Infosys Story – So Far

Kris Gopalakishnan
Chief Operating Officer
Member of the Board and Co-founder
Infosys Technologies Ltd.
Infosys Today

Global Headquarters: Bangalore, India

Founded: 1981

India IPO: 1993

ADS Offerings: 1999, 2003 & 2005 (Secondary)

Global Presence: 32 Sales Offices in 16 Countries

33 Development Centers

Employees: 40,000+

FY 05* Revenue / 5 Year CAGR: $1,592 million / 51%

FY 05* Net Income / 5 Year CAGR: $419 million / 47%

Services: Consulting, IT Services, BPM

* Fiscal Year end March 31

2
Infosys Through the Years

Big Leap
Growth
III
Run Up

Foothold II
I

1981 1992 1999

3
Phase I – Getting the Foothold
Working with Shackles

• Command and Control Economy

• Import Restrictions
• Punitive taxes
• Under-developed Capital Markets
• Foreign exchange controls
• Capital shortage for Infrastructure Investments
• Poor Telecom Infrastructure

5
Strategy during Phase I
• Onsite Focus
• Few Large Customers
• Indirect Sales

6
Phase II – The Run-up
Seeds of an IT Boom
• Liberalization of the Economy
– Abolishing of Licenses
– Rationalization of taxes
– Export incentives
– Rationalization of tariffs
– Abolishing of wealth tax on
productive assets
– Foreign exchange reforms
– Free pricing of IPOs
– Encouraging Foreign
Institutional Investments
– Employee stock option
plans
– Setting up of Software
Technology Parks

8
Market Opportunities
• Entry of multi-nationals and acceptance of India as a
software sourcing location
• Y2K problem
• Client Server computing
• Internet and telecom boom

9
Strategy during Phase II
• IPO in India in 1993
• Nasdaq listing in 1999
• Global investor base
• Investment in sales, marketing, systems & processes,
quality systems, training, world class development
centers
• Brand building

10
Strategy during Phase II
• Global Benchmarking
– International accounting norms
– World-class Quality
• 1993 - Among the first Indian
companies to be ISO 9001 certified
• 1997 - First to be assessed at SEI-
CMM Level 4
• 1999- Assessed at SEI Level 5
• 1999- Infosys featured in the first ever
case study of successful CMM
implementations, worldwide

11
Strategy during Phase II
• Global Delivery Model
– Do work where it Client Location Offshore Development Centers

makes economic Project

Analysis and planning
sense and reduce the
‹
‹ High level design
‹ User interface design Project
total cost of ‹
‹
Project co-ordination
Onsite testing
‹
‹
Project management
Detailed design

ownership ‹ Implementation ‹
‹
Coding
Testing
‹ Documentation

– Continuous work-day Post implementation

support
Post implementation
to reduce time to ‹ Rapid reaction support
support
Bug fixes
market
‹
‹ Warranty support
‹ Maintenance

– Ramp up resources in
multiple continents

12
Strategy during Phase II
• Employee attraction and retention
– Innovative HR practices
– World class training program and infrastructure
– Knowledge Management
– World class physical infrastructure
– Employee Stock Option Plan
– Employer of choice in India

13
Phase III – The Big leap
Market Environment
• Globalization, Deregulation and
Consolidation are changing
businesses fundamentally
• Financial markets are
integrated and capital flows
globally
• Increasing competition from
developing economies
• India and China are creating
large markets

15
Technology Trends
• Vast and low cost telecom infrastructure – ubiquitous
connectivity
• Ubiquitous computing
• Internet
• Mobile and personal devices
• Intelligent appliances

16
Enterprise Challenges Today
• Global competition
• Rapid changes in technology
• Rapid business process changes
• Emergence of technology intensive business models
• Business process standardization and integration across
organizations
• Reduced time to market for new products and services
• Knowledgeable consumers

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Strategy for Phase III
• Scalable business
• Value added services
• Business solution focus
• End-to-end capabilities
– Consulting
– IT services
– Business Process Management
• Modular Global Sourcing (MGS)
• Large Development Centers
– India & China

18
Lessons learned
• Right team
• Team commitment
• Vision – Global, Changing the world
• Excellence in execution
• Values – C-LIFE
• Sharing of wealth increases the pie
• Build institutions

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Thank You
kris_sg@infosys.com