the creation of a thousand forests is in one acorn - ralph waldo emerson

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.


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


… 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


Processes And Systems


Financial Model



Financial Model




Financial Model


Value Client



Financial Model




Value Client



Financial Model

Global Markets





Financial Model



Financial Model




Financial Model


Value Client



Financial Model



Sustainable Value For All Stakeholders

Business Partners

InfoscionsShareholders

Society At Large


Business Partners


Clients

Society At Large


Business Partners


Society At Large


Business Partners


ClientsClients

Society At Large


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%


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%


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%


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 50 million $+ clients - 3 5

No. of 60 million $+ clients - - 3




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


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


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


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


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

the creation of a thousand forests is in one acorn - ralph waldo emerson

Documents

infosys technologies

forwardlooking statements

director slide

scalable business model

time frame contracts

additional risks

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