Transcript Document

A Brief Overview of the Indian IT Industry &
Infosys
February, 2006
A brief look at the Indian Economy
 Rapidly growing GDP of 7.5%-8%
 Services sector has more than 50% weightage in GDP
 Structural drivers for growth
 Large population and favorable demographic trends
 Skilled and well-educated labor force
 Rising integration into global trade and investment
 Improving macro policies and institutional framework
 Various studies predict that India will become the 3rd largest economy in the world
by 2050
 But there are challenges
 Need for simplification of rules and regulations
 Infrastructure
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Snapshot of the Indian Software Industry
 Rapidly growing exports
 1991 – US $128 million
 2005 – US $17.2 billion
 2008 (projected)- US$ 50 billion
 Employs over 1,100,000 people
 Over 400 Fortune 500 companies outsource their software
development & maintenance to India
(Source: NASSCOM)
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Liberalization of the economy & the seeds of IT boom in India
 Abolition of licenses
 Rationalization of taxes
 Export thrust
 Reduction of import tariffs
 Abolition of wealth tax
 Foreign exchange reforms
 Free pricing of IPOs
 Foreign portfolio investments
 Employee stock option plans
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The Infosys Journey…
2005
Infosys
crosses USD
1.6B (05-06
projection
$2.1B) in
revenue and
has over
49000
employees,
with 454
clients
Page 5
Infosys this year will be a $2B organization…
Canada: Toronto
USA: Atlanta
Boston
Charlotte
Chicago
Dallas
Detroit
Fremont
Los Angeles
New York
Reston
Seattle
Argentina: Buenos
Aires
Europe:Amsterdam
Brussels
Frankfurt
London
Milan
Paris
Prague
Stockholm
Stuttgart
Utercht
Zurich
India:Bangalore,
Chennai, Pune,
Bhubaneswar,
Hyderabad,
Mangalore,
Mohali, Mysore,
New Delhi,
Mumbai,
Trivendrum
» Global Presence with offices in 17
countries and 45 cities
» Over a Billion and half USD in
revenue (projection of 2.14B) and
growing at a rate of 49% per year
Australia:
Melbourne
Sydney
China: Beijing
Shanghai
Japan: Tokyo
Hong Kong
Mauritius
Sharjah
Singapore
» Less than 65% of revenue from USA.
Strong presence and understanding
of APAC market
» Partnering with clients for
Technology-enabled Business
Transformation
» Proven track record of ramping-up
resources to meet client needs
» High customer satisfaction – over
93.2% (as on Q3 ‘05) of revenues
from repeat business
» 39 clients from Fortune 100 (Total
number of clients as 454 (Q3))
» Over 49,420 employees
» Numerous quality benchmarks –
CMMi 5, PCMM, Six Sigma, BS7799,
AS9100 certifications to name a few
» Worldwide recognition for business
practices, financial management &
technical expertise
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This is how we are organized…
Subsidiaries
Infosys Consulting Inc
Infosys Australia Ltd.
Infosys Technologies
(Shanghai) Company
Ltd (ITSCo)
Progeon ( BPO)
Express, Transportation,
Media and Entertainment
Business
Process
Outsorcing
Infrastructu
re
Managemen
t Services
Independent
Validation
Services
Enterprise
Enterprise
Solutions
Solutions
Systems
Integration
Product
Engineering
and
Embedded
services
Client focused integrated business units ably supported by ECU’s, BEF’s and competency centers.
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We have continuously evolved to try and meet client requirements over
the years…
• New services defined as
services other than Application
Development, Maintenance,
Strategy and
Re-engineering and Products Transformati
on
Consulting
70%
63.90%
65%
63.70%
61.10%
55%
50%
45%
Business Process
Management
38.90%
40%
35%
Infrastructure Management
36.10%
36.30%
31.70%
25%
20%
2001
2002
2003
Technology-enabled BPR
ADM
Enterprise Solutions
Application Development
and Maintenance
1981
Software Re-engineering
People Organization
Infrastructu
re
Process
Quality
Infosys Global Delivery Model
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41.10%
30%
Systems Integration
Technology Consulting
1996
58.90%
60%
2004
2001
68.30%
Non-ADM
2004
2005
Infosys’ rich client base enables it to leverage the best practices followed
in other accounts.
Sample client base
Infosys has 39 Fortune
100 clients and 98
Fortune 500 clients
(as of 31st Dec 2005)
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Infosys has strategic alliances with key players in all the segments to provide
best services at optimal cost..
Key Alliances of Infosys:
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Recruitments best-in-class and has the infrastructure/ practices to retain
them.
Infosys Strategy for Employee Attracting the best
• Laterals joining from Big 5 and global corporations
• Employer of choice at IIT, IIM
• Capability to train 14,000 employees in a year at Mysore
Focus on growth & retention
• Managed attrition (<11%)
• Stock options for all employees – pioneer in India
• Training spend >5% of revenues
World class work environment
• Campus like facilities and culture
• Fast paced, results oriented ethic
• Empowerment in non-hierarchical organization
• International Program like Instep to ensure global work culture
Page 11
With a deep focus on Process Capability and Benchmarks itself against
high maturity offshore vendors (CMMI – L5) in industry
Parameters
Unit
Delivered Defect Density Delivered
Defects/ FP
Overall Defect Removal %
Effectiveness
Benchmark
Infosys
0.105
0.026
95
97
On-time Delivery
% of projects
66
94
Productivity
LOC/ Person
Day
Total Defects/
KLOC
52
65
12
6
Defect Density
Source
Software
Assessments,
Benchmarks
and Best
Practices
by Capers
Jones (2000)
Bangalore SPIN
Phase 3 Report
Apr 03
Bangalore SPIN (Software Process Improvement Network) is a commercially neutral,
non-profit organization supported by leading global software companies.
This has Special Interest Groups (SIG) for benchmarking (Development), comprising
of over 15 high maturity (Level 5) offshore vendors.
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End-to-end services
Addressing your complete
landscape
Ability to scale
High Confidence Levels in
Delivery and Relationship
Best People, Low Attrition
and steep ramp-up capability
Sustainable Learning
Curve Advantages
Global Presence and
matured Delivery Models
Quick Time to Market,
Lower Costs
SEI CMMI Level 5 Processes
and high quality focus
Express /Logistics Domain and
diverse Technical Competence
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Quality Delivered by a
very few Companies worldwide
Sound Methodologies,
Repeatability
…What it brings to YOU
What we offer…
To summarize, the strengths of people, process and technology converge
seamlessly within Infosys to fulfill your end to end IT needs.
Thank You
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