August 12, 2005 © Infosys Technologies Limited 2005 - 06

Chandra Shekar Kakal
Vice President
– Enterprise Solutions
© Infosys Technologies Limited 2005 - 06

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, 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.
August 12, 2005

Focuses on ‘Packaged product related services’
Package evaluations
Package enabled business transformations
Package implementations
Upgrades
Global roll-outs
Customizations
Add-on module developments
Solutions involving packaged products
Production support and maintenance
Revenues ($ m)
80
70
60
50
40
30
20
10
0
31 32
41
50 50
58
65
70
72
Q1 04 Q2 04 Q3 04 Q4 04 Q1 05 Q2 05 Q3 05 Q4 05 Q1 06
August 12, 2005
Parameter
LTM June 05 revenues
Contribution to Infosys’ revenues
Employees
Delivery Locations
Onsite-Offshore Mix (%)
3 year revenue CAGR
$ 265 m
Achievement
15.3%
3,600
8 Bangalore, Pune,
Hyderabad, Mangalore,
Chandigarh, Shanghai,
Toronto, Tokyo
40% : 60%
65.7%


Cuts across Industry verticals
Cuts across Geography
© Infosys Technologies Limited 2005 - 06

SUPPLIER ENTERPRISE CUSTOMER
Business Intelligence (BI)
SAP BW, Oracle Express / CPM, PSoft EPM, (Cognos, Informatica, BO)
SRM/SCM
(SAP APO, Oracle APS,
Yantra, i2, Manugistics Ariba)
ERP
(SAP, Oracle, PeopleSoft, MBS,
Finacle)
CRM
(Siebel, SAP CRM, Oracle
CRM, Clarify)
Human Capital Management (HCM)
(PeopleSoft HR, Oracle HR, SAP HR)
Enterprise Application Integration (EAI)
(TIBCO, Vitria, SAP XI, Oracle middleware, Biztalk, IBM WBI
,
SeeBeyond)
ERP – Enterprise Resource Planning, SCM – Supply Chain Management, CRM – Customer Relationship Management, SRM – Supplier Relationship Management
August 12, 2005 © Infosys Technologies Limited 2005 - 06

Product vendors – merger, acquisition, consolidation
Niche players under pressure
PeopleSoft acquires
JD Edwards
Sterling acquires
Yantra
Oracle acquires Retek
Sun acquires
SeeBeyond
License revenue under pressure
Product Architecture  moving towards being platforms
Product Vendors offering more services – hosting, support, etc.
Focus on mid market
Focus on partnership with offshore System Integrators
August 12, 2005 © Infosys Technologies Limited 2005 - 06

Indian service providers : A credible alternative to the traditional Global SIs for ERP engagements
Authors : Dana Stiffler and Lance Travis;
AMR Research report
– Nov 2004
Infosys: Capable of competing with Global Players
“Infosys is a top choice for SAP-related work.”
“Infosys consulting’s SAP expertise is not only an important differentiator for Infosys ….but it also gives it the credentials to compete on an even playing field with the Global SAP consultants such as Accenture, Bearing Point, Deloitte, IBM”
Offshore SAP implementation, Upgrades and Support: What you need to know?;
Author : Stefanie Moore, Forrester, April 5, 2005
“Infosys leads in bringing business and industry savvy to ERP…”
“…customers that work with multiple offshore service providers claim that the business value they achieve with Infosys is highest.”
Indian Service Providers: A Credible Alternative to Traditional Global SIs for ERP Engagements;
Authors : Dana Stiffler and Lance Travis, AMR Research, Nov 2004
© Infosys Technologies Limited 2005 - 06 August 12, 2005

Customer spending on packages…
Globalization – Standardization of business processes, systems - Global roll-outs, consolidation
Upgrades
Incremental investments
Lower cost support options
CRM systems, Business Intelligence, etc.
Enterprise CRM, ERP and SCM IT Services Solutions, Worldwide,
Year
CRM
ERP
SCM
Total
2003
20.1
29.7
13.7
63.5
2004
21.4
30.9
14.5
66.8
2005
22.7
32.3
15.4
70.4
2006
24.4
33.8
16.3
74.5
2007
26.3
35.6
17.2
79.1
$ billions
2008
28.4
37.3
18.1
83.9
Source : Forecast: Enterprise CRM, ERP and SCM IT Services Solutions, Worldwide, 2003-2008 Gartner
By Alex Soejarto, Lewis Clark, Matthew Goldman, Robert DeSouza, Michele Caminos, Nicole France, Rika Narisawa,
Rolf Jester and Pranav Kumar
IT Services market for packages is still huge and leaves enough room for Infosys to grow…
August 12, 2005 © Infosys Technologies Limited 2005 - 06

Offshore
Business ERP Product
Development
ERP Product
Development
ERP Users
ERP Users
Customer
BPO
ERP
Implementation /
Maintenance Team
Offshore
ERP Implementation /
Maintenance Team
In ERP market, product development, implementation, support & user segment has increasingly started moving offshore
August 12, 2005 © Infosys Technologies Limited 2005 - 06

Predictability : 90%+ ERP engagements delivered within budget and time
Scalability : Hiring and training ERP consultants in large numbers through ‘ES University’
Program / Project Management : Ability to operate in ‘managed solution’ mode rather than staff augmentation
Global Scale / Global reach : Ability to walk with the customers in a global roll-out
Committed consultants : Top-notch product consultants with utmost commitment to deliver
Capacity to train 1200+ ERP consultants through dedicated residential training facility at Hyderabad
August 12, 2005 © Infosys Technologies Limited 2005 - 06

August 12, 2005
Some significant on-going engagements





Dealer Management solution with an auto major
SAP implementation with a leading Oil & Gas company
Sales Force automation with a logistics company
Benefits administration through HR outsourcing firm
HR roll-out for an automotive company
© Infosys Technologies Limited 2005 - 06

Challenges
Industry domain knowledge
Bundled offering by product vendors
Bundling of product license + hosting + AMC + application support
Aggressive pricing by competition to gain customer base
Experienced resources for niche skills
Past experiences and references in same industry
Strategies
Collaboration with Infosys Consulting
Independent Business Unit (IBU) collaboration for industry knowledge
Enterprise Solutions (ES) University (for entry level training, on-going training, certification, computer-based training and academia connect)
Enhance alliance traction
Joint business plans with SAP, Oracle. Field level connects, collaboration with their Development Centers in
India.
Incubating new growth engines – Microsoft Business Solutions (MBS), China, Middle East
Investments into new technology/product release – NetWeaver, SAP APO, SAP SRM, Oracle CPM, Centers of
Excellence
Solutions around packages
Horizontal solutions: e.g., upgrade solution, package migrations,
Vertical solutions along with IBUs: e.g., Pharma analytics, Retail CP
© Infosys Technologies Limited 2005 - 06 August 12, 2005

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© Infosys Technologies Limited 2005 - 06