The creation of a thousand forests is in one acorn
- Ralph Waldo Emerson
Operational Highlights
2004-2005
S. Gopalakrishnan
Chief Operating Officer
and Deputy Managing Director
© Infosys Technologies Limited 2004 - 05
Safe Harbor
Certain statements made here concerning Infosys’ future growth prospects are forward-looking
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, our ability to manage our international operations, reduced demand for
technology in our key focus areas, disruptions in telecommunication networks, 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, 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 the Quarterly Reports on
Form 6- K for the fiscal quarters ended June 30, 2004, September 30, 2004 and December 31, 2004.
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 statement that may be made from time to time by or on
behalf of the company.
June 11, 2005
© Infosys Technologies Limited 2004 - 05
Growth and Consolidation…
High Paced Internal Change
Business reorganization
Performance Outcomes
Visible change in client
perception
New services and solutions
GDM is not all about cost, it is
about creation of value
Infosys Consulting
GDM creates the headroom
for re-architecting business
Infosys Australia
Infosys China
8 customers over US$ 40 million
and 166 customers over US$ 1
million
Business process improvement
Branding of Infosys predictability
Revenue and earnings* growth of
46.9% and 48.5% respectively
* before exceptional items
June 11, 2005
© Infosys Technologies Limited 2004 - 05
… Building a Scalable Business Model
Global Markets
Value Client
Client Relationships
New Services & Solutions
Processes And Systems
Sustainable
Value For All
Stakeholders
Infoscions
Shareholders
Clients
Society At
Large
Business
Partners
Talent Management
Global Infrastructure
Financial Model
Scalable Leadership Development
June 11, 2005
© Infosys Technologies Limited 2004 - 05
Geographical Footprint
Geographies
North America
Europe
India
Rest of the World
Total
FY 2003
73.0%
17.7%
2.1%
7.2%
100.0%
FY 2004
71.2%
19.2%
1.4%
8.2%
100.0%
FY 2005
65.2%
22.3%
1.9%
10.6%
100.0%
Focus on geographical diversification
70% revenue growth in Europe; now 22.3% of Infosys’ revenues
Infosys Australia consolidated its presence in the Australian market
Infosys China servicing 12 clients across North America, APAC and China
Operating through 32 marketing offices in 16 countries. With 33 Global Development
Centers, of which 16 are outside India
Finacle ®, the universal banking solution, expanded footprint to 44 countries, including
Australia, Philippines and Europe (UK, Poland and Greece)
June 11, 2005
© Infosys Technologies Limited 2004 - 05
Vertical Footprint
Industries
Manufacturing
Insurance, Banking & Financial Services
Banking & Financial Services
Insurance
Telecom
Retail
Energy & Utilities
Transportation
Others
Total
FY 2003
FY 2004
FY 2005
16.4%
37.6%
23.3%
14.3%
15.2%
11.4%
2.9%
6.8%
9.7%
100.0%
14.8%
36.6%
23.7%
12.9%
16.6%
11.6%
3.0%
7.1%
10.3%
100.0%
14.4%
34.6%
25.2%
9.4%
18.5%
9.8%
3.2%
7.6%
11.9%
100.0%
Integrated Business Units (IBUs, reorganized in Nov. 2003) strengthened the focus on
aligning services and solutions to client specific business needs
Integrated Business Units such as Retail, High-Tech and Discrete Manufacturing,
Banking and Capital Markets offered industry-specific business solutions to clients
Domain Competency Group (DCG) accelerated the domain enablement of employees.
912 employees were certified by global industry bodies
June 11, 2005
© Infosys Technologies Limited 2004 - 05
Service Footprint
Service offerings
Development
Maintenance
Package Implementation
Testing
Re-engineering
Consulting
Business Process Management
Engineering Services
Other services
Products
Total
FY 2003
32.1%
28.2%
11.0%
3.4%
5.5%
4.3%
0.5%
2.6%
7.8%
4.6%
100.0%
FY 2004
25.7%
30.1%
14.5%
5.3%
6.0%
3.7%
1.6%
2.2%
8.1%
2.8%
100.0%
FY 2005
23.2%
29.9%
15.2%
5.8%
6.2%
3.6%
2.7%
2.0%
8.4%
3.0%
100.0%
Testing & Infrastructure Management Services (IMS) saw healthy growth. System
Integration (SI) delivered higher value through technology solutions
Package Implementation scaled to 15.2% of Infosys revenues, offering seamless
solutions in collaboration with Infosys Consulting
Progeon saw strong growth in Business Process Management services with a 145%
increase in revenue over the last fiscal, servicing 19 clients
June 11, 2005
© Infosys Technologies Limited 2004 - 05
Client Relationships
Clients
Clients added during the year
No. of million $+ clients
No. of 5 million $+ clients
No. of 10 million $+ clients
No. of 20 million $+ clients
No. of 30 million $+ clients
No. of 40 million $+ clients
No. of 50 million $+ clients
No. of 60 million $+ clients
No. of 70 million $+ clients
No. of 80 million $+ clients
FY 2003
345
92
115
41
16
9
3
2
-
FY 2004
393
119
131
51
25
12
6
4
3
-
FY 2005
438
136
166
71
42
19
11
8
5
3
1
1
Top 10 clients represent 33.6% revenues. High predictability with 95.4% repeat business
ITRAC (Infoscion as TRusted Advisor to Clients) initiative piloted across key clients to
enable account leadership as trusted advisors to clients’ senior executives
Strategic Global Sourcing (SGS) team designed the necessary tools and techniques to
sell and manage delivery of large and complex outsourcing engagements
June 11, 2005
© Infosys Technologies Limited 2004 - 05
Building Trust
Top-of-the-mind recall with leading offshore outsourcing and industry analysts.
Respected as a top-tier high performing company
Active ‘Client Advisory Council’ meets every 6 months, where senior client leaders
discuss Infosys strategy and business directions
Effective ‘Global Sourcing Summits’ with distinguished client leaders as 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
AcE, the global academic interface program, is building brand capital across ~70
prestigious universities internationally
June 11, 2005
© Infosys Technologies Limited 2004 - 05
Operational Effectiveness
Onsite-Offshore Ratio*
75%
0%
0%
Including Trainees Excluding Trainees
2004 2005
68.4%
25%
29.4%
25%
50%
31.6%
73.5%
50%
80.0%
75%
82.1%
100%
72.9%
100%
Onsite
70.6%
Utilization Rates*
Offshore
2004
2005
* standalone
Consolidated 15 key process families, 143 specific processes into PRidE - our webbased business platform, covering 21 business units and 14 business enabling areas
Pushed the responsibility of process adherence to the ‘point of use’. Cross-functional
teams implemented ‘self service’ in key business transactions across global processes
Enhanced portfolio of 100 IT applications for key business processes, e.g. CRM, Order
through Remittance, Integrated Project Management and Talent Deployment
Improved quality & productivity through standardization of engineering processes for key
technologies with tools, methodologies and reusable components and frameworks
June 11, 2005
© Infosys Technologies Limited 2004 - 05
Best-in-class People
Total Employee Strength
Attrition*
36,750
40000
15%
10.5%
25,634
30000
10%
20000
15,876
9.7%
6.9%
5%
10000
0
0%
2003
2004
2005
2003
2004
2005
* standalone
Sustained focus on recruiting the top 20% from best schools. 1,413,018 applications
processed of which 47,467 were interviewed and 14,981 (gross) hired
Established a world-class Global Learning Center in Mysore capable of simultaneously
training 4,500 employees in various streams of technology
Focus on industry academia relationship. Campus Connect program working with 50
partners. InStep program recruiting 100 interns from 70 global institutions
Technology-aided process innovations to scale HR processes. e.g. online applications to
review individual utilization, apply for visas and assess individual lifestyle and health
Global footprint, employees of 53 nationalities. Multiple initiatives to synergize cultures
and deepen employee engagement across countries
June 11, 2005
© Infosys Technologies Limited 2004 - 05
World-class Infrastructure
68,99,450 sq. ft. space, with a capacity to accommodate 33,111 professionals
(as of March 31, 2005)*
Additional 31,76,400 sq. ft. under construction with 16,615 seats
Rs. 623.31 crore spent on developing physical infrastructure
Rs. 170.58 crore spent on developing state-of-the-art technological
infrastructure
28,000 sq. ft. of disaster recovery and business continuity facility in Mauritius
* standalone
June 11, 2005
© Infosys Technologies Limited 2004 - 05
Key Awards
Financial Times-PwC survey rated us as India’s most respected company
Infosys Global Business Foundation School selected for this year’s American Society for
Training & Development (ASTD) Excellence in Practice Award
Technology Business Research (TBR) ranked us No.1 in its quarterly benchmark
Business Week listed us among the top 100 tech companies in the world
Featured on winners list of Computerworld’s Best Places to Work in IT in the US, 2004
Wired magazine ranked us at number 11 on the list of 40 top technology companies
Businessworld’s Most Respected Company Awards 2004 – Most Respected in India,
Most Respected in the IT sector, Most Ethical and Most Globally Competitive
Business Today’s ‘Best Companies to Work for in India 2004’ survey ranked us at No. 2
Topped Asiamoney’s 2004 Corporate Governance Poll
Golden Peacock National Quality Award 2004
“India’s Best Managed Company Award” - study by Business Today-A.T. Kearney
Institute of Chartered Accountants of India award for excellence in financial reporting
(2003-04) for the 9th successive year
June 11, 2005
© Infosys Technologies Limited 2004 - 05
Thank You
www.infosys.com
© Infosys Technologies Limited 2004 - 05