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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

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slide2

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
slide3

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)

liberalization of the economy the seeds of it boom in india
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
the infosys journey
The Infosys Journey…

2005

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

infosys this year will be a 2b organization
Infosys this year will be a $2B organization…
  • Global Presence with offices in 17 countries and 45 cities
  • Over a Billion and half USD in revenue (projection of 2.14B) and growing at a rate of 49% per year
  • Less than 65% of revenue from USA. Strong presence and understanding of APAC market
  • Partnering with clients for Technology-enabled Business Transformation
  • Proven track record of ramping-up resources to meet client needs
  • High customer satisfaction – over 93.2% (as on Q3 ‘05) of revenues from repeat business
  • 39 clients from Fortune 100 (Total number of clients as 454 (Q3))
  • Over 49,420 employees
  • Numerous quality benchmarks – CMMi 5, PCMM, Six Sigma, BS7799, AS9100 certifications to name a few
  • Worldwide recognition for business practices, financial management & technical expertise

Europe:Amsterdam

Brussels

Frankfurt

London

Milan

Paris

Prague

Stockholm

Stuttgart

Utercht

Zurich

Canada: Toronto

Australia: Melbourne

Sydney

China: Beijing

Shanghai

Japan: Tokyo

Hong Kong

Mauritius

Sharjah

Singapore

USA: Atlanta

Boston

Charlotte

Chicago

Dallas

Detroit

Fremont

Los Angeles

New York

Reston

Seattle

Argentina: Buenos Aires

India: Bangalore, Chennai, Pune, Bhubaneswar, Hyderabad, Mangalore, Mohali, Mysore, New Delhi, Mumbai, Trivendrum

slide7

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

Independent Validation Services

Product Engineering and Embedded services

Business Process Outsorcing

Infrastructure Management Services

Systems Integration

Enterprise Solutions

Enterprise

Solutions

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

slide8

Strategy and Transformation Consulting

2004

Business Process Management

Infrastructure Management

Systems Integration

2001

Technology Consulting

Technology-enabled BPR

Enterprise Solutions

1996

Application Development and Maintenance

Software Re-engineering

1981

People

Organization

Infrastructure

Process

Quality

Infosys Global Delivery Model

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

New services defined as services other than Application Development, Maintenance, Re-engineering and Products

slide9

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)

slide10
Infosys has strategic alliances with key players in all the segments to provide best services at optimal cost..

Key Alliances of Infosys:

slide11

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
slide12

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,

%

95

97

Benchmarks

Overall Defect Removal

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

Apr 03

Defect Density

Total Defects/

12

6

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.

slide13

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

Ability to scale

High Confidence Levels in Delivery and Relationship

Best People, Low Attrition and steep ramp-up capability

Sustainable Learning Curve Advantages

What we offer…

…What it brings to YOU

Global Presence and matured Delivery Models

Quick Time to Market, Lower Costs

SEI CMMI Level 5 Processes and high quality focus

Quality Delivered by a very few Companies worldwide

Express /Logistics Domain and diverse Technical Competence

Sound Methodologies, Repeatability