INDIA – Information Technology

Presentation to : Tuesday Business Network, PragueJanuary 8, 2008

Ratnesh MathurEmail : Indoeuropeans@gmail.comPhone: +420-731146275

INDIA – Information Technology

• Infosys – an introduction

• Indian IT Industry

• IT in India – an Opportunity to Collaborate

Infosys Corporate Overview – Global technology company with a proven track record

500+ Clients & 72000+employees500+ Clients & 72000+employees

0

100

200

300

400

500

600

1999

2000

2001

2002

2003

2004

2005

2006

2007

No. of c

lients

0

10000

20000

30000

40000

50000

60000

70000

80000

No. of e

mploy

ees

3.1 bn in Revenues and growing3.1 bn in Revenues and growing

68.3 121 203414 545

7541063

1590

2152

3090

0

500

1000

1500

2000

2500

3000

3500

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

Rev

enue

s (U

S$

Mn)

Global RecognitionGlobal Recognition

• Over $28 Bn in market capitalization on the NASDAQ ( as of March 31 2007)

• 53 continuous quarters of growth in top & bottom-li ne since going public

• Zero debt company with sound cash reserves, and a d e-risked operating model

• 93% repeat business as on March 31 2007 as compared to 92% during previous year.

• Strong client addition - added 34 clients during the quarter ended March 31 2007.

Sustained revenue growth + Value growth – Creating value for

stakeholders

Diversified Shareholding Pattern Diversified Shareholding Pattern

44%

39%

17%

Promoters

Institutional Investors

Others

Abo

ut In

fosy

s

Infosys – Offerings for various Industries

• IT Services – Application Services, Architecture Services, Infrastructure Services, Independent Validation Services, Information Management, Packaged Services, Systems Integration

• BPO Services – Customer Service Outsourcing, Finance & Accounting, Knowledge Services, H R Outsourcing, Order Management, Procurement Outsourcing, Industry Solutions

• Engineering Services – Product Design & Development, Product Engineering, Process Engineering & Plant Operations, Lifecycle Management

• Consulting Services

• Finacle – Universal Banking Solution

• Aerospace and Defense• Automotive• Banking and Capital Markets

Communication Services• Consumer Packaged Goods• Discrete Manufacturing• Education• Energy• Healthcare• High Technology• Hospitality and Leisure• Insurance• Life Sciences• Media and Entertainment• Gaming• Publishing Studios and Networks• Resources Retail Transportation

Services Airlines Parcel Express & Logistics Railroads Utilities

Abo

ut In

fosy

s

Infosys in the Czech Republic

Poland (800 BPO FTE in Lodz)

• Availability of skilled labor –Education, Language, IT

• Economic & Political stability

• Suitable location in the very center of Europe

• High FDI – Several IT MNCs have hubs

• Attractive government investment incentives

• Czech Rep. is a member of EU

• Low-cost location in central Europe

Location Rationale

Infosys Proposition

• Multi-lingual processing ability (German, Russian, French, Polish)

• European affinity and fit

• Office infrastructure ready to cater for your every need

• Country contingency site

Brno

Brno

• Set up in 2004

• 300 BPO FTE inBrno & 30 ITO FTE in Prague

Abo

ut In

fosy

s

Global Delivery – Nearshoring & Offshoring CombinationA

bout

Info

sys

Global delivery footprint services various clients operations and provides world languages and local expertise:

Transformational promise to customers is designed to deliver value beyond cost arbitrage

European BPO Centers:

- Near-shore Front-End

- Language Skills

- Cultural compatibility

- Same Timezone

- On-site support

- Local Management

Indian BPO Centers:

- Off-shore Back-End

- Domain Expertise

- Back-End Scalability

- Local Management

�-----�

The BIG Picture 1 - Infosys in Indian IT Industry Context

• 2007 – Infosys Revenue – Approx 6% of Indian IT Industry

• 2007 – Infosys Headcount – Approx 4.5% of Indian IT Industry

• 2007 – Top 6 Indian IT Companies (TCS, Wipro, Infosys, Cognizant, Satyam, HCL) – Approx. 50% of Indian IT Industry

• Indian Software Industry – Approx 65% of Worldwide Software Services

Indian IT Industry – ITO & BPO

• USD 47.8 billion in 2007 – Expected to grow to USD 75 billion industry by 2010

• Global Markets – FY06 – Europe (25.1%), Americas (67.1%), Rest (7.6%)

• Employment FY07 – 1.63 Million – ITO (33%), BPO (34%), Prod & R&D(8.6%), Dom(25%)

190,000 230,000 284,000

430,114522,250

670,000

830,000

1,058,000

1,630,000

1,293,000

3.0 3.3 4.25.9 5.8

8.310.2

13.2

15.9

1.8 2.74.0

6.27.7

13.3

31.9

6.3

18.3

24.2

9.8

FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07E

DOMESTIC MARKET

EXPORTS

1.2% 1.4%1.8%

2.6%2.8%

3.2%3.6%

4.1%

4.7%

5.4%

4.8

6.0

8.2

12.1

13.5

16.1

21.6

28.5

37.4

47.8

of GDP

190 ,000 230, 000 284, 000

430, 114522,250

670,000

830,000

1,058, 000

1, 630,000

1, 293,000

USD Billion

3.0 3.3 4. 25.9 5. 8

8. 310. 2

13.2

15. 9

1. 8 2.74. 0

6. 27.7

13. 3

31.9

6.3

18.3

24. 2

9. 8

FY 98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07E

DO MES TIC M ARK ET

EXP ORTS

3.0 3.3 4. 25.9 5. 8

8. 310. 2

13.215. 9

1. 8 2.74. 0

6. 27.7

13. 3

31.9

6.3

18.3

24. 2

9. 8

FY 98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07E

DO MES TIC M ARK ET

EXP ORTS

3.0 3.3 4. 25.9 5. 8

8. 310. 2

13.215. 9

1. 8 2.74. 0

6. 27.7

13. 3

31.9

6.3

18.3

24. 2

9. 8

FY 98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07E

DO MES TIC M ARK ET

EXP ORTS

Direct Employment

* NASSCOM 2007 data

Foreign Companies : R&D Labs in India

Established in 2002 with just two people, has scaled up to 20 specialists today. Plans exist to double its headcount by the beginning of 2004. Is totally dedicated to high-level research on futuristic technologies, with special focus on emerging markets.Bangalore.

Established in 1996 with 10 people, has scaled up to 895 people today, and will be further scaled up to 1,000 before the end of 2003. Works on developing software for Philips products. Almost all Philips products that use software have some contribution from this centre. It is the largest software centre for Philips outside Holland. Innovation Campus, Bangalore.

Established in November 1998 with 100 people, the Lab swill be scaled up to 1500 by the end of 2004. That will double 3000 staff by middle of 2006. It is the largest single-location R&D lab for SAP outside Walldorf, Germany. Nearly 10 percent of SAP's total R&D work is carried out from the Indian lab. Labs India, Bangalore.

Established in 2001. Works on all IBM software like WebSphere, DB2, Lotus, Tivoli and Rational. The centre has added many new areas of activities such as middleware and business intelligence.

Software Lab, Bangalore, Pune.

Established in 1988 with 20 people, has scaled up to 1,000 today. Drives nearly 60 percent of the company’s global development delivery.

R&D Centre, Bangalore and Mumbai.

Established in mid-1999 with 20 people, has scaled up to 500 people today. Does work mainly on Sun's software which includes Solaris and Sun One.

India Engineering Centre,Bangalore

The Bangalore centre was established in 1994; the Hyderabad one in 1999. Oracle’s largest development centre outside the US currently has 6,000 staff. Does work on Oracle's database products, applications, business intelligence products and application development tools, besides other activities.India Development Centre, Bangalore,

Hyderabad.

Established in 1984. The centre started with just 20 people, now has 900 people working on VLSI and embedded software, which goes along with a chip or into the chip.

R&D Centre, Bangalore

HighlightsR&D Centre

INDIAN IT COMPANIES :Europe Expansion Beyond Sales Hubs –Apart from Czech Republic some New EU Delivery Centers

BPO ITO

Hungary BudapestGenpact, E&Y, PwC, Hewitt

IBM, CapGemini, TCS,

Slovakia Bratislava Accenture, PwC IBM, CapGemini, TCS,

Bulgaria SofiaOutsourcing Partners Int'nl

Romania BucharestAccenture, Wipro, Genpact, E&Y

IBM, CapGemini

Lithuania Vilnius IBM, E&YEstonia Tallin IBM, PWCLatvia Riga PwC

Warsaw Hewitt IBM, AccentureKrakow IBM IBM, CapGemini

WroclawGenpact, Capgemini

Poland

Indian IT Delivery in Europe – Infosys, TCS, Wipro, Genpact, WNS,Satyam (Romania), Zensar (Poland), HCL (Poland) ….. Already live …

Growth Rationale of Indian IT - Continous Value: Commitment

Nature of Engagement

Nature of

Relationship

Simple Complex

Stage 1

•On site

staffing

•Hourly

rates

•Client

Managed

Projects

Stage 2

•On site

teams

staffing

•Hourly

rates

•Client

Managed

Projects

Stage 3

•On site-

offshore

Projects

• Project

Fees. Effort

based

• S/W Co

project

mgmt with

Client

oversight

Stage 4

•Offshore

Development

Centres. Dedicated

facilities

• Master Rate

Contract.

Project wise

Effort estimated

• S/W Co

Project

management

•Program Mgmt

by client

Stage 5

•Global

Delivery

Model. Near shore facilities.

• Master Rate

Contract.

Effort + Fixed

Fee Projects

• S/W Co

Program

management.

Solution

Development

•Intellectual

capital transfer

begins.

Next Stage

•Collaborative

Problem

Solver.

• Master Rate

Contract.

Effort + Fixed

Fee Projects+

Risk Reward

Model

• S/W Co

Program

management

• Joint

Intellectual

capital

development.

Co-developing

requirements

Tight-Integrated

Loose-

Temporary

Software Industry Continuous Value Add

The BIG Picture 2 - IT in the Indian Context

• Indian IT Industry :USD 48 Billion revenue in 2007 –Contributes 5.4% of India’s GDP – Was only 1.8% of GDP in 2000

• Indian IT Industry : Employment of 1.6 Million – Employs only 0.15% of India’s Population in 2007

• Indian IT Industry :May create 200,000 NEW jobs in India each year – 54% of India’s 1.1 billion population is less than 25 years of age (Every 12th person on Earth !)

Role of IT in India – Solution for driving Development

CRISIS in RURAL INDIA – 70% India lives in Villages

• Decline in growth rate in food production

• Beginning of wheat imports• Widespread indebtedness of farmers

• 40% of farmers want to quit farming (NSSO)

• Not achieving UN Millennium Development Goal in the area of hunger and poverty reduction

• Persistence of farmers’ suicides

VISION 2020 – Every Village a Knowledge Center

President

Vision2020 - Abdul Kalam – Ex-President of India Sponsored

Vision2020 – PURA : Literacy & Learning Revolution launched to cover 27 States & 200 Districts of India

• Enlightened Citizenship

• Moral Leadership

• Enlightened Citizenship

• Moral Leadership

• Telecom• Internet• E-Governance• Tele-medicine• Tele-education

• Ring Road

• Rail

• Public Infrastructure

• Ring Road

• Rail

• Public Infrastructure

• Warehouse• Agro-Industries• Markets• Hospital• Micro Power Plant• Coop. Product

Mktg .

• Schools • IRS Imagery for

- Land & Crop Mgmt- Water Mgmt- Forest Mgmt- Environment

• Proactive Health care• Manufacturing

PURA PURA –– Providing Urban Amenities in Rural AreasProviding Urban Amenities in Rural Areas

JOINT PRIVATE – PUBLIC EMPOWERED BODIES

10-15 Village Clusters

- 10-200 Billion Euro investment

- Business Proposition

- Employment for 3000 persons

- Beneficiaries : 30,000 – 100,000

people

Physical ConnectivityPhysical Connectivity

Electr

onic

Electr

onic

Conne

ctiv

ity

Conne

ctiv

ity

Knowledge

Knowledge

Connectivity

Connectivity

Economic Connectivity

Spiritual Connectivity

www.presidentofindia.nic.in

Connectivity for Billion people is the KeyConnectivity for Billion people is the Key

Knowledge GRID

PURA GRID

Hea

lth

GR

ID

E-G

over

nanc

e G

RID

www.presidentofindia.nic.in

FIBER BROAD BAND with GIGABITNETWORK CONNECTED to

STATE/DISTRICT/BLOCK LEVELEDUSAT/Satellite for Remote &

Difficult Areas

Wi-MAX forLast Mile Access

E-GovernanceGRID

Central/State Central/State GovernmentsGovernments

Health CareGRID

Healthcare/Healthcare/Medical Medical

InstitutionsInstitutions

KnowledgeGRID

Universities Universities InstitutionsInstitutions

PURAGRID

Rural PURARural PURAClustersClustersGRIDGRID

Societal GRID Connectivities

www.presidentofindia.nic.in

Value Addition

CORE Competence ofIndustries from

India and EU

CORE Competence ofIndustries from

India and EU

HUMAN RESOURCES

• Skilled Youth• Knowledge

Expertise • Connectivity

HUMAN RESOURCES

• Skilled Youth• Knowledge

Expertise • Connectivity

WO

RLD

K

NO

WLE

DG

E

PLA

TF

OR

M

Missions Transform Nations Towards Peace and Prospe rity

MISSIONSEnergy,

Agro Food,

Water,

Infrastructure

Disaster

Management,

Education &

Healthcare

Tec

hnol

ogy

Tec

hnol

ogy

Kno

wle

dge

Kno

wle

dge

www.presidentofindia.nic.in

VIRTUAL KNOWLEDGE

PARK

WORLDCLASSPRODUCTS And SYSTEMS

LOCATE Knowledge

Reach the Peak

Live in the land of Peace

Road to a Prosperous India – Mass Collaboration

BIG opportunities to collaborate in India’s IT journey ahead :

A) Contribute to the PURA projects –• Discover the fortune at the bottom of the pyramid – Scale for SMEs• Entry into India’s most de-regulated & growing industry• Large & expanding IT talent pool• Success transfer of new technologies to new markets

B ) Outsourcing –• Experienced western economies to Nearshore destinations• International (including Nearshore destinations) to India• Urban India to Rural India

Thank You

Looking to Collaborate : RATNESH MATHUR

• Connect on www.linkedin.com• Meet me in Brno Centrum• Email : Indoeuropeans@gmail.com• Phone: +420-731146275• Skype : Indoeuropeans