Living up to the promise S. Gopalakrishnan © 2002 Infosys Technologies Limited

Agenda Promises made, promises kept A picture of the future… Growth and profitability Moving up the value chain Expanding the service footprint Executing new services uniquely Presenting a one-stop-shop face to clients A picture of the future… Market opportunities Organizational responses © 2002 Infosys Technologies Limited

Profitable revenue growth Economic Slowdown CAGR = 57% * Excluding one-time stock compensation charge © 2002 Infosys Technologies Limited

Understanding where the profits come from Data from Q1 FY 2002-03 Onsite revenue 49 Onsite salaries 32 Other income 3 Tax 6 Optg. Margin 30% Gross Margin 46% Net Income 27% Offshore revenue 51 Other operating costs 16 S&M 7 G&A 8 ESOP Charge 1 Other direct 13 Depreciation 5 Software 2 Other direct 6 Offshore salaries 9 © 2002 Infosys Technologies Limited

Moving up the value chain Prime Partner Status 1996 - 2001 Enterprise Architecture Definition Enterprise Solutions Technology-enabled BPR Integrated Business-IT Roadmap 2001 ITO SI BPO 1981 - 1996 App. Dev. Maintenance Re-engineering New services have expanded the addressable market by 3X © 2002 Infosys Technologies Limited

Systematic expansion of footprint A proven, defined methodology for introduction of new services New services are delivered uniquely Alliances as a critical way to “stick to the knitting” while presenting unified end-to-end face Alliance partners are best in class, a true win-win relationship model Concentrate on what we do well Aggressively use global delivery for win-win benefits High quality client interface team presents these services in an integrated fashion © 2002 Infosys Technologies Limited

As a result, we have a unique position in the marketplace Organizational Value Add / Employee Strategy, consulting What? Why? INFOSYS – proven GDM Specialty IT services How ? Global Majors – new or no GDM Generic project management Most Offshore players Implement Support Staffing Services Source : Butler Group, Infosys © 2002 Infosys Technologies Limited

A glimpse into the future… Market conditions Vendor consolidation – fewer, end-to-end service providers Large deals Outsourcing becoming ubiquitous – changing role of the CIO and his / her team Global Delivery is a necessary condition Managing risk (perceived and actual) is key © 2002 Infosys Technologies Limited

…and our response… Moving towards becoming an end-to-end player Creating a “large deal” cross-functional team for such opportunities Working closely with outsourcing consultants to build consensus for and thought leadership in outsourcing This also enables “sole-sourcing” Aggressively leveraging GDM in all activities Strong brand and financial stability reduces risk © 2002 Infosys Technologies Limited

Summary : Industry Convergence Who will win the race to the finish line? Infosys : Talent magnet High quality execution Perfected Global Delivery Model “Customer first” culture Lean Orgn. Global Majors : Deep, hi-level client relationships Readymade solution-sets Consulting mind-set Full set of services On-shore investments Brand building Education and training Consulting mind-set Full-line of services On-shore hiring So we see convergence in this industry – while on the one hand you have, Infosys, an established Talent Magnet with High Quality Execution using the Global Delivery model, a “Customer First” culture and a lean cost structure. Infosys will have to make on-shore investments from its big cash hoard in sales and marketing / brand building, education and training in giving its employees a “consulting” mind-set and introduce services to offer a full line. It might also have to hire on-shore for building hi level relationships with clients / front-end work. On the other hand, Global Majors will have to move to a leaner organization which use global delivery extensively. Who will make the transition more easily? A lean and mean 10,000 employee organization or a fat and heavy 80,000 employee organization. I leave it for you to decide. Offshore investments Reduce fat / shift C.G. Re-allocate resources Invest in processes Resolve orgn. issues Resolve bill-rate redn. © 2002 Infosys Technologies Limited

Thank You © 2002 Infosys Technologies Limited