Transcript Operational Highlights 2002-2003

The creation of a thousand forests is in one acorn
- Ralph Waldo Emerson
Progeon
Akshaya Bhargava
Chief Executive Officer and
Managing Director
© Infosys Technologies Limited 2004 - 05
Safe Harbor
Certain statements made here concerning 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 2004Slide
- 05 2
Progeon’s aspirations
Niche BPO
 Project work (one-off)
Core/Hi-impact
functions
 Other niche BPO
Mainstream BPO
 Mortgage servicing
 End-to-end policy admin
 Book closing
 High-end accounting
 Knowledge services
Existing Customers
Low
Exit Barriers
High
Exit Barriers
High-volume BPO
Key support services BPO
 Contact Centres
 F&A, HR
 L1 Tech Help
 Outbound voice
June 11, 2005
The BPO industry
in India is still
dominated by call
centers and
captives …
… Third party
end-to-end BPO
for core activities
of clients is only
beginning to
come in now …
 L 2/3 Tech Help
Non-core/
Low-impact functions
 Collections
© Infosys Technologies Limited 2004 - 05
Strategic segments
Planned
investment in
strategic
resources
Capital Markets
Insurance/
Healthcare
Banking
Knowledge
Services
June 11, 2005
Telecom
Enterprise
Services
(F&A, HR,
Procurement,
Order Mgmt)
Focus on end-toend back office
services
Investment in
tailor-made
technology
solutions
Identification of
strategic
customers
© Infosys Technologies Limited 2004 - 05
Progeon story
8,000
191.22
200
6,000
150
5,000
125
3,966
100
78.14
3,000
75
1,878
50
4,000
2,000
20.84 520
1,000
0
0
FY 03
Headcount
Revenue (Rs. cr)
175
25
We have
demonstrated a
strong ability to
grow..
7,000
FY 04
Revenue (Rs cr)
Head Count
FY 05
30.0%
20.0%
13.7%
10.0%
-3.9%
Operating Margin
0.0%
FY 03
-10.0%
FY 04
FY 05
…While focusing
on improving
operations
-20.0%
-30.0%
June 11, 2005
-27.2%
© Infosys Technologies Limited 2004 - 05
Performance summary
Strong financial performance
Net income of Rs. 30.05 cr in FY 05
144% YOY revenue growth
5 clients added, net addition of 2,088 people
Customer satisfaction - Baseline score – 5.0 / 7.0
Existing customers
Rapid ramp up in key clients
Managing risks from development on captives front
Czech center operational – 2 customers, 11 languages
Entry into Knowledge Services segment – first customer contract signed for
fixed income research and credit analysis
HR Awards – Optimas Award, ASTD citation, HR Award at APAC Forum
June 11, 2005
© Infosys Technologies Limited 2004 - 05
Operations update
Operations – Strong governance model with
clients
Sales – Fully aligned with Infosys
HR – Role-based organization structure roll out
Quality – Company-wide ISO Certification
achieved
Finance – Improved expense optimization
processes
Business Transformation Group - Established the
group to focus on continuous improvement in
operations
June 11, 2005
We have brought
about excellence
in operations and
support functions
required to
improve net
margins
Achieved ISO
certification
© Infosys Technologies Limited 2004 - 05
Preparing for the future
Re-organized to focus on target market
segments
Focusing on key accounts
Strengthening the CFG team
Investing in business solutions
Improving planning framework
Transforming IS landscape
We have created
multiple engines
of growth and the
management
framework
required for
managing scale
Developing talent pool by influencing
curriculum in graduate schools
Strengthening Progeon culture
June 11, 2005
© Infosys Technologies Limited 2004 - 05
Points of differentiation
Focused
6 strategic segments
Full service, end-to-end process management
Multi-geography delivery centers — India, Czech, APAC
Solution-led approach
Custom-built solutions for each segment
Combination of technology and operations
Predictable outsourcing experience
Extension of client organization
De-risking focus
‘No-surprises’ culture
Strong people practices
Ability to attract the best and brightest managers
Well-defined career development programs
June 11, 2005
© Infosys Technologies Limited 2004 - 05
Thank You
www.infosys.com
© Infosys Technologies Limited 2004 - 05