1. Delivering Solutions Leveraging the Global Delivery Model Basab Pradhan © Infosys Technologies Limited 2003-2004

2. Analyst Meet 2003© Infosys Technologies Limited 2003-2004Slide 1 While business is still good, the Indian IT Services Industry, as we know it, is facing challenges that require fresh thinking on new strategies “State of the Business” »GDM is the most important, paradigm shifting change that is occurring in the IT services industry »The market will expect that GDM is embedded in every service and every solution that they buy from an IT service provider »We are at the center of this change as the leading, best practitioner of the Global Delivery Model »The demand for offshore outsourcing is gaining rapid momentum. Industry growth can be expected to be robust for the immediate future Challenges for the future »Dark lining in this silver cloud - margin pressures in offshore outsourcing, the main stay of the Indian IT services Industry »Increasing number of credible competitors »Clients increasingly savvy about negotiating lower prices »Getting difficult to differentiate based on service offerings or quality Need to innovate new strategies for sustained, profitable growth

3. Analyst Meet 2003© Infosys Technologies Limited 2003-2004Slide 2 Business- Technology Solutions »Drives greater profitability »Builds deeper client relationships »Increases brand salience »Focus, innovate New Focus: Solutions Orientation Weave together services into innovative solutions Infosys has developed a solutions-led growth strategy to attain sustained, profitable growth Infosys Growth Drivers New Service Lines Offshore Outsourcing Present Focus: Service line expansion Execution excellence »Core profitable business with high repeat revenues »Drives high volumes and economies of scale »Differentiate to hold the price line – Outsourcing as a Solution »Builds new capabilities (e.g. BPM, Business Consulting, SI, IMS) »Increases customer share-of-wallet

4. Analyst Meet 2003© Infosys Technologies Limited 2003-2004Slide 3 What is a ‘Solution’? NOT Solution »Application maintenance services by IT Services companies – single un- integrated service line »Strategy or process consulting services by a Business Consulting firm – single, un-integrated service line Solution »Infosys’ integrated business process reengineering, package implementation and maintenance services to optimize lead times for apparel retailers »Infosys’ strategic sourcing, strategy development, implementation planning and execution offering »Integrated call receiving, routing, management, dispatch solution comprising hardware, software, training by a call center solutions provider An integrated offering of products and services which delivers greater value than the simple sum of its parts, and which can be customized for a client Source: The McKinsey Quarterly

5. Analyst Meet 2003© Infosys Technologies Limited 2003-2004Slide 4 In the IT Services industry context, there are important differences between a services-based strategy and a solutions-based strategy Services modelSolutions model Examples of offerings sold Application Development, Maintenance, Reengineering, Consulting, BPO IT Effectiveness, Shared Services ERP support, Lead-time Optimization Sales Approach “This is who we are and what we do, what would you like to buy?” “Let me understand your problem and present a solution” PricingCost plus marginBased on value delivered to client Marketing Approach Sales push, About InfyMarketing pull. Around business problem and industry Skills Required Technical competency, Project Management Domain and Technical competency; Program Management

6. Analyst Meet 2003© Infosys Technologies Limited 2003-2004Slide 5 A solutions-driven business model offers several advantages and economic benefits over a services-driven model Value based pricing Deeper client relationships Repeatability increases productivity GDM brings value to clients Employee professional development Higher price points anchor higher billing rates Less prone to commoditization

7. Analyst Meet 2003© Infosys Technologies Limited 2003-2004Slide 6 However, significant changes are required to make a successful transition into a solutions-driven model Sales & Marketing Team-selling Specialist sales staff ‘Trusted Partner’ branding Targeted messaging Processes & Systems Integration across service lines Collaborative workflows Knowledge management tools Human Resources Recruiting of specialists Deep domain skills training Cross-staffing management Organization Vertical or Domain based structure Cross-functional collaboration and teams

8. Analyst Meet 2003© Infosys Technologies Limited 2003-2004Slide 7 Infosys has put in place the basic elements required to implement the solutions model, and is progressively rolling out remaining elements Solution Teams Vertical IBUs Business Consultin g Expertise Senior Mgmt Sponsors Knowledg e Mgmt Systems Staff Training Rewards and Incentive s End-to-end service portfolio Solutions Framework Front- line Staff Alliance s Program Evolving Brand Positioning

9. Analyst Meet 2003© Infosys Technologies Limited 2003-2004Slide 8 Each Infosys unit has developed solutions plans, and although real benefits are a few quarters away, some early wins have been recorded UnitSolutions Retail IBULead-time Optimization with SupplyChainge, RFID, Distributed Order Management with Yantra, Merchandising Analytics, Customer Relationship Management CAPS PUIdentity Management, Integrated Service Management Auto & Aero IBU Product development and PLM implementation with MatrixOne, CATIA migration with Microsoft Enterprise Solutions PU Package Shared Services Platform, Upgrade Kits for Siebel, Oracle, PeopleSoft Systems Integration PU Accelerated XP Deployment with Microsoft, Identity Management, Enterprise Information Portal, Data Center Design & Deployment, Enterprise Content Management Early Wins XP deployment at large US bank Identity management at Auto mfr. Data center solution for 2 clients PLM implementation at Auto mfr. Enterprise portal at European financial services giant

10. Analyst Meet 2003© Infosys Technologies Limited 2003-2004Slide 9 We are going to face competition. Clients are asking for business solutions leveraging GDM, and everyone is scrambling to occupy that space Extent of GDM in Service Delivery Business Solution Focus Infosys Final Four & IBM Focused on business buyers Tier-2 GDM Firms Focused on IT buyers Imperative to Create and Integrate GDM Capabilities Imperative to Inject a Solution Focus To Services

11. Analyst Meet 2003© Infosys Technologies Limited 2003-2004Slide 10 Given its market position and capabilities, Infosys is a well positioned to successfully execute on this market opportunity Premium brand positioning Business consulting expertise End-to-end service capability Award-winning knowledge management practices Best-in-class employee development practices Deep domain competency across verticals Integrated project management processes across service lines GDM excellence

12. Analyst Meet 2003© Infosys Technologies Limited 2003-2004Slide 11 All Infosys stakeholders will benefit from a solutions- driven growth model going forward Employees PartnersClients Shareholders Career development New skills Recognition for higher value-add Faster growth Higher profitability Found cost-effective SI and Consulting partner Better value proposition for clients Managed solutions to business problems Better value proposition than global majors

13. Thank You www.infosys.com © Infosys Technologies Limited 2003-2004

14. Analyst Meet 2003© Infosys Technologies Limited 2003-2004Slide 13 “New” Services as % of Revenue “New” services defined as services other than Application Development, Maintenance, Re-Engineering and Products