Analyst Meet August 27, 2002 “Living up to the promise” © 2002 Infosys Technologies Limited Challenges in the Asian market V. Sriram

Analyst Meet August 27, 2002 © 2002 Infosys Technologies Limited Agenda ■ IT Services Market in Asia Pacific ■ Infosys in Asia Pacific today – A Snapshot ■ Key Characteristics of the region ■ Infosys in Japan, Australia, Singapore and HongKong

Analyst Meet August 27, 2002 © 2002 Infosys Technologies Limited A Snapshot of IT Services Market - Asia Pacific Vs. Worldwide Source: Gartner Dataquest July 2002

Analyst Meet August 27, 2002 © 2002 Infosys Technologies Limited Asia Pacific IT Services Market size forecast by Country (in Billion US $) Total 93.1 b0 Total 96.4 b Total b Total b Total b Source: Gartner Dataquest July 2002

Analyst Meet August 27, 2002 © 2002 Infosys Technologies Limited Japan: Tokyo Australia: Melbourne Sydney Hong Kong Singapore Infosys in Asia Pacific Today - Snapshot Total Revenues / Head Count / Offices ■ ~7 % of company revenues ■ 5 offices (excluding offices in India) ■ Approximately 900 employees working for APAC Clients Coverage ■ From Japan - Japan and Korea ■ From Hong Kong - Hong Kong, Taiwan and China ■ From Singapore - ASEAN countries ■ From Australia - Australia and New Zealand Year of start for offices ■ Japan 1997 ■ Australia 1999 ■ Hong Kong 1999 ■ Singapore 2000

Analyst Meet August 27, 2002 © 2002 Infosys Technologies Limited Infosys APAC has grown rapidly in the past 2 years through new account acquisition….. 28 clients in FY

Analyst Meet August 27, 2002 © 2002 Infosys Technologies Limited Infosys APAC Revenue Split for

Analyst Meet August 27, 2002 © 2002 Infosys Technologies Limited Verticals and service footprint Verticals ■ Manufacturing ■ Financial Services ■ Telecom Services ■ IT strategy and effectiveness ■ Large Scale reengineering including platform conversion ■ Package implementation

Analyst Meet August 27, 2002 © 2002 Infosys Technologies Limited APAC – Key Characteristics ■ Diverse Markets ■ Challenges include diversity of language, culture, business practices ■ Outsourcing as a concept slowly getting accepted ■ In most countries (except Japan) no credible mid size Consulting/ SI company ■ Need for skills in latest technology areas acute ■ Infosys in APAC ■ has traditionally grown at twice the company growth rate ■ 90% of clients are Global 1000 companies ■ Long term client relationships ■ Have built local capability to deliver in markets like Japan

Analyst Meet August 27, 2002 © 2002 Infosys Technologies Limited Japan IT Services Market Size and Forecast World’s Second largest economy, Japan accounted for 12% of the worldwide IT services market in CAGR will be 4.1% through 2005 Japanese IT services market was forecast at $64.8 billion in 2001, growing to $83 billion in Companies in Fortune 500 (July 2002) Japan – Salient Features Source: Gartner Dataquest July 2002

Analyst Meet August 27, 2002 © 2002 Infosys Technologies Limited Infosys in Japan ■ Key Initiatives / Achievement ■ Marketing Office setup in Japan in 1997 ■ 48.6% of Infy APAC revenue from Japan(FY 02) ■ 6 Fortune 500 clients started since the inception of the branch in-spite of a sluggish economy ■ Sales, Marketing,HR & Support teams include Japanese nationals ■ Japanese - English technical hires, Dedicated translation team ■ Challenges ■ Language Proficiency, Culture ■ Slow Decision ■ Intense pressure on prices ■ Highly cost and quality conscious market ■ Hiring of locals and other Japanese - English enabled Technicals ■ Short cycle projects with evolving requirements ■ Aggressive schedules in almost every project

Analyst Meet August 27, 2002 © 2002 Infosys Technologies Limited Australia – Salient Features Australia will remain the largest IT Services country in Asia Pacific after Japan, It will grow up to 16.7 b US $ by 2005 (Gartner Dataquest July 2002); Australia accounted for 11.8% of the Asia Pacific IT services market in 2001 Restructuring of industries such as utilities and telecommunications is generating demand for consulting leading to integration projects 6 Companies in Fortune 500 (July 2002) Source: Gartner Dataquest June 2002

Analyst Meet August 27, 2002 © 2002 Infosys Technologies Limited Infosys in Australia Key Initiatives / Achievement ■ Marketing Office setup in 1999 ■ Infy getting established in Australia ■ 13% of Infy APAC revenue from Australia (FY 02) ■ Continuous hiring of Australian nationals for Sales and Delivery ■ High end positioning ■ Lot of “consulting”/ “trouble shooting work” ■ Infosys as a “Thought Leader” in Australia ■ Accounts like Telstra/ Vodafone/ Suncorp Metway/Swiss Re Challenges ■ Establish credibility of Global Delivery Model ■ Create Infosys Brand Equity

Analyst Meet August 27, 2002 © 2002 Infosys Technologies Limited Singapore and Hong Kong IT Services Market size Forecast (in US $) Hong Kong Singapore Source: Gartner Dataquest June 2002

Analyst Meet August 27, 2002 © 2002 Infosys Technologies Limited Infosys in ASEAN Region Market ■ Manufacturing, Financial and Telecommunications markets are strong and their expansion in IT is a main business driver for Software support services ■ Govt’s push into ebusiness and developing SMB segment is driving the IT services market in Singapore and Hong Kong ■ Fragmented market; Cultural linguistic diversity Key Initiatives / Achievement ■ Marketing Office setup in Hong Kong in 1999 and in Singapore in 2000 ■ Global strategic partnerships for large Asian companies ■ Marketing to tap into the influencing positions of Head Quarters Challenges ■ Low brand of Indian Companies ■ Cheaper alternative (but unproven) location like China

Analyst Meet August 27, 2002 © 2002 Infosys Technologies Limited How do we cope with these challenges ? ■ Increase local content ■ Invest in linguistic capability ■ Customise solution / delivery process to meet local requirements ■ Alliances specific to markets ■ Focus on business development activities (Services/Verticals)

Analyst Meet August 27, 2002 “Living up to the promise” © 2002 Infosys Technologies Limited Thank You