A Brief Overview of the Indian IT Industry &

Infosys
February, 2006
 A brief look at the Indian Economy

 Rapidly growing GDP of 7.5%-8%

 Services sector has more than 50% weightage in GDP
 Structural drivers for growth
 Large population and favorable demographic trends
 Skilled and well-educated labor force
 Rising integration into global trade and investment
 Improving macro policies and institutional framework
 Various studies predict that India will become the 3rd largest economy in the world by 2050
 But there are challenges
 Need for simplification of rules and regulations
 Infrastructure

Page 2
 Snapshot of the Indian Software Industry

 Rapidly growing exports

 1991 – US $128 million
 2005 – US $17.2 billion
 2008 (projected)- US$ 50 billion

 Employs over 1,100,000 people

 Over 400 Fortune 500 companies outsource their software development & maintenance to India

(Source: NASSCOM)

Page 3
 Liberalization of the economy & the seeds of IT boom in India

 Abolition of licenses
 Rationalization of taxes
 Export thrust
 Reduction of import tariffs
 Abolition of wealth tax
 Foreign exchange reforms
 Free pricing of IPOs
 Foreign portfolio investments
 Employee stock option plans

Page 4
The Infosys Journey…

2005

Infosys
crosses USD
1.6B (05-06
projection
$2.1B) in
revenue and
has over
49000
employees,
with 454
clients

Page 5
Infosys this year will be a $2B organization…

» Global Presence with offices in 17

Europe:Amsterdam
Brussels
countries and 45 cities
Canada: Toronto
Frankfurt » Over a Billion and half USD in
London revenue (projection of 2.14B) and
Milan
Paris
growing at a rate of 49% per year
Prague » Less than 65% of revenue from USA.
Stockholm Strong presence and understanding
USA: Atlanta Stuttgart Australia:
of APAC market
Boston Utercht Melbourne
Charlotte Zurich Sydney » Partnering with clients for
Chicago China: Beijing Technology-enabled Business
Dallas Shanghai Transformation
Detroit Japan: Tokyo
Fremont Hong Kong » Proven track record of ramping-up
Los Angeles Mauritius resources to meet client needs
New York India:Bangalore, Sharjah
Reston Chennai, Pune, Singapore » High customer satisfaction – over
Seattle Bhubaneswar, 93.2% (as on Q3 ‘05) of revenues
Hyderabad,
Argentina: Buenos from repeat business
Aires Mangalore,
Mohali, Mysore, » 39 clients from Fortune 100 (Total
New Delhi, number of clients as 454 (Q3))
Mumbai,
Trivendrum » Over 49,420 employees
» Numerous quality benchmarks –
Tobeagloballyrespected
CMMi 5, PCMM, Six Sigma, BS7799,
corporationthatprovides
best-of-breedbusiness AS9100 certifications to name a few
solutions,leveraging VI SI ON » Worldwide recognition for business
technology,deliveredby practices, financial management &
best-in-classpeople technical expertise

Page 6
 This is how we are organized…

Subsidiaries

Infosys Consulting Inc

Infosys Australia Ltd.

Infosys Technologies
(Shanghai) Company
Ltd (ITSCo)

Progeon ( BPO)
Express, Transportation,
Media and Entertainment

Product
Infrastructu
Business
re
Independent Enterprise
Enterprise Systems
Engineering
Process Validation and
Outsorcing
Managemen Services Solutions
Solutions Integration
Embedded
t Services
services

Client focused integrated business units ably supported by ECU’s, BEF’s and competency centers.

Page 7
We have continuously evolved to try and meet client requirements over
the years…

• New services defined as 70%

68.30%
63.90%
services other than Application 65%
63.70% 61.10%
58.90%
Development, Maintenance, 60%
Strategy and
Re-engineering and Products Transformati 55%

on 50%
Consulting 45%
2004 40% 36.10% 36.30%
38.90%
41.10%

Business Process 35% 31.70%

Management 30%

Infrastructure Management 25%

20%
Systems Integration
2001 2001 2002 2003 2004 2005

Technology Consulting ADM Non-ADM

Technology-enabled BPR

Enterprise Solutions
1996
Application Development
and Maintenance
Software Re-engineering
1981
Infrastructu
People Organization Process Quality
re

Infosys Global Delivery Model

Page 8
 Infosys’ rich client base enables it to leverage the best practices followed
in other accounts.

Sample client base

Infosys has 39 Fortune

100 clients and 98
Fortune 500 clients
(as of 31st Dec 2005)

Page 9
Infosys has strategic alliances with key players in all the segments to provide
best services at optimal cost..

Key Alliances of Infosys:

Page 10
Recruitments best-in-class and has the infrastructure/ practices to retain
them.

Infosys Strategy for Employee -

Attracting the best
• Laterals joining from Big 5 and global corporations
• Employer of choice at IIT, IIM
• Capability to train 14,000 employees in a year at Mysore
Focus on growth & retention
• Managed attrition (<11%)
• Stock options for all employees – pioneer in India
• Training spend >5% of revenues
World class work environment
• Campus like facilities and culture
• Fast paced, results oriented ethic
• Empowerment in non-hierarchical organization
• International Program like Instep to ensure global work culture

Page 11
With a deep focus on Process Capability and Benchmarks itself against
high maturity offshore vendors (CMMI – L5) in industry

Parameters Unit Benchmark Infosys Source

Delivered Defect Density Delivered 0.105 0.026 Software

Defects/ FP Assessments,
Overall Defect Removal % 95 97 Benchmarks
Effectiveness and Best
Practices
On-time Delivery % of projects 66 94 by Capers
Jones (2000)
Productivity LOC/ Person 52 65 Bangalore SPIN
Day Phase 3 Report
Defect Density Total Defects/ 12 6 Apr 03
KLOC

Bangalore SPIN (Software Process Improvement Network) is a commercially neutral,

non-profit organization supported by leading global software companies.

This has Special Interest Groups (SIG) for benchmarking (Development), comprising
of over 15 high maturity (Level 5) offshore vendors.

Page 12
To summarize, the strengths of people, process and technology converge
seamlessly within Infosys to fulfill your end to end IT needs.

End-to-end services Addressing your complete

landscape

…What it brings to YOU

Ability to scale High Confidence Levels in
What we offer…

Delivery and Relationship

Best People, Low Attrition Sustainable Learning

and steep ramp-up capability Curve Advantages

Global Presence and Quick Time to Market,

matured Delivery Models Lower Costs

SEI CMMI Level 5 Processes

Quality Delivered by a
and high quality focus
very few Companies worldwide

Express /Logistics Domain and Sound Methodologies,

diverse Technical Competence Repeatability

Page 13
 Thank You

Page 14