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