Building Scalability With Differentiation
S. Gopalakrishnan
Chief Operating Officer and Deputy Managing Director
© Infosys Technologies Limited 2004-2005
Safe Harbor
Certain statements made in this Analyst Meet concerning our future growth prospects are forwardlooking 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,
2004 and quarterly report on Form 6-K for the quarter ended June 30, 2004. These filings are
available at www.sec.gov. Infosys may, from time to time, make additional written and oral forwardlooking 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.
© Infosys Technologies Limited 2004-2005
Analyst Meet 2004 | New Game. New Rules.
Slide 2
Scalability: Key to rapid growth
Scalable client relationships
Scalable services and solutions
Addressing multiple
facets of scalability
Scalable organization structure
Scalable processes and systems
Scalable talent management
Scalable global infrastructure
© Infosys Technologies Limited 2004-2005
Analyst Meet 2004 | New Game. New Rules.
Slide 3
Scalable Client Relationships
» Multi-year & growing client relationships,
built on trust – “Improve your odds with
Infosys predictability”
» Robust engagement management.
Strategic analysis of business challenges
of key clients over the next 3 years
» Infosys Consulting and Strategic Global
Sourcing teams with professionals having
extensive experience in managing large
scalable engagements
» Consolidating a Point-of-view on strategic
outsourcing - “Modular Global Sourcing”
based on rich experience over years
» Innovative “Client Advisory Council”
composed of leading global CIOs to
deliberate client and markets strategies
FY04
Q1
FY04
Q4
FY05
Q1
113
131
141
Five million dollar+
clients*
37
51
53
Ten million dollar+
clients*
19
25
27
Twenty million dollar+
clients*
10
12
15
Thirty million dollar+
clients*
4
6
8
Forty million dollar+
clients*
3
4
5
Fifty million dollar+
clients*
-
3
3
Million dollar+ clients*
*LTM Basis
© Infosys Technologies Limited 2004-2005
Analyst Meet 2004 | New Game. New Rules.
Slide 4
Scalable Services And Solutions
» GDM extended to all services… Consulting to
ADM to Infrastructure Management to
Business Process Management
%
40%
» Setting new standards in “client value per
consulting $” by integrating consulting and
Global Delivery Model
16%
» “Modular Global Sourcing” approach to
strategic outsourcing as a scalable and
flexible alternative to “Total Outsourcing”
23%
25%
FY01
FY02
0%
Infosys Consulting
Progeon
» Strategic Alliances with selected leaders in
complementary capabilities to create new
solutions for clients
© Infosys Technologies Limited 2004-2005
FY03
New Services as % of Revenue
Providing High-End Consulting to enable
clients gain Competitive Advantage
» Proprietary frameworks such as
and
Intelligent Production Support Platform (IPSP)
Q1 FY 05
8%
IC
Influx®
FY04
15%
FY00
» Building scalable and GDM based business
solutions in each industry vertical, as well as
horizontal solutions in specific technologies
37%
30%
32%
24%
35%
Reducing the cost of Operations by
effective use of Outsourcing
BPO
ES
Enterprise Solutions
Package Implementation & IT support driven by
Functional Expertise & Delivery Excellence
Analyst Meet 2004 | New Game. New Rules.
Slide 5
Scalable Organization Structure
»
»
»
»
Markets
New Services
Talent Pools
New business model
- Australia / China
- Progeon
- China
- Consulting
Enterprise
Solutions
Infrastructure
Management
Infosys
Shanghai
© Infosys Technologies Limited 2004-2005
Automotive And Aerospace
» Scalable subsidiary companies focused on
Retail, Distribution and CPG
» Multiple business units that are self- governed
and empowered engines of growth.
» Vertical focused “Integrated Business
Units”
» Horizontal “Enterprise Capability Units”
Infosys
Australia
Insurance and Healthcare
Infosys
Consulting
Banking and Capital Markets
» Matrix organization focused on maximizing
client value by developing deep domain and
technology competencies
Analyst Meet 2004 | New Game. New Rules.
Progeon
Slide 6
Scalable Processes And Systems
» Pride: Infosys process repository built over many
years of experience. Benchmarked with Global
Standards – CMMi, Baldrige, BS7799…
» Ubiquitous information systems, digitized over
generations, span key transactions. Deployed
worldwide over intranet and extranet
» Award winning knowledge management
practices. Thought leadership and intellectual
property management processes
» Cross-functional approach to process integration
across all subsidiary companies. Continuous
strategy alignment to synergize client value
» Deployment of quality and productivity
improvement techniques including Six Sigma
© Infosys Technologies Limited 2004-2005
Analyst Meet 2004 | New Game. New Rules.
Slide 7
Scalable Talent Management
» Winning the Talent War - Record growth in
Infoscion community. Greater velocity of
hiring, aligned with growth plans
» Highly selective recruitment process,
focused on “Learnability”. Simultaneous
evaluation of 10,000 people in 7 cities
32,000
28,000
24,000
20,000
16,000
12,000
8,000
4,000
0
25,634
27,939
15,876
9,831
3,766
10,738
5,389
FY99 FY00 FY01 FY02 FY03 FY04 1Q'05
» Multicultural workforce, integrated through
performance ethic. Employees from 33
nationalities and growing
Applicants
100%
» Scalable education infrastructure. Worldclass training center in Mysore, India to
concurrently train 4,000 employees
Interviewed & Tested
10.5%
» Enterprise Solutions University (ESU) in
Hyderabad, India. 500+ consultants trained
over last 6 months. Courses certified by
Foundation For International Services
© Infosys Technologies Limited 2004-2005
Employee Growth
Offers
1.0%
Analyst Meet 2004 | New Game. New Rules.
Slide 8
Scalable Global Infrastructure
» World-class campuses to meet client needs
in the best work environment. Development
centers spread across India and other
global locations. Growing rapidly
» Significant investments in technology
infrastructure and Disaster Recover /
Business Continuity capabilities. Certified
to BS7799 Information Security Standards
© Infosys Technologies Limited 2004-2005
Analyst Meet 2004 | New Game. New Rules.
Slide 9
Differentiation: Key to higher client value
Differentiating the business model
Differentiating services & solutions
Creating sustainable
differentiation
Differentiating GDM execution platform
Differentiating intellectual capital
Differentiating the global brand
Benchmarking with global standards
© Infosys Technologies Limited 2004-2005
Analyst Meet 2004 | New Game. New Rules.
Slide 10
Differentiating For Client Competitiveness
Role Of IT In Enhancing Business Competitiveness
Run the
Business
Transform the
Business
Grow the
Business
GDM+
Business Solutions
Using GDM
»Technology services
»Technology Based Solution
» Business competitiveness
» Reducing unit cost
» Reducing Total Cost (TCO)
» Increase revenue for clients
» Offshore strategy
» Modular Global Sourcing
» Increase profitability for clients
» Efficiency focus
» Effectiveness focus
» Business results focus
GDM
© Infosys Technologies Limited 2004-2005
Analyst Meet 2004 | New Game. New Rules.
Slide 11
Differentiating The Global Brand
Improve your odds with Infosys Predictability
Improve your odds
Infosys Predictability
Business
Solutions and
Strategic
Sourcing
designed to
increase your
competitiveness
Old-fashioned
habit of delivering
on promises,
embedded in the
company’s DNA,
gives you peace
of mind
Tightly coupled
Through industry-defining Global Delivery Model.
Best prepared company in the world to offer this combination
Corporate Presentation, 2004
© Infosys Technologies Limited 2004-2005
Analyst Meet 2004 | New Game. New Rules.
Slide 12
Thank You
© Infosys Technologies Limited 2004-2005