Transcript Slide 1

Operational Highlights
2007-2008
S. D. Shibulal
Chief Operating Officer
Safe harbor
Certain statements made here 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 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, 2008 and
the Quarterly Reports on Form 6-K for the fiscal quarters ended June 30, 2007, September 30,
2007 and December 31,2007. 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.
© Infosys Technologies Limited 2007-08
Operational highlights
Expand addressable markets
Geographical
Footprint
Vertical
Footprint
Services
Footprint
Build relationships and trust
Trusted
Brand
Client
Relationships
Operational
Excellence
Develop competencies and capabilities
Expanding The
Global Delivery Model
© Infosys Technologies Limited 2007-08
Best-in-class
People
World-class
Infrastructure
Geographical footprint
Geographies
FY 2006
FY 2007
FY 2008
North America
64.8%
63.3%
62.0%
Europe
24.5%
26.4%
28.1%
India
1.7%
1.6%
1.3%
Rest of the World
9.0%
8.7%
8.6%
100.0%
100.0%
100.0%
Total
Geographical diversification
» European business continued to increase its share
» Our operations in the Rest of the World scaled,
»
»
»
»
Infosys China serviced 59 clients with 699 employees
Infosys Australia serviced 49 clients with 363 employees
Opened our first Latin American subsidiary in Monterrey, Mexico
Enhanced capacity of our near-shore facility in Brno, Czech Republic
» Finacle®, the universal banking solution, further expanded its global footprint
» Currently powering 109 banks across 60 countries helping them serve over
160 million customers
© Infosys Technologies Limited 2007-08
Vertical footprint
Industries
FY 2006
FY 2007
FY 2008
Manufacturing
13.9%
13.5%
14.7%
Banking, Financial Services & Insurance
36.0%
37.4%
35.7%
28.5%
30.2%
28.5%
7.5%
7.2%
7.2%
Telecom
16.5%
19.3%
21.6%
Retail
10.1%
10.0%
11.8%
Energy & Utilities
4.7%
5.3%
5.2%
Transportation & Logistics
5.1%
2.4%
2.5%
13.7%
12.1%
8.5%
100.0%
100.0%
100.0%
Banking & Financial Services
Insurance
Others
Total
» Reorganized our business units,
»
Differentiate vis-à-vis our competitors
»
Enhance “One-Infy” experience and broaden customer base
»
Strengthen our current portfolio through scale benefits
» 6 vertical Industry Business Units (IBUs) and 5 Horizontal Business Units (HBUs)
» New Market & Services (NMS) unit formed to expand business in the rest of the world - Australia, China, Japan,
Middle East, Canada, South America and Latin America
» India Business Unit formed to focus on India and the growing domestic market
© Infosys Technologies Limited 2007-08
Services footprint
Service offerings
FY 2006
FY 2007
FY 2008
Application Development
24.9%
23.1%
21.7%
Application Maintenance
26.6%
24.9%
23.7%
4.0%
4.7%
5.7%
19.7%
21.1%
23.8%
Infrastructure Management
3.6%
4.4%
4.9%
Product Engineering Services
1.8%
1.6%
1.6%
Systems Integration
1.7%
2.3%
2.8%
Testing Services
5.9%
6.9%
7.5%
Others
8.0%
7.1%
4.7%
96.2%
96.1%
96.4%
3.8%
3.9%
3.6%
100.0%
100.0%
100.0%
Business Process Management
Consulting Services & Package Implementation
Total Services
Products
Total
» Expanding portfolio of services
» Share of non-ADM services continuously going up – over 50%
» Share of consulting services & package implementation up – at 24%
© Infosys Technologies Limited 2007-08
Client relationships
FY 2006
FY 2007
FY 2008
Clients
460
500
538
Clients added during the year
144
160
170
No. of 1 million dollar+ clients
221
275
310
No. of 5 million dollar+ clients
81
107
141
No. of 10 million dollar+ clients
54
71
89
No. of 20 million dollar+ clients
26
36
47
No. of 50 million dollar+ clients
9
12
18
No. of 100 million dollar+ clients
–
–
–
3
6
1
1
–
1
No. of 200 million dollar+ clients
No. of 300 million dollar+ clients
» Top 10 clients represent 31.4% of revenues, providing high predictability to our business model
with 97% repeat business
» Top client contributed 9.1% of our revenues
© Infosys Technologies Limited 2007-08
Client relationships
Large, Growing Client Relationships
Increasing Share of Wallet
Revenue Contribution by Years of Relationship
Execution excellence resulted in high share of repeat business
(97% in FY 08)
© Infosys Technologies Limited 2007-08
Trusted brand
» Diamond Award for the best global brand campaign in the category of Sharpening Brand
and Competitive Differentiation from the IT Services Marketing Association (ITSMA)
» Extensive coverage in global tier 1 media
» Newsweek referred to us as a “Titan of globalization”
» Time magazine commented on our professionalism with the headline “Meritocracy is the model”
» BusinessWeek, The Independent, The Guardian, Financial Times, BBC World, CNBC and CNN
covered Infosys during the year
» Featured on leading online business and technology destinations like www.cio.com,
www.businessweek.com and www.forbes.com
» Best Investor Relations Website and Company with Best Corporate Governance Practices
in Investor Relations (IR) Global Rankings 2008 in APAC categories
» The Reputation Institute named Infosys, a globally respected company
» Moved up to No 14 on Fintech 100, an international listing of the top 100 global application
and service providers
» Named Best Outsourcing Partner in Waters Readers’ Survey
» Fortune’s Top 10 Companies for Leaders
» Among several client awards, together with our client BT, awarded the National
Outsourcing Association award for Innovative Outsourcing Project for 2007
© Infosys Technologies Limited 2007-08
Operational excellence
77.6%
77.3%
70.9%
69.5%
70.2
69.9
Including Trainees
30.1
29.8
Excluding Trainees
2007
2008
Onsite (%)
Offshore (%)
2007
Utilisation Rate *
2008
Onsite Mix *
» Business units reorganized in anticipation of changes in the global IT industry and to differentiate
vis-à-vis our competitors
» Enhanced focus on tools and reuse to improve productivity
» 2 patents issued, 199 patent applications pending with USPTO
» In February 2007, Infosys BPO was certified for eSCM level 4.0
» In August 2007, Infosys China was appraised at Level 5 of the latest CMMI model, v1.2. It is the
first company in China to hold this certification.
* Excl subsidiaries
© Infosys Technologies Limited 2007-08
Expanding the Global Delivery Model
© Infosys Technologies Limited 2007-08
Best-in-class people
72,241
91,187
52,715
9.7
13.7
13.4
2007
2008
11.2
36,750
2005
2006
2007
2008
Total Employee Strength
2005
2006
Attrition (%)
* Excl subsidiaries
» Won the BEST award from the American Society for Training and Development
(ASTD)
» Sustained focus on recruiting the top 20% from best schools
» In Fy08, for the recruited 33,177 (gross) - screened over 8,85,000 employment applications,
tested over 2.27lacs applicants, interviewed over 97,500 applicants and made approximately
46,300 offers of employment
» Continuously honing competencies to improve the depth and breadth of our services
offerings
» Over 6,51,448 person-days of training, over 1,28,000 certification exams conducted, over 27,000
27,604 employees completed their technical competency certification program
» As part of InStep, our Global Internship Program, over 4,000 applications were
received for 126 positions in fiscal 2008
© Infosys Technologies Limited 2007-08
Best in Class People
» Industry-wide preferred employer
» CNBC TV 18 Viewers Choice – New Age Employer of
Choice Award 2007
» Able to simultaneously evaluate 10,000+ candidates across 7
cities in India
» In fiscal 2008 alone, we recruited students from 1,079
engineering colleges
» Expanding talent base through global hiring
» US, UK, China and Eastern Europe
» Currently employing people from 70 nationalities
» Tapping non-traditional labor pool
» Employing non-engineers for infrastructure management,
testing and BPO
» Proactive assistance provided to India’s educational
system to produce engineers with high quality software
skills
» Addressing the talent requirements of the BPO industry by
making youth from Tier 2 and Tier 3 towns employable in
IT-enabled services. About 798 teachers and 22,619
students from 389 colleges benefited this year
© Infosys Technologies Limited 2007-08
World Class Infrastructure
» Robust, Flexible , Modular Global Infrastructure
» 52 Global Development Centers (“GDC”)*
» 26 in India
» 11 in North America, 9 in the Asia-Pacific region and 6 in Europe
» 16.5 million sq. feet* of total area to house77,800 employees (against 12 million
sq feet last year)
» 8.4 million sq. feet* under construction to house 26,900 employees
» In addition, 60% of our development centers in India are located in Tier 2
and 3 cities - this infrastructure policy has created employment for 30,632
» Ability to rapidly scale new engagements and flexibility to distribute
engagements and capacity across centers worldwide
» Disaster recovery / business continuity capabilities
* As of Mar 31, 2008
© Infosys Technologies Limited 2007-08
Thank You
www.infosys.com