Transcript US Analyst Meet 2005

Infrastructure
Management
Services
Jeffrey Bannister
Associate Vice President - IMS
© Infosys Technologies Limited 2005 - 06
Safe Harbor
Certain statements in this Analyst Meet concerning our 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, 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 our
reports on Form 6-K. 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.
November 11, 2005
© Infosys Technologies Limited 2005 - 06
State of the business
Services have a focus on IT infrastructure services for
global customers
Parameter
FY03
FY04
FY05
LTM Sep 2005
Revenues ($ m)
5.1
17.6
36.8
46.7
Delivery centers
1
1
2
3
Offshore Mix (%)
55%
58%
74%
78%
Over 1,100 resources in the business unit
Strong trend towards offshoring
Cuts across industry verticals and geographies
High potential for growth in all service towers
Pune Operations Center
ITSM Process
Consulting
November 11, 2005
Data Center
Management
Network
Management
Technical
Support /
Service desk
Application
Operations
Support
© Infosys Technologies Limited 2005 - 06
Trends in the market
Trends
Offshore infrastructure management A strong emerging trend
Potential - Bulk of Infrastructure
Management Services can be offshored
Increasing complexity
Deals are becoming more modular
Selective outsourcing (help desk,
email, security / network) growing
Outsourcing including asset / people
transfer is approaching decline
Forrester S-Curve on infrastructure trends
Market size
By 2006, Infrastructure Services
delivered in a Global Delivery Model
from India to US companies will surpass
$1 billion (80% probability) – Gartner
Services most likely to be sent to an offshore location
November 11, 2005
© Infosys Technologies Limited 2005 - 06
Trends in the market - Worldwide spending on
external IT services,
IT outsourcing includes Infrastructure Outsourcing, which consists of Data Center Outsourcing, Desktop Outsourcing,
Network Outsourcing and Enterprise Application Outsourcing. The combined Infrastructure Outsourcing segments equal
80 percent of the total outsourcing spending
ITSM
Process
Consulting
Data Center
Management
Network
Management
Technical
Support /
Service desk
Application
Operations
Support
Advise
Implement
Design
Manage
Design
Monitor / Manage
Design / Model
Support / Operate
Production
Operations
Monitor / Support
Servers
Databases
Mail Infrastructure
Hosting
Enterprise
Networks
Telco Networks
Network Devices
Security
Network Operations
Centers
Technical Helpdesk
Service Desk
Desktop Support
Infrastructure
Off-shorability
ITSM Implementation
ITIL / BS15000
Six Sigma
ITIL – IT Infrastructure Library, BS15000 – British Standard 15000, ITSM – IT Service Management,
November 11, 2005
Business
Applications
Enterprise
Products
© Infosys Technologies Limited 2005 - 06
Distinguishing strengths
Management commitment and willingness to invest in IMS
Board-level sponsorship for IMS business
Infosys has outstanding customer references - AMR report, Nov
2004
Largest offshore-based network management engagement with a
large European telecom service provider (size of 150-300 FTE’s)
Infrastructure and technology investments
Bangalore Operations Center
Large high-capacity global IP network. 3 large Global Management
Centers
Centers of Excellence - Competency building – certifications in
technology, process and project management
Best-of-breed tools including BMC and leveraging Microsoft solutions
Strong business pursuit process - Effective cross-selling and enabled sales force
Process - BS15000 certification and ITIL best practices
Strong HR
Massive, scalable training model for infrastructure skills
High employee satisfaction in 24x7 model
Infosys strong results are because of its outstanding customer references for both the service offering and customer
relationship management. - AMR Research Report on Data center management – November 2004
First time we came in after Christmas and could start production without waiting for systems. I am proud of all of you at
Infosys, and look forward to achieving more with you in providing cost-effective services to the our business. - CIO,
Firmenich
November 11, 2005
© Infosys Technologies Limited 2005 - 06
Challenges and how are we addressing them
Challenge
Pricing of infrastructure services
Strategy
»
Element based pricing vs. traditional FTE
•
Differentiation through process strengths, new solutions, technology
platforms and alliance partners
Security compliance and business
continuity planning for mission critical
services
Multiple levels of security tailored to customer needs. Disaster
Service levels in remote management
Strong process-oriented mechanism for operational level and
recovery plans agreed and signed off
service level agreements definition and pyramid reporting
Asset acquisition
Openness to new deal models and capability through strong
Partnerships.
Multilingual support
Leverage corporate investments in Eastern Europe and China
Demonstrated ability in telecom provider story. Geared up with
internal capability as well as alliances
November 11, 2005
© Infosys Technologies Limited 2005 - 06
Thank You
www.infosys.com
© Infosys Technologies Limited 2005 - 06