August 12, 2005
© Infosys Technologies Limited 2005 - 06
Infrastructure
Management Services
Priti Rao
Vice President – Infrastructure Management Services
© Infosys Technologies Limited 2005 - 06
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, 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
© Infosys Technologies Limited 2005Slide
- 06 2
Infrastructure Management Services at Infosys
Services have a focus on IT infrastructure services for global customers
FY03
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%
Parameter
Over 1,000 resources in the business unit
 Strong trend towards offshoring
 High potential for growth
Pune Operations Center
 Cuts across industry verticals and geographies
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
August 12, 2005
© Infosys Technologies Limited 2005 - 06
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
August 12, 2005
© Infosys Technologies Limited 2005 - 06
State of the market
Forrester S-Curve on infrastructure trends
Trends
Offshore infrastructure management A strong emerging trend
Potential - Bulk of Infrastructure
Management Services can be offshored
Increasing complexity
Deals are becoming more modular
Selective outsourcing (help desk,
email, security / network) growing
Outsourcing including asset / people
transfer is approaching decline
Market size
By 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
August 12, 2005
© Infosys Technologies Limited 2005 - 06
Infosys - high quality at competitive prices
Untapped customer base
IMS services can be
provided by offshore
players at competitive
prices
Cost reduction
proposition
Large existing
customer base
Keeping pace with
technology
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
Round-the-clock
operations
support
Infosys provides round-theclock (24 x 7 x 365)
infrastructure management
August 12, 2005
Infosys is more
equipped in staying
abreast of
technological
advancements
Attract and retain
top talent
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 Technologies Limited 2005 - 06
Service offerings
ITSM
Process
Consulting
Data Center
Management
Network
Management
Technical
Support /
Service desk
Application
Operations
Support
Advise
Implement
Design
Manage
Design
Monitor / Manage
Design / Model
Support / Operate
Production
Operations
Monitor / Support
Servers
Databases
Mail Infrastructure
Hosting
Enterprise
Networks
Telco Networks
Network Devices
Security
Network Operations
Centers
Technical Helpdesk
Service Desk
Desktop Support
Infrastructure
Off-shorability
ITSM Implementation
ITIL / BS15000
Six Sigma
Business
Applications
Enterprise
Products
ITIL – IT Infrastructure Library, BS15000 – British Standard 15000, ITSM – IT Service Management,
August 12, 2005
© Infosys Technologies Limited 2005 - 06
Success Story : Data Center Management
Customer Benefits
1. 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
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
practices
Tools - HP Openview, SolarWinds, Alteris, Siteminder, Netbackup,
Sitescope, Autosys, etc.
Technologies – SAP, Oracle, SQL Server, Lotus Notes, TIBCO,
Webmethods, EDI Harbunger, GenTran, Custom Applications etc.
August 12, 2005
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
© Infosys Technologies Limited 2005 - 06
Infosys IMS strengths
Management commitment and willingness to invest in IMS
Board-level sponsorship for IMS business
Infosys has outstanding customer references - AMR report, Nov 2004
Largest offshore-based network management engagement with a large
European telecom service provider (size of 150-300 FTE’s)
Infrastructure and technology investments
Large 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
Bangalore Operations Center
Strong business pursuit process - Effective cross-selling and enabled
sales force
Process - BS15000 certification and ITIL best practices
Strong HR
Massive, scalable training model for infrastructure skills
High 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
August 12, 2005
© Infosys Technologies Limited 2005 - 06
Challenges and strategy
Challenge
Pricing of infrastructure services
Strategy
•
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
Service levels in remote management
Strong process-oriented mechanism for operational level and
recovery plans agreed and signed off
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
August 12, 2005
© Infosys Technologies Limited 2005 - 06
Thank You
www.infosys.com
© Infosys Technologies Limited 2005 - 06