Building Scalability With Differentiation S Gopalakrishnan Chief Operating
Building Scalability With Differentiation S. Gopalakrishnan Chief Operating Officer and Deputy Managing Director © Infosys Technologies Limited 2004 -2005
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, 2004 and quarterly report on Form 6 -K for the quarter ended June 30, 2004. These filings are available at www. sec. gov. Infosys may, from time to time, make additional written and oral forwardlooking 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 2004 -2005 Analyst Meet 2004 | New Game. New Rules. Slide 2
Scalability: Key to rapid growth Scalable client relationships Scalable services and solutions Addressing multiple facets of scalability Scalable organization structure Scalable processes and systems Scalable talent management Scalable global infrastructure © Infosys Technologies Limited 2004 -2005 Analyst Meet 2004 | New Game. New Rules. Slide 3
Scalable Client Relationships » Multi-year & growing client relationships, built on trust – “Improve your odds with Infosys predictability” » Robust engagement management. Strategic analysis of business challenges of key clients over the next 3 years » Infosys Consulting and Strategic Global Sourcing teams with professionals having extensive experience in managing large scalable engagements » Consolidating a Point-of-view on strategic outsourcing - “Modular Global Sourcing” based on rich experience over years » Innovative “Client Advisory Council” composed of leading global CIOs to deliberate client and markets strategies FY 04 Q 1 FY 04 Q 4 FY 05 Q 1 113 131 141 Five million dollar+ clients* 37 51 53 Ten million dollar+ clients* 19 25 27 Twenty million dollar+ clients* 10 12 15 Thirty million dollar+ clients* 4 6 8 Forty million dollar+ clients* 3 4 5 Fifty million dollar+ clients* - 3 3 Million dollar+ clients* *LTM Basis © Infosys Technologies Limited 2004 -2005 Analyst Meet 2004 | New Game. New Rules. Slide 4
Scalable Services And Solutions » GDM extended to all services… Consulting to ADM to Infrastructure Management to Business Process Management » Setting new standards in “client value per consulting $” by integrating consulting and Global Delivery Model » Building scalable and GDM based business solutions in each industry vertical, as well as horizontal solutions in specific technologies New Services as % of Revenue » “Modular Global Sourcing” approach to strategic outsourcing as a scalable and flexible alternative to “Total Outsourcing” » Strategic Alliances with selected leaders in complementary capabilities to create new solutions for clients » Proprietary frameworks such as Influx® and Intelligent Production Support Platform (IPSP) © Infosys Technologies Limited 2004 -2005 Analyst Meet 2004 | New Game. New Rules. Slide 5
Scalable Organization Structure Illus » Matrix organization focused on maximizing client value by developing deep domain and technology competencies tr at Infosys Consulting Infosys Australia ive » Multiple business units that are self- governed and empowered engines of growth. » Vertical focused “Integrated Business Units” » Horizontal “Enterprise Capability Units” » Scalable subsidiary companies focused on » » Markets New Services Talent Pools New business model - Australia / China - Progeon - China - Consulting Infosys Shanghai © Infosys Technologies Limited 2004 -2005 Analyst Meet 2004 | New Game. New Rules. Progeon Slide 6
Scalable Processes And Systems » Pride: Infosys process repository built over many years of experience. Benchmarked with Global Standards – CMMi, Baldrige, BS 7799… » Ubiquitous information systems, digitized over generations, span key transactions. Deployed worldwide over intranet and extranet » Award winning knowledge management practices. Thought leadership and intellectual property management processes » Cross-functional approach to process integration across all subsidiary companies. Continuous strategy alignment to synergize client value » Deployment of quality and productivity improvement techniques including Six Sigma © Infosys Technologies Limited 2004 -2005 Analyst Meet 2004 | New Game. New Rules. Slide 7
Scalable Talent Management » Winning the Talent War - Record growth in Infoscion community. Greater velocity of hiring, aligned with growth plans » Highly selective recruitment process, focused on “Learnability”. Simultaneous evaluation of 10, 000 people in 7 cities » Multicultural workforce, integrated through performance ethic. Employees from 33 nationalities and growing Applicants 100% » Scalable education infrastructure. Worldclass training center in Mysore, India to concurrently train 4, 000 employees Interviewed & Tested 10. 5% » Enterprise Solutions University (ESU) in Hyderabad, India. 500+ consultants trained over last 6 months. Courses certified by Foundation For International Services © Infosys Technologies Limited 2004 -2005 Offers 1. 0% Analyst Meet 2004 | New Game. New Rules. Slide 8
Scalable Global Infrastructure » World-class campuses to meet client needs in the best work environment. Development centers spread across India and other global locations. Growing rapidly » Significant investments in technology infrastructure and Disaster Recover / Business Continuity capabilities. Certified to BS 7799 Information Security Standards © Infosys Technologies Limited 2004 -2005 Analyst Meet 2004 | New Game. New Rules. Slide 9
Differentiation: Key to higher client value Differentiating the business model Differentiating services & solutions Creating sustainable differentiation Differentiating GDM execution platform Differentiating intellectual capital Differentiating the global brand Benchmarking with global standards © Infosys Technologies Limited 2004 -2005 Analyst Meet 2004 | New Game. New Rules. Slide 10
Differentiating For Client Competitiveness Role Of IT In Enhancing Business Competitiveness Run the Business GDM Transform the Business Grow the Business GDM+ Business Solutions Using GDM » Technology services » Technology Based Solution » Business competitiveness » Reducing unit cost » Reducing Total Cost (TCO) » Increase revenue for clients » Offshore strategy » Modular Global Sourcing » Increase profitability for clients » Efficiency focus » Effectiveness focus » Business results focus © Infosys Technologies Limited 2004 -2005 Analyst Meet 2004 | New Game. New Rules. Slide 11
Differentiating The Global Brand © Infosys Technologies Limited 2004 -2005 Analyst Meet 2004 | New Game. New Rules. Slide 12
Thank You © Infosys Technologies Limited 2004 -2005
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