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INFOSYS

INTRODUCTION TO IT SECTOR

IT-BPO industry in India has today become a growth engine for the economy,

contributing substantially to increases in the GDP, urban employment and exports, to

achiee the ision of a !young and resilient" India#

$hile the effects of the economic crisis are expected to linger in the near term future,

the Indian IT-BPO industry has displayed resilience in countering the unpredictable

conditions and reiterating the iability of India%s fundamental alue proposition#

&onse'uently, India has retained its leadership position in the global sourcing mar(et#

The Indian IT-BPO industry is estimated to achiee reenues of )*D +#+ billion in

./001, with the IT software and serices industry accounting for )*D 20 billion of

reenues# During this period, direct employment is expected to reach nearly /#/3

million, an addition of //2,000 employees, while indirect 4ob creation is estimated to

touch 5 million#

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INFOSYS PROFILE

Infosys Technologies was started in 15 by seen professionals with )* 6/70# The

company designs and deliers technology enabled business solutions#

Their offerings span business and technology consulting, application serices, system

integration, product engineering, custom software deelopment, BPO etc#

The company has 08570 employees and a large global presence in India, &hina,

9ustralia, Poland, ):, &anada and ;apan#

Vision

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ORGANIZATION STRUCTURE

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ACHIEVEMENTS

# irst Indian company to be listed on a )* stoc( exchange and the first

company to do a Public offering without listing

/# =an(ed number 8 among the most respected companies in the world

3# >isted on the orbes 9sian abulous 70 for the fourth consecutie year#

8# ie time ?Global @9:A $inner%#

7# &hampioned &orporate Goernance in India#

VALUE SYSTEM

The alue systems that underscores their commitment to these achieements are-

&ustomer Delight

It mainly deals with giing the customer the perfect solution to his

problem# urthermore, the company tries its leel best to (eep hold of that customer

which has now become one of the most important things in running a business or a

company#

>eadership by example

Infosys as accompany, from its earliest stages hae always been leading

in its own area of excellence# The company had a humble beginning and then grew

due to its core alues, ision and its mission#

Integrity and transparency The company has always integrity within itself and also with the

goernment helping the company and India as a whole in carrying them forward in to

the global mar(et#

airness

The company always has maintained a standard in maintaining fairness in all

regards of its operation and towards its customer and the nation#

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Pursuit of excellence

Infosys as a company has always belieed in excellence in whateer it

proides# This extraordinary belief has ta(en to the heights at which they are present

now#

INITIAL GOALS

They started off with one client and right from the beginning understood the concept

of an offshore deliery model# &onceptually, they tried to leerage globaliation for

customied software deelopment - producing where it is most cost-effectie, and

selling where it is most profitable, all without being constrained by national

boundaries# Infosys belieed that the (ey to success is to ensure that it executes our

engagements well eery time# $e hae based our whole operation on a foundation of

strong alue systems# $e were careful neer to compromise on that despite many

challenges#

PRESENT GOALS OF INFOSYS

9=A9 O GOCA=9&A

To define and implement a training module and create awareness about sustainability#

*tatus-It was achieed by proiding sustainability training for seniors

P=OD)&T =A*PO*IBI>IT.

*ustain customer satisfaction in the annual customer surey

*tatus- It was achieedE the oerall customer satisfaction was at 5 F

AA=G.

@onitor energy consumption to become energy efficient#

*tatus- This was achieed by implementing new monitor mechanisms

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=educe per capita energy consumption by 7 F#

*tatus- This was partially achieed by reducing the per capita electricity consumption

to 0F#

ACI=O@AT

Plant a tree for eery new employee

*tatus- Below the target planted 2,000 trees in @angalore.

H)@9 =IGHT*

&reate a framewor( for employees, suppliers and endors to be educated on human

rights#

*tatus- Below target- deeloped a basic training module on human rights which will

be implemented in /00#

A@P>O.AA AG9GA@AT

Trac( impact of employee health related actiities#

*tatus- Target achieed by receiing feedbac(s after health chec( ups.

*O&IAT.

Define and implement metrics for measurement#

*tatus- 9chieed target by deeloping guidelines and dashboards.

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FUTURE GOALS OF INFOSYS FOR THE YEAR 2009-2010

*T=9TAGI& >ACA>

# $e will deelop processes to integrate business and sustainability goals#

/# Improe accountability in the business units through i*OP framewor(#

3# *trie to meet stringent short term goals#

OPA=9TIO9> >ACA>

# 7F reduction in energy, water and carbon foot print#

/# To educate endors on our green procurement policies#

3# To create >arge, global deals

8# &ontinued linear relationship between reenue-manpower

To im!"m"#$ E#$"%%i&" &'(!" So!)$io# D"&i*# (#+ I#$"*%($io# (& ," o')&

(%"(& i# $/" $"!"'om &"'$o%&.

Key industries

Infosys @edia &entre in Bangalore#J

http://en.wikipedia.org/wiki/File:BangaloreInfosys.jpg

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Infosys seres arious industries through its Industrial Business )nits IB)J, such asK

Ban(ing L &apital @ar(ets B&@J

&ommunications, @edia and Antertainment &@AJ

Anergy, )tilities and *erices A)*J

Insurance, Healthcare and >ife *ciences IH>J

@anufacturing @GJ

=etail, &onsumer Product Goods and >ogistics =AT>J

ew @ar(ets and *erices @*J K on )* and on Auropean mar(ets,

*aa*, >earning *erices

inance K &ore Ban(ing Product

Im!"m"#$($io# o !(# R"'"#$ o#"

RFID Architecture Strategy

Executive Summary

Aarly 9dopters of =ID are beginning to loo( beyond proof of concept pilots and

field trials# Anterprise scale *olution Design and Integration are emerging as (ey

focus areas# :ey to success in both of them is the architecture for integrating data

from the =ID hardware layer with a multitude of Anterprise *ystems# 9 >arge

Anterprise piloting =ID in multiple global sites is recogniing the limitations of a

traditional Anterprise scale 9pplication *erer in performing =ID @iddleware

functions# 9 Auropean *pecialty =etailer see(ing to adopt =ID is grappling with the

cost of ownership implications of Point *olutions for =ID integration# Both of these

Anterprises are recogniing the need for a =ID 9rchitecture *trategy#

Implementation of this plan presents Infosys iews on a optimal =ID 9rchitecture

*trategy 9pproach for Anterprises based on lessons learnt from Aarly 9dopters and

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Infosys experience in proiding =eal Time &ontrol and Data 9c'uisition *olutions in

the Telecom and Process &ontrol Industries#

Pitfalls and Lessons Learnt from Early Adopter Pilots

9 common refrain across Aarly 9dopter Pilots is that =ID 9pplications are 'uite

unli(e I#T# applications that hae been traditionally implemented within Anterprises#

The contact-less communication between the tags and readers and its sensitiity to the

physical enironment together adds a new dimension# Anterprises are eoling

implementation strategies mindful of the many challenges posed by =ID across

layers#

Business Process Transformation

Aarly 9dopters are recogniing that the alue of =ID lies in operational efficiencies

resulting from changes in business processes# These Anterprises continue to be

challenged howeer in determining how processes can be improed in a =ID

enabled enterprise#

=ID characteristics for business includeK

M =eadability

M =ate

M 9ccuracy

M Duplicates

M Interference

M Programmability

M @emory

Data Collection

Aarly 9dopters especially those with Global Deployments are grappling with the

'uestion of which TechnologyNCendor to bet on# They are recogniing that choosing

of =ID Tags and =eaders is dependent on multiple ariables# These Anterprises

recognie the strategic nature of the technology and design decisions to be made in

this layer and are eoling endor selection strategies balancing the below

considerationsK

M Geographic spectrum and power regulations

M @ultiplicity of air interface protocols

M *tandards based Interoperability across endors

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M 3rd party certifications for standards compliance

M @aturity and failure rates of endor specific products

M Protocol performance benchmar(s for endor specific products

M Pac(aging material modification challenges and costs

M *ecurity and Priacy Policies and &ommitments

M inancial iability of endors

Aarly 9dopters are also recogniing that endor selection needs to factor how

business processes will be changed to leerage the technology

Te need for a !"#D Arcitecture Strate$y

=ID is clearly a disruptie technology# But to ensure that enterprises realie its

potential optimally, it is important that they understand the multi-dimensional impact

that such disruptie technologies hae on the enterprise# 9 critical element of this is to

hae an =ID 9rchitecture strategy#

Different layers within the Anterprise are li(ely to be impacted differently# It is

important for all parts of the Anterprise to deelop a common understanding of what

this impact is and what it means to existing inestments# It is also important to help

identify what new inestments will be re'uired to be made within the Anterprise# 9

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(ey area of concern for Anterprises adopting disruptie technologies is the Total &ost

of Ownership# By clearly understanding the impact on existing inestments and by

eoling a holistic iew of new inestments, Anterprises will be able to better manage

the T&O by future proofing inestments and putting in place the right architecture for

new inestments#

#nfosys Vie%s on !"#D Arcitecture Strate$y

Infosys beliees that current approaches to =ID Integration generally suffer from

many deficiencies, ranging from a point solution approach to confusing =ID with

A9I# 9dopting traditional enterprise architecture design approaches to =ID run the

ris( of failure on account of not recogniing the true nature of =ID Integration#

=ID Integration is about =eal Time 9synchronous Aent Handling and =eal Time

*tate-based decision ma(ing# =ID Integration calls for an architecture design

paradigm that reflects this#

The =ID 9rchitecture *trategy should enable Anterprises to ta(e a holistic iew of

the impact of the =ID Business Cision on their Anterprise# The =ID 9rchitecture

*trategy should enable Anterprises to create a platform that will help realie the =ID

Business Cision through Calue &reating =ID 9pplications deployed in a >ow Total

&ost of Ownership Anironment that is flexible, extensible and future proof#

To assess the complexity of implementing =ID and the impact on existing systems

and infrastructure Infosys has eoled a + >ayer =eference @odel for =ID that can

be the basis for Business and IT to share a common understanding and ision of a

=ID enabled Anterprise# This model proides a layered iew of the technology,

infrastructure and process elements that constitute a =ID implementation within an

enterprise# Drawing upon its experience in deeloping =eal Time 9synchronous *tate

Aent Handling *olutions in the Telecom and etwor(ing world, Infosys has eoled

a robust unctional @odel and =eference 9rchitecture for designing and integrating

Anterprise scale =ID 9pplications#

The + >ayer =eference @odel, together with the unctional @odel and the =eference

9rchitecture proide a robust foundation for any =ID 9rchitecture *trategy byK

M Deconstructing the complexity of =ID by proiding a layered iew

M Identifying the impact of =ID on existing layers within the Anterprise

M Identifying new layers to be implemented by the Anterprise

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M Proiding a framewor( to analye =ID Business =e'uirements to articulate =ID

9pplication =e'uirements#

M Proiding a framewor( to design =ID 9pplication *cenarios within the Aent

management >ayer

M Proiding a =eference 9rchitecture to demonstrate how =ID Aents of Business

*ignificance are integrated with Anterprise *ystems

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ORGANIZATION EHAVIOUR AND PRACTICES

L"(+"%&/i S$!"3 Infosys beliees that leadership is one of the most essential

ingredients of organiational success which is proided by its &hairman, =

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arayanmurthy# >eadership is based on high business ision and predominantly

supportie styles# There is emphasis on deeloping leadership 'ualities among

employees# or this purpose, it has established !Infosys >eadership Institute"# Top

management emphasies on open door policy, continuous sharing of information,

ta(es inputs from employees in decision ma(ing, and builds personal rapport with

employees# 9s we hae seen oer last few years, we hae seen smooth transition from

= arayanmurthy to andan ila(eni and from andan ila(eni to :ris

Gopal(rishnan without any aderse effects on the company outloo( and each one has

proed to be an able leader ta(ing company forward#

S$( H)m(# R"&o)%'"&K

*ince Infosys is in (nowledge-based industry, it focuses on the 'uality of the human

resources# Out of total personnel, about 10 per cent are engineers# 9t the entry leel, it

emphasies on selecting candidates who find the company%s meritocratic culture

satisfying, superior academic records, technical s(ills, and high leel of learn ability#

The company emphasies on training and deelopment of its employees on

continuous basis and spends about /#27 per cent of its reenues on up gradation of

employees s(ills, and around 70F as employee costs# In spite of thousands of people

4oining eery month, Infosys has been able to maintain its training standard mostly

due to its highly matured processes capabilities and inestment in infrastructure#

S$%($"*3

Infosys has adopted a client-focused strategy to achiee growth# =ather than focusing

on numerous small organiations, it focuses on limited number of large organiations

throughout world# In order to cater its clients, the company emphasies on custom-

built software%s# 9nother differentiating factor for Infosys is that it commands

premium margins# &ompany does not negotiate oer margins beyond a certain limit

and some time prefers to wal(-out rather than compromise on 'uality for low-cost

contracts# This has helped in building an image for 'uality drien model rather than

cost-differentiating model# Increase business from existing and new clientsK Infosys

has focused on expanding the nature and scope of engagements for the existing clients

by increasing the sie and number of pro4ects and extending the breadth of its serice

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offerings# or new clients, it proides alue added solutions by leeraging its in-depth

industry expertise#

D"4"!o +"" i#+)&$% ,#o5!"+*"K Infosys has specialied industry expertise in the financial serices, manufacturing,

telecommunications, retail, transportation and logistics industries# Anhance brand

isibilityK Infosys inests in the deelopment of its premium brand identity in the

mar(etplace by participating in media and industry analyst eents, sponsorship of and

participation in targeted industry conferences, trade shows, recruiting efforts,

community outreach programs and inestor relations# Pursue alliances and strategic

ac'uisitionsK Infosys is (nown for its organic growth ris( aerseJ strategy though it

has strategic alliance with leading technology proiders ta(e adantage of emerging

technologies in a mutually beneficial and cost-competitie manner#

S/(%"+ V(!)"&K

Calues are important part of Infosys%s organiational culture# In fact its tagline depicts

how much emphasis it lays on core alues# The core alues areK

9 commitment to surpass customer expectations#

>eadership by AxampleK 9 commitment to set standards in business and

transactions and be an exemplar for the industry and teams#

Integrity and TransparencyK 9 commitment to be ethical, sincere and open in

our dealings#

airnessK 9 commitment to be ob4ectie and transaction-oriented, thereby

earning trust and respect#

Pursuit of AxcellenceK 9 commitment to strie relentlessly, to constantly

improe ourseles, our teams, our serices and products so as to become the

best# Organiational *tructureK The &ompany has adopted a free form

organiation deoid of hierarchies# Aeryone is (nown as associates

irrespectie of his position in the company#

S,i!!&

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rom last year, Infosys has made it mandatory for eery employee to clear a

predefined certifications, domain as well as technical, in order to be eligible for

appraisal#

CORPORATE STRATEGIES

Global Deliery @odel Producing where it is most cost effectie to produce L

selling where it is most profitable to sell# @oing up the Calue &hain Getting

inoled in a software deelopment pro4ect at the earliest stage of its life cycle# P*PD

@odel !Predictability of =eenues, *ustainability of =eenues, Profitability, De-

ris(ing" for ris( management#

GENERIC STRATEGIES3

>ow cost Global deliery /8N+ @odel# >ittle differentiation in low-end serices of

alue chainE high differentiation in high end serices of alue chain li(e software

products and pac(age solutions# ocus on 'uality, customer relationship management,

timely-deliery#

CONCENTRATION3 10F of Infosys reenues from 9merican and Auropean

nations#

VERTICAL INTEGRATIONK Infosys recently made a bid to ac'uire a Auropean

ma4or 9xon consultancy to improe its business in Auropean mar(ets, but finally

called off the deal due to high aluation# Otherwise, Infosys has always belieed in

organic growth#

INNOVATIONK The *oftware Angineering and Technology >abs *AT>absJ at

Infosys is the centre for applied technology research in software engineering and

enterprise technology# *AT>abs conducted /8 Innoation $or(shops with customers

from the )* and 9ustralia, to identify research collaboration possibilities# Infosys

promotes a faourable wor( enironment that encourages innoation and meritocracy#

INFLUENCE OF E6TERNAL FACTORS

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# Politicalstability3 Indian political structure is considered stable enough expect the

fact that there is a fear of hung parliament no clear ma4orityJ#

/# )#*# goernment has declared that )#* companies that outsource IT wor( to other

locations other than U.S. willnotget$(7benefit#

8. Goernment owned companies and P*)s hae decided to gie mo%" IT %o"'$& $o

I#+i(# IT 'om(#i"&.

:. T"%%o%i&$ ($$(', o% 5(%.

ECONOMIC

1. G!o;(! IT &"#+i#* +"m(#+

/# Dom"&$i' IT S"#+i#* DemandJK Domestic mar(et to grow by /0F and reach

approx )*D /0 billion in /005-01 - 9**&O@

8. C)%%"#' F!)'$)($io#

8# R"(! E&$($" P%i'"&K Decline in real estate prices has resulted reducing the rental

expenditures#

7# A$$%i$io#3 Due to recession, the layoffs and 4ob-cuts hae resulted in low attrition

rate#

2# ECOMONIC ATTRACTIVENESS due to cost adantage and other factors

TECHNOLOGICAL

TelephonyK

a# India has the world%s lowest call rates -/ )* centsJ#

b# Axpected to hae total subscriber base of about 700 million by /00#

c# 9=P) for G*@ is )*D 2#2 per month#

d# India has the second largest telephone networ( after china#

e# Teledensity 1#52 F

f# Anterprise telephone serices, 3G, $i-max and CP are poised to grow#

I#$"%#"$ (',;o#"3 Due to IT reolution of 10s, Indian cities and India is well

connected with undersea optical cables#

N"5 IT $"'/#o!o*i"&3 Technologies li(e *O9, $eb /#0, High-definition content, grid

computing, etc and innoation in low cost technologies is presenting new challenges

and opportunities for Indian IT industry#

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LEGAL

IT SEZ %"

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Infosys was the first Indian IT company to establish a company office to manage and

drie all company initiaties dealing with diersity and inclusion# Today we hae

employees from oer +0 countries# $omen constitute more than 3/F of our

wor(force#

Infosys $omen Inclusiity etwor( I$IJ promotes a gender-sensitie wor(

enironment# I$I recognies the uni'ue aspirations and needs of women# It

proides aenues for ocational, personal and psychological counsel to enable

professional and personal deelopment# Our new amily @atters etwor( proides

support to employees on parenting matters# On International $omen%s Day /001,

Infosys honoured women employees who hae been catalysts of social change#

Infosys also launched *par( Guru, an initiatie to awareness among school teachers in

rural areas about social issues#

Infosys actiely see(s to hire and train persons with disabilities# In /002 and /00+,

Infosys BPO receied the Helen :eller award for the best employer from the ational

&entre for Promotion of Amployment for Disabled People &PADPJ#

"#"i$& o >o%,!('" Di4"%&i$

9n organiation%s success and competitieness depends upon its ability to embrace

diersity and realie the benefits# $hen organiations actiely assess their handling of

wor(place diersity issues, deelop and implement diersity plans, multiple benefits

are reported such asK

Increased adaptability Organiations employing a dierse wor(force can supply a

greater ariety of solutions to problems in serice, sourcing, and allocation of

resources# Amployees from dierse bac(grounds bring indiidual talents and

experiences in suggesting ideas that are flexible in adapting to fluctuating mar(ets and

customer demands#

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Broader serice range - 9 dierse collection of s(ills and experiences e#g# languages,

cultural understandingJ allows a company to proide serice to customers on a global

basis#

Cariety of iewpoints - 9 dierse wor(force that feels comfortable communicating

arying points of iew proides a larger pool of ideas and experiences# The

organiation can draw from that pool to meet business strategy needs and the needs of

customers more effectiely#

@ore effectie execution &ompanies that encourage diersity in the wor(place

inspire all of their employees to perform to their highest ability# &ompany-wide

strategies can then are executedE resulting in higher productiity, profit, and return on

inestment#

C/(!!"#*"& o Di4"%&i$ i# $/" >o%,!('"

Ta(ing full adantage of the benefits of diersity in the wor(place is not without its

challenges# *ome of those challenges areK

&ommunication - Perceptual, cultural and language barriers need to be oercome for

diersity programs to succeed# Ineffectie communication of (ey ob4ecties results in

confusion, lac( of teamwor(, and low morale#

=esistance to change - There are always employees who will refuse to accept the fact

that the social and cultural ma(eup of their wor(place is changing# The !we%e always

done it this way" mentality silences new ideas and inhibits progress#

Implementation of diersity in the wor(place policies - This can be the oerriding

challenge to all diersity adocates# 9rmed with the results of employee assessments

and research data, they must build and implement a customied strategy to maximie

the effects of diersity in the wor(place for their particular organiation#

*uccessful @anagement of Diersity in the $or(place - Diersity training alone is

not sufficient for your organiation%s diersity management plan# 9 strategy must be

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created and implemented to create a culture of diersity that permeates eery

department and function of the organiation#

Diersity also increases errors and misunderstandings - Group members may assume

they interpret things similarly when in fact they do not, or they may disagree because

of their different frames of references#

@istrust and tension - People prefer to associate with others who are li(e themseles#

This tendency often leads to mistrust and misunderstanding of those who are different

because of lac( of contact and low familiarity# it also causes stress and tension ,and

reaching agreement on problems can be difficult#

*tereotyping - $e learn to see the world in a certain way based on our bac(grounds

and experiences# Our interests, alues and cultures act as filters and distort, bloc( and

select what we see and hear# $e see and hear what we expect to see and hear# Group

members often inappropriately stereotype their !different" colleagues rather than

accurately perceiing and ealuating those indiidual%s contributions, capabilities

aspirations and motiations# *uch stereotypes inurn affect how people employee

stereotyped as unmotiated or emotional will be gien less -stress proo(ing 4obs

than their co-wor(ers# Those 4ob assignments will create frustrated employees,

perhaps resulting in low commitment, higher turnoer, and underused s(ills#

It is seen that at Infosys the wor( force diersity is well maintained and a lot of mix of

culture is also seen here# It is due to the arious factors that hae led to the

unprecedented growth and success of Infosys

>OR? FORCE CULTURE

&reation of dierse wor(force would be the greatest challenge for corporations in a

globalied world, says Infosys Technologies% chairman and chief mentor #=#

arayana @urthy according to *ilicon India article !&reating dierse wor(force

greatest challenge for global firms"#

In a bid to address this daunting challenge, Infosys has built a global base to grow in

the future, with oer 1,000 employees from +0 nationalities wor(ing across 10

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countries# =ecounting the initiaties ta(en during the year under reiew, the chairman

said by adopting a policy of ?follow the sun%, the company had ensured to build

deliery capability in India, &hina, southeast 9sia, ;apan, 9ustralia, the )*, &anada,

@exico, Britain, eastern Aurope and @auritius#

9s a global firm with a multi-cultural, multi-ethnic wor(force and deliery centers,

@urthy says the IT bellwether had ta(en seeral measures to create a high-leel of

diersity in its wor(force by enhancing its recruiting efforts in different countries#

$e thin( Infosys is doing a great 4ob turning itself into a global company by hiring

dierse wor(force# But underneath these efforts to build dierse wor( force, Infosys

or any other company ying to be Global &ompany primarily need to pay attention to

their corporate culture# @ost of the corporations hae what we call !ethno-centric"

corporate culture# Initially when Infosys was small, it had all its clients and employees

in India# 9ll its executies were and still are of Indian ethnicity although there is

some diersity in its board with 3 board members is not IndiansJ# Therefore its

corporate culture is mainly influenced by Indian culture both ethnic and countryJ#

$hen they begin to open deelopment centres in other countries, Indian corporate

culture un(nowingly percolates and influences the local culture# If those two cultures

are diametrically opposite, creating a dierse wor( force may in fact hinder with

employee productiity# *o, ethno-centric corporate culture may curtail the ambition of

any company to becoming global#

In our opinion, the only way to oercome ethno-centric corporate culture is to hae

multi-ethnic and multi-national top executies# Infosys needs to create diersity at the

top executie leel first# That will hae a long term affect of neutraliing ethno-

centric corporate culture and building a truly global organiation# That is the only way

for Infosys or any other company to achiee globaliation strategy#

$e hae couple of example to show that this approach is winning globaliation

strategyK

Axample K *ony &orp of ;apan is a global company but its culture is strongly

influenced by ;apanese culture and that has lately affected *ony%s Brand negatiely#

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To oercome stagnating sales, *ony in /007 promoted Howard *tringer as its first non

;apanese &AO# Born in $ales with extensie wor( experience in )*, *tringer has

been ery actie in trying to neutralie negatie aspect of ;apanese ethno centric

influence on *ony chec( out . Times articleJ# Diersity has been implanted

successfully at the top executie%s leel at *ony >oo( at the bio of *ony%s top

executie hereJ

Axample /K >enoo, a &hinese based P& hardware company bought lucratie assets

from IB@ couple of years bac( and has been on a path to transform itself into a

globalied company# 9gain chec( out the diersity of top management team at

>enoo here#

@anagement teams within Infosys are all Indians &hec( out the profile of the

management team hereJ# Bottom line is simple# Internationally well (nown brand will

not ma(e a company Global# Global manufacturingNdeelopment centre will not ma(e

a company global# @ultinational, multiethnic employee by themseles may not enable

the company to become global# It%s the !ethnic neutral" corporate culture that will

unleash any company to become truly global# That cultural change can be brought

about by the diersity at the executie and the top management leel# $e thin(

Infosys should get busy hiring multinational top executies along with hiring

multinational employees#

S>OT ANALYSIS

STRENGTHS

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>eadership in sophisticated solutions that enable clients to optimie the efficiency of

their businessK

The company bring together expertise in consulting, IT serices and business process

outsourcing to create solutions that allow clients to increase their customer loyalty

through faster innoation, restructure their cost base, and help them achiee greater

success through shifting business cycles# Axpertise helps our clients improe their

own efficiencies, create better alue for their end customers and become more

competitie# They%re able to capture a greater share of our clients% technology

budgets#

Proen global deliery modelK

Highly eoled Global Deliery @odel represents a (ey competitie adantage# Oer

the past decade, they hae deeloped our onsite and offshore execution capabilities to

delier high 'uality and scalable serices# In doing so, Infosys hae made substantial

inestments in processes, infrastructure and systems, and hae refined our Global

Deliery @odel to effectiely integrate onsite and offshore technology serices# The

Global Deliery @odel proides clients with seamless, high 'uality solutions in

reduced time frames enabling them to achiee operating efficiencies#

&ommitment to superior 'uality and process executionK

Infosys hae deeloped a sophisticated pro4ect management methodology to ensure

timely, consistent and accurate deliery of superior 'uality solutions to maintain a

high leel of client satisfaction#

*trong Brand and >ong-*tanding &lient =elationshipsK

They hae long-standing relationships with large multinational corporations built on

successful prior engagements with them#

*tatus as an employer of choiceK

Infosys has among the best talent in the Indian technology serices industry and are

committed to remaining among the industry%s leading employers# $e hae a presence

in 3 cities in India, allowing us to recruit technology professionals with specific

geographic preferences# $e hae a dierse wor(force which includes employees from

+0 nationalities#

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9bility to scaleK

Infosys hae successfully managed their growth by inesting in infrastructure and by

rapidly recruiting, training and deploying new professionals# $e currently hae 7/

global deelopment centres#

Innoation and leadershipK 9 pioneer in the technology serices industry# $e are one

of the first Indian companies to achiee a number of significant milestones, which has

enhanced our reputation in the mar(etplace#

WEAKNESSES

=eenues and expenses are difficult to predict and can ary significantly from period

to period, which could cause share Price to decline

/2

@ay not be able to sustain our preious profit margins or leels of profitability

The economic enironment, pricing pressure and rising wages in India and oerseas

could negatiely impact reenues and operating results

=eenues are highly dependent on clients primarily located in the )nited *tates and

Aurope, as well as on clients concentrated in certain industries# Aconomic slowdowns

or factors that affect the economic health of the )nited *tates, Aurope or these

industries may affect our business#

9ny inability to manage growth could disrupt our business and reduce our

profitability

@ay face difficulties in proiding end-to-end business solutions for our clients, which

could lead to clients discontinuing their wor(

=eenues are highly dependent upon a small number of clients, and the loss of any

one of our ma4or clients could significantly impact the business

ailure to complete fixed-price, fixed-time frame contracts within budget and on time

may negatiely affect our profitability

&lient contracts can typically be terminated without cause and with little or no notice

or penalty, which could negatiely impact our reenues and profitability

The engagements with customers are singular in nature and do not necessarily proide

for subse'uent engagements

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OPPORTUNITIES

Huge untapped potential for in the global mar(et as IT will become the need of almost

eery industry

The IT industry can be the reason for India being a global leader of tomorrow

THREATS

>egislation in certain of the countries, in which Infosys operates, including the )nited

*tates and the )nited :ingdom, may restrict companies in those countries from

outsourcing wor( oerseas

Intense competition in the mar(et for technology serices could affect cost

adantages, which could reduce the share of business from clients and decrease the

company%s reenues

Our client contracts are often conditioned upon our performance, which, if

unsatisfactory, could result in less reenue than preiously anticipated

*ome of our long-term client contracts contain benchmar(ing proisions which, if

triggered, could result in lower future reenues and profitability under the contract#

FUTURE STEPS

# @ore (een on large deals# The margin dilution from large deals has been a point of

concern in the past at Infosys# Howeer, while the initial margin profile can be

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extremely way, it is possible to improe margins later in the life of the contract

through reduced GL9 oerheads# Infosys, in its recent analyst meet, mentioned that a

dedicated team was now wor(ing on large deals# $e expect greater focus ahead in this

area#

/# Increased focus on solution based offerings in both IT serices and BPO# Infosys

has deeloped R70 solution based offerings in the IT serices space and beliees that

some of these can help brea( the linearity between reenue and manpower growth in

the business# In BPO as well, its first platform based BPO offering is li(ely to be

launched soon#

3# $illingness to explore new deal structures# The mar(et was surprised when Infosys

paid an upfront 6/5m for the 6/70mN+-year Phillips BPO deal# $hile T&* had made

such a payment in the case of Pearl BPO earlier, Infosys% willingness to do so was

certainly a shift from the past#

I#o&&@& /i%i#* !(#& o% $/" "(% 20093

@ost of the companies rapidly cutting their losses by employing massie

retrenchment drie, firing thousands of employees or offering them early separation

schemes# Howeer, despite the massie economic turmoil across the globe, there are

still some companies that are loo(ing to hire s(illed candidates# One of these

companies is Infosys# The company intends to stic( to its plan of hiring /7,000 people

this fiscal year#

I#o&& !(#& ('

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some companies are loo(ing to outsource large deals# 9round /0-/7 percent of the

total business in InfosysQ @exico subsidiary comes from multinational companies that

hae operations in @exico while the rest of the business comes from clients in orth

9merica# That is the reason why Infosys is stressing on local deals to attract local

customers#

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