Subscription: Healthcare IT Siddharth Saha, Industry Analyst Healthcare London – January 27, 2004 European PACS Professional Services Markets © 2003 Frost & Sullivan. All rights reserved. This document contains highly confidential information and is the sole property of Frost & Sullivan. No part of it may be circulated, quoted, copied or otherwise reproduced without the written approval of Frost & Sullivan.

2 1.PACS Professional Services - Segmentation 2.PACS Implementation - Drivers and Restraints 3.The Role of Professional Services 4.Market Size 5.Trends Across Europe 6.Key Trends Across Market Segments 7.Entry of Consultancy / IT Firms 8.Future Trends 9.Questions European PACS Professional Services Market

3 PACS Professional Services Key to Achieving a Smooth Transition to New State-of-the-Art Information Technology Systems Segmentation: Consulting Services Project Management Services Systems Integration Services Training and Support Services

4 PACS Implementation Drivers: Accepted as a Tool for Operational Gains Wide Range of Solutions with Progressive Capabilities Potential to be Part of National Healthcare Infrastructure Decreasing Cost of Acquisition Large Untapped Markets Restraints: Budgetary Constraints Slow Bureaucratic Decision Making Confusing Array of Choices Apprehension Towards Confronting Change Management Major Markets Include Scandinavia, Benelux, United Kingdom, Germany and Italy

5 The Role of Professional Services Smooth Transition to New Information Management Systems in Healthcare Information Systems Needs Assessment Planning and Designing of Information Systems Acquisition, Installation / Implementation Support Testing and Validation Successful Change Management Support Services Exceptional Range of Professional Services will Enhance Acceptance of Next Generation Hospital Information Systems

6 Market Size - Europe 2003 revenues from PACS professional services are expected to be $95 million going up to $334 million by 2010.

7 Trends Across Europe

8 Key Trends Across Market Segments Market Share 2003 Trend Consulting Services15.4% Initial Growth Project Management Services38.5% Strong Growth Systems Integration Services29.6% Growth Training and Support Services16.5% Strong Growth Drivers for Professional Services: High Growth of Information Systems, Integration with Legacy Systems Optimised Final Output, Turnkey Contract Resulting in Lower Costs

9 Entry of Consultancy / IT Firms The Usual Suspects :GE Medical Systems Philips Medical Solutions Siemens Medical Solutions Agfa - Technical Imaging Kodak - Health Imaging And Now : Cap Gemini Ernst & Young, Accenture EDS, IBM, Dell, Sun Microsystems Hewlett Packard Perot Systems Healthcare Microsoft Corporation

10 Future Trends Professional Services Will Drive High-end Clinical Information Systems Implementation Imaging / Multi-modality Equipment Companies May Lose Their Dominance in Professional Services to Emerging Players Consultancy and Systems Integration Contracts May be Snapped Up By Emerging IT Majors Existing market Participants to Partner With Emerging Players New AlliancesSmaller PACS Vendors with: -Consultancy Firms -IT Hardware Firms -Systems Integration Specialists

11 Related Reports B European PACS Market Review B LIMS/LIS in Europe B European Medical Imaging Equipment Services Market B European Hospital Information Systems Markets

12 Thank you - Any Questions? Ask on the telephone - press * 1 on your keypad Ask online - use the Q&A tab on the left of your screen  +44 (0)  