Operational Highlights 2006-2007
S. D. Shibulal
Director and Group head – World-wide
Customer Delivery and Sales
© Infosys Technologies Limited 2006-07
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.
© Infosys Technologies Limited 2006-07
Operational highlights
Expand addressable markets
Geographical
Footprint
Vertical
Footprint
Services
Footprint
Build relationships and trust
Client
Relationships
Trusted
Brand
Operational
Excellence
Develop competencies and capabilities
Expanding The
Global Delivery Model
© Infosys Technologies Limited 2006-07
Best-in-class
People
World-class
Infrastructure
Geographical footprint
Geographies
FY 2005
FY 2006
FY 2007
North America
65.2%
64.8%
63.3%
Europe
22.3%
24.5%
26.4%
1.9%
1.7%
1.6%
10.6%
9.0%
8.7%
100.0%
100.0%
100.0%
India
Rest of the World
Total
» 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.
© Infosys Technologies Limited 2006-07
Vertical footprint
Industries
FY 2005
FY 2006
FY 2007
Manufacturing
14.4%
13.9%
13.5%
Insurance, Banking & Financial Services
34.6%
36.0%
37.4%
25.2%
28.5%
30.2%
9.4%
7.5%
7.2%
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%
11.9%
13.7%
12.1%
100.0%
100.0%
100.0%
Banking & Financial Services
Insurance
Telecom
Others
Total
» 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
© Infosys Technologies Limited 2006-07
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%
100.0%
100.0%
100.0%
Total
» 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%
© Infosys Technologies Limited 2006-07
Client relationships
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 5 million dollar+ clients
71
81
107
No. of 10 million dollar+ clients
42
54
71
No. of 20 million dollar+ clients
19
26
36
No. of 30 million dollar+ clients
11
19
25
No. of 40 million dollar+ clients
8
14
16
No. of 50 million dollar+ clients
5
9
12
No. of 70 million dollar+ clients
1
4
9
No. of 90 million dollar+ clients
–
1
4
No. of 100 million dollar+ clients
–
–
3
–
–
» Top 10 clients represent 31.4% of revenues, providing high predictability to our
business model with 95.3% repeat business
No. of 200 million dollar+ clients
1
» In the last twelve months, one client contributing over $200m, 3 clients over $100m and
12 clients over $50m
© Infosys Technologies Limited 2006-07
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
© Infosys Technologies Limited 2006-07
Expanding the Global Delivery Model
New Services* as % of revenue
Management
Consulting
2006
Business Process
Management
43.7%
41.1%
35.4%
IT Outsourcing
2001
37.7%
29.6%
Systems Integration
Technology Consulting
22.8%
24.9%
Technology-enabled BPR
1996
Enterprise Solutions
Application Development
and Maintenance
1981
Software Re-engineering
People Organization Infrastructure Process
FY 01
FY 02
FY 03
FY 04
FY 05
FY 06
FY 07
Quality
* New services is defined as services other than
Infosys Global Delivery Model
© Infosys Technologies Limited 2006-07
Application Development, Maintenance,
Re-engineering and Products
Operational excellence
78.6
77.6
71.4
69.5
Including
Excluding
Trainees (%) Trainees (%)
70.8
2006
2007
69.9
2006
29.2
Onsite (%)
30.1
2007
Offshore(%)
Onsite - Offshore Ratio*
Utilization Rates*
» 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
© Infosys Technologies Limited 2006-07
Best-in-class people
13.7
72,241
10.5
52,715
11.2
9.7
36,750
25,634
2004
2005
2006
Total Employee Strength
2007
2004
2005
2006
2007
Attrition (% )
» 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
© Infosys Technologies Limited 2006-07
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
© Infosys Technologies Limited 2006-07
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 BTMercer-TNS Survey published in Business Today
© Infosys Technologies Limited 2006-07
Thank You
www.infosys.com
© Infosys Technologies Limited 2006-07
© Infosys Technologies Limited 2005-06