Transcript Slide 1

Insurance, Healthcare & Life Sciences (IHL)
Eric Paternoster
Vice President
© Infosys Technologies Limited 2005-06
Safe harbor
Certain statements in this presentation 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 fixedprice, 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, 2006 and the
Quarterly Reports on Form 6- K for the fiscal quarters ended June 30, 2005, September 30,
2005 and December 31, 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
statement that may be made from time to time by or on behalf of the company.
June 10, 2006
© Infosys Technologies Limited 2005-06
IHL journey so far…
2007
•
•
•
•
Where we started
Mid ‘03 – IHL Formation
Dependence on fewer accounts
Narrow industry focus – Life &
Payer
No Life Sciences clients
Way forward
• Focus on growing large
accounts
• Focus on growing
revenues from Enterprise
Capability Units (ECUs)
• Targeting diverse,
profitable,
solution/alliance led
business
2006
2005
2003
2004
•
•
•
•
•
Build-Up
June 10, 2006
Where we are
Closed FY06 at $ 161m
Added high potential clients across all three
industry verticals
Life Sciences (LS) revenues grew significantly
Decreased dependence on fewer accounts
Broadened industry focus – Life, Property &
Casualty, payer, provider, mid-market Pharma
Acceleration
© Infosys Technologies Limited 2005-06
Key growth parameters
Revenue growth
200
Revenue ($ m)
161
149
137
108
100
0
FY03
FY04
FY05
FY06
» Focus on growing large accounts and life
sciences practice
» New business revenues grew from
$2 million to $18 million in FY06
» Focus on growing consulting, solution/alliance
revenue
» Have a strong pipeline of high growth
accounts
» 9 domain specific alliances, 8 IHL Solutions
» Strong collaboration with horizontals,
support departments and subsidiaries
» 800 + domain certifications
» Over 2,900 employees as of end of FY 06
June 10, 2006
© Infosys Technologies Limited 2005-06
Market trends
» Infosys is observing demand for business
solutions in annuity and long-term care
markets, consumer directed healthcare and
Enterprise Resource Planning led business
transformation
» Emerging trends include Business
Intelligence & Data Warehousing, testing &
packaged solutions
June 10, 2006
» Total market size for IT spend is $ 50 billion
» Growth in IT spend is expected to be 2.5 to 3%
in insurance and 5 to 6% in healthcare
» Outsourcing has been growing steadily partly
due to poor to moderate growth in budgets
» Current Infosys share of IT budgets of the
existing key accounts is in the range of 2 to 3%
© Infosys Technologies Limited 2005-06
Challenges to growth and profitability
» Supply side challenges
» Competition
» Maturity of solution/alliances/acquisition program
June 10, 2006
© Infosys Technologies Limited 2005-06
Strategies for the future
» Strategies for Healthcare providers & mid-market Pharma
Customer &
Markets
» Compelling business solutions in Insurance & Healthcare
» Leverage thought leadership through public relations,
analysts, etc.
» Leverage domain and technology alliances
Operational
Excellence
» Productivity improvements through re-use, tools, solutions &
frameworks
» Effective collaboration with Enterprise Capability Units
» Effective planning and higher predictability
» Excellence in customer delivery and innovation
Talent
Management
» Excellence in domain and technology through competency
development programs and certifications
» Strong focus on recruitment of domain and technology experts
» Improved employee satisfaction
June 10, 2006
© Infosys Technologies Limited 2005-06
Successful collaboration efforts for
multi-million dollar engagements
Multi-disciplinary
pursuit teams
Sales + Engagement Management + Consulting + Presales + ECUs =
Winning Team
CAP teams
Identified few key prospects and focused efforts on pursuit of these – 3 key
accounts opened
Focus on solutions – IP
driven differentiation
Leveraged solutions for thought leadership & providing value (8 solutions at
various stages of development)
Domain competency as
a differentiator
Showcasing over 800 certifications and industry experienced resources in
insurance consulting, delivery & relationship management
Leveraging end-to-end
service offerings
Infosys Consulting, BPO & Strategic Global Sourcing service offerings &
end-to-end service offerings covering Consulting-Delivery-BPO
Alliances
Domain partners: RE Nolan, PlanetSoft, Itemfield, Daou, Quovadx, Capmed,
EntityX, IntraSphere
Technology partners: Microsoft, IBM, SEEC, Documentum, Oracle, FileNet,
Tibco, Quovadx
June 10, 2006
© Infosys Technologies Limited 2005-06
Thank you
www.infosys.com
© Infosys Technologies Limited 2005-06