Post on 18-May-2015
At Exeter, it is our business to improve yours.
Key Issues1. Choosing The Right Clients & The
Right Project
Profits/ Diversify Revenue Streams
T lLarge Large Management
Tulane University Client
Private University
Consulting Firm
2. Growth and Staying Ahead
Key Issues
Situational AnalysisExclusively Exeter Inc
Service Oriented Quality Service
Exclusively Exeter. Inc
Service Oriented Quality Service1. Blended Teams- MultidisciplinaryService OrientedOffshoring Services - Multidisciplinary
- Strong Technical Expertise
2. Capable Consultants4 Business Segments
p
3. Credible Reputation
Business Focus
Key Issues Exclusively Exeter
Situational AnalysisExclusively Exeter Inc
Service Oriented I di
Exclusively Exeter. Inc
Service Oriented IndiaBenefits:A T h i l E iService OrientedOffshoring Services A. Technical Expertise
B. Substantial Savings
4 Business Segments
Business Focus
Key Issues Exclusively Exeter
Situational AnalysisExclusively Exeter Inc
Service Oriented
Exclusively Exeter. Inc
Service OrientedExeter’s Segments• Government
Service OrientedOffshoring Services • Healthcare
• Finance
4 Business Segments • Higher Education
Business Focus
Key Issues Exclusively Exeter
Situational AnalysisExclusively Exeter Inc
Service Oriented E t ’ F
Exclusively Exeter. Inc
Service Oriented Exeter’s Focus• Large-Client Approach
Service OrientedOffshoring Services • Blended Teams
• Developing Individuals
4 Business Segments
Business Focus
Key Issues Exclusively Exeter
Strategy: E²Quality Service
•Blended Teams-MultidisciplinaryStrong Technical
India
Benefits:
A. Technical
Segments
• Government
• Healthcare
Focus
• Large-Client Approach
-Strong Technical Expertise
•Capable Consultants
•Credible
A. Technical Expertise
B. Substantial Savings
Healthcare
• Finance
• Higher Education
• Blended Teams
• Developing Individuals
ReputationIndividuals
Key Issues Exclusively Exeter
Overall Strategy: E²
Strategy: E²Quality Service
•Blended Teams-MultidisciplinaryStrong Technical
India
Benefits:
A. Technical
Segments
• Government
• Healthcare
Focus
• Large-Client Approach
Enabling Education-Strong Technical Expertise
•Capable Consultants
•Credible
A. Technical Expertise
B. Substantial Savings
Healthcare
• Finance
• Higher Education
• Blended Teams
• Developing Individuals
•Tulane
•Large UniversityReputation
IndividualsLarge University
E di I t I diE
Expanding Into India•Public Universities E•Private Universities
E
Key Issues Exclusively Exeter
Enabling Education – Tulane & The Large University Option
U d O Sh d R f
Tulane & Large University 1 Similar Product
Under One Shared Roof
1. Similar Product, Implementation Project
2. Vendor Unable to deliver
3. Larger scale projects
4. Significant Risks involved g
5. Significant Opportunities For Long Term Growth
Key Issues Exclusively Exeter
Overall Strategy: E Enabling Education
Syne rgies
2. Knowledge2. Knowledge Sharing across working tteams
3. Higher cost 1. Same Product,
Same Issues, Same Problems
gsavings across with twin projects
Problems
Key Issues Exclusively Exeter
Overall Strategy: E Enabling Education
Human Talent Management & Training
Human Talent Management
1. 7-8 Senior Consultants
2. 80 consultants
Tulane Project
a. 1 Senior Consultant
b. 10 Consultants
c. 10 Developers
Benefits
1. Cross Project learning
2 Interchangeable2. 80 consultants
3. 80 Developers in India Large University Project
a. 2 Senior Consultant
b. 20 Consultants
c. 10 Developers
2. Interchangeable team
3. Accelerated Training and Development of Staff
Tulane/Time Frame
1. Pre-Development
2. Project Development
3 Testing
2 Months 6 Months 4 Months 6 Months Completion
3. Testing
4. Systems Roll-Out
Large University/Time
1. Pre-Development
2. Project
3 Months 10 Months 6 Months 6 Months Completion
18 Months
jDevelopment
3. Testing
4. Systems Roll-Out 25 Months
Overall Strategy: E Enabling Education
Key Issues Exclusively Exeter
Potential Issues in taking up Tulane
Human Resource
Reallocation from F
“Star Managers” from
Staffing Foregone Project
Opportunity to
from Chicago/Boston
GainingNew Product
Opportunity to Increase Scope of Revenue Streams
Gaining Competency in New Segment
KEY driver to propelling LongTerm Growth
Opportunity Cost – 6 months
Increasing capability in current e G o to t sStrength Area –Education Growing at 6%
Overall Strategy: E Enabling Education
Key Issues Exclusively Exeter
Convincing the Large University
ProjectFirm’s KEY Right tool will
only yield whenProject Management
STRENGTH lie in Proprietary Methodology
only yield when used by the right team
Fixed fee ALONE to include Performance Based Fees
Value-Added Competition
Payment period stretched out + Key Performance Indicators
Vendor Issues
Collaboration & Key Alliance
Microsoft Partner Program SAPAlliance
Development Program, SAP Certified
Overall Strategy: E¹ Enabling Education
Key Issues Exclusively Exeter
Solving the Issues
1. Choosing The Right Clients & The Right ProjectRight Project
TulaneLarge University Client
Adding Interesting work
gValue to Client
Future PotentialInteresting work in new segment
Overall Strategy: E¹ Enabling Education
Exclusively Exeter
Expanding into India
Why India?
F t t i k t f IT• Fastest growing market for IT consultancy services estimated CAGR of 6.8%, US$22 billion
Demand growth for IT services• Demand growth for IT services 30 - 32%
• Leverage on current presence in India’s offshoring operationsIndia’s offshoring operations
Trends
H th i h d t d i t t t d hi h•Huge growth in headcounts and investments towards high valued consulting
•IBM Global Services, Tata Consulting Services, Accenture, F jit C lti Wi C ltiFujitsu Consulting, Wipro Consulting
Overall Strategy: E¹ Enabling Education
Exclusively Exeter
Overall Strategy: E² Expanding India
Key Issues
Expanding into India - Education
Entrance into Education Market Average public spending
35004000
Segment
•India lagging in public spending on higher education per student
US$Average public spending
per student
1500200025003000
IndiaRussiaChinaBrazil
•Fiscal spending to counter economic recession – 6% of GDP, USD$1440 million on higher
0500
1000
2007
Brazil education
•Lucrative Private education –growth USD$40bn to US$120bn in 1010 years
Overall Strategy: E¹ Enabling Education
Exclusively Exeter
Overall Strategy: E² Expanding India
Key Issues
Expanding into India
India HeadquartersIndia Headquarters
BangaloreO E t I Offi•Open new Exeter.Inc Office
•Hire 4 senior consultants and 30 junior consultants
Bangalore
Overall Strategy: E¹ Enabling Education
Exclusively Exeter
Overall Strategy: E² Expanding India
Key Issues
Expanding into India
India HeadquartersBangaloreClient Selection Criteria
310 Private Universities
Private Higher EducationVariables Weighted Average
Annual IT Spending 30%•13 Indian Institutes of Technology (IITs)
•3 IITs to open in 2008 and 3
Annual IT Spending 30%
Size of Client 15%
Allows for blended 15% 3 IITs to open in 2008 and 3 more slated in the next 5 years
•Set up cost per IIT: USD$625 million to USD$1 billion
Allows for blended teams
15%
Opportunities for future endeavors
25%$
•High growth market segment expected to triple in size by 2018
Developing Individuals
15%
Overall Strategy: E¹ Enabling Education
Exclusively Exeter
Overall Strategy: E² Expanding India
Key Issues
Expanding into India
Public Higher Education
200 U i iti d 8000200 Universities and 8000 colleges
•Services in excess of USD$5bn
•3 states with top literacy rates: Kerala, Goa, Tamil Nadu
Higher Education Information Systems Project (HISP)
•Grants Management, Integrated g , gSystem for Admissions, Central Knowledge Bank, Research Projects
Overall Strategy: E¹ Enabling Education
Exclusively Exeter
Overall Strategy: E² Expanding India
Key Issues
Expanding into India
US and Bangalore Headquarters
Team Blending
Job Rotation
New hires: 4 Senior Consultants and 30 Junior Consultants from IIT Madras and IIT Bombay over 4 years
80 consultants from US
34 consultants in India
Average project(10-12) requires: 10 consultants
Target 20% US-based consultants to work in India
Target 50% Indian based consultants to work in US
Overall Strategy: E¹ Enabling Education
Key Issues Exclusively Exeter
Overall Strategy: E² Expanding India
Financials
Beta of Exeter – .981
Obtained from 3 competitors
•Accenture
•Oracle
•SAP
Market Rate of Return – Annual Return of S&P 500
Risk Free rate – 20 Year T-bill Rate
Weighted Average Cost of Capital (WACC) of Exeter – 10.6%
Overall Strategy: E¹ Enabling Education
Key Issues Exclusively Exeter
FinancialsOverall Strategy: E² Expanding India
Financials
Key AssumptionsCost: Initial InvestmentsEd ti $4 1 illi•Education $4.1 million
•Opportunity Cost $4 million•Factory Investment $10000•Office Supplies $10000Recr itment $0 5 million
Other Assumptions
•Tax rate 35 05%•Recruitment $0.5 million
Revenue StreamsT l
•Tax rate 35.05%
•Depreciation accounted for
•Exchange rate Rupee/USD 50 65•Tulane
•Large University Client•New Domestic Market•India Private Education SectorI di P bli Ed ti S t
50.65
•India Public Education Sector
Overall Strategy: E¹ Enabling Education
Key Issues Exclusively Exeter
FinancialsOverall Strategy: E² Expanding India
Financials
NPV –$12,262,826 2011 2012 2013 2014
Growth Rate 6% 13% 19% 17%
Sensitivity Growth Rate
Growth Rate 6% 13% 19% 17%
Reached the Goal of Tripling Growth Sensitivity
Analysis (USD mil)
Growth Rate
4.5% 5.5% 6.5%
gRate
mil)
WACC 9.6% 12.1 15.9 22.1
10 6% 9 7 12 3 16 110.6% 9.7 12.3 16.1
11.6% 7.9 9.8 12.4
Overall Strategy: E¹ Enabling Education
Key Issues Exclusively Exeter
FinancialsOverall Strategy: E² Expanding India
Implementation
2009 2010 2011 2012 2013 2014
Tulane
Large university
1st Phase of Enhancing Education
Large university
New Domestic Market
Tulane over 1 ½ years
Large university of 2 g y¼ years
New Domestic Market openp
Overall Strategy: E¹ Enabling Education
Key Issues Exclusively Exeter
ImplementationFinancialsOverall Strategy: E² Expanding India
Implementation
2009 2010 2011 2012 2013 2014
Tulane
Large university
2nd Phase: Expanding into India
Hiring and Job Large university
New Domestic Market
Hiring and Job Rotation
4 Private University
S i P bliHiring and Rotation
Seize Public University Market
Private University
Public Universityy
Overall Strategy: E¹ Enabling Education
Key Issues Exclusively Exeter
Financials ImplementationOverall Strategy: E² Expanding India
Enabling Education•Tulane
•Large UniversityLarge University
E di I t I diE
Expanding Into India•Public Universities E•Private Universities
E
Key Issues Exclusively Exeter
Implementation
Question & AnswerQuestion & Answer
Overall Strategy: E¹ Enabling Education
Exclusively Exeter
FinancialsOverall Strategy: E² Expanding India
Key Issues Implementation
Complimentary Slides1. Comparison between 4 options
2. Why not Large private university?
Slides
3. Why not the management consultancy?
4. Key Assumptions for cost savings to Large University
5 Issues Pertaining to Synergy (TU + LU)5. Issues Pertaining to Synergy (TU + LU)
6. Cooperation with Competing with Vendor
7. Customer Relationship Management for Rejected Projects
8. Economic Downturn affecting Consulting
9. Off shoring is not a main strategy in The Short Run
10. Country Comparison for Offshore options
11. Offshoring Options: China in the Long Run
12. Jonathan & Mark do not interact with each other’s clients
13. Decentralized nature of Healthcare & Education Group13. Decentralized nature of Healthcare & Education Group
14. Financials
15. Why not the financial industry?
Complimentary Slides
1. Comparison between options
Variables/Options Tulane Large University Private University Management Consulting
Project Type Systems Integration + Implementation of New Product
Systems Integration of New Product
Strategy + Implementation
Customized System Development
Ease of Implementation/Success rate
Relatively Harder Relatively Harder Medium – Hard Relatively Easier
Concurrence with true Business Model
No – attachment of staff to organization
No – attachment of staff to organization
No – attachment of staff to organization
Yes, blended team development project
Revenue $5M over two years $7M over 4 years NA NA
Significant Opportunity Costs
Preferred manager’s transfer issues
NA NA NA
Other Issues 1. Losing capability for 6 mths 1. Need to manage 3rd 1. Constantly acceding 1. Communication issuesg p y
2. New product
gparty staff
2. New product
3. Client’s preferred engagement method
y gto requests on projects
2. Small project & margins
2. Differing cultural issues
3. No new development, old capability
Positives 1. Previous working 1. Synergy with 2nd option Maintaining Client New segment, new set of relationship
2. Synergy with 2nd option
3. New Revenue Stream
2. Higher margin, bigger project
3. New Revenue Stream
relationship customers
Longer Term potential Potential Future projects with Org and other org in new P d
Potential Future projects with Org and other org in
P d
Can remain positive despite not picking up
j
Basic exploration stage, non‐committal
Product new Product project
Complimentary Slides
2. Why not large private university?
a. Always been taken advantage off, need to bend over backwards
b Resulting in significant opportunity costs of tied up seniorb. Resulting in significant opportunity costs of tied up senior staff
c. Senior staff assigned on projects with low margins
d. No adherence to core business model
e. No new development, traditional business segment
f. Hinders long term growth – opportunity costs, no newf. Hinders long term growth opportunity costs, no new development
Complimentary Slides
3. Why not Management Consultancy?
a. No new development, same traditional business
b. Culturally and subsequently working relationship issues in two high performance organizationstwo high performance organizations
c. Potential for poaching of current staff and lost of proprietary intellectual property
f fd. Does not support long term growth, no diversification of income streams
Complimentary Slides
4. Key assumptions for Cost Savings for Large University
Complimentary Slides
5. Issues Pertaining to Synergy (TU+LU)
a. Proprietary information, methodologies and solutionsa. Proprietary information, methodologies and solutions to be kept private and confidential
b. Only generic common information, solutions, problems encountered, learning points that are cross platforms will be shared
Complimentary Slides
6. Cooperation with Competing Vendor
Collaboration Plan
1. Select and pick key industry software vendors
2. Enter into exclusive strategic alliances as sole preferred technical partners (For. E.g. SAP)
3. Alliance will see Exeter being certified technical partners for key g p ysoftware products (SAP certified gold partner)
4. Exeter will serve as marketing agent for their products in relevant and appropriate projects
5. Giving vendors more reach
Complimentary Slides
7. CRM for Rejected Projects
a. Convey the company’s concern of why they elected not to undertake the engagement
b Con e possible alternati e firms that can ndertake the jobb. Convey possible alternative firms that can undertake the job
c. Actively engage these firms on the longer term basis and convey latest developments, capabilities and to not lose future engagement opportunitiesengagement opportunities
Complimentary Slides8. Economic Recession affecting Exeter’s Segments
a. Education, government & Healthcare sectors are core public services that require high reliability and delivery rates
b IT is a long term capital e pendit re and in estment that isb. IT is a long term capital expenditure and investment that is beyond economic cycles
c. Government’s fiscal policies spend on these 3 sectors to stimulate economy in a slowdown it would in fact drive evenstimulate economy, in a slowdown, it would in fact drive even more engagements to be made available
Complimentary Slides
9. Offshoring is not a main strategy in S.R.
Variables India OthersWages Approximately 55.4 Approximately 58.5 g
USD/daySet to Increase by 15%: 63.71 USD
USD/day
Initial Capital Investments
•Existing Physical Infrastructure•Require only 3-4 Additi l C lt t
New Marketa) New Facilitiesb) New consultants
Additional Consultants
Consequences •Strengthen Core Competencies
•Disruption to Business Operations
•Fertile Ground for Talents (Existing Projects)•Disadvantages
Offshoring is not a option in the short run Price Differentials: 8 9%Offshoring is not a option in the short run as the SMALL cost savings cannot mitigate the BIG costs involved.
Price Differentials: 8.9%
Complimentary Slides
9. Country Comparison for Offshoring
Variables India China Asia Eastern Europe
Industry T d
Wages Low Wages Low Wages Low WagesTrendEase of Entrance
ExperiencedExisting Physical Infrastructure
•No Prior Experience•Open Economy
•No Prior Experience•Some Countries: Politically
•No Prior Experience•Politically Unstable:•Government
Encourages Investments
Politically Unstable
Unstable: Changing Market Reforms
Education High •Increasing Standards of
Low •Increasing Standards ofStandards of
Education•Government initiatives to Promote English
Standards of Education•Government initiatives to Promote English
Proximity to India
Nil Close Far Far
Capital Outlay
Increasing costs Very LowA)Proximity to India
Low Lowy ) y
B)Favorable factors
Complimentary Slides
9. Offshoring Options: China in the Long Run
Variables India China Asia Eastern Europe
Industry T d
Wages Low Wages Low Wages Low WagesTrendEase of Entrance
ExperiencedExisting Physical Infrastructure
•No Prior Experience•Open Economy
•No Prior Experience•Some Countries: Politically
•No Prior Experience•Politically Unstable:•Government
Encourages Investments
Politically Unstable
Unstable: Changing Market Reforms
Education High •Increasing Standards of
Low •Increasing Standards ofStandards of
Education•Government initiatives to Promote English
Standards of Education•Government initiatives to Promote English
Proximity to India
Nil Close Far Far
Capital Outlay
Increasing costs Very LowA)Proximity to
Low Lowy ) y
IndiaB)Favorable
factors
Complimentary Slides
10. Country Comparison for Offshoring
(NOTE: HYPER LINK)(NOTE: HYPER LINK)
India: 2,800 Rupees ≈ 55.4 USD China: 400 RMB ≈ 58.5 USD
Assuming 8 Work Hours
Set to Increase by 15%: 63.71 USDChina: 400 RMB 58.5 USD
Source: Pay scale, http://www.payscale.com/research/CN/Country=China/Hourly_Rate/by_Job
Complimentary Slides11. Jonathan and Mark do not interact with
each other’s clientseach other s clients
1. Need to for both managing partners to critically client relationship management system
2. Best to involve both or even more staff in interaction
3. Aids Business Continuity System in times of emergencies
4. Double perspective from 2 or more partners would improve decision making
1. Decentralized nature of Healthcare & Education Group
Complimentary Slides
12. Decentralized nature of Healthcare
& Ed ti G& Education Group
• Hinders disciplined client portfolio management
To circumvent beyond the traditional weekly meetings and follow up• To circumvent, beyond the traditional weekly meetings and follow up, Exeter should actively involve Group managers and senior consultants to not just weigh in but be part of the decision process
• Ensure entire organization understands and is committed to Exeter’s• Ensure entire organization understands and is committed to Exeter s
13. Complimentary Slides – Beta
All numbers in thousandsLevered Beta Tax Rate Value of Debt Value of Equity Unlevered Beta
Accenture 0.77 29.30% 1087952 16880000 0.736Oracle 1 09 29 53% 10235000 89750000 1 009Oracle 1.09 29.53% 10235000 89750000 1.009SAP 1.05 32.23% 24000 42060000 1.050
Accenture Oracle SAPIncome Before Tax 3107762 7834000 4173000Income Before Tax 3107762 7834000 4173000Income Tax Expense 910574 2313000 1345000Tax rate 29.30% 29.53% 32.23%
Average Unlevered Beta 0.932Average value of Debt 3782317Average value of Equity 49563333Debt/Equity Ratio 0.0763Average Tax rate 30.35%Implied Beta for Exeter 0.981
Values obtained from Yahoo! Finance
Complimentary Slides – WACC
ExeterEquity/Value 0.9237Debt/Value 0.0763Beta 0.9812
1988 16.61%1989 31.69%1990 -3.10%1991 30 47%
S&P500 Average Annual Return
Beta 0.9812Average Market Return 11.34%Risk Free rate 5.77%Cost of Debt 4.17%Tax Rate 30.35%
1991 30.47%1992 7.62%1993 10.08%1994 1.32% -1995 37.58%1996 22 96%Tax Rate 30.35%
Wacc 0.1061996 22.96%1997 33.36%1998 28.58%1999 21.04%2000 -9.10%2001 -11 89%2001 -11.89%2002 -22.10%2003 28.69%2004 10.88%2005 11.07%2006 15 79%2006 15.79%2007 5.49%Average Annual Return 11.34%
Obtained from Yahoo! FinanceFinance
Complimentary Slides – WACC
20 Year T-Bill RateYear Return
1993 6.29%1994 7.49%1995 6.95%
SAPLong Term Debt 24000000Net Borrowings 1000000Cost of Debt 4.17%
1996 6.83%1997 6.69%1998 5.72%1999 6.20%2000 6.23%2001 5 63%
Obtained from SAP 2007 Financial Statements
2001 5.63%2002 5.43%2003 4.96%2004 5.04%2005 4.64%2006 5.00%2007 4.91%2008 4.36%
Average 5.77%
Obtained from http://www.federalrese
Complimentary Slides – Projected I/SProjected Cashflowin USDLifetime Index 0 1 2 3 4 5Year 2009 2010 2011 2012 2013 2014Revenue:Tulane 1000000 1000000 3000000Tulane 1000000 1000000 3000000Large University Client 1000000 1000000 2000000 6000000New Domestic Market 10000000India Private 157961 236941.56 355412.34India Public 5663349 8495023.5Other Revenue Stream 39394642 41718926 44180342 46786982 49547414Total Revenue 41394641.71 43718926 49338303 58687273 68397850- Expenses 39676764.08 41904590 47290764 56251751 65559339Education -4164175.578Factory Investment -10000Office Supplies -10000Opportunity Cost -4000000Opportunity Cost -4000000Recruitment 500000EBITDA -7684175.578 1717877.631 1814335 2047540 2435521.8 2838510.8 - Depreciation 1000 1000 1000 1000 1000EBIT 1716877.631 1813335 2046540 2434521.8 2837510.8 -Tax 521072.361 550347.3 621124.8 738877.37 861184.52EBIT(1-t) 1195805.27 1262988 1425415 1695644.5 1976326.3 + Depreciation 1000 1000 1000 1000 1000NATCF 1196805.27 1263988 1426415 1696644.5 1977326.3Discount Factor 1 1.105857346 1.22292 1.352376 1.4955345 1.6538478
Complimentary Slides – Projected I/S
Terminal Growth Rate 5.5%Terminal WACC 10.6%Terminal Value 21901276
Calculation of Terminal Value
Terminal Value 21901276Discount Factor at year 5 1.654PV of Terminal Value 13242619
2011 2012 2013 20142011 2012 2013 2014Growth Rate 6% 13% 19% 3%
NPV 12262826 59NPV 12262826.59
Achieve Positive NPV of 12.262 million and Tripled Growth rate by 3 X
Complimentary Slides – Projected I/S
DepreciationBook Value (Beg) 11000 10000 9000 8000 7000 6000
Depreciation Figures
Book Value (Beg) 11000 10000 9000 8000 7000 6000Depreciation 1000 1000 1000 1000 1000 1000Book Value (End) 10000 9000 8000 7000 6000 5000
Initial Book Value 11000Depreciate over 10 yearsDepreciate over 10 yearsSalvage Value 1000
Complimentary Slides – Cost
Education Cost for new softwareAdminstration Cost 40914.326Faculty Cost 40914.326Student Cost/Opp. Cost 4091432.6Materials Cost 40914.326Total Cost 4214175 578Total Cost 4214175.578
No. Of EmployeeSenior Consultant 3Consultants 30Developers 10T t l N f E l 43Total No. of Employees 43
Student CostRevenue per Consultant 113023 50% of SeniorRevenue per Senior 226046Revenue per Developer 2260.46 1% of Senior
Total Student Cost30 Consultant 33906903 Senior 67813810 Developer 22604.6
Obtained from http://www.reuters.com/finance/industries/benchmarks?industryCode=57211
Total Student Cost 4091432.6
No. of People in OfficeIndian Consultants 4American Consultant 2Developers 10pTotal 16
Complimentary Slides – Revenue
No. of Staff Accenture 160000Accenture Revenue 25313826000No. of Staff ExeterUS 80India 80Puerto Rico 9EGS 80Total No. of Staff Exeter 249Re en e of E eter 39394642Revenue of Exeter 39394642
Gross Margin of Industry 4.15%Obtained from reuters.com
Complimentary Slides – Revenue
%Go ernment Spending on Ed cation 3 80%%Government Spending on Education 3.80%GDP of India 2008 USD 3311900000Government Spending Education USD 125852200Obtained from www.everonn.com. Report by Credit Suisse% on Tertiary Institutes 0.09Govt Spending on Tert Education 11326698Govt Spending on Tert. Education 11326698
Year 1 Year 2Assuming Exeter obtains 50% 75%Revenue 5663349 8495023.5
No. Of Private Schools 50000% that are tertiary Institutes 9%No. Of Private tertiary Institutes 4500No. Of Private tertiary Institutes in Region 310
Amt Private School in US Spend on IT USD 2000000Amt Private School in India Spend on IT Rupees 2000000pExchange Rate ruppe/USD 50.6454Amt Private School in India Spend on IT USD 39490.25973
Assume Private School Contract Growth rate of 50%2012 2013 2014
Complimentary Slides – Why not the financial sector?
1. Recognize the opportunity during this current economic crisis
2 Increased number of consolidation of banks through2. Increased number of consolidation of banks through mergers and acquisitions (M&A)
3. Not Exeter’s expertise4. Exeter specialises in investment management and hedge
funds5. Strong competitions among incumbent firms e.g. Tata
Consultancy6. These M&A are a current trend, not sustainable6. These M&A are a current trend, not sustainable 7. Not in line with our long term goal