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Still struggling  
  but reasonably optimistic
newsletter n°2, May 2002
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Interview with Jean-Claude Turri, MD, Valtech France
Q: How would you describe the current French market situation?
A: "The last six months has been very challenging here in France. Almost over night we witnessed a complete stop in planned project and reluctance from clients to invest in technology related projects".
Q: How do you see the coming quarters?
A: "We have mixed feelings regarding coming quarters. On one hand, the Training business is growing again, which is usually a sign that customers are preparing themselves for future projects. The training business is always first to suffer when clients are looking to reduce cost", Jean-Claude tells. "Also the rate of utilisation for IT consulting is currently increasing. We have won new clients lately. Agefos (semi public organisation and the biggest project ever for France), JC Decaux, Miko (ice cream manufacturer, a Unilever Division) and Scoot (Vivendi Group) are very good examples of that. Our ERP unit is also doing very well with large customers like Usinor (Arcelor) and Renault.

The new financial unit (Banks and Insurance companies), combining sector-specific management capabilities, has done very well so far. It has already grown to 20 professionals. Its ITN insurance software capabilities are looked after vigorously. However all our competencies are far from being used at full rate. Training, IT consultants and management consultants must fight every day to defend and, whenever possible, improve our position on the French market. Moreover, we are still struggling with the drastic changes in our sales organisation at the end of last year".

 
Q: What's your current sales and marketing strategy?
A: "We are currently expanding our brand so that our customers fully understand the recent expansion of our service offering. Valtech in France is a good and positively recognised brand for IT services. Most people know the Valtech name and our reputation enables French team to get access to top-level executives. This gives them the opportunity to explain our new range of services and compete for new complex projects.

One reason why the French organisation is optimistic is this new orientation towards high-impact projects mixing business issues, IT innovation, knowledge transfer and training of the client. This is a differentiator in the market. We are focusing on 20 key accounts for this year and will increase this to 30 for the next year. On each key account we are assessing the potential in terms of training plus business and IT consulting. We want to know specifically where Valtech can make a difference to the clients. Typically these are projects with a high complexity and a high return on investment. Sales, pre-sales and delivery teams heavily involve management and IT consultants and Training".

 
Q: What's your position on the strategic offshore initiative?
A: "I believe that our existing clients are potential offshore customers and we are very attentive to this. The offshore potential of each client will systematically be worked into our existing missions with the client. We expect mainly to focus on large offshore accounts such as application maintenance or large projects developed on a time and material basis. Before the end of the year we expect to have 2-3 large projects and 3-5 smaller projects to test our capability to master our offshore process".
 
Q: In France, Valtech has strategic skills in SCM. Are you also planning to increase the CRM team?
A: We have recently added more strategy consulting capabilities that have reinforced the CRM team. France has renamed its CRM service line to "Customer Strategy & Technology" (CST), which of course includes all the traditional CRM service offerings. They are two reasons: first the growing concerns regarding some CRM projects that dedicate too much efforts to the IT side and forget the customers, and secondly, an attempt to distinguish our service offering from numerous existing CRM services provided by our powerful competitors. CST includes, besides CRM traditional offerings, some customer-related specific offerings like strategic marketing, experiential marketing and new product development.
 
Q: Any other initiatives that you would like to mention?
A: In June France will launch an assessment of its processes following the CMM methodology. Results are due for beginning of July. The French management team will then have to prioritise the improvement efforts. The objective is to have France software projects management processes certified CMM level 3 by 2004.
 
Jean-Claude Turri profile
As the founder of the Groupe Ouroumoff and Axelboss Consultants, Jean-Claude has more than 25 years of experience in Management Consulting. At Valtech France, Jean-Claude is in charge of defining the integrated offer ranging from management consulting to technology deployment. These services cover purchase (market place, e-procurement), SCM, CRM, ERP implementation, EAI and e-business. Valtech France employs 280 people and has offices in Paris and Toulouse with training partners also in Lyon and Geneva, Switzerland.
newsletter n°2
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