Transcript Analyst Meet 2003 - Infosys - Business Technology Consulting

Meeting the challenges of global
competition - Operational excellence
S. Gopalakrishnan
Delivering value with clockwork precision
Reinforcing the fundamentals
Infosys pioneered and proven
GDM has become mainstay
» IT Service providers,
worldwide, race to change
their business models…
Client Location / PDC
Global
Model
GlobalDelivery
Delivery
Model
» Integrate work across time
zones and geographies
» Leverage time as a resource
– not a constraint
» Capitalize on distance as an
advantage – not a limitation
Offshore Development Centers
Discovery
Project
Analysis and planning
High level design
User interface design
Project co-ordination
Onsite testing
Implementation
Post
implementation
support
Project
Project management
Detailed design
Coding
Testing
Documentation
Post
implementation
support
Rapid reaction support
Bug fixes
Warranty support
Maintenance
30 : 35
70 : 65
Intelligent
Project
breakdown
Leverage
extended
workday
Leverage cost
efficiencies
…we focus on further strengthening our innovative practices
© Infosys Technologies Limited 2003-2004
Analyst Meet 2003
Slide 1
The environment and our response
Outsourcing and offshoring to
India has become mainstream
» Great quality, great people
and great value for money
Increasing price pressures
» Clients seeking cost
reduction
» Short-term measures by
competitors
© Infosys Technologies Limited 2003-2004
Our Focus Areas
»
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»
»
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Client Relationships
End-to-end Services
Trusted Brand
Global footprint
Operational Effectiveness
Best-in-class people
World-class Infrastructure
Robust financial management
Analyst Meet 2003
Slide 2
Client relationships
Description
Q1 FY 2004
346
22
97.8
5.7
2
113
37
19
10
4
3
Active Clients
Clients added during the period
Repeat Business (%)
% of revenues from the largest client
Clients accounting for > 5% of revenue
No. of million $ clients
No. of 5 million $ clients
No. of 10 million $ clients
No. of 20 million $ clients
No. of 30 million $ clients
No. of 40 million $ clients
Re-structured client facing teams
» Improve business understanding
» Reduce time to respond to client needs
Identified key and global
focus client solution delivery
accounts
© Infosys Technologies Limited 2003-2004
FY 2003
345
92
91.9
5.8
2
115
41
16
9
3
2
FY 2002
293
116
87.6
6.1
2
83
25
16
6
1
-
Top 20 clients represent 53.3% revenues
(LTM)
to
Improved predictability of our business model
– 97.8% repeat business in Q1 FY 04
Analyst Meet 2003
Slide 3
End-to-end services
» Significant strides in Enterprise
Solutions and Consulting
services
» Enterprise Solutions service
contributed 13.5% of the
company’s revenues in Q1 FY 04
» Strategic alliances and
partnerships for System
Integration (SI) service
» Progeon Ltd established
presence in BPM
» State-of-the-art Network
Operation Center (NOC) for
Infrastructure Mgmt. Services
» Test automation tools to
strengthen Independent
Validation Service (IVS)
» Presently 7 clients, 882
employees ( As of June 30,
2003)
» Generated revenue of Rs.
20.85 crore in FY 03 and Rs.
12.87 crore in Q1 FY 04
» Leveraging service delivery
globalization
» Banking Business Unit
contributed 3.6% of the
company’s revenues in Q1 FY 04
© Infosys Technologies Limited 2003-2004
Analyst Meet 2003
Slide 4
Vertical footprint
» Focus on developing expertise
in verticals
» Retail
» Automotive and aerospace
» Healthcare and life sciences
» Enhanced specialist support
from Domain Competency
Group (DCG)
» Cross-functional teams
developed vertical solutions and
go-to-market strategies
© Infosys Technologies Limited 2003-2004
» Increased expertise in clients’
business domains
» Sustained growth in all key
verticals with clients adopting
our solutions
» Increased business from
marquee clients such as Aetna,
Amex, Cisco, Fidelity, Goldman
Sachs and IKON
Analyst Meet 2003
Slide 5
Geographical footprint
» Operating through 30 sales offices in 17 countries. Opened new
sales offices in Dublin and Ohio, USA.
» Multi-cultural and diverse global workforce. Employees from 37
nationalities… and the number continues to grow
» 204 Sales employees outside India and 71 in India, focused on
developing new business and promoting client loyalty
» 100 Seat Global Development Center in Melbourne and 50 Seat
Proximity Development Center in Tokyo
© Infosys Technologies Limited 2003-2004
Analyst Meet 2003
Slide 6
Trusted brand
» Flagship customer event, Milan (signifying the meeting of minds),
introduced in Europe for the first time
» Wharton Infosys Business Transformation Award
» 2nd successful year at recognizing creative use of technology in business
» The Winners: The Imperial Sugar Co. (US), Fujitsu Siemens Computers
(Europe), ING Direct Worldwide (Europe) and Standard Chartered Bank
(Asia Pacific)
» “CXO City Chats” rolled out in key cities of US and Europe
» Successful in demonstrating thought leadership
» Facilitated peer networking amongst client CXOs on contemporary issues
» In-Step, the global internship program covered 30 reputed global
universities across US, Europe and Asia Pacific to select 33 candidates
» FINACLE® as the umbrella brand for all banking products. This
includes Core Banking, eChannels, eCorporate, CRM and Treasury
© Infosys Technologies Limited 2003-2004
Analyst Meet 2003
Slide 7
Operational effectiveness
Onsite-Offshore Effort Ratio
0%
0%
Including Trainees Excluding Trainees
Q4 2003 Q1 2004
Onsite
Q4 2003
66.3%
25%
32.7%
25%
50%
33.7%
50%
83.9%
75%
82.2%
75%
77.3%
100%
77.6%
100%
67.3%
Utilization Rates
Offshore
Q1 2004
» Six-Sigma CFPM cross-functional initiatives to improve productivity and enhance the utilization
of assets and resources
» Project management practices assessed at CMMi Level 5, further endorsing the high standards
of quality and productivity
» Standard methodologies perfected based on the accumulated experience gained from
excellence in project execution
» Completed deployment of homegrown CRM solution, project budgeting solution and a scalable
.Net infrastructure
© Infosys Technologies Limited 2003-2004
Analyst Meet 2003
Slide 8
Best-in-class people
Attrition Rates (LTM)
Total Employee Strength
20000
17,095
15%
11.2%
15,356
15000
9,831
10%
10,738
6.2%
10000
6.9%
7.9%
5%
5000
0%
0
2001
2002
2003
Jun-03
2001
2002
2003
Jun-03
» HR practices successfully assessed at PCMM Level-5, a testimony to the strong process
orientation in human resource management.
» Technical and managerial training, benchmarked to global standards, strengthened with
role-based design, e-learning and objective assessments.
» Completed the transition to a role-based organization and closely aligned compensation
with company, unit and individual performance
» Facilitated the development of more than 200 Infosys leaders. Rolled-out a refined 3-Tier
leadership development model, integrated with succession planning
© Infosys Technologies Limited 2003-2004
Analyst Meet 2003
Slide 9
World-class infrastructure
» 36,59,250 sq. ft. space, capable of
accommodating 18,733
professionals as on Q1FY04
» Additional 4,60,000 sq. ft. nearing
completion in Bangalore, Pune,
Chennai and Hyderabad
» Rs. 32.90 crore spent on developing
state-of-the-art technological
infrastructure in Q1 FY 04
» Focused initiatives on enhancing
the physical and logical security –
BS7799 Adopted
» 27,000 Sq. Ft. of planned disaster
recovery and business continuity
facility in Mauritius
» 10 Proximity and global development
facilities in US, Europe and Asia
Pacific
© Infosys Technologies Limited 2003-2004
Analyst Meet 2003
Slide 10
Key awards
» Ranked as the No.1 Employer in the IT sector by Dataquest for
the second time in a row
» Ranked the Best Employer in India by Business Today-Hewitt in
their annual survey
» The Most Admired Knowledge Enterprise Award for Asia
» Global Corporate Achievement Award 2002, Asia Pacific by
Economist Intelligence Unit
» 2002 CII Exim Award for Business Excellence
» Ranked as the Best Managed Company In India by Asiamoney
» Ranked No.1, Asia’s Leading Companies in India by Far Eastern
Economic Review
» Featured among “Computerworld's 100 Best Places to Work in
IT” survey for US based companies
© Infosys Technologies Limited 2003-2004
Analyst Meet 2003
Slide 11
Reinforcing stakeholder value
» Lower risk, higher value – Extensive experience with the Global Delivery Model
» Financial goals to move work offshore – contrary to the global players
» Strong Financials, best in class corporate governance, high liquidity
» Growing spectrum of services – complete end-to-end suite spanning consulting to BPM
» Services designed and evolved to meet continuously changing client requirements
» Strong focus on excellence in execution, including high-end business consulting
» Focused methodologies and investments – including delivery of business solutions
» Investments into world-class infrastructure, research and Knowledge Management
» Mature way of leveraging GDM evolved over decades of learning – no short cuts
» Employer of Choice while retaining the advantage of cost that brings value to client
» Offering global careers, spanning the spectrum of roles and responsibilities
» Strongly committed to employee growth – Leadership development, Career planning
© Infosys Technologies Limited 2003-2004
Analyst Meet 2003
Slide 12
Thank You
www.infosys.com