PORTUGAL AS AN ICT PLATFORM FOR EUROPE

Arthur C. Clarke's Law of Revolutionary Ideas Every revolutionary idea seems to evoke three stages of reaction. They may be summed up by the phrases:

(1) "It's completely impossible — don't waste my time"; (2) "It's possible, but it's not worth doing"; (3) "I said it was a good idea all along."

January 2015

Célia Reis (celia.reis@altran.com)

Itens to Discuss

A. Outsourcing Technological Services

Some Key definitions

Main Drivers

The Opportunity

The European Market Context

Why Nearshore vs. Offshore?

B. Portugal as an ICT Nearshore Platform

Why Portugal?

Altran Nearshore Platform in Portugal

C. Partnership with Portuguese Government

Portugal Direct Incentives to Job Creation

D. Altran in a Glimpse

3

Outsourcing Technological Services Some Key definitions

Information technology outsourcing or ITO describes the practice of seeking resources -- or subcontracting -- outside of an organizational structure for all or part of an IT (Information Technology) function. An organization would use IT outsourcing for functions ranging from infrastructure to software development, maintenance and support. Nearshore Outsourcing is the practice of getting work done or services performed by people in neighboring countries rather than in your own country. Offshore Outsourcing. Language barriers. Cultural differences. Service breakdowns. Unexpected costs associated with doing business halfway around the world. These are just a few of the problems that have plagued the outsourcing of IT services to offshore entities.

Reduce and control operating costs.

Improve company focus

Gain access to exceptional capabilities.

Free internal resources for other

purposes.

Resources are not available internally.

Maximize restructuring benefits.

4

Outsourcing Technological Services Main Drivers

BPM trends

Technology catalyzes the next

wave of value accretion in outsourcing initiatives

Technology

catalyzed

Process

excellence

Scale & labor

arbitrage

Va

lue

ac

cre

tio

n

Industry Maturity

ALTRAN

FOCUS Software R&D

(Outsourcing Software Development)

ITO Information

Technology Outsourcing

Outsourcing Technological Services The Opportunity

IT investments will be largely

driven by rapid diffusion of

mobile devices, apps, cloud

services and other new

delivery models. Significant

growth is foreseen for big

data applications and

services through to 2020.

Main Forecast scenario imply

modest job growth of

100,000 until 2015, with a

structural shortage of

509,000 caused by lack of

available talent. It also

suggests that 509,000 jobs

could be created if the skills

were available.

Bottlenecks are largest in the

UK, Germany, and Italy -

which together would

account 60% of all vacancies

in Europe.

Outsourcing Technological Services The European Market Context

* Source: The Black Book for Outsourcing, Brown-Wilson Group

0% 20% 40% 60% 80% 100%

Nearshoring

Offshoring

Satisfaction index

7

Offshore’s main assurance is to cut costs up to 40% whilst delivering quality, but over 50%

of companies fail to realise any benefits when offshoring!

Realised Cost Savings Main Offshoring Root Failures

IT Managers are more satisfied with their outsourcing experiences closer to home than

with overseas initiatives*.

28% 25%

31%

11%

4% 1%

0

5

10

15

20

25

30

35

Increasein cost

Nosavings

0-20%savings

21-40%savings

41-60%savings

61%savings

9% 3%

10%

14%

15% 21%

28%

Miscommunicationsand culture

Other

Client team moraland support

Wrong answer

Outsourcing Technological Services Why Nearshore vs. Offshore?

8

Cost minimization

Improved responsiveness and

time-to-market

Increased flexibility to meet

demand fluctuations

Quality of Overall Infrastructure

Multilingual capabilities

Geographic Proximity

Excellent profile of Engineers

Portugal as an ICT Nearshore Platform Why Portugal?

9

Altran Nearshore Centre – Fundão, Portugal

10

Nearshore Center location

Fundão, Portugal

30

300

6000 m 2

Workstations

secured project rooms

Global Delivery with Local Know-how and Support

through specialized Nearshore Competence and Delivery Centers,

providing high technical and functional skills joint with world-class level of

operational excellence through process industrialization, methodologies

and best-practices.

Presentation Video

Portugal as an ICT Nearshore Platform Altran Nearshore Platform in Portugal

11

Selection Technical Training

Evaluation Integration

Complementary Training

- Application - RH Interview - Tech Interview - Selection

- Intensive Training Program

- 8h/day

- Java - Java EE - .Net - Tests - PL-SQL - SAP - Others

- Intensive Training

Program

- 8h/day

- Langues (FR) - Soft Skills - Creative Thinking - IDI - Innovation

- On Job Training with Pilot Project

- Real Project Integration

Cooperation between Companies and Universities for Juniors

Cooperation with IEFP for unemployed people

Develop Critical Mass of

necessary Technical Profiles

Industrialized Academies are critical to meet GAP between

University training and professional World.

They also contribute to convert unemployed people with certified

training.

They are necessary also to guarantee right level of skills available

in the Portuguese Market to meet demand

Opportunity to convert unemployed young engineers

Portugal as an ICT Nearshore Platform Altran Nearshore Platform in Portugal

Eligibility criteria

Number Employees Growth and Exports Activities

Subvention Process Gains Gains Duration Targeted Consultants

Profile

Trainees Subvention 650€/month/consultant 12 months Junior’s

1st JOB Subvention Exoneration social security 23,75%

36 months Junior’s + unemployed

Unemployment Subvention

419€ /month/consultant 6 months unemployed

COMPETE Specific Contract

According with regime in place

Being reviewed All Profiles

Corporate Tax Reduction 23% in 2014 and 21% in 2015 and 19% in

2016

Training Subvention

20% - 60% of investment Relevant Training Cost,

considering it can include Certified Training

According with training plan (3-6 months)

All Profiles

Specific regional subventions

Offices renting costs benefits

Negotiable ALL

Partnership with Portuguese Government Portugal Direct Incentives to Job Creation

1.633 M€

REVENUE

en 2013

55%

ACTIVITY

International

22 000

EMPLOYEES Proximity Relation

Amériques Europe

Asie

500+

CLIENTS

worldwide

Presence in 20

countries

An identity

Altran is an international group and global leader in

innovation consulting and advanced engineering.

14

Breakdown of turnover by sector as % of sales

Altran, partner of key players in key markets.

Our services

A range of products and services developed by the

practices "Industries" and "Solutions“

both locally and internationally.

Aerospace,

Defense &

Railway

Energy,

Utilities,

Industry & Life

Sciences

Automotive,

Infrastructure &

Transportation

Telecoms

& Media

Financial

Services &

Public sector

27%

22% 20% 18%

11%

Our solutions cover 4 major technological areas:

Intelligent Systems

Mechanical Engineering

Information Systems

Lifecycle Experience