Highlights

Company Name

Infosys Technologies Limited

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 Table of contents
 Executive Summary  Operational Profile
Highlights  Background  Products /Services /Solutions
 History, Year of Incorporation  Business Lines
& other details  Awards and Ratings
 Evolution of Edelweiss  Competitive Strengths
 Behind the LOGO  Shareholding Pattern
 Demographics  Financial Summary
 Location, Branches, Employee  Revenue by segments,
details  Historical revenue growths
 Legal structure  Profitability
 Corporate Structure  Market Forces
 Organizational Structure  Risks & Concerns
 Leadership, Organizational  Key Success Factors
chart  SWOT Analysis
 Company Initiatives & Strategy
 Annexure
 Company in the press

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 Executive summary
Infosys Technologies Limited (Infosys) is a provider of technology-enabled business
solutions for global companies. The range of services offered includes business and
Highlights technology consulting, application services, systems integration, product engineering,
custom software development, maintenance, re-engineering, independent testing and
validation services, Information Technology (IT) infrastructure services and business
process outsourcing. The company offers its solutions to clientele spanning diverse
industries such as aerospace and defense, automotive, banking and capital markets,
communications, consumer packaged goods, education, energy, healthcare, high
technology, hospitality and leisure, insurance, life sciences, media and entertainment,
resources, retail, transportation services, and utilities. Apart from India, it has
operations in various countries such as the Czech Republic, China, Australia, Poland, the
UK, the US, Canada and Japan through over 50 offices and development centres.
Infosys is headquartered in Bangalore, India. The company reported revenue of (Rupee)
INR 216,930.00 million during the fiscal year ended March 2009, an increase of 29.96%
over 2008. The company's operating profit was INR 64,340.00 million during the fiscal
year 2009, an increase of 38.66% over 2008. The company posted a net profit of INR
59,880.00 million during the fiscal year 2009, an increase of 28.53% over 2008.
Infosys gets effectively all of its sales from international markets, with North America
accounting for two-thirds of the total. Clients come mainly from the financial services,
manufacturing, telecom, and retail industries.

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 Background
Year of Incorporation & Other details

• Founded in 1981 by Narayana Murthy and six others.

Highlights
• Second Largest IT company

• Offices in 22 countries

• Development Centers in India, China, Australia, Uk etc.

• Went Public in 1993

• Total No:of employees – 109882

• Revenue – USD 4.6 billion

• Total No:of clients 568

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 History
• Infosys was founded on 2 July 1981 by seven entrepreneurs, Nagavara Ramarao Narayana
Murthy, Nandan Nilekani, Kris Gopalakrishnan, S. D. Shibulal, K Dinesh and with N. S.
Highlights Raghavan officially being the first employee of the company. The founders started the
company with an initial investment of INR 10,000. The company was incorporated as "Infosys
Consultants Pvt Ltd." in Model Colony, Pune as the registered office.

• Infosys headquarters in Bengaluru, India

• Infosys went public in 1993. Interestingly, Infosys IPO was under subscribed but it was bailed
out by US investment banker Morgan Stanley which picked up 13% of equity at the offer price
of Rs. 95 per share.[8] The share price surged to Rs. 8,100 by 1999. By the year 2000 Infosys's
shares touched Rs. 310 before the catastrophic incident of September 11th, changed all that.

• According to Forbes magazine, since listing on theBombay Stock Exchange till the year 2000,
Infosys' sales and earnings compounded at more than 70% a year. In the year 2000, President
of the United States Bill Clinton complimented India on its achievements in high technology
areas citing the example of Infosys. Infosys will invest $100 million (Rs 440 crore) on
establishing a 20,000-seater campus in Shanghai.

• In 2001, it was rated Best Employer in India by Business Today. Infosys was rated best
employer to work for in 2000, 2001, and 2002 by Hewitt Associates. In 2007, Infosys received
over 1.3 million applications and hired fewer than 3% of applicants.

• Infosys was the only Indian company to win the Global MAKE (Most Admired Knowledge

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Enterprises) award for the years 2003, 2004 and 2005, and is inducted into the Global Hall of
Fame for the same.
 Demographics
Location, Branches & Employee Details

•Location: Infosys is headquartered in Bangalore, India

Highlights
•Branches: It has operations in various countries such as the Czech Republic,
China, Australia, Poland, the UK, the US, Canada and Japan through over 50
offices and development centres in Asia, Europe, and North America.

•Staff Details: . Infosys and its subsidiaries have 127,779 employees as on

December 31, 2010.

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 Legal Structure
Joint Ventures / Acquisition / Subsidiaries
Alliances: Infosys' services and business solutions are strengthened by alliances with leading technology partners. Our network of alliance
and teaming relationships creates business value, reduces implementation risk and accelerates speed-to-market.

Highlights Global Alliance Partners

The partnership focuses on developing solutions that incorporate Infosys IP and the alliance partners' technology and services. We jointly
deliver and market Infosys' solutions to clients across multiple industries and geographies.
• Microsoft
• Oracle
• SAP
Subsidiaries
• Infosys BPO
Infosys BPO provides outsourcing solutions across several industries and functional focus areas. It operates in India, the Czech Republic,
China, Philippines, Poland, Thailand and Mexico.

• Infosys Consulting
Infosys Consulting partners with companies to find the fastest route to competitive advantage. The company focuses on functional areas
and delivers solutions that enhance performance and profitability.

• Infosys Australia
Infosys Australia, a 100% owned subsidiary of Infosys Technologies Limited, is a leading provider of business-driven technology solutions.
The company works with clients in the spirit of partnership to assist them in becoming globally competitive, delivering world-class
solutions cost-effectively, predictably and in the shortest possible time, utilizing outstanding local talent backed by vast global capability, in-
depth industry knowledge and technical excellence.
Locally headquartered in Melbourne, Infosys Australia is home to one of Infosys’ largest delivery centers outside India. With approximately
1000 local employees and a strong local management team, the team collaborates with colleagues all over the world to help Australia and
New Zealand’s leading organizations win in a Flat World.

• Infosys China
Infosys Technologies (China) Company Limited (ITSCo), is a fully owned subsidiary of Infosys Technologies Ltd.
Infosys has invested an initial capital of US$ 5 million in this subsidiary. Our 20,000 sq. ft. office in the Shanghai Pudong Software Park serves
as an alternate delivery hub for Infosys in the Asia Pacific region.
ITSCo seeks to achieve a high level of maturity in terms of software engineering process, by being CMM compliant. We will offer surety of IP
protection with a secure development environment by being BS7799 compliant.

• Infosys Mexico
Infosys Technologies S. De RL De CV is the Latin American subsidiary of Infosys. Our development center in Monterrey, Mexico serves as a
nearshore facility for clients in North America, Latin America and Europe.

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 Organizational Structure
Leadership

The company has adopted a free form organization devoid of hierarchies. Everyone is
Highlights known as associates irrespective of his position in the company. Software
development is undertaken through teams and the constitution of teams is based on
the principle of flexibility. A member, who might have been team leader in one
project, may be replaced by another member of the same team for another project.
This system not only helps in creating the feeling of equality but also helps in
developing project leaders.

LEADERSHIP
• Shri. N. R. Narayana Murthy CBE, 64: Co-Founder, Chairman and Chief Mentor
• Mr. S. Gopalakrishnan , 52: Co-Founder, Managing Director, Chief Exec. Officer, Director, Head of
the Exec. Council and Chairman - Infosys Consulting Inc
• Mr. K. Dinesh , 56: Co-Founder, Head of Quality, Productivity, Communication Design Group &
Information Systems, Director and Chairman of Infosys Technologies (Australia) Pty Ltd
• Mr. S. D. Shibulal , 56: Co-Founder, Chief Operating Officer, Head of Worldwide Sales & Customer
Delivery, Director, Chairman of Infosys Consulting, Chairman of Infosys Technologies (china) Ltd,
Chairman of Infosys Technologies (Sweden) AB of Progeon Limited
• Mr. V. Balakrishnan , 46: Chief Financial Officer, Sr. VP, Director of Infosys Consulting Inc of
Infosys Technologies Australia Pty Limited

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 Operational Profile
Major Products/ Business Lines
Infosys provides banks a wide range of services that support and complement Finacle. Drawing on its expertise in the banking domain,
strong quality orientation, technology expertise and ability to successfully transform large and complex banks, Finacle can help your
bank move from planning to seamless implementation.

• Application Development and Maintenance

Highlights Finacle application development and maintenance services are designed to offer banks the freedom and cost-efficiencies of
reliably outsourcing the maintenance and enhancement of Finacle solutions. Aimed at maximizing the functionality of
Finacle, these services ensure that the bank’s solutions evolve as its business does.

• Application Management
Finacle application management services are designed to offer banks the freedom and cost-efficiencies of reliably
outsourcing the maintenance and enhancement of Finacle solutions.

• Independent Validation
Independent validation from Infosys focuses on enabling banks to function with minimal disruption. These services optimize
business outcome by ensuring that solutions have near-zero defects.

• Migration services
Migration services from Finacle focus on enabling banks to upgrade their technology platforms to the latest version of
Finacle, with minimal business disruption. They are differentiated by the business-driven approach adopted.

• Performance Tuning (PTServ)

Performance tuning from Finacle is designed to enable the customer to derive optimal system performance from the
Finacle suite of solutions. These services help identify potential performance bottlenecks and recommend changes, for
immediate implementation.

• Software Performance Engineering

Software performance engineering from Finacle provides performance and availability validation solutions for the
production environment. These enable banks to make critical decisions regarding investments, go-live readiness, new
product introduction, mergers, acquisitions and business portfolio expansions.

• System Integration
System integration from Finacle is based on an integrated approach to building responsive IT infrastructure and meeting the
critical needs of the banking business
.
• Value Mining

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Finacle value mining services enable banks to align business parameters in the Finacle environment to meet the rigours of
their continually optimizing business processes. This is facilitated by conducting structured studies in conjunction with the
bank’s operations and IT teams. The service culminates in the submission of a detailed analysis report and the advisory  
Highlights

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 Shareholding Pattern - 2010

Highlights

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 FINANCIAL SUMMARY
Highlights
Financial Summary Comparison

25,000
22,742 22,268
21,693

20,000
17,846
Amount in INR Crores

14,804
15,000
2010
10,289 2009
10,000
6,219 5,975

5,000

0
Revenues Net Income After Total Assets Cash and cash
Taxes equivalents
Category

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 FINANCIAL SUMMARY
Highlights Comparison of 2010 with 2009 in terms of Growth

Category  2010 2009 Growth

Revenues INR 22,742 Crores INR 21,693 Crores 3%

Net Income After Taxes INR 6,219 Crores INR 5,975 Crores 2.50%

Earnings per ADS INR 109.82 INR 104.89 3.90%

Total Assets INR 22,268 Crores INR 17,846 Crores 24.80%

Cash and cash equivalents INR 14,804 Crores INR 10,289 Crores 43.90%

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 Revenue Break up by Geography - 2010

Highlights
Revenue Break-up by Geography - 2010

Infosys is highly
dependent on
Rest of the world
India 9% North American
1%
and European
Europe
27%
markets for 90%
revenues…!!

Noth America
63%

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 Revenue growth from different
geographical segments over years
Highlights

Revenues from
US have
declined and
that from
Europe
improved.

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 Revenue Break up by Industry Segment- 2010

Highlights
Break-up of Revenue by Industry Segment - 2010
Others
16%

BFSI and Telecom Retail

contribute more 12%
Banking, Financial services & Insurance
36%
than 50% to
revenues.

Manufacturing
Telecom 15%
21%

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 Revenue growth from Industry segments over years

Highlights

Focus must
shift from BFSI
sector to other
sectors.

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 Revenue Break up by Services offered- 2010

Highlights

Revenue Break- up by Services Offered - 2010

Infosys must move up
the value chain –
concentrate more in 7% 5%
4%
consulting, BPO and 3%
Application, Development &
KPO business. 1%
Maintenance
Business Process Management
45%
5% Consulting Services & Package
Implementation
Infrastructure Management
Product Engineering Services
System Integration
Testing Services
Others
Products
24% 6%

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 Market Forces
External Forces
1.Political stability: Indian political structure is considered stable enough
Highlights
expect the fact that there is a fear of hung parliament‟ (no clear majority).
2. U.S. government has declared that U.S companies that outsource IT
work to other locations other than U.S. will not get tax benefit.
3. Government owned companies and PSUs have decided to give more IT
projects to Indian IT companies.
4. Terrorist attack or war.
5. Global IT spending (demand)
6. Domestic IT Spending (Demand): Domestic market to grow by 20% and
reach approx USD 20 billion in 2008-09 - NASSCOM
7. Currency Fluctuation
8. Real Estate Prices: Decline in real estate prices has resulted reducing the
rental expenditures.
9. Attrition: Due to recession, the layoffs and job-cuts have resulted in low
attrition rate.
10. ECOMONIC ATTRACTIVENESS due to cost advantage and other factors

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 Market Forces
Internal Forces
Highlights
1. Telephony:
a) India has the worlds lowest call rates (1-2 US cents).
b) Expected to have total subscriber base of about 500 million by 2010.
c) ARPU for GSM is USD 6.6 per month.
d) India has the second largest telephone network after china.
e) Teledensity – 19.86 %
f) Enterprise telephone services, 3G, Wi-max and VPN are poised to
grow.
2. Internet Backbone: Due to IT revolution of „90s, Indian cities and India is
well connected with undersea optical cables.
3. New IT technologies: Technologies like SOA, Web 2.0, High-definition
content, grid computing, etc and innovation in low cost technologies is
presenting new challenges and opportunities for Indian IT industry.

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Highlights

SWOT ANALYSIS OF
INFOSYS

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 STRENGTHS
Highlights
 Leadership in sophisticated solutions that enable clients to optimize the
efficiency of their business

 Proven “Global delivery model”

 Commitment to superior quality and process execution

 Strong Brand and Long-Standing Client Relationships

 Status as an employer of choice

 Ability to scale

 Innovation and leadership

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 WEAKNESSES
Highlights
 Excessive dependence on US for revenues – 67 % of revenues from USA

 Excessive dependence on BFSI sector for revenues – 36 % of revenues from

BFSI

 Weak player in domestic market. Only 1 % of revenues from India – low as

compared to peers

 Low R & D spending as compared to global IT companies – only 1.3 % of

total revenues

 Rising wage bill – 42.9 % to 44.8 % of revenues

 Low expertise in high end services like Consultancy and KPO.

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 OPPORTUNITIES
Highlights
 Domestic market set to grow by 20%.

 Expanding into new geographies – Europe, Middle East, etc

 Infosys is cash rich (Around US $ 1 Billion) - Acquiring companies to

increase expertise in Consultancy, KPO and package implementation
capabilities

 Opening offices and development centres in cost advantage

countries such as those in Latin America and Eastern Europe.

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 THREATS
Highlights
 The economic environment, pricing pressure and rising wages in India and
overseas

 Intense competition in the market for technology services could affect cost
advantages.

 High dependency on a small number of clients, and the loss of any one of the
major clients could significantly impact business.

 Failure to complete fixed-price, fixed-time frame contracts within budget and

on time

 Currency fluctuations

 Termination of Client contracts can typically be terminated without cause and

with little or no notice or penalty.
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 SWOT MATRIX
Highlights

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 ANALYSIS OF STRATEGIES OF
INFOSYS
Highlights
Corporate level strategies:
Core Strategies:

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 Actions Taken:
Highlights
1. To maintain low-cost advantage they have opened offices in
Czech Republic, Mauritius, Poland, Philippines, Thailand and
Mexico.

2. Invested in developing training centres

3. Improved quality capabilities – CMM level 5i company.

4. Infosys Consultancy established to provide high end services

in value chain.

5. Has hedged currency for more predictability of revenues (risk

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management).
 GENERIC STRATEGIES:
Highlights

1) Little differentiation in low-end services of

value chain; high differentiation in high
end services of value chain like software
products and package solutions.

2) Focus on quality, customer relationship

management, timely-delivery.

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 Ansoff‟s Matrix:
Highlights

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 MARKET PENETRATION STRATEGY:

Highlights
Current Markets: USA and Europe

Current Products: ADM, BPO, KPO, consultancy services

(in BFSI, manufacturing and retail) and software
products (financial products).

Recommendation: As most large clients in US and

Europe are cutting costs, Infosys needs to be more
aggressive on cost and quality front.

Result of strategy: Unlikely to yield good results

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 MARKET DEVELOPMENT STRATEGY:

Highlights
New Market: India, Middle-east and Australia

Current Product: ADM, BPO, KPO, consultancy services

(in BFSI, manufacturing and retail) and software
products (financial products).

Recommendation: Since these are fast developing IT

market, Infosys needs a paradigm shift in focus from US
and EU markets to these markets.

Result of strategy: Likely to yield good result.

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 PRODUCT DEVELOPMENT STRATEGY:

Highlights
Current Market: USA and Europe New

Product: Consultancy and package implementation

services in relatively growing sectors esp. healthcare,
life sciences and aviation sector, and KPO services.

Recommendation: Concentrate on building expertise in

these domains by strategic acquisitions.

Result of Strategy: Likely to have good result. (better

the company acquired, the better the result).

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 DIVERSIFICATION:
Highlights
New Market: India, Middle-east and Australia

New product: Consultancy and package implementation

services in relatively growing sectors esp. healthcare,
life sciences and aviation sector, and KPO services.

Recommendation: Changing Brand image from low

value service provider to high value service provider.

Result of Strategy: Difficult to achieve overnight

(possible in long term)

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 OTHER STRATEGIES:
Highlights CONCENTRATION: 90% of Infosys revenues from American and
European nations.

VERTICAL INTEGRATION: Infosys recently made a bid to acquire a

European major – Axon consultancy to improve its business in
European markets, but finally called off the deal due to high
valuation. Otherwise, Infosys has always believed in organic growth.

INNOVATION: The Software Engineering and Technology Labs (SET

Labs) at Infosys is the centre for applied technology research in
software engineering and enterprise technology. SET Labs
conducted 24 Innovation Workshops with customers from the US
and Australia, to identify research collaboration possibilities. Infosys
promotes a favourable work environment that encourages
innovation and meritocracy.

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Highlights

STRATEGY SUCCESSFUL
OR
NOT…??

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Highlights

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 Corporate Social Responsibility 
Corporate Social Responsibility
At Infosys, the distribution of wealth is as important as its legal and ethical creation. A strong sense of
Highlights social responsibility is therefore an integral part of our value system.

Infosys Foundation
We are committed to contributing to the society and established the Infosys Foundation in 1996 as a
not-for-profit trust to support our social initiatives. The Foundation supports programs and organizations
devoted to the cause of the destitute, the rural poor, the mentally challenged, and the economically
disadvantaged sections of the society.
The Foundation also helps preserve certain cultural forms and dying arts of India. Grants to the
Foundation aggregated Rs. 19 crore during the fiscal year 2007, as compared to Rs. 13 crore in the
previous year.

Community service
Through our Computers @Classrooms initiative launched in January 1999, we donated 2,567
computers to various institutions across India. Additionally, we have applied to the relevant authorities
for permission to donate computers to educational institutions on an ongoing basis in the future.
Microsoft Corporation continues to participate in this initiative by donating relevant software. We would
like to place on record our appreciation for their continued support.

Social commitment in education

Infosys' Education & Research group has the pride of anchoring the Infosys Extension Program (IEP),
which consists of the Infosys Fellowship Program, Rural Reach program, Catch Them Young and Train
the Trainer

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 Annexure – Press Releases

Highlights

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Highlights

Thank You

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