Value Leadership Group Website

New Value Leadership Group Strategy Paper

India: An Emerging Research Cluster

By Professor Srinivasa Rangan

Professor Rangan provides cutting-edge insights into the strategies companies are applying to leverage the emerging scientific research cluster in India.

This paper is based on a global Value Leadership Group next practice strategic research project involving the research centers of more than 20 companies in India including Philips, ABB, Motorola, HP, GM, and the Tata Group.

Professor Rangan’s paper builds on his work of almost 10 years with Professor Michael Porter at Harvard University.

Click here to download the complete study in PDF Format

The New Competitive Paradigm in European IT Services – Global Strategy Conference
in Stockholm

In June 2007, the Swedish investment bank, Handelsbanken Capital Markets, and the Value Leadership Group, hosted a global strategy conference in Stockholm. The theme of the conference was – The New Competitive Paradigm in European IT Services.

The Value Leadership Group provided exclusive analysis and CEOs from industry leaders gave important new insights into the competitive dynamics and likely future direction of the European IT services industry.

More than 125 senior executives from 18 countries and a cross section of industries were in attendance. Delegates and speakers gave this event the highest ratings.

Click here to download a 1-page anaylsis of the conference

Does your Offshoring
strategy create differentiation
and greater business value?

Read an exclusive interview on offshoring strategy with Peter Schumacher.

Best practice companies – regardless of size – are those that leverage offshoring to do things they would not be able to do otherwise. You can entrepreneurially rethink your business and implement organizational and service innovations.

Companies that are not thinking about offshoring strategically are likely to miss this opportunity.

This interview was released in Belgium in July 2008 in “Offshore Update” a publication of Applied Development, continental Europe’s first venture funded offshore services firm.

Click here to download the 1-page interview in English Language

Click here to download the 1-page interview in Belgian-Dutch Language

Value Leadership Group in the news

IT Majors eye European SAP Cos
19 Nov 2008, 0107 hrs IST, Pankay Mishra, ET Bureau

BANGALORE: Leading Indian tech firms, including Infosys and Wipro, are evaluating SAP service providers such as BearingPoint and IDS Scheer for a potential acquisition, as they seek to increase their revenues from customers that run SAP software in Europe. While BearingPoint counts Volkswagen among its large SAP services customers, IDS Scheer offers SAP-based consulting and services to companies such as Audi, Bayer, CropScience and BMW.

A senior official at a leading Indian IT company confirmed that his company is indeed looking at opportunities such as BearingPoint and IDS Scheer. “BearingPoint has been open to M&A for some time now, and we could be interested in the European or SAP unit of the company than doing an overall acquisition,” he said requesting anonymity. “IDS Scheer is also a good opportunity, especially because of its services and product competencies, and could be easier to execute since the promoter holding is over 70%.” “These deals are being discussed for around 1-1.5 times of the target’s revenues,” he added.

BearingPoint reported a net loss of $30.5 million and revenues of $801 million for the September quarter. When contacted by ET, a BearingPoint spokesperson declined to comment. However, the company admitted during its third quarter results that the M&A opportunities are being discussed.

“BearingPoint retained financial advisors to explore ways to improve its capital structure and liquidity in light of its evolving cash position. These alternatives initially included a merger or sale of the company as a whole, a sale of all or substantially all of the assets of the company or the sale by the company of any of its six principal business units,” the company said in a statement.

UK-based Clearwater Corporate Finance is working with some of the Indian IT firms. “We cannot name our clients, but there are things in the pipeline and 2009 might see some of these deals happening,” Emma Leathley, senior analyst with the firm told ET.

SAP-based service providers in Europe have been on the acquisition radar of the top Indian IT firms. In August this year, Infosys offered to acquire UK-based Axon Group for $755 million. However, Axon has now recommended a higher, counter-offer of $780 million made by HCL Technologies.

Infosys chief executive Kris Gopalakrishnan said on Monday that his company is still seeking acquisitions in Europe and Japan for up to $700 million. When contacted by ET, both Wipro and Infosys officials declined to comment on any specific M&A opportunities being evaluated by their companies. A Wipro official however told ET last week that his company is currently in discussions for M&A opportunities in Europe.

India’s biggest software services company TCS also believes that local skills are critical for addressing the lucrative SAP services market in Europe.

“There are good M&A opportunities in Germany for addressing the market better,” said Girish Ramachandran, director TCS Europe. “To expand in SAP services Indian companies will need to create a much stronger onshore delivery model in their key markets. Acquisitions are one way to achieve this,” said Peter Schumacher, president and CEO of Frankfurt, Germany-based Value Leadership Group.

Germany-based IDS Scheer reported revenues of around $496.4 million in 2007, is also among the companies being evaluated for acquisition by the Indian tech firms. IDS Scheer chairman August-Wilhelm Scheer was quoted by the German magazine WirtschaftsWoche earlier this month that “a sale would not be an unrealistic development if the restructuring programme fails to boost profitability.”

However, lack of exposure to offshore outsourcing could be a bottleneck when it comes to integrating with the Indian companies, added Mr Schumacher. IDS Scheer did not respond to the email queries sent by ET on Monday.

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