Annual General Meeting © Infosys Technologies Limited State of the Markets Basab Pradhan Senior Vice President and Head – World-wide Sales & Retail ( North America )

Annual General Meeting June 14, 2003© Infosys Technologies Limited This presentation may contain certain forward looking statements. The company may not achieve results as expressed or implied by such forward looking statements. Actual results could differ materially from those expressed or implied in such forward looking statements due to a number of factors including those discussed under the head "Risk factors" in the company's filings with the United States Securities and Exchange Commission. Do not place undue reliance on these forward looking statements. This presentation contains references to findings of various reports available in the public domain. The company makes no representation as to their accuracy or that the company subscribes to those findings. They are provided only by way of information.

Annual General Meeting June 14, 2003© Infosys Technologies Limited Agenda »The Numbers : Overall IT Spending & IT Services »Changing Buyer Preferences »Our response »Competitive Landscape »Implications for Infosys

Annual General Meeting June 14, 2003© Infosys Technologies Limited IT spending growth : Estimates may vary but a slow recovery or growth compared to 2002 is likely. Gartner estimates 6.9% growth for IT Services during 2003

Annual General Meeting June 14, 2003© Infosys Technologies Limited IT buyers are asking for business alignment and higher value-for-money in their IT spend Expected Vendor Offerings –Business solutions innovation –Demonstrable insights on how to leverage IT for business needs –Ability to bring industry best practices or benchmarks into client engagements –Commitment to business outcomes Business Alignment Buyer Characteristics Believes IT plays an important role in staying competitive Seeks alignment of IT projects with business needs Believes IT spending must be justified on RoI Expected Vendor Offerings –Higher Predictability – timelines, budgets –Smaller, phased projects –Generate savings to fund new projects –Robust Global Delivery Model Higher Value for Money Buyer Characteristics IT budgets under pressure Looking for significant cost reductions Wide acceptance of offshore IT Services

Annual General Meeting June 14, 2003© Infosys Technologies Limited These buyer characteristics – business alignment and higher value-for-money – are borne out by analyst surveys Source: Forrester

Annual General Meeting June 14, 2003© Infosys Technologies Limited Infosys is investing in Business Solutions, and in extending its lead in Offshore Strategic Sourcing Solutions Creation of Vertical Practices / Initiatives –Retail –Automotive & Aerospace –Telecom –Healthcare Building horizontal and vertical solutions Hiring business process & industry experts Business Solutions Consulting & SI Portfolio Business consulting services CRM / SCM / ERP solutions Investments in Solutions Joint solutions with Alliance partners Strengthen Strategic Sourcing Approach –Solution frameworks for outsourcing –Leadership in execution excellence –De-risking the Global Delivery Model –Client education & change management –Pricing and risk/reward models Sourcing Solutions Broaden IT Services Portfolio Application development Applications outsourcing Infrastructure management Systems Integration services

Annual General Meeting June 14, 2003© Infosys Technologies Limited The Market now demands that Business Solutions must be executed in the Global Delivery Model GDM Excellence Business Solution Excellence Infosys Global SIs – ACN, IBM Other GDM Firms Imperative to create and integrate GDM capabilities Imperative to create a solution focus to services

Annual General Meeting June 14, 2003© Infosys Technologies Limited In the Strategic Sourcing arena, the market demand will be robust… and the deal sizes will be larger Number of Enterprises Using Offshore Sourcing for the First Time Early adopters of sourcing programming in India include: Financial service High-Tech manufacturing Type A : Early Adopters Type C : Laggards All types of enterprise (for example, healthcare, retail and energy companies) are piloting or outsourcing to India. Largest segment of enterprise buyers comprise this category; thus, there will a large volume of activity Type B : Pragmatists Time 1995 to to and Beyond Global delivery (nearshore or offshore) moves to the mainstream. Source : Gartner

Annual General Meeting June 14, 2003© Infosys Technologies Limited Infosys, a pioneer in Offshore Strategic Sourcing Solutions continues to stay in the forefront… This aggregates the preferred vendors across three categories of outsourcing (applications, infrastructure & BPO). Infosys stands 2 nd for application outsourcing Source: Forrester

Annual General Meeting June 14, 2003© Infosys Technologies Limited The competitive landscape… Business Solutions »Major competition – Global SIs »Global SIs like Accenture and IBM have business capabilities and business buyer relationships that exceed ours »However, the market demands that the Business Solution be delivered using GDM. Global SIs have not yet proven their ability to deliver using a GDM Offshore Strategic Sourcing »Major competition continues to be Indian companies – TCS & Wipro »Pricing under pressure because of »Supply overhang in a low growth IT services market »Clients seeking significant cost reductions in IT spends »Global SIs still not credible competition

Annual General Meeting June 14, 2003© Infosys Technologies Limited Implications for Infosys For Offshore Strategic Sourcing Solutions »Continue to innovate in GDM »New capabilities to structure and manage large complex deals including new pricing models »Related capabilities such as employee transition management For Business Solutions »Integrate Consulting, Systems Integration and Application Development services to come up with compelling solutions to business problems »Form alliance partnerships with ISVs with technology that can help build the solutions Take these solutions to the market jointly with the alliance partners »Train Client Facing Group to be able to better sell Business Solutions For Branding »Maintain overall positioning as leader in Offshore Strategic Sourcing Solutions »Work towards a business solution provider positioning

Annual General Meeting © Infosys Technologies Limited Thank You