Welcome to the 23 rd Annual General Meeting. Annual General Meeting 2003 - 04 © Infosys...

Welcome to the

23rd

AnnualGeneralMeeting

© Infosys Technologies Limited 2003 - 04

Annual General Meeting 2003 - 04

Operational Highlights2003 - 04Operational Highlights2003 - 04

S. GopalakrishnanChief Operating Officer andDeputy Managing Director

June 12, 2004 © Infosys Technologies Limited 2003 - 04


Safe HarborSafe Harbor

This presentation may contain certain forward looking statements. The

company may not achieve results as expressed or implied by such

forward looking statements. Actual results could differ materially from

those expressed or implied in such forward looking statements due to a

number of factors including those discussed under the head "Risk

factors" in the company's filings with the United States Securities and

Exchange Commission. Do not place undue reliance on these forward

looking statements. This presentation contains references to findings of

various reports available in the public domain. The company makes no

representation as to their accuracy or that the company subscribes to

those findings. They are provided only by way of information.



Proven FundamentalsProven Fundamentals

Predictability, Sustainability,Profitability and De-risking

Deep rooted value system

Value driven client relationships

End-to-end suite of services

Pioneered Global Delivery Model

Excellence in execution

Quality processes and systems

Best-in-class people and leadership

Scalability and resilience

Benchmark corporate governance This is a milestone, not the destination.We are moving forward on our journey…



New Game… New RulesNew Game… New Rules

Clients demand a “defined” benefit

for every IT dollar spent

Businesses seek end-to-end

solutions that are also cost effective

Traditional total outsourcing model

faces rough weather

Competitors race to replicate the

Global Delivery Model

Ability to scale and meet client

needs emerges as a differentiator

War for acquiring and retaining best-

in-class global talent intensifies

Change the meaning of “Value for

Money” with Global Delivery Model

Integrate the suite of services to

meet clients’ business needs

Demonstrate strengths of “Modular

Global Sourcing” model

Build on the extensive experience

and hone the Global Delivery Model

Grow rapidly based on the intrinsic

resilience built over years

Continue to build and motivate a

team of the best and the brightest



Geographical FootprintGeographical Footprint

Focus on geographical diversification

53% Revenue growth in Europe, relationships with Europe head-quartered clients

Infosys Australia formed to address the Australian market

Infosys Shanghai formed to service the global and Chinese markets

Operating through 31 marketing offices in 16 countries. Further developed the 31 global

development centers out of which 13 are outside India

Banking Business Unit made significant headways in several countries including

Mauritius, Zimbabwe & China

Geographies FY 2004 FY 2003 FY 2002

North America 71.2% 73.0% 71.2%

Europe 19.2% 17.7% 19.5%

India 1.4% 2.1% 2.0%

Rest of the world 8.2% 7.2% 7.3%

Total 100.0% 100.0% 100.0%



Vertical FootprintVertical Footprint

Re-organized along verticals in Nov. 2003 to align with clients’ business needs, develop business solutions and evolve go-to-market strategies

Enterprise Capability Units (ECUs) formed to enhance service capability and develop innovative frameworks e.g. InSpire by Enterprise Solutions (ES)

Professionals with specific domain expertise and consulting skills integrated with the respective vertical business units

Industries FY 2004 FY 2003 FY 2002

Manufacturing 14.8% 16.4% 17.1%

Insurance, Banking & Financial Services 36.6% 37.6% 36.7%

Insurance 23.7% 23.3% 20.4%

Banking & Financial Services 12.9% 14.3% 16.3%

Telecom 16.6% 15.2% 15.6%

Retail 11.6% 11.4% 12.3%

Energy & Utilities 3.0% 2.9% 2.0%

Transportation 7.1% 6.8% 2.7%

Others 10.3% 9.7% 13.6%



Services and SolutionsServices and Solutions

Enterprise Solutions (ES) and Independent Validation Services (IVS) lend significant competitive advantage to the Global Delivery Model

Progeon continues to establish itself in Business Process Management Services, added 9 clients and 1,358 employees

Infosys Consulting formed with a planned investment of $20 Mn to integrate high end consulting with execution excellence

Introduced the next generation “Modular Global Sourcing” model to provide a well-tested and experienced approach to outsourcing

Service offerings FY 2004 FY 2003 FY 2002

Development 25.7% 32.1% 32.0%

Maintenance 30.1% 28.2% 29.0%

Re-engineering 6.0% 5.5% 10.1%

Package implementation 14.5% 11.0% 9.8%

Consulting 3.7% 4.3% 4.2%

Testing 5.3% 3.4% 2.9%

Engineering Services 2.2% 2.6% 2.6%

Other services 9.7% 8.3% 5.4%

Products 2.8% 4.6% 4.0%



Client RelationshipsClient Relationships

Top 10 clients represent 36% revenues, 33% increase in 20+ Million $ clients. High predictability with 93.4% repeat business

Engagement management structure improved. Continuous reinforcement of client facing competencies, processes and systems

Exhaustive analysis and planning of strategic client relationships. Focused actions plans to support clients’ business objectives

FY 2004 FY 2003 FY 2002

Clients 393 345 293

Clients added during the year 119 92 116

No. of million $+ clients 131 115 83

No. of 5 million $+ clients 51 41 25



No. of 30 million $+ clients 6 3 -

No. of 40 million $+ clients 4 2 -

No. of 50 million $+ clients 3 - -



Building Trust, Demonstrating PredictabilityBuilding Trust, Demonstrating Predictability

Innovative “Client Advisory Council” established with senior client leaders to discuss strategy and business directions

Pioneered the “Global Sourcing Summit” with distinguished client leaders to provide 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

InStep Global Internship grew by 100% with reputed global institutions spanning US, Canada, Europe, Australia, Singapore and Japan

Ranked as one of the world’s “Top Brands With A Conscience” (amongst the only seven companies identified by The Medinge Group)

Rated #1 in last 2 successive benchmark surveys of the professional services industry conducted by Technology Business Research



Operational EffectivenessOperational Effectiveness

PRidE : “Process Repository @ Infosys for Driving Excellence” developed and integrated with tools and knowledge base to optimize execution across the world

Improved quality & productivity through standardization of engineering processes for key technologies with tools, methodologies and reusable components and frameworks

Six Sigma for enhanced customer focus and improved service delivery in maintenance, production support and engineering design

Enabled people with focused accreditation programs such as CSQA, PMI, CSTE, CFPE, Quantitative Project Management and Statistics for Decision Making

77.6

%

73.4

% 82.2

%

82.0

%0%

25%

50%

75%

100%

Including Trainees Excluding Trainees

Utilization Rates

2003 2004

35.7

%

33.3

%

64.3

%

66.7

%

0%

25%

50%

75%

100%

Onsite Offshore

Onsite-Offshore Ratio

2003 2004



Best-in-class PeopleBest-in-class People

Initiatives with education regulators to expand talent pool in India. Launched “Campus Connect”, a program to improve industry readiness of students

Sustained focus on recruiting the top 20% from best schools. 907,922 applications received of which 17,978 were interviewed and 10,077 hired

Continued investments and innovations in developing people competencies. Established the Enterprise Solutions University

Reinforced High Performance Work Ethic by further aligning the variable compensation program with business results at organization, team and individual levels

10,738

15,876

25,634

0

5000

10000

15000

20000

2002 2003 2004

Total Employee Strength*

6.2% 6.9%

10.5%

0%

5%

10%

15%

2002 2003 2004

Attrition

* consolidated



World-class InfrastructureWorld-class Infrastructure

40,46,250 Sq. Ft. space, with a capacity to accommodate 22,730 professionals

Additional 22,27,000 sq. ft. nearing completion in Bangalore, Bhubaneshwar, Chennai, Hyderabad, Mysore & Pune

World-class Education & Research infrastructure to accommodate 4,000 trainees

Rs. 341 Crores spent on developing physical infrastructure

Rs. 88.9 Crores spent on developing state-of-the-art technological infrastructure

27,000 Sq. Ft. of disaster recovery and business continuity facility in Mauritius commissioned



Key AwardsKey Awards

Awarded the prestigious global “Most Admired Knowledge Enterprises

(MAKE)” Award, for the year 2003

Ranked 34 among WIRED magazine’s 40 companies that are

reshaping the global economy

Ranked 74 among the top 100 fastest growing IT companies in the

world, by Business Week

Rated as India’s most respected company by Financial Times - PwC

survey

Presented the Texas Instruments (TI) Supplier Excellence Award for

dedication and commitment to high standards for excellence



Reinforcing Stakeholder ValueReinforcing Stakeholder Value

Employer of choice while retaining the advantage of cost that brings value to client

Offering global careers to over 25,000 employees from 34 countries

Implementing best HR practices to attract and retain best-in-class employees

Focused investments in business – Enhanced domain expertise and service offerings

Investments into world-class infrastructure, research and Knowledge Management

Evolving next-generation GDM for greater differentiation and value to global customers

Meeting clients’ changing business requirements, aligned structure, services and solutions

Effective and seamless integration of strategic acquisition and subsidiary organizations

Complete suite of services including high-end business consulting and BPM

Revenues cross the Billion Dollar mark with industry benchmarks in performance

Strong financials, best in class corporate governance, high cash reserves

Proven business model coupled with robust Enterprise Risk Management practices

Welcome to the 23 rd Annual General Meeting. Annual General Meeting 2003 - 04 © Infosys...

Documents

Transcript of Welcome to the 23 rd Annual General Meeting. Annual General Meeting 2003 - 04 © Infosys...