh

Chennai

Coimbatore

Deli

Hyderabad

Delivery Centers India

Sao Paulo e Brasília, Brasil

• Atendendo Brasil

Global Delivery Centers

Um grande leque de opções para nossos clientes

Jamshedpur

Kochi

Kolkata

Lucknow

Mumbai

Pune

TCS Brazil

History

– Engaged in projects in Brazil since the 1990s

– Set up operations in 2002

– Serving Clients in Brazil and Latin America

– Off-shore Platform for Global clients

Personnel

– 3000 employees in Latin America (+800 in Brazil)

– Brazil staff will grow to over 1800 by end of 2006

– 98% local Portuguese and English speaking personnel

– Initial & continuous training for all personnel

Quality

– The 1st company in Brazil to obtain and maintain CMMi

(Capability Maturity Model Integration) level 5

certificate

Clients

– We serve over 30 clients in Brazil

Latin America´s first enterprisewide

CMMi® Level 5 company

Managing Complex & Large IT needs

Examples of the value we provide clients

5 year engagement to manage all the banks applications in Brazil,

TCS will provide a team of over 1000 personnel in Brazil

Helping a global bank run its systems with maximum efficiency

ABN Amro is the world's 16th largest bank (by total assets) and has over 97,000 employees in over 60 countries.

In 2005, ABN Amro decided to outsource its IT Application management in Brazil & Europe to TCS, in a deal expected to be 50%

in Brazil, making it one of the largest outsourcing engagements in Latin America.

TCS will maintain all of the banks existing IT applications and be a preferred partner for future application development

services.

This part of the Global shared services program which aims to save the bank Euro 600 m per year from 2007 onwards.

Summary – Some trends

Summary – Some trends

Obrigado !

[email protected]

(11) 7818 6918