Creative IT Minds

August 12, 2005 © Infosys Technologies Limited 2005 - 06

© Infosys Technologies Limited 2005 - 06

Infrastructure Management Services

Priti RaoVice President – Infrastructure Management Services


Safe Harbor

Certain statements made in this Analyst Meet concerning our 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, industry segment concentration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks or system failures, 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 and regional conflicts, 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 quarterly report on Form 6-K for the quarter ended June 30, 2005. 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 statements that may be made from time to time by or on behalf of the company.

Slide 2


Infrastructure Management Services at Infosys

Strong trend towards offshoring

High potential for growth

Cuts across industry verticals and geographiesPune Operations Center

ParameterFY03 FY04 FY05 LTM June

2005

Revenue ($ m) 5.1 17.6 36.8 40.9

Delivery centers 1 1 2 3

Offshore Mix (%) 55% 58% 74% 75%

Over 1,000 resources in the business unit

Services have a focus on IT infrastructure services for global customers

Customer testimonial

“The Infosys team did extremely well in IT Infrastructure Management Services - we believe that this kind of support could not have been achieved by any other provider”

- Steve Uthoff and JohnDel Mixon, CIO, SCI USA


Worldwide spending on external IT services, Outsourced and Discrete, 2003 through 2008

Gartner looks at externally provided IT services in three major categories: IT Outsourcing, BPO, and Discrete or project-based services

IT outsourcing includes Infrastructure Outsourcing, which consists of Data Center Outsourcing, Desktop Outsourcing, Network Outsourcing and Enterprise Application Outsourcing. The combined Infrastructure Outsourcing segments equal 80 percent of the total outsourcing spending


State of the market

TrendsOffshore infrastructure management - A strong emerging trendPotential - Bulk of Infrastructure Management Services can be offshoredIncreasing complexityDeals are becoming more modularSelective outsourcing (help desk, email, security / network) growingOutsourcing including asset / people transfer is approaching decline

Market sizeBy 2006, Infrastructure Services delivered in a Global Delivery Model from India to US companies will surpass $1 billion (80% probability) – Gartner

Services most likely to be sent to an offshore location

Forrester S-Curve on infrastructure trends


IMS services can be provided by offshore players at competitive prices

Remote operations reduces costs and improves service levels

Savings of 30% to 80% have been reported by customers after availing this opportunity – AMR, Nov 2004

Untapped customer base

Infosys is more equipped in staying abreast of technological advancements

Global players like Infosys for whom IT is the primary line of business are better equipped to attract, retain, and manage the right resources

Infosys provides round-the-clock (24 x 7 x 365) infrastructure management

Keeping pace with technology

Large existing customer baseCost reduction

proposition

Attract and retain top talent

Round-the-clock operations

support

Infosys - high quality at competitive prices


Data Center Management

ServersDatabases

Mail InfrastructureHosting

DesignManage

Technical Support /

Service desk

Application Operations

Support

ITSM Process

Consulting

Technical HelpdeskService Desk

Desktop Support

Business Applications Enterprise Products

Infrastructure Off-shorability

ITSM ImplementationITIL / BS15000

Six Sigma

Design / ModelSupport / Operate

NetworkManagement

Enterprise Networks

Telco NetworksNetwork Devices

SecurityNetwork Operations

Centers

DesignMonitor / Manage

AdviseImplement

ProductionOperations

Monitor / Support

Service offerings

ITIL – IT Infrastructure Library, BS15000 – British Standard 15000, ITSM – IT Service Management,


Success Story : Data Center Management

Device Category 24x7 12x5 8x5

Network 120 - -

Storage 14 24 -

Servers & OS 104 30 42

Security 21 - -

Databases (Instances) 17 - 12

Applications 63 137 17

Delivery model for a large electronics manufacturer• Datacenter Management on 24X7 basis using Infosys Global

Delivery Model• Migrating & consolidating datacenters within a tight deadline of 6

weeks• Delivering a support model that offers round-the-clock physical

coverage globally• Monitoring/managing client’s IT Infrastructure based on ITIL best

practicesTools - HP Openview, SolarWinds, Alteris, Siteminder, Netbackup,

Sitescope, Autosys, etc.Technologies – SAP, Oracle, SQL Server, Lotus Notes, TIBCO,

Webmethods, EDI Harbunger, GenTran, Custom Applications etc.

Customer Benefits1. Round-the-clock - 24x7 coverage from the earlier

12x5 provides higher service levels to client’s customers

2. Savings - Estimated at 30-40% in steady state in addition to providing greater coverage

3. Standards-based documentation to ensure “improved” incident resolution time. (Current Avg. Time/ Incident closure to be reduced by 35-40%)

4. Availability - Reworking vendor contract SLA on applications/ servers directly impacting ‘Service Availability’

5. Improvements - Refining architecture and contingency planning


Infosys IMS strengths

Bangalore Operations Center

Management commitment and willingness to invest in IMSBoard-level sponsorship for IMS business

Infosys has outstanding customer references - AMR report, Nov 2004Largest offshore-based network management engagement with a large European telecom service provider (size of 150-300 FTE’s)

Infrastructure and technology investmentsLarge high-capacity global IP network, 3 large Global Management Centers

Centers of Excellence - Competency building – certifications in technology, process and project management

Best-of-breed tools including BMC and leveraging Microsoft solutions

Strong business pursuit process - Effective cross-selling and enabled sales forceProcess - BS15000 certification and ITIL best practices Strong HR

Massive, scalable training model for infrastructure skillsHigh employee satisfaction in 24x7 model

Infosys’s strong results are because of its outstanding customer references for both the service offering and customer relationship management. - AMR Research Report on Data center management – November 2004

First time we came in after Christmas and could start production without waiting for systems. I am proud of all of you at Infosys, and look forward to achieving more with you in providing cost-effective services to the our business. - IO, Firmenich


Challenges and strategy

Challenge Strategy

Pricing of infrastructure services • Differentiation through process strengths, new solutions, technology

edge from Microsoft alliance• Innovative pricing to de-risk effort-based pricing e.g. service-based

pricing

Expectations on transition Focused transition management team with hundreds of person

years of transition experience and best practices

Security compliance and business continuity planning for mission critical services

Multiple levels of security tailored to customer needs. Disaster

recovery plans agreed and signed off

Service levels in remote management Strong process-oriented mechanism for operational level and

service level agreements definition and pyramid reporting

Asset acquisition Openness to new deal models and capability through strong

partnerships e.g. BT, CDW

Multilingual support Demonstrated ability in telecom provider story. Geared up with

internal capability as well as alliances

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