© infosys technologies limited 2006-07 operational highlights 2006-2007 s. d. shibulal director and...

© Infosys Technologies Limited 2006-07

Operational Highlights 2006-2007

S. D. ShibulalDirector and Group head – World-wide Customer Delivery and Sales


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, 2007 and the Quarterly Reports on Form 6-K for the fiscal quarters ended June 30, 2006, September 30, 2006 and December 31,2006. 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.


Operational highlights

Expand addressable markets

GeographicalFootprint

VerticalFootprint

ServicesFootprint

Build relationships and trust

ClientRelationships

TrustedBrand

OperationalExcellence

Develop competencies and capabilities

Expanding The Global Delivery Model

Best-in-classPeople

World-classInfrastructure


Geographical footprint

» Geographical diversification» European business continued to increase its share - 26.4% of Infosys

revenues» During the year China serviced 50 clients with 669 employees» Australian operations serviced 59 clients with 306 employees

» Operating through 43 marketing offices in 22 countries and 44 Global Development Centers of which 20 are outside India

» Finacle®, the universal banking solution, further expanded its global footprint, currently powering 91 banks across 54 countries – Positioned in the Leader Quadrant for International Retail Core Banking Solutions released by Gartner.

Geographies FY 2005 FY 2006 FY 2007

North America 65.2% 64.8% 63.3%

Europe 22.3% 24.5% 26.4%

India 1.9% 1.7% 1.6%

Rest of the World 10.6% 9.0% 8.7%

Total 100.0% 100.0% 100.0%


Vertical footprint

» Robust all round growth in verticals - Banking & Financial Services, Telecom and Energy & Utilities verticals registering strong growth

» Performance in Financial Services won widespread appreciation – ranked 18th on the prestigious FinTech 100 list and 8th among FinTech top 10 companies serving the insurance industry

» Rated #1 by the Waters Readers Survey » Domain Competency Group (DCG) accelerated domain enablement of

employees. Over last fiscal, the number of domain certifications granted grew by 100% - 8986 certifications granted by external / internal agencies

Industries FY 2005 FY 2006 FY 2007

Manufacturing 14.4% 13.9% 13.5%

Insurance, Banking & Financial Services 34.6% 36.0% 37.4%

Banking & Financial Services 25.2% 28.5% 30.2%

Insurance 9.4% 7.5% 7.2%

Telecom 18.5% 16.5% 19.3%

Retail 9.8% 10.1% 10.0%

Energy & Utilities 3.2% 4.7% 5.3%

Transportation & Logistics 7.6% 5.1% 2.4%

Others 11.9% 13.7% 12.1%

Total 100.0% 100.0% 100.0%


Services footprint

Service offerings FY 2005 FY 2006 FY 2007

Development 23.2% 20.2% 21.0%

Maintenance 29.9% 30.2% 29.3%

Package Implementation 15.2% 16.2% 17.5%

Independent Validation 5.8% 5.9% 6.9%

Re-engineering 6.2% 4.7% 2.1%

Consulting 3.6% 3.5% 3.6%

Business Process Management 2.7% 4.0% 4.7%

Engineering Services 2.0% 1.8% 1.6%

Other services 8.4% 9.7% 9.4%

Products 3.0% 3.8% 3.9%

Total 100.0% 100.0% 100.0%

» Investments in enriching and synergising our portfolio of services showing results

» Strong growth in package implementation - Services such as infrastructure management, business process management and independent validation also grew steadily

» Infosys BPO also registered strong revenue growth of 74.7%


Client relationships

» Top 10 clients represent 31.4% of revenues, providing high predictability to our business model with 95.3% repeat business

» In the last twelve months, one client contributing over $200m, 3 clients over $100m and 12 clients over $50m

FY 2005 FY 2006 FY 2007

Clients 438 460 500

Clients added during the year 136 144 160

No. of 1 million dollar+ clients 166 221 275








No. of 90 million dollar+ clients – 1 4

No. of 100 million dollar+ clients – – 3

No. of 200 million dollar+ clients – – 1


Trusted brand

» Launched the ‘Win in the Flat World’ marketing campaign

» Cited by BusinessWeek as one of the companies turning the technology services industry on its head - named us as one of the 10 global companies to watch

» The Reputation Institute ranked us among the 200 most respected companies in the world

» Ranked as the 10th Most Innovative Companies in the Asia Pacific Region and 32nd in the world, in a survey by BusinessWeek – Boston Consulting Group

» Rated as one of the leading players in the Service oriented Architecture space by Forrester

» Continued coverage on leading global media, including TV, print and online

» Strategic and key sponsor of the World Economic Forum; prime sponsor of several flagship events like Gartner Sourcing Summit, Sapphire, Oracle OpenWorld, W3C Conference

» Our Campus Connect Program has been extended to over 300 engineering colleges with over 58,000 registered students


Expanding the Global Delivery Model

* New services is defined as services other than Application Development, Maintenance, Re-engineering and Products

New Services* as % of revenue

FY 01 FY 02 FY 03 FY 04 FY 05 FY 06 FY 07

41.1%37.7%

35.4%

29.6%

24.9%22.8%

43.7%

Application Development and Maintenance

Management Consulting

Business Process Management

IT Outsourcing

Systems Integration

Enterprise Solutions

Technology Consulting

Technology-enabled BPR

Software Re-engineering

People Organization Infrastructure Process Quality

Infosys Global Delivery Model

2006

2001

1981

1996


Operational excellence

» Improving ‘execution excellence’ through continuous productivity improvement and maintaining high quality delivery is the primary focus

» Continuous benchmarking of processes against world class standards such as SE-CMM/CMMI, ISO 20000, ISO 27000, AS 9100, TL 9000 and ISO 14001

» Patent application filed for PROSO, our project scheduling model » Program Management Framework to enable execution of large deals » Infosys BPO assessed at Level 4 on the eSCM (The eSourcing Capability Model

from SEI)

* Excluding subsidiaries

71.4

69.5

78.677.6

IncludingTrainees (%)

ExcludingTrainees (%)

Utilization Rates*

2006

200729.2 30.1

70.8 69.9

Onsite (%) Offshore(%)

Onsite - Offshore Ratio*

2006

2007


Best-in-class people

» Sustained focus on recruiting the top 20% from best schools. 13,02,368 applications processed, tested over 2,25,400 applicants, interviewed 91,200 and hired 22,567 (gross)

» Trained 15,176 employees as part of our Foundation Program. Delivered learning opportunities aggregating to 9,12,903 trainee days

» Continuously honing competencies to improve the depth and breadth of our services offerings – during the year about 31,000 employees were certified at various levels; also expanding our Enterprise Architecture capabilities, record number of architects certified

» Substantial investments in creating a scalable training engine at our Mysore campus, which houses the world’s largest corporate university – geared to be able to train 13,500 employees annually

» As part of InStep, our Global Internship Program, over 12,000 applications processed enabling 125 interns representing over 30 different nationalities to share experiences & perspectives

36,750

52,715

72,241

25,634

2004 2005 2006 2007

Total Employee Strength

10.59.7

11.2

13.7

2004 2005 2006 2007

Attrition (%)


World-class infrastructure

» 44 Global Development Centers – 24 in India and 20 overseas (North America, Europe and Asia Pacific)

» 11.96 million sq. ft. space, with a capacity to accommodate 58,488 professionals (as of March 31, 2007)*. Additional 10.3 million sq. ft. under construction with 32,967 seats

» Rs. 1,194 crore spent on developing physical infrastructure – up from Rs.849 crore during the previous year

* Excluding subsidiaries


Key awards and recognitions

» Ranked first in SAFA (South Asian Federation of Accountants) Best Presented Accounts Award 2005 in the Communication and Information Technology Sector based on evaluation of Annual Report

» Named the most admired company for the sixth consecutive survey by Asia Wall Street Journal

» Named among 74 Global High Performers chosen from Forbes’ Global 2000 list

» Ranked 36 among World’s Most Innovative Companies

» Ranked No 11 in Wired 40 (2006)

» “India’s Most Respected Company” based on a survey conducted by Business World

» Ranked as the ‘Best Company to Wok for in India 2006’ in the BT-Mercer-TNS Survey published in Business Today

© infosys technologies limited 2006-07 operational highlights 2006-2007 s. d. shibulal director and...

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