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August 12, 2005© Infosys Technologies Limited 2005 - 06
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Enterprise Solutions Chandra Shekar Kakal Vice President – Enterprise Solutions
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August 12, 2005© Infosys Technologies Limited 2005 - 06 Safe Harbor Certain statements made in this Analyst Meet concerning our future growth prospects are forward- looking statements, which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, intense competition in IT services including those factors which may affect our cost advantage, wage increases in India, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, restrictions on immigration, industry segment concentration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks or system failures, our ability to successfully complete and integrate potential acquisitions, liability for damages on our service contracts, the success of the companies in which Infosys has made strategic investments, withdrawal of governmental fiscal incentives, political instability and regional conflicts, legal restrictions on raising capital or acquiring companies outside India, and unauthorized use of our intellectual property and general economic conditions affecting our industry. Additional risks that could affect our future operating results are more fully described in our United States Securities and Exchange Commission filings including our Annual Report on Form 20-F for the fiscal year ended March 31, 2005 and quarterly report on Form 6-K for the quarter ended June 30, 2005. These filings are available at www.sec.gov. Infosys may, from time to time, make additional written and oral forward-looking statements, including statements contained in the company's filings with the Securities and Exchange Commission and our reports to shareholders. The company does not undertake to update any forward-looking statements that may be made from time to time by or on behalf of the company. Slide 2
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August 12, 2005© Infosys Technologies Limited 2005 - 06 Enterprise Solutions Group at Infosys Focuses on ‘Packaged product related services’ Package evaluations Package enabled business transformations Package implementations Upgrades Global roll-outs Customizations Add-on module developments Solutions involving packaged products Production support and maintenance Parameter Achievement LTM June 05 revenues $ 265 m Contribution to Infosys’ revenues 15.3% Employees 3,600 Delivery Locations 8 - Bangalore, Pune, Hyderabad, Mangalore, Chandigarh, Shanghai, Toronto, Tokyo Onsite-Offshore Mix (%) 40% : 60% 3 year revenue CAGR 65.7% Cuts across Industry verticals Cuts across Geography
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August 12, 2005© Infosys Technologies Limited 2005 - 06 …extending over the entire enterprise value chain and covering major packages… Enterprise Application Integration (EAI) (TIBCO, Vitria, SAP XI, Oracle middleware, Biztalk, IBM WBI, SeeBeyond) SUPPLIER ENTERPRISE CUSTOMER ERP – Enterprise Resource Planning, SCM – Supply Chain Management, CRM – Customer Relationship Management, SRM – Supplier Relationship Management SRM/SCM (SAP APO, Oracle APS, Yantra, i2, Manugistics Ariba) ERP (SAP, Oracle, PeopleSoft, MBS, Finacle) CRM (Siebel, SAP CRM, Oracle CRM, Clarify) Business Intelligence (BI) SAP BW, Oracle Express / CPM, PSoft EPM, (Cognos, Informatica, BO) Human Capital Management (HCM) (PeopleSoft HR, Oracle HR, SAP HR)
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August 12, 2005© Infosys Technologies Limited 2005 - 06 Product vendors – merger, acquisition, consolidation Niche players under pressure License revenue under pressure Product Architecture moving towards being platforms Product Vendors offering more services – hosting, support, etc. Focus on mid market Focus on partnership with offshore System Integrators State of the market - Product Vendor View PeopleSoft acquires JD Edwards Oracle acquires Peoplesoft Oracle acquires Retek Sterling acquires Yantra Sun acquires SeeBeyond Lawson acquires Intentia
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August 12, 2005© Infosys Technologies Limited 2005 - 06 State of the market - Analysts View Indian service providers : A credible alternative to the traditional Global SIs for ERP engagements Authors : Dana Stiffler and Lance Travis; AMR Research report – Nov 2004 Infosys: Capable of competing with Global Players “Infosys is a top choice for SAP-related work.” “Infosys consulting’s SAP expertise is not only an important differentiator for Infosys ….but it also gives it the credentials to compete on an even playing field with the Global SAP consultants such as Accenture, Bearing Point, Deloitte, IBM” Offshore SAP implementation, Upgrades and Support: What you need to know?; Author : Stefanie Moore, Forrester, April 5, 2005 “Infosys leads in bringing business and industry savvy to ERP…” “…customers that work with multiple offshore service providers claim that the business value they achieve with Infosys is highest.” Indian Service Providers: A Credible Alternative to Traditional Global SIs for ERP Engagements; Authors : Dana Stiffler and Lance Travis, AMR Research, Nov 2004
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August 12, 2005© Infosys Technologies Limited 2005 - 06 State of the market - Customer View Customer spending on packages… Globalization – Standardization of business processes, systems - Global roll-outs, consolidation Upgrades Incremental investments Lower cost support options CRM systems, Business Intelligence, etc. Enterprise CRM, ERP and SCM IT Services Solutions, Worldwide, Source : Forecast: Enterprise CRM, ERP and SCM IT Services Solutions, Worldwide, 2003-2008 Gartner By Alex Soejarto, Lewis Clark, Matthew Goldman, Robert DeSouza, Michele Caminos, Nicole France, Rika Narisawa, Rolf Jester and Pranav Kumar $ billions IT Services market for packages is still huge and leaves enough room for Infosys to grow… Year200320042005200620072008 CRM20.121.422.724.426.328.4 ERP29.730.932.333.835.637.3 SCM13.714.515.416.317.218.1 Total63.566.870.474.579.183.9
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August 12, 2005© Infosys Technologies Limited 2005 - 06 Offshore ERP Users Our opportunities stem from the fact that epicentre of ERP eco-system is moving offshore… ERP Implementation / Maintenance Team Customer ERP Product Development ERP Users Business Offshore ERP Implementation / Maintenance Team ERP Product Development In ERP market, product development, implementation, support & user segment has increasingly started moving offshore BPO
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August 12, 2005© Infosys Technologies Limited 2005 - 06 Our strengths Predictability : 90%+ ERP engagements delivered within budget and time Scalability : Hiring and training ERP consultants in large numbers through ‘ES University’ Program / Project Management : Ability to operate in ‘managed solution’ mode rather than staff augmentation Global Scale / Global reach : Ability to walk with the customers in a global roll-out Committed consultants : Top-notch product consultants with utmost commitment to deliver Capacity to train 1200+ ERP consultants through dedicated residential training facility at Hyderabad
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August 12, 2005© Infosys Technologies Limited 2005 - 06 ES delivered solutions have been rolled out across the globe for multiple customers Dealer Management solution with an auto major SAP implementation with a leading Oil & Gas company Sales Force automation with a logistics company Benefits administration through HR outsourcing firm HR roll-out for an automotive company Some significant on-going engagements
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August 12, 2005© Infosys Technologies Limited 2005 - 06 Key Challenges & Strategies Challenges Industry domain knowledge Bundled offering by product vendors Bundling of product license + hosting + AMC + application support Aggressive pricing by competition to gain customer base Experienced resources for niche skills Past experiences and references in same industry Strategies Collaboration with Infosys Consulting Independent Business Unit (IBU) collaboration for industry knowledge Enterprise Solutions (ES) University (for entry level training, on-going training, certification, computer-based training and academia connect) Enhance alliance traction Joint business plans with SAP, Oracle. Field level connects, collaboration with their Development Centers in India. Incubating new growth engines – Microsoft Business Solutions (MBS), China, Middle East Investments into new technology/product release – NetWeaver, SAP APO, SAP SRM, Oracle CPM, Centers of Excellence Solutions around packages Horizontal solutions: e.g., upgrade solution, package migrations, Vertical solutions along with IBUs: e.g., Pharma analytics, Retail CP
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© Infosys Technologies Limited 2005 - 06 Thank You www.infosys.com
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