Transcript Finacle IBU

August 12, 2005
© Infosys Technologies Limited 2005 - 06
Finacle
Girish Vaidya
Senior Vice President - Finacle
© Infosys Technologies Limited 2005 - 06
Safe Harbor
Certain statements made in this Analyst Meet concerning our future growth prospects are forwardlooking 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 quarterly report on Form 6-K for the quarter ended June
30, 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 statements that may be made from time to time by or on
behalf of the company.
August 12, 2005
© Infosys Technologies Limited 2005 - 06
Key Metrics
Revenue - $ m
Revenue - $ m
65
55
75
Growth 61%
47.6
65
6 1. 7
Growth 111%
55
45
45
29.5
35
35
25
29.2
25
15
15
FY04
FY05
LTM June 04
LTM June 05
Q1 FY05
Q1 FY06
Revenue ($ m)
8.1
22.2
Export %
36%
53%
Employees
685
1,328
Geographic Footprint – No. of
countries
37
47
August 12, 2005
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Market Scenario
Core banking replacement wave catching up globally
Source : Tower Group
Cost of legacy, need for agility & regulatory compliance are driving change
Global Tier 1 & Tier 2 banks joining the replacement wave
EMEA & APAC lead the pack in core banking replacements
Average deal sizes for a Tier 1 bank – $100M+
Open systems making their presence felt in the mainframe/legacy world
Scattered vendor space, no clear global leaders
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Key Challenges
Competitive scenario
Overcrowded marketplace, a fragmented market
Very competitive market with some players having an early start vis-à-vis mindshare
and market penetration
Consolidation in the industry has begun – Oracle & i-Flex, a case in point
There is space for large players - It’s a growing market – Core banking replacement
alone is going to be $ 34 bn market by 2010
Indian vendors with size and scale continue to have an edge - Like in services,
challengers of yesterday are emerging leaders of today
Customer expectations (specially Tier 1 & Tier 2 banks in mature markets)
Traditionally used to a ‘build’ approach
Spaghetti of systems – can the onion be unraveled
Perceived high risk of replacement
Preference for a SI-led approach
Heavily influenced by consultants and analysts
India factor
Primarily established as a services hub
Indian products not established in the global arena
August 12, 2005
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Finacle Advantage
Differentiated Value Proposition
Infosys edge – End-to-end capability,
predictability, delivery depth and a
configurable solution stack
Converting adversity into opportunity
India factor has a silver lining
Unique value proposition
Maximizing opportunity – agility, growth and process efficiency
Minimizing Risk – product & technology, vendor, implementation & support
Focus and investments in the right hot buttons
Scalability – most scalable core banking solution (>40Mn TPH)
Flexibility beyond parameters
Opening up for services-based integration
BPM integration
Front end and back end separation
Web-based thin client
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Finacle Advantage
Impeccable delivery track record
100% implementation success rate
Leveraging the traditional Infosys strengths – Enterprise Solutions & Finacle
partnership, joint proposition in key markets
Sales and Marketing
Strategic segmentation – focus on Tier 1 and large regional banks
Leveraging alliances and partners to extend reach, delivery capability &
provide comfort – successes with HP, Sun and Oracle
Focus on achieving brand leadership – a comprehensive relationship
marketing program has been rolled out
August 12, 2005
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Finacle @ICICI
A case study
© Infosys Technologies Limited 2005 - 06
Market Dynamics In The Early 90’s
Customers
Segments
Rural and urban
consumers
&
SME’s
Competition
Public sector banks
Constraints
High net worth individuals
&
Large and established
corporate houses
Foreign banks
• Handful of banks
• Low penetration
• Customer-centric focus for
high-end customers only
• Largely manual processes
• Little use of technology
• Low customer service focus
Opportunity spotted by ICICI
August 12, 2005
Growing Middle Class
&
Emerging Corporates
Quality customer service through
cost effective operations
© Infosys Technologies Limited 2005 - 06
Technology – The Means To This End
Deployment of Finacle core banking (including retail & corporate banking &
branch solution), consumer e-banking, corporate e-banking, mobile and CRM
solution
Integration of Finacle with multiple applications to provide seamless straightthrough-processing of transactions
Creation of a central/ regional processing unit to handle growth in back office
business
Use of the branch network as aggressive customer acquisition units
Use of powerful CRM features to improve customer centricity and focus on
cross selling
“Our objective of creating a universal bank providing end-to-end financial services clearly
required solutions which were based on new generation technology, offered end-to-end
functionality and were highly flexible and scalable. Finacle offered all this and much more.”
- Ms. Chanda Kochhar, Executive Director, ICICI Bank
August 12, 2005
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The Results
Efficiency improvement
Clear choice on avoiding legacy traps – no mainframes
Lower TCO – 15-20% of mainframe based systems
Back-office operational efficiency
Customer-centric banking – centralized operations, account opening and
cheque processing
Leveraging capabilities of multi-channel delivery
First to launch Internet banking in India
Cost-efficient operations by shifting routine transaction from branches to
other channels
“Finacle has enabled ICICI Bank Ltd. to achieve competitive advantage by enabling
rapid roll out of new products, faster customer service and reduced time to market...”
- Mr. P.K. Vohra, General Manager and Head Retail Technology Group, ICICI Bank
August 12, 2005
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The Results – Leveraging Channels and Volume Growth
Share of Transactions
Volume Growth
Share of
Transactions
Share of
Transactions
March 2000
March 2004
Branches
94%
25%
ATM's
3%
43%
Internet and
Mobile
2%
21%
Call Centers
1%
11%
Channels
August 12, 2005
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Accolades
‘Best Multi-Channel Strategy 2003’ award by The Banker Magazine, U.K.
‘Best consumer and corporate / institutional Internet bank in India’ by Global
Finance, 2004
Rated the ‘Best Retail Bank in India’ by the Asian Banker Journal, Singapore,
2004
Rated the 2nd Best Retail Bank in Asia by the Asian Banker, 2005
August 12, 2005
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Thank You
www.infosys.com
© Infosys Technologies Limited 2005 - 06