1. Infosys Consulting in 2006 : Leading the Next Generation of Business and Information Technology Consulting

3. Off-shore players growing : TCS, Wipro, Infosys Technology

4. 47% Annual growth (2003 vs. 2004)

5. Still 0.8% market shareCAGR 7% Fragmented market

7. Traditional enterprise application packages

8. Homogeneous infrastructure

9. More demanding in ROI

10. Get more out of tech investment

11. Rapid adaption /modification

12. Specific point solutions

13. Off-shore IT services

14. SOA (Service-oriented Architecture) & Web services

16. Adjudged “India’s Best Managed Company” in a study conducted by Business Today and A.T. Kearney

17. Forbes: “Infosys is a role model for companies everywhere in financial transparency.”

18. “Dream company to work for” in India and amongst the “100 best places to work for in IT” in the US

19. Amongst the first companies in world to be certified at CMMI Level 5

20. BusinessWeek: Amongst the top 3 IT Services companies in the world

23. ~ 32 billion USD market cap (NASDAQ:INFY)

24. Over 30% annual growth for the last 6 years

25. Global workforce of 100.000+

26. More than 450 clients, mostly Fortune 2000 companies

27. 7 of the largest world companies are Infosys customers

28. Over 87% of projects on-time on-budget

29. More than 90% recurring customers

30. Global leader in quality practices CMM5, 6-Sigma, Malcolm BaldridgeLíder en Tecnología Bancaria Empresa mejor gestionada Mejor empleador, Mejor universidad corporativa Mejor gobierno corporativo

32. More than 13.000 employees in 31 development centres around the world

33. 6 of the 7 largest US banks

34. 4 of the 5 largest European banks

35. 3 of the 4 largest Australian banksCAGR aprox. 40% Other Segments 37.8% 37% Banking and Capital Markets

37. Built up in 1980s and 90s through customized software solutions, developed in offshore (Indian) development centers

38. Also develops and markets software products

39. Flagship product is ‘Finacle’, a modular banking solution for retail, corporate and banks

41. 18 in the US, the UK, Australia, Canada, China, Mauritius and Czech Republic.Lower Cost Faster Implementation Lower Risk Measurable “The process of breaking projects down into their logical components and then distributing those components to locations (onsite, nearshore, or offshore) where they can be delivered at maximum value.” 1 2 3 4 Innovation to Meet New Customer Needs Modular Global Sourcing Framework

42. Infosys Technologies – Business Performance CAGR 45%/30% CAGR 43% EBITDA Margin %

43. Infosys Technologies – Business Performance Revenue by Industry Revenue by Geographic Market

45. Right TalentsCustomer relationship Open/transparent & performance-driven culture Flat organizational structure Domain knowledge Right reward system (stocks, career visions)

47. Adding more off-shore workforce through M&A or expansion

48. However…

49. Can NOT completely migrate to GDM because…

50. It can jeopardize existing businesses

52. Infosys’s core competency is ‘People’ and supporting system to attract/keep talents

53. Intangible assets and congruence of the whole system are hard to copy (e.g. Culture, HR, reputation)

54. Already offering the same services by copying the tangible part of business model

55. 24/7 services

56. Global offices

57. Competing for the same talents

60. Very low up-front capital investment

61. No need to have expensive IT service providers

62. Very low entry barrier

63. Force incumbents to change product & pricing

64. User-focused, not buyer-focused : self-service IT

65. Very cheap or free funded by Ad modelWeb 2.0

67. Capability to attract & keep talents

68. Strong financial

69. Strong relationship with Large Corporations

70. Over-reliance on US economy

72. Market growth

73. Higher awareness on off-shore model

74. Wage inflation due to competition on talents (15+% / year)

75. Newer disruptive business models (i.e. web services, web 2.0)H Low L M H M Opportunities Threats

77. Projected single-digit growth of 5%

78. Largely fragmented market with 2 key segments:

79. On-shore consulting and IT services players (Accenture, IBM, Capgemini, EDS)

81. Chose a wholly-owned subsidiary model

82. Led by former leadership of Deloitte Consulting India

83. Focused on the Global Delivery Model (GDM) and more cost-competitive consulting rates

84. Integrating the business consulting and technology implementation lifecycles

86. Recruiting the Right People

87. Creating a Differentiated Approach

89. On-shore liasons

90. Off-shore resourcesLower blended rates Faster Implementation Integration “Integrate the business consulting and technology implementation lifecycle. ‘1-1-3’ model gives one client one ICI resource onsite, one Infosys Tech resource onsite, and 3 Infosys Tech resources offshore.” 1 2 3 “1-1-3”combined with GDM

92. Cost efficientUnique, blended model Easier to integrate offshore with onshore

94. Adding more off-shore workforce through M&A or expansion

95. However…

96. Can NOT completely migrate to GDM/”1-1-3” because…

97. It can jeopardize existing businesses

99. Approximately 2/3rds of revenue from the United States

100. Key industries: Retail, Transportation, High Tech, Banking, Energy/Utilities

101. Reflects steady growth in number of clients:

102. 25 clients in FY05

103. 54 clients in FY06

105. Potential causes:

106. cheaper blended rates

107. expensive on-shore resources

110. Access to Infosys clients

111. Strong in operations

112. Low brand equity

113. Inexperience with consulting relationships

115. Market growth

116. Open up new segment of market

117. Easy replicability of model

118. Increasing IBM/ACN presence in India

119. Culture clash with Infosys TechnologiesH Low L M M M H Opportunities Threats

121. Collaborating effectively with Infosys Technologies

122. Impending replication of ICI business model by others

124. Integrate client management with Infosys Technologies

125. Use ICI to monitor client trends & the “next big thing.”

127. Provide more agile and customized solutions

128. More wallet share from current customers

129. Integration rather than expansion

130. Antenna to sense changes in the market

131. Influence customers’ strategic moves

132. Relationship building with emerging players

133. Acquire them as customers or partners

134. Develop capabilities to offer right services/products in the long-termStrategic Alliance with Emerging Competitors

135. Thank YouQ&A