India’s Top IT Companies 2007 INFOSYS TECHNOLOGIES LIMITED D&B D-U-N-S®: 65-008-8735 Electronics City, Hosur Road, Bangalore - 560 100, Karnataka Phone: 91 80 28520261; Fax: 91 80 28520362; Website: www.infosys.com Message from Mr Nandan Nilekani, CEO The concept of large pool of skilled manpower is always relative to the current environment. Even 10 years back, the pool was large for everyone to pick and chose. Today, it is just enough. We see the entry of MNCs as a healthy challenge. This expected shortage has also triggered healthy debates at policy level to relook our system of higher education. We will see significant changes in the coming years with increase in both quality and quantity of skilled people coming out our institutions. Also the ability to attract and ability to retain are two separate challenges. It is upto each player (whether Indian or MNC) to have vision to address both these challenges. We, at Infosys, have always strived to create a great workplace and also focus on increasing retention through a variety of innovative measures. MNCs will also bring some of their global best practices (some may and some may not work in the Indian context). However, they will necessarily have to use innovative techniques to attract talent, since offering higher salaries is not financially viable option (and also does not attract the right talent always) in the long run especially with increasing scale of operations. Background Infosys Technologies Ltd (Infosys) was founded in July 1981 as Infosys Consultants Pvt Ltd. The company initiated its global operations in the US in the year 1987. In 1993, it was changed to Infosys Technologies Ltd and went public the following year. In 1999, the company was listed on the NASDAQ and also set up two development centres in the US. In 2002, the company started its off shoring outsourcing services through its subsidiary, Infosys BPO (formerly Progeon Ltd). In Jan 2004, it acquired Expert Information Services Pty Ltd which was called Infosys Technologies (Australia) Pty Ltd. In April 2006, the company entered into an agreement with Citicorp International Finance Corporation (CIFC) to acquire its entire holdings in Infosys BPO. Since its inception, the company has expanded its operations in various countries like UK, Canada, Germany, Sweden, Belgium, Australia, France, Hong Kong, UAE, Argentina and several others. In India, the company has set up development centres at Bangalore, Bhubaneswar, Chandigarh, Chennai, Hyderabad, Mangalore, Mumbai, Mysore, New Delhi, Pune and Thiruvananthapuram. Infrastructure The company has a total space of 11,508,389 sq ft and in addition to this; 9,350,251 sq ft is under completion. The company has its global headquarters and campus in Electronics City, Bangalore. They have similar campuses and facilities at their various development centers in India. Theses centres are equipped with latest technologies and solutions for enterprise networking, office productivity, collaborative software engineering and distributed project management. Services Provided Infosys provides consulting and IT services to customers globally operating in various industry segments including aerospace & defence, automotive, banking & capital markets, communication services, consumer packaged groups, discrete manufacturing, energy, healthcare, high 34 technology, hospitality, insurance, life sciences, media & entertainment, retail, resources, transportation and utilities. The company provides end-to-end business solutions that leverage technology for its clients, including application development & maintenance, corporate performance management, enterprise quality services, infrastructure services, packaged application services, product engineering and systems integration. Each project typically involves all aspects of the software development process; including defining requirements, designing, prototyping, programming, module integration and installation of the custom application. All services are based on industry standard frameworks such as SEI, CMM, CMMISM, ISO 9000 and Six Sigma. Its banking product, Finacle, enables banks to transform their business using new generation technologies. This product provides a modular solution for core banking, treasury, wealth management, consumer & corporate e-banking, mobile banking and web-based cash management requirements of global banks. Infosys BPO Infosys BPO (formerly Progeon) was started as the business outsourcing subsidiary of Infosys Technologies in 2002. Today, it is recognized as one of the leading BPO companies in the country. The knowledge house combines domain knowledge, process skills and a technology heritage to offer clients process outsourcing. Its transition methodology is built on the experience of having moved over 500 processes across industries from various client locations. With best-in-class systems and processes, Infosys BPO provides outsourcing solutions across several vertical and horizontal focus areas like finance & accounting, HR outsourcing, knowledge services, order management and procurement. They operate in India, the Czech Republic, China and Philippines. Infosys BPO seeks to leverage the benefits of service delivery globalization, process redesign and technology to drive efficiency and cost effectiveness in customer business processes. India’s Top Other Subsidiaries Revenue Contributors In 2003, Infosys set up a wholly-owned subsidiary in the People’s Republic of China named Infosys Technologies (Shanghai) Co. Limited. The company was subsequently renamed to Infosys Technologies (China) Co Limited. In 2004, Infosys acquired 100% equity in Expert Information Services Pty. Ltd, Australia. The acquired company was renamed Infosys Technologies (Australia) Pty. Ltd. Later that year, the company set up a wholly-owned subsidiary, Infosys Consulting Inc, incorporated in Texas, USA, to add high-end consulting capabilities to their global delivery model. Infosys earns its revenue mainly from software services and products. In FY06, the company earned a revenue of Rs 95.2 bn. Software services largely contributed to the company’s revenue. In FY06, 96% of the company’s revenue was derived from software services and the rest from software products. The company saw a growth of 34% in its annual turnover as compared to FY05 and expects a growth of 46% by FY07. Developments In May 2005, Infosys made a sponsored ADS, which is one of the largest international equity offering from the country. In Sep 2005, it signed a five-year multi-million euro deal with ABN to develop, support and enhance a wide range of applications. In FY06, the company started its first private multi product SEZ unit at Mahindra World City - Chennai. The company also engages itself in training and development through its Centers of Excellence (CoE). These bodies focus on extending their competence in specific technological areas like .NET, J2EE, SOA, Data Warehouse and Business Intelligence. The company also publishes a SETLabs Briefing, which is a peer-reviewed journal published every quarter, to share strategic and experiential insights on technology management themes. In FY06, 98% of revenues were derived from exports. The export revenue from the banking product, Finacle, was Rs 2.2 bn. Exports from North America contributed 65% to the total revenue, 24% from Europe and 9% from the rest of the world. Certifications Infosys was accredited with the SEI-CMM Level 5 certification in the year 1999. In Dec 2003, it was certified by the BS 7799 for its best practices in information security. The other certifications of the company include ISO 14001, CMMI Level 5 and PCMM Level 5. IT Companies 2007 Total Income Rs 95,210 mn Manpower 52,715 Delivery Centres India - Bangalore, Bhubaneswar, Chandigarh, Chennai, Hyderabad, Mangalore, Mumbai, Mysore, New Delhi, Pune and Thiruvananthapuram Process & Quality Certifications SEI-CMM Level 5, BS 7799, ISO 14001, CMMI Level 5 and PCMM Level 5 Chairman N R Narayana Murthy CEO, President & MD N M Nilekani COO & Deputy Managing Director S Gopalakrishnan Key Personnel D M Satwalekar Lead Independent Director Independent Director M G Subrahmanyam O Goswami R Bijapurkar S L Pressler C Smadja S A Iyengar D L Boyles J Lehman Executive Directors T V Mohandas Pai Srinath Batni S D Shibulal K Dinesh CFO V Balakrishnan The Infosys office in Bangalore The Infosys office in Hyderabad 35