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November 30 , 2010th

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Outline

Outline1. Facts andBackground2. Micro Analysis of the domestic & Foreignenvironment

Domestic Indian ITmarketMain ForeigncompetitorsAdvantages of off-shoring forInfosys3. PSPD

Model4. GDMModel5. SWOTAnalysisInfosys

TechnologiesInfosysConsultancy6. Market

Challenges7. Conclusion &Recommendations

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Infosys Technologies: Facts Sheet

Infosys Technologies: Facts Sheet1981

Started in 1981 by 7 people with US $250

1999

Listed in NASDAQ (first Indian company)

2004

Set-up Infosys Consulting

Revenues reach US$ 1 billion

2004 2005

US $1.5+ Billion in Revenues & Market Cap of US $19 Billion

37000 Employees - 32 Development Centers and 32 Sales Offices

Total Number of Clients 440

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Infosys Technologies: Facts Sheet

Infosys Technologies: Facts Sheet2006 - 2008

Infosys celebrates 25 yearsInc ease in Re enues

Infosys crosses revenues of US$ $4.18 billion 000

Annual net profits cross US$ 1 $ 4.8 B5000billion

Opens new subsidiary in Latin 4000

America000

2009

2000Infosys selected as a member of

$ 1 BThe Global Dow1000

Employee strength grows to over $100 M0100,000

1 2004 2008

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Infosys Background

Infosys BackgroundMain Services:

Developer of software

programsSolution provider for business

problemsConsultin

gIT

ProgrammingGrew mostly through:

New business

contractsAcquisition of smaller IT service

providersAlliances with larger

companies.Pioneer of Global Delivery Model (GDM)

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Domestic Indian IT Market

Domestic Indian IT MarketGreat Potential of growth and provide good opportuntiesforInfosys

Keep growing and increasing by 11% in2003

Main DomesticCompetitorsTC

SMOREMORE

Wiprottractive!!

ttractive!!Satyam

BUT Infosys believe that FOREIGN

MARKET

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The India (off

The India (off-

shore)

Advantage:

shore)

Advantage:High qualitydeliverySignificant costs

benefitsStrong governmentsupportMatureindustryMan Power

Educationsystem24 x 7 working model

advantage

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Competitive Landscape

Competitive LandscapeMain Competitors:

Accenture

IBMWipro

Key competitive

advantages:Extensive domain knowledge andexpertiseComprehensive

offeringsLong-term relationships with blue chipclientsProven Global DeliveryModelExecution excellence

Competent leadership and managementteam

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PSPD Model

PSPD Model

The Infosys business model rests on four pillars:

Predictability,Sustainability,Profitability,andDe-risking.

Improve your odds withInfosys Predictability.

PSPD MODEL

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PSPD MODEL

Quality People Transparency

SUSTAINABILIT

YPREDICTABILIT

YMaintenance Translating Clients to

partnersLong term

Relationship

Offshore

SoftwareDevelopment Center

Growth

Higher value Services Exposure limits for client

Exposure limit for dotcomIncrease revenue productivity

Offshore model - Global Exposure limit forDelivery opportunity business

( likeUpsell to existing clients Y2K)

GeographicalIterative model of development

diversification

PROFITABILIT

Y

DE-

RISKING

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The Global Delivery Model (GDM)

The Global Delivery Model (GDM)Pioneers of the Global Delivery Model (GDM) for

development of customized IT solutions

GDM is based on dividing & carrying out each unit of

work in accordance with :

where it can be donebestwhere it makes the most economic sense, with theleastamount of acceptablerisk

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Lower IT implementation

costWorld class

infrastructur

elower total cost

of engagemen

t

highl

yGlobal Delivery

ModelCustomer

skilledRelationshi

presources

Benefits

Quicker

timePredictability

& to

marketQuality of

deliverables Lower IT implementation

cost

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Infosys Consulting

Infosys ConsultingStarted on April 8,2004Initial investment of

$20MLower costpropositionClients morecompetitiveTo add more value with betterresultsFocused on the Global Delivery Model

(GDM)Demonstrated operationalandFinancial

DisciplineCommitment to become strong globalpowerhouse.

CHALLENGE

How to reconcile high-end consulting with a low-cost GDM ?

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SWOT Analysis

SWOT Analysis

STRENGTHS

STRENGTHSITTechnologies:Operational excellence to deliverGDMCapability to attract & keeptalentsStrongfinancialStrong relationship with LargeCorporations

Consultancy

:Unique blendedmodelAccess to InfosysclientsStrong inoperations

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SWOT Analysis

SWOT Analysis

WEAKNESSES

WEAKNESSESITTechnologies:Over-reliance on USeconomyConsulting?

Consultancy

:Low brandequityInexperience with consultingrelationshipsChallenge attracting top consultingtalent

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Infosys

Infosys SWOT Analysis

SWOT Analysis

OPPORTUNITIES?

OPPORTUNITIES?

IT

Technologies:More cost/speed consciouscustomersMarketgrowthGlobal brand

Consultancy

:More cost/speed consciouscustomersMarketgrowthOpen up new segment ofmarket

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Infosys

Infosys SWOT Analysis

SWOT Analysis

THREATS?

THREATS?

IT

Technologies:Wage inflation due to competition ontalents Newer businessmodels

Consultancy

:Easy replicability ofmodelIncreasing IBM/ACN presence inIndiaCulture clash with InfosysTechnologies

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Infosys Technologies

Infosys Technologies SWOT Analysis

SWOT Analysis

STRENGTHS

STRENGTHS WEAKNESSES

WEAKNESSE

SOperational excellence to Over-reliance on US economydeliver GDM Consulting?

Capability to attract & keep

talents

Strong financial

Strong relationship with

Large Corporations

OPPORTUNITIES

OPPORTUNITIES

THREATS

THREATS More cost/speed Wage inflation due toconscious customers competition on talents

Market growth Newer business models

Global brand

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Infosys

Infosys Consultancy SWOT Analysis

SWOT Analysis

STRENGTHS

STRENGTHS WEAKNESSES

WEAKNESSE

SUnique blended model Operational excellence toAccess to Infosysclients

deliver GDM

Strong in operations Capability to attract & keep

talents

Strong financial

Strong relationship with

Large Corporations

OPPORTUNITIES

OPPORTUNITIES

THREATS

THREATS More cost/speed conscious Easy replicability of modelcustomers Increasing IBM/ACN

Market growth presence in India

Open up new segment of Culture clash with Infosys

market Technologies

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Challenges

Challenges

Was the domestic market attractive?

Right do business at significantly lowerprofitmargin?

Make sense as strategic imperative for Infosys both for branding and revenuebuildingrationale?

dd i K M k t Ch ll

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ddressing Key Market Challenges

ddressing Key Market Challenges

Competitive Strategy

Pricing Continue to penetrate

highvalue-addsegments

Onsite/offshoreeffort Leverage GDM

Investment insales

Leverage economies of scale

andmarketing

and brand

Economi

c

Increase recruitment

compatibilityWage inflation Move to variablesalary

US$/Rupee structure and role-basedexchange rate

compensation

i ti

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reorganization

s

Forbes: Infosys is a role

Forbes: Infosys is a role1.

Applemodel for companies

model for companies

2. Google

3.

Samsung

everywhere in financial

everywhere in financial 4. Amazon.COM

transparency.

transparency.5. Yahoo!

6. Electronic Arts

Dream company to work

Dream company to work

7. Genentech

8. Toyotafor in India and amongst the

for in India and amongst the9.

9. Infosys

Infosys100 best places to work for

100 best places to work forTechnologies

TechnologiesInfoTech Top

100

in IT in the US

in IT in the US

10. eBay

Infosys is ranked 10th

11. SAP12. PixarWired rated Infosys among

Wired rated Infosys amongHighest ranked IT

13. Ciscoits top 40 companies that

its top 40 companies that

services firm14. IBM

have reshaped the global

have reshaped the global15. NetflixAccenture # 31 and

economy.

economy.

IBM # 44 16. Dell

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