Growing European Practice Priti J. Rao

Analyst Meet 2003© Infosys Technologies Limited Slide 1 The Market in Europe »Market size is $160 bn, growth forecast of 4.3% CAGR »UK is the largest IT market in Europe »3 countries contribute to 64% of the European market Source : Gartner US$ mn

Analyst Meet 2003© Infosys Technologies Limited Slide 2 Business Environment & Trends Environment »Challenging European economy driving value consciousness »Inclination towards strategic sourcing – better quality, higher predictability »“Do more with what we have” approach visible across the board Trends »Need IT solutions for genuine business problems »Tactical projects – Buyers focused on TCO and ROI in 4 to 6 months »Strategic outsourcing projects – Highly competitive pricing »Longer sales cycles – Technical, Business and Reference checks

Analyst Meet 2003© Infosys Technologies Limited Slide 3 IT Services in UK & Continental Europe »Synergetic appeal of Offshore - Combined leverage of BPO and IT outsourcing »UK much ahead in GDM adoption »Culturally similar to US »Favorable labor laws »Significant growth expected in BPO »Expansion of EU – Eastern European countries »Opportunity of attractive sourcing channels

Analyst Meet 2003© Infosys Technologies Limited Slide 4 Competitive Landscape Competition »Global majors across all countries »Local players in select geographies »Niche players »Pure-play offshore players Behavior »Marketing message – shift from business consulting to their core strengths like integration, development, maintenance, etc., »Offerings based on industry templates, standard packages, and integration standards »Announcing plans to build India- based delivery capability »Sacrificing margins to improve personnel utilization »Investing in hiring people with a strong combination of technical, business and communication skills »Alliances & partnerships

Analyst Meet 2003© Infosys Technologies Limited Slide 5 Challenges in Europe »Each country a micro-market »Cultural and language heterogeneity »Complex visa regulations, long lead times »Protectionist labor regulations »Conservative vendor management practices »Leveraging our brand

Analyst Meet 2003© Infosys Technologies Limited Slide 6 Our Journey So Far : CAGR of 85.22% Financial YearEurope Revenue (US $ million) Infosys total Revenue (US $ million) Europe as a % of total revenue

Analyst Meet 2003© Infosys Technologies Limited Slide 7 Forging Ahead : Enhancing Brand Media relations »280 pieces of coverage in UK, France & Germany. Steady stream of 40 pieces per month »Press information material and datasheets Events »Solutions showcase »LTO for Apparel: London »Offshore strategy: Frankfurt »36 new business opportunities generated from 8 events »Increased profile - Infosys private CEO breakfast at WEF, Davos Analyst programs »Gartner Outsourcing »Giga World »Periodic request based briefings »Top management meetings

Analyst Meet 2003© Infosys Technologies Limited Slide 8 Forging Ahead : Sales & Client Relationships Sales »Expansion of sales team »UK, Germany, France, Belgium, Sweden, Switzerland, Netherlands »Vertical segmentation and targeting »Piloting in the UK »New markets – Italy Client relationships »Milan in Europe »Board-level sponsor for key relationships »Key Account Management »Account Management process »Customer Satisfaction Action Planning »Local hires for local relationships

Analyst Meet 2003© Infosys Technologies Limited Slide 9 Forging Ahead: Innovation in Offerings Solutions »IT Effectiveness »Forecourt Retailing »BASEL 2 »Enterprise platform migration Alliances »Strategic and Complementary »Microsoft »Informatica »Oracle »Tactical Evangelizing new service offerings »Independent Validation Services »Infrastructure Management Services »Systems Integration »Business Process Management

Analyst Meet 2003© Infosys Technologies Limited Slide 10 Forging Ahead: Excellence in Execution Excellence by design »Metrics driven lifecycle processes »Dashboards for tangibalising client benefits Mauritius - Sourcing channel »Available talent and skills »Fit with European markets Quality and Productivity »Software component reuse »Tools – InFlux, TCC, SEEC »Controlling COQ People development »Competency development – Leadership, Interpersonal, Domain, Technical »Sarathi – mentoring program »Focused Employee Satisfaction initiative

Analyst Meet 2003© Infosys Technologies Limited Slide 11 Infosys in Europe : Recent Wins »Leading bank in the UK »Strategic sourcing for development and re-engineering applications »Leading sportswear manufacturer in Germany »Program management of web applications »SAP maintenance »Leading specialty retailer in France »Re-engineering of after-sales service application »Telecom major in Benelux »Strategic sourcing for development and re-engineering applications »Major food and confectionary maker in the UK »Portfolio analysis for offshore outsourcing »European logistics major in Germany »Re-engineering of package sorting application »Shipping arm of an European oil and gas major ».NET development of marine asset maintenance system »Global investment banking firm in the UK »Development of back-office application for regulatory compliance

Analyst Meet 2003© Infosys Technologies Limited Slide 12 Infosys Europe is well positioned… »Highly receptive market »Powerful value proposition »Strong brand equity »Mature client relationship framework »Value-enhancing offerings »Superior execution prowess »Infosys’ European Practice – an engine for growth

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