Transcript Finacle IBU

August 12, 2005
© Infosys Technologies Limited 2005 - 06
Business Process
Management
Akshaya Bhargava
CEO and Managing Director – Progeon Ltd.
© 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
BPO Industry in India
Niche BPO
Core / Hi-impact
functions
Mainstream BPO
 Project work (one-off)
 Mortgage servicing
 Other niche BPO
 End-to-end policy
administration
 Book closing
BPO industry in
India is still
dominated by
call centers and
captives …
 High-end accounting
 Knowledge services
(High-end financial research)
Existing Customers
Low
Exit Barriers
Third party endto-end BPO is at
early stages …
High
Exit Barriers
High-volume BPO
Key support services BPO
 Call Centres
 F&A, HR
 Level 1 Tech Help
 Level 2/3 Tech Help
 Outbound voice
 Collections
Non-core/
Low-impact functions
August 12, 2005
© Infosys Technologies Limited 2005 - 06
Progeon today
5,000
60
August 12, 2005
Headcount
Revenue ($ m)
50
Progeon is the
youngest entrant
in NASSCOM’s
list of TOP 10
third party BPOs
in India.
4,739
53.7
42.9
40
30
3,966
4,000
3,000
1,878
2,000
17.2
20
10
1,000
520
4.3
0
FY 03
FY 04
FY 05
LTM Jun 05
FY 03
FY 04
FY 05
LTM Jun 05
Other facts :
• Net Margins for Q1 06 - 24.6%
• 6 segments, 19 customers
• Voice business – Approximately 20%
• European centre – 11 languages
• Philippine presence
• Strong re-engineering credentials
• Category killers - Order management & mortgages
© Infosys Technologies Limited 2005 - 06
Strategic Segments
• Planned
investment in
strategic
resources




• Identification of
strategic
customers
August 12, 2005
 L&P
 Healthcare
 General




Retail Banking
Credit Cards
Consumer Finance
Investment Banking
Insurance/
Healthcare
• Focus on endto-end back
office services
• Investment in
tailor-made
technology
solutions
Custody
Fund Administration
Brokerage
Asset Management
Capital Markets
Banking
Knowledge
Services
Enterprise
Services
 Equity Research
 Credit Analysis
 Fixed Income Research




Bond Analysis
Economic Analysis
Industry analysis
Company analysis
Telecom
 Billing
 Revenue
assurance
 Service
Provisioning
 AP, AR, General
Ledger
 Fixed Asset accounting
 US GAAP reporting
 Procurement Services
 Order validation and
Review
 HR services
© Infosys Technologies Limited 2005 - 06
Points of differentiation
Focused
Full service, end-to-end process management
6 strategic segments
Multi-geography delivery capability - India, Czech Republic
and APAC
Customers
acknowledge
Progeon as very
different from
other Indian
BPOs
August 12, 2005
Solution-led approach
Custom-built solutions for each segment
Value beyond cost arbitrage – Process re-engineering,
technology & operations
Predictable outsourcing experience
Extension of client organization (dedicated network,
telecom, personnel, etc).
De-risking focus (risk management group, Business
Continuity Plans, ISO 9001, BS 7799 certified)
‘No-surprises’ culture (online customer portal, continuous
monitoring & tracking)
© Infosys Technologies Limited 2005 - 06
Points of differentiation
Customers
acknowledge
Progeon as very
different from
other Indian
BPOs
August 12, 2005
Strong people practices
Ability to attract the best and brightest managers
Well-defined career development programs
Widely acclaimed HR practices; winner of the Optimas
Award for demonstrating vision in workforce management,
ASTD award for training and development
Infosys leverage
Integrated positioning, marketing and brand
Joint solution development
Joint go-to-market & common contracting
Physical & IT Infrastructure
© Infosys Technologies Limited 2005 - 06
Key challenges
Attrition
Clearer definition of roles & responsibilities
Better articulation of career progression
Improving employee processes – appraisal, promotions, training,
etc.
We are
proactively
preparing
ourselves to
manage
tomorrow’s scale
August 12, 2005
Talent Acquisition & Development
Working with colleges across Karnataka for increased exposure to
BPO and improve BPO readiness
Expanding developmental inputs to include training around
operations management, domain and process, etc.
Preparing for scale
Improving alignment of key processes with those in Infosys
Revamping Information Systems infrastructure
Implementing best of breed planning and control process
© Infosys Technologies Limited 2005 - 06
Representative client case study
Global Investment bank (UK)
Credit Analysis
Fixed Income Research
Economic Analysis
Industry Analysis
Company Analysis
Securities Processing
August 12, 2005
© Infosys Technologies Limited 2005 - 06
Thank You
www.infosys.com
© Infosys Technologies Limited 2005 - 06