Infosys – A Unique Business Model.

2. Infosys - An Overview
 End-to-end IT solutions
provider
 One of the most profitable
software services providers in
the world
 Publicly traded in India since
1993
 Second most valuable
company in India
 Listed on NASDAQ since
March 1999
 Present market cap
at ₹ 263,735 crores ($42.51
billion) (as of June 27, 2016)
[based on BSE prices]

3. The Infosys Journey…
2005
Infosys
crosses USD
1.6B (05-06
projection
$2.1B) in
revenue and
has over
49000
employees,
with 454
clients
The Infosys Journey…

4. Infosys Work Culture
Open-door culture
Hard work, lots of passion
A piece of heaven in Bangalore

5. Investment Highlights
Large, Expanding Addressable Market
Highly-evolved Global Delivery Model
Rapid Differentiation
Scalable Execution
Exceptional Financial performance

6. Infosys today is a global leader in the “next generation” of
IT and Consulting
• Forbes: “Infosys is a role model for companies everywhere in financial transparency.”
• “Dream company to work for” in India and amongst the “100 best places to work for in
IT” in the US
• BusinessWeek: Amongst the top 3 IT Services companies in the world
• Wired rated Infosys among its top 40 companies that have reshaped the global

7. Offshore Outsourcing is a Global Mega Trend
Non-GDM GDM
Onsite Firms
GDM+
Consulting
GDM+
(~1980s)
(~1990s)
(present)
ADM
Consulting
Offshore Addressable Market is
Increasing
Infosys Market Positioning

8. 89%
81%
58%
38%
35%
29%
81%
60%
55%
52%
42%
34%
18%
60%
46%
42%
40%
38%
22%
0% 20% 40% 60% 80% 100%
Reduce operating costs
Reduce capital investment
Turn fixed costs into variable costs
Meet downsizing requirements
Reduce development costs
Obtain intelligence of competitiveness
Focus on core business
Gain access to technology not in company
Gain access to needed skills
Provide alternative to building capability
Create additional capacity
Provide backup capabilities
Align with policy/philosophy/culture
Increase flexibility and responsiveness
Increase speed to market
Improve quality
Reduce customer response time
Grow revenue
Gain access to markets
COSTCOMPETENCYFOCUSREVENUE
Percent of Respondents
There are 3 strong business drivers for this rapid growth in Outsourcing – (1) Reduce Costs, (2)
Build Competencies and (3) Increase Revenue
Key Cost-
Related Drivers
Key
Competency-
Related Drivers
Key Revenue-
Related Drivers

9. Infosys Consulting Inc
Infosys Australia Ltd.
Subsidiaries
Infosys Technologies
(Shanghai) Company
Ltd (ITSCo)
Progeon ( BPO)
Enterprise
Solutions
Express, Transportation,
Media and Entertainment
Product
Engineering
and
Embedded
services
Systems
Integration
Enterprise
Solutions
Independent
Validation
Services
Infrastructu
re
Managemen
t Services
Business
Process
Outsorcing
This is how Infosys organized…
Client focused integrated business units ably supported by ECU’s, BEF’s and competency centers.

10. Infosys’ Global Delivery Model
Management
Consulting
Business Process
Management
IT Outsourcing
Systems Integration
Technology Consulting
Technology-enabled BPR
Enterprise Solutions
Application Development and Maintenance
Software Engineering
People|Organization|Infrastructure|Process|Quality
Infosys Global Delivery Model
1981 ____________
1996 ______________
2001 ________________
2005 ________

11. Uniquely Positioned in Global IT Services and
Consulting
IN PROCESS
 Consulting + Solution mindset
 Build stronger brand
 Strengthen Board-level relationships
 Design Thinking
 Agile
NEED TO:
 Replace resources
 Overcome “offshore-is-cost-center” mindset
 Combat revenue cannibalization
 Provide seamless sales and delivery
 Reduce SG&A

12. How Design Thinking and agile Help To Grow In IT market.

13. 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)

14. Infosys has strategic alliances with key players in all the
segments to provide best services at optimal cost..
Key Alliances of Infosys:

15. Challenging external IT
environment
 Reports on slow-down in IT spending by US companies
 Earnings warnings from some of our major customers
 Concerns on dot-com and venture-funded businesses
 Earnings warnings from some of the software companies in US
 Possible softness in labor markets in the US
 Internet consulting companies facing pressure on visibility and
billing rates
 There may be supply-demand gap in India resulting in escalation
of labor cost
 Falling markets and stock options becoming unattractive resulting
in escalation of compensation costs

16. End-to-end
service provider
Offer new services
to existing clients
Develop
new clients
Use tools and
methodologies
Expand and diversify
base of IT professionals
Increase employee
productivity by
promoting reuse
Moving-up the Value Chain – A Multi-
pronged Approach
Our intention is to increase per capita revenues by a
minimum of 3-5% per annum to maintain margins

17. ®
Predictability Sustainability
Profitability De-risking
Maintenance
Higher value services
Increase revenue productivity
Offshore model - Global Delivery
Upsell to existing customers
Iterative Model of Development
Translating clients to partners
Offshore Software
Development Centers
Quality
People
Transparency
Exposure limits for client concentration
Exposure limit for dotcom businesses
Exposure limit for opportunity
businesses (like Y2K)
Geographical diversification
Long-term relationship
Growth
PSPD Model

18. © 2002 Infosys Technologies Limited
Crisis of confidence in the market
 Corporations re-stating their numbers
 Accounting issues in large corporations
 Disproportionate executive compensation
 Questionable off-balance sheet items
 Lack of basic corporate governance
Infosys’ long history of principled corporate governance,
conservative financial reporting and transparent corporate
structures differentiates us in this environment

19. © 2002 Infosys Technologies Limited
Stock option accounting
Views so far :
 Unlike US companies, Indian corporates do not get tax
benefits on employees exercising their options
 Stock option accounting is a non-cash charge which does
not alter the overall cash value of a company
 Black-Scholes model based on historical volatility does
not provide fair value of an option
 Technology companies like Microsoft are against
expensing options
We are internally debating this issue

20. Summary
 Increases guidance
 Expects revenue to grow 11-13% growth in the dollar in fiscal 2016.
 Strong revenue growth during the quarter
 Our business model enabled us to respond quickly to enhanced business
opportunities in the market place
 Continue to see a stable pricing environment
 Recently introduced a new approach to outsourcing called ‘Modular Global
Sourcing’
 Ongoing focus on integration of Infosys’ subsidiaries with the overall strategy
and operations of the corporation
 Restructuring into integrated Business Units has created multiple engines of
growth with strong leadership
 Built systems and processes to scale upto the needs of the market place
 Continue to have a prudent forex hedging policy
 Cash position remains strong