Transcript Enterprise Solutions Update

Enterprise Solutions Update
Chandra Shekar Kakal
Senior Vice President & Global Head – Enterprise Solutions
Member of Executive Council
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, 2008 and
the Quarterly Reports on Form 6-K for the fiscal quarters ended June 30, 2007, September 30,
2007 and December 31,2007. 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.
© Infosys Technologies Limited 2007-08
Evolution of ERP
Enterprise Resource Planning
Package products evolved as an alternative to
custom development
1960’s
Systems
Just for
Inventory
Control
1970’s
MRP –
Material
Requirement
Planning
(Inventory
with material
planning &
procurement)
1980’s
MRP II –
Manufacturing
Resources
Planning
(Extended
MRP to shop
floor &
distribution
management..)
Mid 1990’s
ERP –
Enterprise
Resource
Planning
(Covering all
the activities of
an Enterprise)
2000
onwards
ERP II –
Collaborative
Commerce
(Extending
ERP to
external
business
entities)
Infosys incubated a focused group in1999
© Infosys Technologies Limited 2007-08
Infosys Consulting & Packaged applications
CS & PAS group focuses on
» “Packaged Product Implementation and Consulting Services”
Using packaged product such as
» SAP, Oracle, PeopleSoft, Siebel, TIBCO, Retek etc.,
Offering services for
»
»
»
»
»
»
»
»
»
Consulting Services
Package evaluation
Package enable Business Process Re-engineering
Package Implementation
Multi-country roll-out
Package upgrade
Production Support and Maintenance
Application Integration
Platform based solutions
‘Partner of choice’ for Consulting & Packaged Application Services Globally
© Infosys Technologies Limited 2007-08
…extending over the entire Enterprise Value Chain
SUPPLIER
CUSTOMER
ENTERPRISE
Consulting
Business Intelligence (BI)
SAP BW, Oracle Express/CPM, PSoft EPM, (Cognos, Informatica, BO)
SRM/SCM
ERP
CRM
(SAP APO, Oracle APS,
Yantra, i2, Manugistics Ariba)
(SAP, Oracle, PeopleSoft, Microsoft
Dynamics, Finacle)
(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
© Infosys Technologies Limited 2007-08
Consulting and Packaged
Applications Revenue ($ M)
Revenue
993
652
424
299
193
2004 2005 2006 2007 2008
© Infosys Technologies Limited 2007-08
Key Metrics
Contributing to about 24% of revenue including
consulting services and growing at a CAGR of 51%…
• 280 customers(mostly Global
Fortune 2000)
• 10,700+ Employees across 31
Global Development Centers
worldwide
• $993+ Million Annual Revenue
(2008) - 24% of Infosys revenues
• 46% revenues from Oracle
Economy ; 33% from SAP
Economy
• 15 clients > 10 MUSD in revenues
• 22 clients with > 5 MUSD in
revenues
Cutting across industry verticals and geography…
» 280 customers worldwide
» Multi-year relationships
» 9 5 % Q o Q revenues from existing
customers
Industry-wise % of revenues
Geo-wise % of revenues
APAC
EMEA
NA
Others
3%
13%
52%
32%
Insurance, Banking & Financial Services
Manufacturing
Others
Retail
Services
Telecom
Transportation & Logistics
Utilities
1%
14%
15%
14%
31%
14%
4%
» Growing faster in Europe
» Additional India focus
» Implemented systems covering
over 150 countries
7%
De-risked by a well diversified portfolio
© Infosys Technologies Limited 2007-08
Leveraging the best of product / technology
partnerships…
Innovating through…
»
»
»
»
Joint Product Developments, Go-to-market
Rapid deployment methodologies
Solution development
ES Academy for product training
Rated “Leader” by Independent Analyst Firm – Forrester, for SAP and Oracle ERP Service
© Infosys Technologies Limited 2007-08
Leveraging ‘the power of talent’ for ‘innovation’ and
‘delivery excellence’
Connect
Attract
• Recruited from 1079 engineering colleges and 40+ B-schools
• New recruitments – 3000 in FY08.
• Grew from 8000+ to 10700 in FY 08 ; 60% Engineers, 20% MBAs & 20%
Others
• Hiring from 4 continents we have employees from 8 diverse nationalities; 55%
technology consultants and 45% functional experts
• We hire and train to align with latest Packages, Technologies and Industry
Business Processes
• Merit-based appraisal system to nurture and encourage talent.
Enable
• Enterprise Solutions Academy – instituted to nurture and be enabled for future
needs
• 60+ Courses offered ; 31356 trainee days in FY 2008; Training in onsite
locations as well as China / Mexico centres.
• Partnership with Oracle University for Oracle training
• 14600+ Certifications in FY08
• 6 patents filed till date.
Empower
• Establishment of a Management council and leadership council within ES to
nurture future leaders.
© Infosys Technologies Limited 2007-08
Continuing to help customers ‘Transform’ their
business… some examples.
Financial transformation for a Global Airline
Global Electronics Major – entire value chain covering 4
continents, 55 countries, 250 applications
Service delivery platform creation for a telecom giant
Global conglomerate of 5 divisions, 15 companies –
restructuring and standardization of business
Integrating Supply chain functions to customer
relationship activities – for a global Oil & Gas major
Engineering & Projects company in India – ERP
implementation for process standardization
© Infosys Technologies Limited 2007-08
Thank You
www.infosys.com