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The creation of a thousand forests is in one acorn
- Ralph Waldo Emerson
© Infosys Technologies Limited 2004 - 05
Operational Highlights2004-2005Operational Highlights2004-2005
S. GopalakrishnanChief Operating Officer
and Deputy Managing Director
June 11, 2005 © Infosys Technologies Limited 2004 - 05
Safe HarborSafe Harbor
Certain statements made here concerning Infosys’ future growth prospects are forward-looking statements which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, intense competition in IT services including those factors which may affect our cost advantage, wage increases in India, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, restrictions on immigration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks, our ability to successfully complete and integrate potential acquisitions, liability for damages on our service contracts, the success of the companies in which Infosys has made strategic investments, withdrawal of governmental fiscal incentives, political instability, legal restrictions on raising capital or acquiring companies outside India, and unauthorized use of our intellectual property and general economic conditions affecting our industry. Additional risks that could affect our future operating results are more fully described in our United States Securities and Exchange Commission filings including our Annual Report on Form 20- F for the fiscal year ended March 31, 2005 and the Quarterly Reports on Form 6- K for the fiscal quarters ended June 30, 2004, September 30, 2004 and December 31, 2004. These filings are available at www.sec.gov. Infosys may, from time to time, make additional written and oral forward looking statements, including statements contained in the company’s filings with the Securities and Exchange Commission and our reports to shareholders. The company does not undertake to update any forward-looking statement that may be made from time to time by or on behalf of the company.
June 11, 2005 © Infosys Technologies Limited 2004 - 05
Growth and Consolidation…Growth and Consolidation…
High Paced Internal Change
Business reorganization
New services and solutions
Infosys Consulting
Infosys Australia
Infosys China
Business process improvement
Branding of Infosys predictability
Performance Outcomes
Visible change in client perception
GDM is not all about cost, it is about creation of value
GDM creates the headroom for re-architecting business
8 customers over US$ 40 million and 166 customers over US$ 1 million
Revenue and earnings* growth of 46.9% and 48.5% respectively
* before exceptional items
June 11, 2005 © Infosys Technologies Limited 2004 - 05
… Building a Scalable Business Model… Building a Scalable Business Model
Scalable Leadership Development
Value Client
New Services & Solutions
Talent ManagementGlobal Infrastructure
Financial Model
Global Markets
Client Relationships
New Services & Solutions
Processes And Systems
Talent ManagementGlobal Infrastructure
Financial Model
New Services & Solutions
Talent ManagementGlobal Infrastructure
Financial Model
New Services & Solutions
Processes And Systems
Talent ManagementGlobal Infrastructure
Financial Model
Scalable Leadership Development
Value Client
New Services & Solutions
Talent ManagementGlobal Infrastructure
Financial Model
Client Relationships
Processes And Systems
Scalable Leadership Development
Value Client
New Services & Solutions
Talent ManagementGlobal Infrastructure
Financial Model
Global Markets
Client Relationships
New Services & Solutions
Processes And Systems
Talent ManagementGlobal Infrastructure
Financial Model
New Services & Solutions
Talent ManagementGlobal Infrastructure
Financial Model
New Services & Solutions
Processes And Systems
Talent ManagementGlobal Infrastructure
Financial Model
Scalable Leadership Development
Value Client
New Services & Solutions
Talent ManagementGlobal Infrastructure
Financial Model
Client Relationships
Processes And Systems
Sustainable Value For All Stakeholders
Business Partners
InfoscionsShareholders
Society At Large
Sustainable Value For All Stakeholders
Business Partners
InfoscionsShareholders
Clients
Society At Large
Sustainable Value For All Stakeholders
Business Partners
InfoscionsShareholders
Society At Large
Sustainable Value For All Stakeholders
Business Partners
InfoscionsShareholders
ClientsClients
Society At Large
June 11, 2005 © Infosys Technologies Limited 2004 - 05
Geographical FootprintGeographical Footprint
Focus on geographical diversification
70% revenue growth in Europe; now 22.3% of Infosys’ revenues
Infosys Australia consolidated its presence in the Australian market
Infosys China servicing 12 clients across North America, APAC and China
Operating through 32 marketing offices in 16 countries. With 33 Global Development Centers, of which 16 are outside India
Finacle ®, the universal banking solution, expanded footprint to 44 countries, including Australia, Philippines and Europe (UK, Poland and Greece)
Geographies FY 2003 FY 2004 FY 2005
North America 73.0% 71.2% 65.2%
Europe 17.7% 19.2% 22.3%
India 2.1% 1.4% 1.9%
Rest of the World 7.2% 8.2% 10.6%
Total 100.0% 100.0% 100.0%
June 11, 2005 © Infosys Technologies Limited 2004 - 05
Vertical FootprintVertical Footprint
Integrated Business Units (IBUs, reorganized in Nov. 2003) strengthened the focus on aligning services and solutions to client specific business needs
Integrated Business Units such as Retail, High-Tech and Discrete Manufacturing, Banking and Capital Markets offered industry-specific business solutions to clients
Domain Competency Group (DCG) accelerated the domain enablement of employees. 912 employees were certified by global industry bodies
Industries FY 2003 FY 2004 FY 2005
Manufacturing 16.4% 14.8% 14.4%
Insurance, Banking & Financial Services 37.6% 36.6% 34.6%
Banking & Financial Services 23.3% 23.7% 25.2%
Insurance 14.3% 12.9% 9.4%
Telecom 15.2% 16.6% 18.5%
Retail 11.4% 11.6% 9.8%
Energy & Utilities 2.9% 3.0% 3.2%
Transportation 6.8% 7.1% 7.6%
Others 9.7% 10.3% 11.9%
Total 100.0% 100.0% 100.0%
June 11, 2005 © Infosys Technologies Limited 2004 - 05
Service FootprintService Footprint
Testing & Infrastructure Management Services (IMS) saw healthy growth. System Integration (SI) delivered higher value through technology solutions
Package Implementation scaled to 15.2% of Infosys revenues, offering seamless solutions in collaboration with Infosys Consulting
Progeon saw strong growth in Business Process Management services with a 145% increase in revenue over the last fiscal, servicing 19 clients
Service offerings FY 2003 FY 2004 FY 2005
Development 32.1% 25.7% 23.2%
Maintenance 28.2% 30.1% 29.9%
Package Implementation 11.0% 14.5% 15.2%
Testing 3.4% 5.3% 5.8%
Re-engineering 5.5% 6.0% 6.2%
Consulting 4.3% 3.7% 3.6%
Business Process Management 0.5% 1.6% 2.7%
Engineering Services 2.6% 2.2% 2.0%
Other services 7.8% 8.1% 8.4%
Products 4.6% 2.8% 3.0%
Total 100.0% 100.0% 100.0%
June 11, 2005 © Infosys Technologies Limited 2004 - 05
Client RelationshipsClient Relationships
Top 10 clients represent 33.6% revenues. High predictability with 95.4% repeat business
ITRAC (Infoscion as TRusted Advisor to Clients) initiative piloted across key clients to enable account leadership as trusted advisors to clients’ senior executives
Strategic Global Sourcing (SGS) team designed the necessary tools and techniques to sell and manage delivery of large and complex outsourcing engagements
FY 2003 FY 2004 FY 2005
Clients 345 393 438
Clients added during the year 92 119 136
No. of million $+ clients 115 131 166
No. of 5 million $+ clients 41 51 71
No. of 10 million $+ clients 16 25 42
No. of 20 million $+ clients 9 12 19
No. of 30 million $+ clients 3 6 11
No. of 40 million $+ clients 2 4 8
No. of 50 million $+ clients - 3 5
No. of 60 million $+ clients - - 3
No. of 70 million $+ clients - - 1
No. of 80 million $+ clients - - 1
June 11, 2005 © Infosys Technologies Limited 2004 - 05
Building TrustBuilding Trust
Top-of-the-mind recall with leading offshore outsourcing and industry analysts. Respected as a top-tier high performing company
Active ‘Client Advisory Council’ meets every 6 months, where senior client leaders discuss Infosys strategy and business directions
Effective ‘Global Sourcing Summits’ with distinguished client leaders as a platform for sharing experience and learning
Flagship client forum “Milan” (USA and Europe) and Leadership Forum in Japan continue to provide greater opportunities for learning and growth
Wharton Infosys Business Transformation Award (WIBTA) continues to grow from strength to strength with wider participation from industry leaders
AcE, the global academic interface program, is building brand capital across ~70 prestigious universities internationally
June 11, 2005 © Infosys Technologies Limited 2004 - 05
Operational EffectivenessOperational Effectiveness
Consolidated 15 key process families, 143 specific processes into PRidE - our web-based business platform, covering 21 business units and 14 business enabling areas
Pushed the responsibility of process adherence to the ‘point of use’. Cross-functional teams implemented ‘self service’ in key business transactions across global processes
Enhanced portfolio of 100 IT applications for key business processes, e.g. CRM, Order through Remittance, Integrated Project Management and Talent Deployment
Improved quality & productivity through standardization of engineering processes for key technologies with tools, methodologies and reusable components and frameworks
73.5
%
72.9
% 82.1
%
80.0
%
0%
25%
50%
75%
100%
Including Trainees Excluding Trainees
Utilization Rates*
2004 2005
31.6
%
29.4
% 68.4
%
70.6
%
0%
25%
50%
75%
100%
Onsite Offshore
Onsite-Offshore Ratio*
2004 2005* standalone
June 11, 2005 © Infosys Technologies Limited 2004 - 05
Best-in-class PeopleBest-in-class People
Sustained focus on recruiting the top 20% from best schools. 1,413,018 applications processed of which 47,467 were interviewed and 14,981 (gross) hired
Established a world-class Global Learning Center in Mysore capable of simultaneously training 4,500 employees in various streams of technology
Focus on industry academia relationship. Campus Connect program working with 50 partners. InStep program recruiting 100 interns from 70 global institutions
Technology-aided process innovations to scale HR processes. e.g. online applications to review individual utilization, apply for visas and assess individual lifestyle and health
Global footprint, employees of 53 nationalities. Multiple initiatives to synergize cultures and deepen employee engagement across countries
15,876
25,634
36,750
0
10000
20000
30000
40000
2003 2004 2005
Total Employee Strength
6.9%
10.5% 9.7%
0%
5%
10%
15%
2003 2004 2005
Attrition*
* standalone
June 11, 2005 © Infosys Technologies Limited 2004 - 05
World-class InfrastructureWorld-class Infrastructure
68,99,450 sq. ft. space, with a capacity to accommodate 33,111 professionals (as of March 31, 2005)*
Additional 31,76,400 sq. ft. under construction with 16,615 seats
Rs. 623.31 crore spent on developing physical infrastructure
Rs. 170.58 crore spent on developing state-of-the-art technological infrastructure
28,000 sq. ft. of disaster recovery and business continuity facility in Mauritius
* standalone
June 11, 2005 © Infosys Technologies Limited 2004 - 05
Key AwardsKey Awards
Financial Times-PwC survey rated us as India’s most respected company
Infosys Global Business Foundation School selected for this year’s American Society for Training & Development (ASTD) Excellence in Practice Award
Technology Business Research (TBR) ranked us No.1 in its quarterly benchmark
Business Week listed us among the top 100 tech companies in the world
Featured on winners list of Computerworld’s Best Places to Work in IT in the US, 2004
Wired magazine ranked us at number 11 on the list of 40 top technology companies
Businessworld’s Most Respected Company Awards 2004 – Most Respected in India, Most Respected in the IT sector, Most Ethical and Most Globally Competitive
Business Today’s ‘Best Companies to Work for in India 2004’ survey ranked us at No. 2
Topped Asiamoney’s 2004 Corporate Governance Poll
Golden Peacock National Quality Award 2004
“India’s Best Managed Company Award” - study by Business Today-A.T. Kearney
Institute of Chartered Accountants of India award for excellence in financial reporting (2003-04) for the 9th successive year
© Infosys Technologies Limited 2004 - 05
Thank YouThank You
www.infosys.com