BUSINESS TO BUSINESS MARKETING

PROJECT REPORT ON MARKETING STRATEGIES

OF
INFOSYS TECHNOLOGIES

SUBMITTED TO: SUBMITTED BY – TEAM 11

PROF SEKHAR V. RUBY BHATTACHARYA
SHALU UPADHYAY
MANSI CHADHA
VICKEY BANSAL
SHFALI KHAJURIA
PADMINI B.
SIDDHARTH KAUSHIK
(MARKETING – SECTION A)
BACKGROUND

Infosys Technologies Ltd. (NASDAQ: INFY) was started in 1981 by seven people with US$ 250. Today,
we are a global leader in the "next generation" of IT and consulting with revenues of over US$ 4 billion.
Infosys defines, designs and delivers technology-enabled business solutions that help Global 2000
companies win in a Flat World. Infosys also provides a complete range of services by leveraging our
domain and business expertise and strategic alliances with leading technology providers.
Infosys' offerings span business and technology consulting, application services, systems integration,
product engineering, custom software development, maintenance, re-engineering, independent testing and
validation services, IT infrastructure services and business process outsourcing
Infosys pioneered the Global Delivery Model (GDM), which emerged as a disruptive force in the industry
leading to the rise of offshore outsourcing. The GDM is based on the principle of taking work to the location
where the best talent is available, where it makes the best economic sense, with the least amount of
acceptable risk.
Infosys has a global footprint with over 50 offices and development centers in India, China, Australia, the
Czech Republic, Poland, the UK, Canada and Japan. Infosys and its subsidiaries have 105,453 employees as
on September 30, 2009
Infosys takes pride in building strategic long-term client relationships. Over 97% of our revenues come from
existing customers.

Vision

"To be a globally respected corporation that provides best-of-breed business solutions, leveraging
technology, delivered by best-in-class people."

Mission

"To achieve our objectives in an environment of fairness, honesty, and courtesy towards our clients,
employees, vendors and society at large."

Values

We believe that the softest pillow is a clear conscience. The values that drive us underscore our
commitment to:
Customer Delight: To surpass customer expectations consistently
Leadership by Example: To set standards in our business and transactions and be an exemplar for
the industry and ourselves
Integrity and Transparency: To be ethical, sincere and open in all our transactions
Fairness: To be objective and transaction-oriented, and thereby earn trust and respect
Pursuit of Excellence: To strive relentlessly, constantly improve ourselves, our teams, our services
and products to become the best
A Magnet for the Best Global Talent

Fortune magazine identified Infosys among the top companies that "inspire, nurture and empower a new
generation of global leaders." We are committed to remain among the industry's leading employers.

Innovation, Speed and Excellence in Execution

We were one of the first companies to develop and deploy a global delivery model and attain SEI-CMMI
Level 5 certification our offshore and onsite operations. We manage growth by investing in infrastructure
and by rapidly recruiting, training and deploying new professionals. We have 44 global development
centers, the majority of which are located in India. We also have development centers in Australia, Canada,
China, Japan, Mauritius, and at multiple locations in the United States and Europe. We invest in
infrastructure and people to continue growing our business.

Industry Leadership

Our history is marked by a series of firsts. We were the first Indian company to list on a US stock exchange
and the first Indian company to do a POWL in Japan. In December 2006, we became the first Indian
company to be added to the NASDAQ-100 index and became the only Indian company to be part of any of
the major global indices. We were recently also listed on The Global Dow. Infosys was also ranked No. 14
among the most respected companies in the world by Reputation Institute's Global Pulse 2008. We were
also listed on Forbes' Asian Fabulous 50 for the fourth consecutive year. Infosys is also a five-time Global
MAKE Winner and one of only two Indian companies amongst global leaders to have won the award in
2008.

QUALITY

'In God we trust, everyone else must come with data' is an oft-heard phrase at Infosys. We constantly
benchmark our services and processes against globally recognized quality standards. Our certifications
include SEI-CMMI Level 5, CMM Level 5, PCMM Level 5, TL 9000 and ISO 9001-2000. In February
2007, Infosys BPO was certified for eSCM level 4.0, the eSourcing Capability Model for Service Providers
developed by a consortium led by Carnegie Mellon University's Information Technology Services
Qualification Centre.

Continuous improvement is today applied to Infosys‘ core engagement delivery processes, support
processes including a number of client-facing processes, as well as organizational management and
leadership processes – to realize tangible benefits for our clients.
Summary of Infosys’ Client-Facing Quality Tracking Methodologies

A number of quality tracking methodologies, tools, and processes are put in place to ensure superior quality
products and service to Infosys clients – in each engagement and also across engagements, at the
relationship level. These quality tracking methodologies are discussed below, classified based on the client
objectives addressed through specific quality programs, tools, and systems:
Relationship Management and Governance
Software and Service Quality
Solution and End-User Focus
Operations
Resourcing Effectiveness

Relationship and Governance Focus

Client-facing Activities Illustrative Tools & Methodologies

All Services Client portals
Reporting dashboards
Governance and Program Management models
Joint Management / Executive / Steering Committees
Customer Satisfaction Program

The Balanced Scorecard framework is a management system that enables organizations to clarify their
vision and strategy and translate them into action.

The benefits from the implementation of the balanced score card concept include improvement in individual
project specific metrics as well as substantial improvements in relationship based metrics.

Frameworks Client-facing Objectives Typical Client-facing Metrics

Balanced - Transparency
Scorecard - Vendor governance
- Service-level monitoring
- Basis for risk/reward
Customer Satisfaction Measures
Project-level Satisfaction Measures
Aggregate Statistics & Measures
Engagement Status Reports
Relationship status Reports
Early Warning Indicators

Software and Service Focus

The focus on software and service quality is driven primarily through the disciplines and processes
established in order to maintain an organization wide Capability Maturity Model (CMM) level 5 rating (the
highest in the industry). These are enabled by quantitative feedback from the process and proactively
introducing innovative ideas and technologies across the organization to meet its business goals.
At Level 5, the focus is also to prevent defects from happening rather than removing them later to ensure
better quality.

Client-facing Activities Illustrative Tools & Methodologies

AD/M Outsourcing IPM (Integrated Project Management) Tools
Production Support QSD (Quality Systems Documentation)
Package Implementation Process Capability Baselines
Systems Integration PRISM (Project Review by Infosys‘ Senior Management)

Solution and End-user Focus

Infosys piloted CMMI for engagements from one of our larger offshore development centers (Chennai) and
was assessed at Level 5. Further, the CMMI approach integrating onsite operations with offshore is
currently being rolling out across the enterprise.

Client-facing Activities Illustrative Tools & Methodologies

AD/M Outsourcing CMMI QSD (Revised QSD based on CMMI)
Package Implementation InFlux
Systems Integration Integrated Project Management

CMMI strengthens many areas beyond CMM. Some of these are:

Life cycle processes
Decision making framework within engagement delivery
Risk management
Quantitative Project management
Defect & problem prevention (continuous improvement)

Operations Focus

The tools and methodologies work within Infosys based on defined inputs from clients or client-facing
employees, to deliver software solutions to defined quality goals, summarized in the table below.

Frameworks Client-facing Objectives Typical Client-facing Metrics

Six Sigma Process improvement System / Resource Availability
CMM Performance predictability Incident frequency / Criticality
ITIL Problem management Problem Response / Resolution times
ISO 9001 Productivity improvement TCO Reduction
Resourcing Effectiveness Focus

Infosys has piloted the P-CMM (People-CMM) framework in addition to the aspects of the Malcolm
Baldrige framework for human resource management.

Client-facing Activities Illustrative Tools & Methodologies

All Services Role-based organization
Skills Management & Integrated Learning Process
Performance Management Process
Integrated Overseas Mobility Process
Operations Planning Process

The adoption of ―quality tracking methodologies‖ including six-sigma continuous improvement processes
(e.g., for overseas mobility) is critical to Infosys‘ ability to meet client-facing goals on resourcing speed,
quality, and effectiveness.

Frameworks Client-facing Objectives Typical Client-facing Metrics

P-CMM Time-to-market Ramp-up / Ramp-down goals
Six Sigma Staffing efficiency Key staff performance reviews
Baldrige Staffing effectiveness
ISO 9001
INFOSYS CORE CAPABILITIES AND COMPETENCIES

Infosys has focused on providing services that transform the way business is done through the use of
Information Technology, since its inception in 1981. The key strengths of Infosys are summarized in the
table below:

Infosys Key Strengths

Area Competency
Service One stop capability: Infosys today has the distinction of
Offering being a one-stop shop, providing services across the entire
business value chain from Business and IT Consulting through
Implementation & Support services.
People Ability to attract and retain the Best Talent: Infosys has
been ranked the best employer to work for in India by a
number of surveys. We have been able to attract and retain the
best talent. At the same time, we have been able to inculcate a
culture that empowers employees and motivates them to take
ownership of their duties. Infosys enjoys one of the lowest
attrition rates in the industry.
Process Delivery Excellence: With a record 95% of all projects
delivered on time and within budget, we are clearly a leader in
project management and reducing the cost of ownership for
our clients. We effectively leverage CMMI level 5 quality and
ongoing initiatives such as aligning with the Malcolm
Baldrige framework and the six-sigma cross functional
process mapping to deliver high quality solutions to our
clients. Additionally, via the Infosys pioneered global delivery
model (GDM), we are able to offer our clients‘ cost-savings
of 20% to 30% without compromising on service levels.
Our superior knowledge management systems enable
retention of knowledge within the project team and the
organization. The resultant efficiencies have helped us deliver
value to our clients at lower cost and with fewer defects
Technology Technological superiority: Infosys has brought together
thought leaders within the organization to form the Software
Engineering and Technology Labs (SETLABS). SETLABs is
the research wing of Infosys consisting of specialists in
software architecture, methodologies, emerging technologies
and platforms. SETLABs mainly focuses on:
Developing frameworks & methodologies to address
critical points in solution lifecycle
Leading edge technology watch and competence
building
 Assimilating knowledge and building framework for
enterprise software like the EAI framework
Provide technology related services such as
Architecture consulting and definition, Internet
security consulting and capacity planning.
Project Strong Project Management capabilities ensure that the
Management development process is predictable and that surprises and
cost/time over-runs are avoided or minimized. Our strength in
Project Management also ties in with our SEI-CMM Level 5,
PCMM & CMMI credentials and our experience with Large
& complex projects. Infosys has also worked in several multi-
vendor scenarios where our success has major dependencies
on the actions of other players and our Project management
expertise has stood us in good stead in these situations.

All of the above factors combined have resulted in lower total cost of ownership for our clients due to
predictable, trouble-free execution of projects.
SUMMARY OF SERVICES

Offerings

We bring together a combination of the following services, platforms and products to give your business a
competitive edge:
Business: Consulting, Corporate Performance Management, Enterprise Architecture, Modular Global
Sourcing
Process: Business Process Outsourcing, CRM, HCM, Process Re-engineering, SCM
Platform: Enterprise SaaS, Finacle Universal Banking Product
Engineering: Lifecycle Management, Plant Operations, Process Engineering, Product Engineering, Value
Engineering
IT: Application Services, Enterprise Security, Independent Validation, Infrastructure Management, IT
Process Consulting, IT Strategy, Learning Services, Performance Engineering, Systems Integration
Innovation: Co-creation workshops, Research & Development

Technology stack

Platforms: Handhelds, iSeries (AS/400), J2EE, Macintosh, Mainframes, Microsoft, Open Source,
Unix
Enterprise Applications: i2, Microsoft Dynamics, Oracle, PeopleSoft, SAP, Siebel
Enterprise Application Integration: BizTalk, IBM, Oracle, SAP XI, TIBCO, Vitria, webMethods
Customer Service Process

The customer service process at Infosys has seven parts, i.e;

1. Customer Service Approach

Infosys is a leading IT solutions company with a demonstrated record of accomplishment of partnering
global corporations to drive business benefits through high-impact technology engagements. Innovation,
Quality and Customer satisfaction are integral part of Infosys Value system.

Relationship Management
Infosys gives great importance to relationship management. Few of the initiatives being

 Relationship team with experience of managing large, critical engagements with multiple
stakeholders
 Proven engagement models with multi-tier interactions
 ―Engagement Manager‖ - single point of contact with bottom-line responsibility for service delivery
and overall customer satisfaction Focus on partnering with the client defining and implementing a
―shared strategic vision‖ for the relationship
 Balanced Scorecard for defining and measuring achievements vs. objectives
 Robust Change management framework for helping clients deal with cultural and organizational
effects of outsourcing

The advantages to clients are:

 Visibility into relationship structures and critical communication flows

 Clear ownership of objectives
 Result-oriented management – quantifiable and measurable through the Balanced Scorecard
 Tight coupling between strategy and execution to ensure relationship objectives are in line with the
client‘s strategic imperatives –

Technology Competence

Infosys uses its SETLABS (Software and Engineering Technology) department in addition to industry
alliances to ensure we maintain up-to-date skill sets and provide innovative solutions to our customers.

SETLabs builds technology competency, supported by a state of-the-art lab environment, along three
dimensions:
 Building thought leadership through Greenfield research, publications and presentations
 Creating methods and frameworks to improve execution effectiveness. Frameworks/toolsets address
critical points in a solution life cycle and enable use of leading technologies such as .NET and M-
Commerce
 Deepening knowledge in chosen horizontal areas such as Enterprise Architecture, Infrastructure and
Security through specialist research in these areas
Tools and Methodologies

Clients will have visibility into the various in-house tools & methodologies used by Infosys during the
execution of this engagement - these can also be demonstrated to clients upon specific request both during
this RFP process and also during the engagement. These can also be shared with the client‘s team depending
upon use and technical feasibility.

For large and strategic relationships, we also build an account portal; that provides an overview of the
entire relationship and also status of various projects to all the team members. It will also have a reporting
schema, where senior management can review project status, etc.

Infosys has a number of alliances in technology related areas which can be used to clients advantage These
alliances give us access to the latest in the area of technology and we pass on these learning‘s to our clients.
Some of the key alliances are mentioned in the item number 6 later in the document.

Quality and Customer Satisfaction

Quality and customer satisfaction is a way of life at Infosys. Over 90% of our business comes in as repeat
business, a testament to our customer satisfaction levels. Our front-line people are enabled and empowered
to take quick decisions in relation to customer needs and customer satisfaction.

Infosys Quality System Documentation (QSD) has a well defined, documented and repeatable process and
methodology for every stage in the service lifecycle that has evolved from experience and designed for
continuous improvement in terms of quality and productivity- all of which would translate to higher
customer satisfaction .Infosys is a SEI CMMI Level 5, and PCMM Level 5 certified company. Infosys
committed itself early in its quality journey, to differentiate itself based on quality. This enabled the
institutionalization of process orientation through out the organization.

2. Issue Resolution and Escalation Mechanism

Infosys follows a comprehensive issue management framework. The framework covers:
Issue identification
Issue resolution and
Communication

The Infosys relationship team takes all possible measure to proactively identify issues , whether they be
project-specific or at a relationship level and communicate them to clients. The means of communication
include weekly status reports, daily/ weekly teleconferences/ video-conferences and quarterly relationship
reviews. The team identifies the risks arising as a consequence of the issue and possible steps to mitigate the
risks. The team also identifies various options to resolve the issues. These options are discussed with clients
and a consensus resolution is arrived at. Infosys, also, escalalation mechanisms to address those cases where
the resolution is not satisfactory.
3. Client Feedback Mechanism

Infosys obtains client feedback through formal and informal means. Infosys, through an external agency,
conducts an annual Customer Satisfaction Survey. This is aimed at obtaining formal, direct and honest
feedback on our performance and ability to meet client expectations.
In addition, there are informal and semi-formal such as our annual customer event "Milan" and analyst
interactions, which provide us an opportunity to gather information on trends, customer concerns and other
competitive information.
The feedback from our customer surveys is analyzed and the findings discussed by the Board of Directors to
identify specific actions to improve customer satisfaction. Similarly, our annual client-facing group meet
makes a conscious attempt to identify and cross-pollinate best practices across business units and
geographies

4. Client Privacy

Currently, we do not send ―sales & marketing‖ information from our web site or through mass-mailing
campaigns. Visitors to our web site can request specific information by sending an e-mail to the contacts
provided on the web site. Such requests are then processed and members of our Business Development team
interact with the person requesting information. Information about the visitor is not used for any marketing
purposes.

We gather personal information only for the following:

Investors– for sending out annual reports & results. The requestor‘s Name, Email ID, Company
Name, Designation, Address, Telephone and Fax numbers & Country are captured in the form. This
information is used only for Investor Relation purposes – sending out financial information and is
not used for sending any marketing or sales information.
Media– for sending out press releases. The Name, Email ID, Company Name, Designation, Address,
Telephone Numbers, Fax Numbers & country is captured in the form. This information is used only
for Media related purposes – sending out press releases and is not used for sending any marketing or
sales information.
Mail to a colleague – for sending viewpoints available on the web site. The Name of the colleague,
email id of the colleague, name of the sender and email id of the sender are captured. The
information gathered is captured to personalize the email being sent out.

We are in the process of implementing permission-based marketing programs through our web site, wherein
we will collect information from web site visitors for sending marketing/sales information. We will gather
personal information to allow access to specific collateral on the web site (premium content) and/or to send:
Newsletters
Special offers/updates
Service/offering related announcements
The process will be completely ―Opt-in‖. No information will be sent until the person has requested for it /
signed up for it / given explicit permission to Infosys to send such information. There will be a profile
manager available which will enable the person to control the information being sent to him. At any point of
time the person can define what he/she wants to receive or change/update his profile. There is an option to
unsubscribe completely.

Every communication has a link/provision to unsubscribe.

We do not share our information with any 3 rd parties. A potential exception might be to comply
with the Law (e.g. comply with judicial proceedings or a court order etc.).
We do not use any web bugs/clear gifs
Like most web sites, we use log files. This includes internet protocol (IP) addresses, browser type,
internet service provider (ISP), referring/exit pages, platform type, date/time stamp, and number of
clicks to analyze trends, administer the site, track the users‘ movement in the aggregate, and gather
broad demographic information for aggregate use. IP addresses, etc. are not linked to personally
identifiable information.
The information gathered is stored behind firewalls within the Infosys network and will be on
servers separate from web site server. All standard security processes and measures are in place to
avoid any kind of unauthorized access- physical or electronic. The information is secured both
online & offline and is accessible only to authorized personnel from the marketing and the sales
teams. We use session ID cookies to store session specific information and the cookies are
terminated the moment the visitor closes the browser/ends the session. We do not use persistent
cookies. [Usage of a cookie is in no way linked to any personally identifiable information while on
our site.]
We use third party services to power some parts of our investor relations section. However, no
personally identifiable information is gathered for viewing these pages.
We do not use any third party advertising services for our web site.
In certain specific cases, we provide links to other web sites outside the Infosys network. Infosys
Technologies Ltd. is not responsible for the privacy practices or the content of such Web sites.

5. Timezones Management

Infosys proposes to use it‘s Global delivery model for executing projects. In order to execute engagements,
we have a small part of the team located onsite, while the majority of the team is offshore. For a typical
Application development/ maintenance project, the onsite team is accessible during US/ Europe time zone.
The onsite team acts as an interface between client and the offshore team.
We currently have ~ 4000 resources at various client locations and in our development centers in North
America around ~ 500 in Europe. However, for Help Desk services; please note there will be a night shift
working in India to provide day time support for US / Europe.
6. Transition at Client End

Measures to ensure smooth transition

A detailed Gap Analysis for the Benefits & terms applicable. Based on the same, designing an
equitable compensation & terms plan.
Discussions with the Management to get the background of the employees, and to understand their
anxieties and concerns.
One-on-one meeting with in-scope employees.
Setting up other channels of communication, like senior management meetings, in each location.
Getting a buy-in from the management as well as the senior leaders of the in-scope employees on the
process and communication to be done for a smooth transition.
Providing detailed FAQs to address initial anxieties and queries that could come up
Partnering with the company‘s management to ensure business ―as usual‖.
Strong legal support through the entire transaction

Some Examples

Transition in UK arm of an American Company

Application support handled by UK IT department of this company was outsourced to Infosys.

The employees who were supporting these applications also transitioned to Infosys.
Integrated 2 employees without impacting business.
They transitioned along with their existing terms and conditions, some of which were not applicable
to the Infosys employees.
Infosys ensured that the employee transfer complied with all the requirements of the TUPE
regulation in UK.

Transition as a result of Product Acquisition

Infosys acquired a product from a Financial Services company & the employees supporting this
product application in UK & Japan, transitioned to Infosys.
22 employees in UK & 7 employees in Japan were integrated.
The employee transfer complied with all the requirements of the TUPE regulation in UK, which
included protecting their existing terms & conditions. Similarly in Japan.
Their roles were mapped onto the existing structure at Infosys.
Transition from the Indian arm of a multinational bank

The bank was out-tasking all IT activities of its Indian facility, along with its employees.
The 3 point approach was – Migration planning, Vendor planning & Employee transition
Infosys absorbed 28 full time employees of the bank as full time Infosys employees, without any
screening process.
Their roles, responsibilities, compensation and location were maintained

7. Customer Advisory Council

Infosys has a Customer Advisory Council (CAC). The CAC comprises a set of CxOs from our client
organizations. Admission to the CAC is by invitation. The members of our CAC represent a cross-section of
industry verticals that we see as strategically significant to the growth of our business. The charter of the
CAC is to provide input and opinions on Infosys' strategy to our senior management teams. The objective is
to bring the customer perspective into the strategy planning process.
At the level of individual client accounts, our Relationship/ Engagement governance model includes
mechanisms like Advisory Boards and Steering Committees that are drawn from senior executives of the
client organization, as well as Infosys. The charter of these bodies is to ensure that the individual projects
deliver on their goals and to monitor progress towards the goals of the larger program (if one exists).
There are no fees associated with attendance of Infosys‘ events.

SUBCONTRACT AND THIRD PARTY VENDOR

Subcontracting Work
Infosys does not make use of subcontractors for executing client projects. However, under certain
circumstances (such as to fill certain short-term requirements, some specific skills, etc.), Infosys may take
some consultants.

All such consultants are inducted only after prior permission from client and after the Infosys Management
is satisfied about the suitability of the person for the project, by way of interviews and/or tests. The
consultants would work within the Infosys campus, as part of the assignment team. For all practical
purposes, they would act/work as if they were Infosys employees.

Process for working with third party vendors

Vendor selection for IT investments involves sending a Request for Proposal (RFP) to prospective vendors
giving details of configuration or specification of material and quantity required. Vendors respond to this by
giving their quotations. Based on the selection of vendors at this stage, they will be invited to give a demo of
their products, if required.
In case of consumables, vendor evaluation and selection is done every quarter or biannually, depending on
the product. Quotations are invited for all the products required with quantities specified from both existing
vendors and any new, prospective vendors. On receiving the quotations from the vendors, a comparison is
done. The criteria of selection for vendors of both capital and revenue items include cost, delivery time,
quality of products, reputation of the vendor and existing relationship. Based on these, the vendors are short-
listed and called for negotiations. The final selection is made after this.

For revenue items, the price is frozen for each product and the final approved list is authorized by H-CCD
(Head, Computers and Communications Division) and Purchase dept. During the year, the performance of
the vendor is monitored.
The Services Model
MARKETING STRATEGIES

Independent Business Units

When organizations face difficulty in managing divisional operations due to an increasing diversity, size,
and number of divisions, it becomes difficult for the top management to exercise strategic control. Here, the
concept of an IBU is helpful in creating an IBU-organizational structure. In multidivisional organizations,
an IBU structure can greatly facilitate strategy-implementation efforts.

DELIVERY PROCESS
Target Markets
GDM Tools

Infosys has a complete set of proprietary processes, methodologies and tools for managing Application
Development, Maintenance, and Package Implementation. These tools have been developed based on our
understanding of the Global Delivery Model (GDM) and are an important component of our ability to
develop, deploy and maintain applications globally, on-budget and on-time.

Activity Tool Update Frequency

Enterprise Architecture
Modeling & Requirements InFlux™ Ongoing basis
Management
IPM (Integrated Project
Project Management Ongoing basis
Mgmt)
Activity Tracking DART Daily
Issue Tracking Issue Tracker Daily
Defect Tracking RADAR Ongoing basis
Senior Management
PRISM Once in the lifecycle
Review
Every Milestone & also on
Milestone Analysis IPM
closure of the project
Quality compliance audits Internal Audit System Monthly
Defect Prevention SPC Once per lifecycle stage
Estimation / Revising PCB (Process Capability
As required
estimation guidelines Baseline), Process Database
Training Requirements &
I-Lite Ongoing basis
Compliance
Resource Allocation & PS-Web & People
Ongoing basis
Skill Tracking Knowledge Map
Requirements Management InFlux™ Ongoing basis
Project Management IPM (Integrated Project Ongoing basis
Mgmt)
Project Scheduling MaST Ongoing basis
Activity Tracking DART Daily
Issue Tracking Issue Tracker Daily
Defect Tracking RADAR Ongoing basis
Senior Management PRISM Once in the lifecycle
Review
Milestone Analysis IPM Every Milestone & also on
closure of the project
Quality compliance audits Internal Audit System Monthly
Defect Prevention SPC Once a quarter
Estimation / Revising PCB (Process Capability As required
estimation guidelines Baseline), Process Database
Training Requirements & I-Lite Ongoing basis
Compliance
Resource Allocation & PS-Web & People Ongoing basis
Skill Tracking Knowledge Map
Production Support IPSP Ongoing

Each of these are described below. In addition, please see Appendix 1 for details on Influx and IPSP:

Influx

InFlux™ is a tool that can be used for modeling the client‘s business space & defining requirements. It has
built-in templates & processes for various domains. This ensures that a holistic approach is adopted when
defining a solution. It also reduces the time-to-market, by providing pre-defined aids to solution definition.

Integrated Project Management (IPM)

IPM is a one-stop Project Management tool for the Project Manager. All information pertinent to a project
flows into IPM. IPM provides a ―Project Dashboard‖ to assess the health of a project. All project
information, such as Project Description, Milestones, Technology, Project goals etc. are captured in this
tool. Milestone & Post-mortem analyses of projects are based on the information of this tool. These analyses
help the organization refine its capabilities.

MaST

MaST is a one-stop tool for scheduling & tracking a maintenance project. MaST is integrated with the other
tools used during the project lifecycle, such as IPM, PS-Web, RADAR & DART. This allows tracking &
reporting at the most granular level. The key features of MaST are
 Web based tool with a central repository
 Multi-user system
 Seamless integration with Delivery tools like PS-Web, IPM, Dart, RADAR and Leave System.
 Customized life cycle tasks
 Request based tracking and scheduling
 Ease in preparation of milestone reports and closure reports

DART (Daily Activity Report)

DART is an intranet based tool used for tracking the time sheet of every person on a project. The tool tracks
the time spent by a person on each of the activities the person is involved in. It is a real-time tool & tracking
is automated, once the tasks are defined.
RADAR

RADAR is a web-based tool used to record and track defects found in all lifecycle stages of the project. All
data about defects – origin, severity, cause etc are tracked. This drives the Defect Prevention process, which
ultimately helps in reducing defects by a process of structured learning from the past.

PRISM

PRISM is a tool used for project review by Infosys Senior Management. The Senior Management personnel
involved in the review bring their experience to bear on the management process adopted in the project.
This helps in improving key management areas such as risks, changes etc. ensuring adherence to schedule &
budget.

Internal Audit System

This is a tool used by the Process Consultants (Quality Assurance) to track the compliance of a project to
desired quality standards. This ensures that all processes relevant to the project are being followed. It, thus,
enhances the predictability of the outcome.

SPC (Statistical Process Control)

This tool enables a statistical analysis of the defects occurring in a project. It is used for defect prevention
activities. This ensures the quality of the delivered code & strengthens the application development process.

Process Database / Process Capability Baseline

These 2 tools are org-wide tools. They capture information on various parameters related to project
execution. Conclusions are derived from the data & summarized. These conclusions provide guidelines for
estimation.

ILite

Training of the people working on a project is a key-activity. Identification of training needs, technical as
well as soft skills and definition of a training plan for each individual is done using I-Lite. The tool is then
used to monitor compliance to the training plan.

IPSP (Intelligent Production Support Platform)

IPSP is a tool used in Production Support Assignments. This tool brings a structure to knowledge
acquisition and diagnosis and also a formal way to store the acquired knowledge. Extensive usage of the
tool ensures adherence to desired Service Level & also improvements in productivity over a period of time.
Packaged application implementation/ management

The proprietary INSPIRE framework developed by Infosys around the lifecycle of a packaged application
(from organizational assessment and package implementation through to rollouts and maintenance) aids in
assessing the maturity level of the business processes in an organization. Infosys has developed a number of
tools that enable an organization‘s business process to move from one level to higher levels of maturity. The
following extract briefs the various tools available.

Impact Analysis Kit

The impact analysis kit comprises of configuration assessment templates for each level of maturity of the
business process. This helps in analyzing the current configuration of the business process as compared to
the expected configuration. The gaps between these two configurations could be identified that need to be
bridged in order to take the business process to higher levels of maturity.

Estimation Kit

The estimation kit would be a by-product of Impact analysis. While the impact analysis kit identifies the
gaps, the estimation kit meticulously analyzes each gap and what it takes to bridge these gaps. A detailed list
of tasks would be identified and the effort required for completion of each task is estimated. The effort
estimate could be used as a basis to arrive at the cost-estimate for the business process re-engineering.

ROI toolkit

With increasing skepticism on the tangible benefits of IT investments, the trend now is to evaluate the dollar
returns on the IT initiatives to be taken up by the companies. Based on the rich IT implementation
experience, Infosys has developed ROI toolkit that enables the evaluation of the dollar-returns arising out of
the IT initiatives that take the business process to higher levels of maturity as per the INSPIRE framework.

Upgrade toolkit

In today‘s context, many organizations have already implemented enterprise packages to automate their
business processes. The upgrade toolkit essentially aids in upgrading the enterprise packages to higher
versions that improve the productivity, efficiency and effectiveness of the business processes.

This toolkit encompasses all the templates and plans used in various stages of project management involved
in a business process re-engineering exercise. It includes templates for scope assessment, estimation,
requirements gathering, milestone analysis, user documentation and support & maintenance methodologies.
InTune

For rapid upgrade of IT systems to higher versions of enterprise packages, Infosys has developed a tried and
tested methodology called InTune. This clearly isolates the various activities that need to be carried out at
different stages of package upgrade. InTune leverages the global delivery model of Infosys that delivers the
values of lower total cost of ownership, faster time to market and superior quality of software
implementation. InTune comprises of the following 5-phased approach to version upgrade distributed
between offshore and onsite locations:

1. System Study and Solution Design

Documentation on present setup, customizations and interfaces
Draw up a list of tasks that can be automated

2. Offsite Trial Upgrade

Documentation of new architecture
Configure the new test environment
Draw up list of customization, interfaces and transaction volume

3. Offsite Upgrade
Draw up preliminary upgradation plan and test plan
Revising and fine tuning the upgradation plan

4. Test Upgrade
Finalize upgradation and test plans
Checklist of onsite upgrade tasks

5. Production Upgrade
Final upgradation plan on production environment
Resources for system backup

IntERPryz

―IntERPryz‖ is the Infosys methodology for the implementation of enterprise-wide information systems,
delineating a clear path for planning, executing, testing, and supporting the implementation process. Its
modular and flexible approach covers all stages of an end-to-end implementation, and is based on our deep
understanding of business requirements, continuous user training, and post-implementation support. It also
leverages Infosys‘ proven strength in extending packaged solutions and enhancing their effectiveness
through seamless integration of emerging technologies, so as to capture the unique business processes that
differentiate the client from competitors.
An innovative and exhaustive tool for rapid implementation, the IntERPryz methodology harnesses the
power of business with technology-enabled approach for effective integration of information and systems
across the enterprise. It delivers optimal value by:
Stressing accountability
Integrating people, process, and technology
Managing change effectively
Invoking business transformation and not process automation

PRICING STRATEGIES

PRICING MODELS and LABOR RATE VARIATION

The drivers for outsourcing solutions are in a state of flux today and differ drastically from client to client.
Infosys approaches each client situation with a customized outsourcing solution pricing based on a
consistent set of financial pricing and risk management models for the clients and for Infosys.

We believe that our clients prefer the solutions approach we take to pricing. Starting from the client‘s
preferences, such a pricing approach is driven by their current business drivers and strategic business goals.
We customize our pricing model for each deal, deriving from the basic outsourcing pricing methods – Fixed
Price or Time & Material. Value based and risk and reward components are incorporated into our pricing
strategy where possible. As both the outsourcing marketplace matures and our clients have a better set of
starting baseline metrics, we are beginning to drive more alternatives that add flexibility and agility to
relationships emerging.

Infosys does not believe in working with region wise differential labor rate. As a strategy, Infosys operates
in a deliverables based pricing dynamic. As a practice Infosys works under the principles of value based
pricing instead of differential labor pricing.

By taking a solutions pricing approach to each deal, Infosys has created innovative financial models based
on client‘s concerns and requirements.
It is imperative to note that from a delivery perspective, pricing for outsourcing services – especially
applications outsourcing with a global delivery model – has been based on rate cards associated with the
location where the service is being delivered from. These could be:

Onsite Formatted: Bullets and Numbering

Offsite
Near-shore
Offshore

A practice emerging in the context of the global delivery model is the concept of Blended rate structures –
independent of delivery location. Infosys does not favor this model as the model does not create any
incentive for the client or for Infosys to enhance the utilization of lower-cost offshore locations, and thereby
reduces the value of the Global Delivery Model to the client.

The Infosys preferred method for outsourcing pricing, especially with more mature clients, is a fixed price
measured against an agreed set of service level agreements. Year to year improvement on productivity are
committed upfront. Infosys takes the risk of meeting these committed prices while having freedom to move
work offshore – provided service levels are met. This allows Infosys to continue to evolve the GDM and
gives the customer predictable cost of service with year to year improvements. This approach also
accelerates the GDM maturity for the client moving them quickly to management of deliverables not
resources, and full exploitation of CMM quality processes.

Apart from the delivery options, another very important factor in deciding the best pricing model is the scale
and complexity of the client‘s outsourcing portfolio and the maturity level each client‘s baseline metrics.
The organizations with a well laid out strategy of outsourcing are in a position to foresee their requirements
over the years and therefore are in a position to negotiate value based deals better.

The deal can be structured in one of the popular models (which constitute 80%-85% deals) or more
innovative, value based pricing models which are now coming into vogue as the industry is maturing.

Primary Pricing Models

Infosys has used a variety of pricing models in its contracts. Historically the pricing models that have been
most popular are:

Deliverables based Time and Material

Client is billed based on a pre-negotiated hourly or monthly rate structures. Payments are received based on
meeting pre-specified deliverables / deadlines. Infosys is reimbursed at cost for materials used or other costs
incurred, such as travel expenses.

It is important to note that this is an extension of the contracting pricing model used for ―staff
augmentation‖ and a structure that many of the less mature clients continue to prefer while engaging with an
outsourcing service provider. Even within this structure, Infosys takes greater ownership of risk by
providing effort estimates and fixed price bids based on a pre-negotiated rate. In such cases, Infosys takes
on the risk of the delivering engagements to these estimates providing the risk cover of the fixed-price
model even while engaging with a time & material pricing structure.

Fixed Price

Infosys is paid a fixed price decided at the beginning of the project. This approach is predictable and
convenient. Service level credits can also be used with this pricing mechanism.

Dedicated Offshore Development Center:

In the ODC model, Infosys dedicates resources to the center and customer-specific knowledge is retained
and leveraged. Infosys develops customized recruitment and training programs and a specialized
management regime and infrastructure for the center. Our large centers occupy entire buildings that are
dedicated to the customers they serve. Over time, an application-specific relationship could evolve into a
center, as new applications are added to the Infosys portfolio.
An Offshore Development Center provides the scope of delivering an integrated offering to the clients
wherein the cost of dedicated infrastructure and resource management is built into the contract. Within
an ODC framework, Infosys engages with clients using the variety of pricing models – such as the basic
models discussed above as well as some of the emerging value-based and risk-reward models.
Applicability of Pricing Models

For applications where there is not enough service level data to allow adequate scoping up front, Infosys
recommends using T&M billing for the first 3-9 months, until enough data has been assembled to allow a
transition to Fixed Price. Where sufficient data exists, Infosys bids projects on a Fixed Price basis from the
beginning. If multiple applications are to be outsourced as a group, a dedicated Offshore Development
Center (ODC) may be preferable.
In many deals, we will fix-price the transition and knowledge transfer phase, which includes the baseline
gathering and metric setting work, and be in a position to commit to the final fixed price after the transition
phase. In other cases, the work content is scoped well enough by the client to allow us to fix price both the
transition phase and an ongoing fixed price deal, but final year to year productivity commitments and
related pricing variations tied the fixed-price deal get locked in after transition. The driving factors are
flexibility for the client and speed to respond to a solution offset by the amount of scoping metrics and time
allowed.

Value Based Pricing

The complexity and differences between each client‘s business drivers and strategic intentions for a global
sourcing strategy, limit our ability and desire to deliver canned pricing approaches. As a solutions-focused
company we look for innovative pricing mechanisms within each deal to find opportunities to offer value
based pricing to customers. This approach requires us to understand the requirements of the client and
propose an appropriate solution rather than offering our services and asking them to select one or more of
them. Selling solutions has provided us with opportunities for value based rather than cost plus pricing.
Among the types of pricing included under Value Based Pricing are – Gain Sharing, Shared Risk / Reward,
Business Benefit based.

Gain-sharing or incentive pricing

This model bridges the gap between IT operations and business results by offering the outsourcer a stake in
savings or revenue. It differs from outsourcer incentives, such as service-level credits or bonuses for
exceeding expectations, in that it links rewards to tangible business benefits—such as lower operating costs.
Some of the examples of gain-sharing engagements at Infosys include:
Sharing of cost-savings realized by the client for a pre-defined period, based on Infosys‘ ability to
reduce the total cost of operations for an application.
Sharing of cost-savings based on Infosys‘ ability to consolidate multiple redundant applications
within a clients‘ portfolio.

Shared Risk / Reward

Infosys and the service receiver share the cost of developing the service or project, as well as the subsequent
revenue (based on pre-defined goals and sharing ratios) generated by the new product or service.
Risk / Shared Reward
Infosys bears the full cost of developing the service or project, and while sharing the reward, commands a
larger portion of the first year revenue generated by the new product or service. The client can expect full
reward value in the out years.

Business-Benefit-Based
Infosys is paid in proportion to the business value generated by the project or service, such as a percentage
of increased profit or decreased cost. Other factors that affect the pricing include deal size, complexity, and
associated risk. Risk includes penalties and likelihood of success and exposure, both public and financial.

Variable Pricing Models

In the recent past, Infosys has started offering variable pricing models to clients, structured in multiple
ways. While pay-per-use pricing is gaining early acceptance for large, infrastructure outsourcing, the use of
such utility pricing models for applications outsourcing is yet to evolve and depends on and whether the
applications lend themselves to be defined in the form of unit prices.

Following are some examples proposed by Infosys for variable pricing to clients:

Pricing for Vanilla Services

This involves taking up application portfolio maintenance at a fixed cost and committing to re-align or
optimize the portfolio on this fixed price / fixed time basis.

Risk and Reward Services

This involves 2 variations – MTTO (Modernization through Temporary Transfer of Ownership) and
Subscription. The basic premise is that Infosys will take ownership of the portfolio maintenance and will,
over a period of time (say 3 years) modernize the application. Infosys will partner in sharing the initial cost
required for this and recover over a period.

Ownership Services
Infosys has offered three variations of this pricing model – Sustenance Ownership, Application Portfolio
Ownership and Business Process Ownership. These services involve Infosys taking ownership of the
portfolio at an application, application + infrastructure OR at the Business Process level and taking
responsibility for the evolution of the portfolio in line with changing needs for the client.
These models are depicted in the diagram below:

Business Process Ownership

Level 6

Appln. Portfolio Ownership

Level 5

Sustenance Ownership
Level 4

Subscription
Level 3

MTTO
Level 2

Level 1 Vanilla Maint. & Re-engg

Low High
Partnering in Risk

The diagram below summarizes the pricing models currently used at Infosys for different offerings:

Pricing Models
Value
Offerings T&M FP
Based
Fixed
Business
Consulting & IT Strategy Project
Outcomes
Bids
Fixed
Labor Shared
Custom Application Development Project
Rates Risk/Reward
Bids
Fixed
Labor Ownership /
Application Maintenance Operating
Rates Subscription
Costs
Fixed
Labor
Reengineering and Migration Project Gain-sharing
Rates
Bids
Fixed
Labor
Package Implementation Project
Rates
Bids
 Fixed
Infrastructure Management Services Operating Gain-sharing
Costs
Fixed
Labor
Business Process Outsourcing Operating Gain-sharing
Rates
Costs

Labor Rate Variation

Infosys works on a business model based on global delivery (the Global Delivery Model). This model is
based primarily on our ability to offer solutions and services from a backbone of strong program
management capabilities and domain competencies, seamlessly across locations. Our responsibility for the
successful execution of a client project is not at a resource level, but at a value-delivery level.

Thus, most of our projects are based on an output/ outcome based or deliverables-based model, and not on a
resource-based or FTE-based pricing. This extends to encompass all our ‗Time and Materials based‘
projects where we use pre-negotiated rates and transparent effort estimations, where Infosys takes SLAs on
estimation accuracy and effective use of the Global Delivery Model.

Level One Level Two Level Three Level Four

Focus on… Inputs Inputs Outputs Outcomes and

Ownership
Pricing Labour based Resource-based Fixed price/ Risk/Reward, Gain-
Performance- based sharing, Value-based

Base Mix Not Offered 55% 35% 10%

(Infosys)
Quality of people Estimation accuracy Risk- sharing
Onsite-offshore ratios Productivity
Value Drivers Rapid ramp-up/ down Quality
Estimation accuracy Timeliness of Delivery

Infosys operates here

Other offshore vendors operate here
Business
solutions/ Portfolio
Value to
Deliverables- Ownership
Customer
based project
outsourcing
Offshore Staff
Onsite Staff Augmentation
Augmentation

Scale and Complexity

Skilled workforce Strong execution Solution innovation

Cost advantage Quality excellence Domain and
Capabilities Legacy skills Project Management Consulting skills
Offshore staff Committed delivery Investments into
Global Delivery Model R&D
Program and Client
Management
End-to-end services
While there are obviously differences between the rates for both technical as well as managerial staff from
region to region, these are variables that reflect in our internal costing rather than directly as a rate-per-
resource that we charge to clients.

Indicative Rates:

Offshore
APAC
Continental Offshore China
US UK (Varies by
Europe India (predistomer
Region)
ucted rates)

Developer (2.5 – 4) x (2.5 – 4) x (3 – 4.5) x (2.5 – 4) x x 1.2 x

Project/ Program
(3 - 5) x (3 - 5) x (4 - 6) x (3 - 5) x (1.5 - 2) x 2 x
Manager

Architects/
(5 - 6) x (5 - 6) x (5 - 6) x (5 - 6) x 2x ---
Specialists

Business
Process/ Strategy (6 - 10) x (6 - 10) x (6 - 10) x 6x --- ---
Consultants

x = Base rate

PROMOTION:

Long Term Customer Relationship Management

Participate in Trade Fairs, Seminars, Webinars and Events

Infosys Blogs, Social Networking – Twitter, Micro Sites

Print Ads – Eg: Finacle and Sexual Harassment Awareness

Public Relations – Press Releases and Publicity

Growth over the years

Revenues ($ 4568mln) - LTM September 30, 2009

Financial Performance

Over $28 Bn in market capitalization on the NASDAQ (as of September 30 09)

Zero debt company with sound cash reserves, and a de-risked operating model

Financial reporting under Indian GAAP and IFRS.

98% repeat business as on September 30 2009 as compared to 99.8% during previous year.

Strong client addition - added 35 clients during the quarter ended September 30 2009.

Stable short-term liquidity position. Infosys policy is to maintain liquid assets at a minimum of 25%
of revenue and at a minimum of 40% of total assets i.e. fixed assets, investments, net current assets
and other assets.
Revenue breakup (by service, geography as well as vertical)

REVENUE BY INDUSTRY % of revenue (30-Sep-09)

Insurance, Banking & Financial Services 33.5
Insurance 7.4
Banking & financial services 26.1
Manufacturing 19.3
Retail 14.1
Telecom 16.2
Energy & Utilities 5.9
Transportation & logistics 2.3
Services 5.0
Others 3.7

REVENUE BY GEOGRAPHICAL SEGMENT % of revenue (30-Sep-09)

North America 65.9
Europe 23.2
India 1.2
Rest of the world 9.7
REVENUE BY SERVICE OFFERING % of revenue (30-Sep-09)
Development 18.1
Maintenance 22.7
Business process management 6.2
Consulting services and package implementation 23.8
Infrastructure Management 7.8
Testing Services 6.2
Product Engineering Services 2.3
System Integration 4.4
Others 4.4
Total services 95.9
Products 4.1
Total revenues 100.0
……………………………………………………………………………………………………………….....