business plan for 2004 - EDP

3 INFORMATION TECHNOLOGIES
>> 3.1 Information Technologies Market (IT)
The poor economic background that began in 2002
continued during 2003. The prolonging of the climate of
economic recession led, for most companies, to a
deterioration of their economic and financial situation, to
a reduction of investment and to a decline of acquisition
of goods and services in the IT area.
Overall Spending on IT
Portugal million dollars (constant Jan. 2003 prices)
2 345
615
369
1 361
2 222 2 213
659
381
1 182
2001 2002 2003*
Services Software Hardware
* Estimate Source: IDC, December 2003
Notwithstanding the present adverse conditions, the
domestic IT market still provides interesting potential
and it can be expected that the rate of growth of the
Portuguese IT market will outperform the European
average in the coming years, particular in the services
area.
>> 3.2 Position of the EDP Group
EDP is involved in the IT market mainly through the
EDINFOR Group, the market leader in outsourcing
services, systems integration and IT consultancy.
In 2003 one of its subsidiaries was awarded the
Innovation Prize at the Cannes World Congress on
Development of Intelligent Card Applications Congress –
SIMagine 2003.
EDP is also involved in the market through Central-e,
which heads the operation of the forumB2B.com portal on
the B2B market.
712
393
1 108
>> 3.3 Business of the EDINFOR Group
Shared
Services
ACE Holding
SGPS
CaseEdinfor
CASE
Commercial
Systems ACE
No Limits
ConsultingI
EDINFOR
EDINFOR, Lda.
(Brazil)
Board Support
Departments
Call Centre
(Facilities)
IT-LOG + CPD
IT-GEO
Finishing Centre
+ Copidata
During 2003, in the wake of the announcement of the
search by EDP for a strategic partner for EDINFOR, there
was a focus on internal reorganisation, cost reduction and
putting in order the Group’s companies from an
economic standpoint. The following strategic goals were
established:
• To clarify and take advantage of the relationship with
the EDP Group not only through improvement of the
services provided but also, and chiefly, through
implementation of a new model of commercial
relations more focused on contracting, transparency
and market values;
• To increase turnover outside the EDP Group, with a
more aggressive, structured focus on the more
attractive segments and customers;
• To continue measures to improve processes and
rationalise the cost structure so as to adapt EDINFOR to
the new marketplace realities through specific in-house
programmes, redesign and optimisation of procedures,
creation of decision-taking criteria and restructuring of
cost & works accounting;