A Brief Overview of the Indian IT Industry & Infosys

1
A Brief Overview of the Indian IT Industry
Infosys
February, 2006
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A brief look at the Indian Economy

• Rapidly growing GDP of 7.5-8
• Services sector has more than 50 weightage in
  GDP
• Structural drivers for growth
• Large population and favorable demographic trends
• Skilled and well-educated labor force
• Rising integration into global trade and
  investment
• Improving macro policies and institutional
  framework
• Various studies predict that India will become
  the 3rd largest economy in the world by 2050
• But there are challenges
• Need for simplification of rules and regulations
• Infrastructure

3
Snapshot of the Indian Software Industry

• Rapidly growing exports
• 1991 US 128 million
• 2005 US 17.2 billion
• 2008 (projected)- US 50 billion
• Employs over 1,100,000 people
• Over 400 Fortune 500 companies outsource their
  software development maintenance to India

(Source NASSCOM)
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Liberalization of the economy the seeds of
IT boom in India

• Abolition of licenses
• Rationalization of taxes
• Export thrust
• Reduction of import tariffs
• Abolition of wealth tax
• Foreign exchange reforms
• Free pricing of IPOs
• Foreign portfolio investments
• Employee stock option plans

5
The Infosys Journey
2005
Infosys crosses USD 1.6B (05-06 projection 2.1B)
in revenue and has over 49000 employees, with
454 clients
6
Infosys this year will be a 2B organization

• Global Presence with offices in 17 countries and
  45 cities
• Over a Billion and half USD in revenue
  (projection of 2.14B) and growing at a rate of
  49 per year
• Less than 65 of revenue from USA. Strong
  presence and understanding of APAC market
• Partnering with clients for Technology-enabled
  Business Transformation
• Proven track record of ramping-up resources to
  meet client needs
• High customer satisfaction over 93.2 (as on Q3
  05) of revenues from repeat business
• 39 clients from Fortune 100 (Total number of
  clients as 454 (Q3))
• Over 49,420 employees
• Numerous quality benchmarks CMMi 5, PCMM, Six
  Sigma, BS7799, AS9100 certifications to name a
  few
• Worldwide recognition for business practices,
  financial management technical expertise

EuropeAmsterdam Brussels Frankfurt London Mil
an Paris Prague Stockholm Stuttgart Utercht
Zurich
Canada Toronto
USA Atlanta Boston Charlotte Chicago Dallas
Detroit Fremont Los Angeles New
York Reston Seattle Argentina Buenos Aires
Australia Melbourne Sydney China Beijing Shang
hai Japan Tokyo Hong Kong Mauritius Sharjah Sing
apore
India Bangalore, Chennai, Pune, Bhubaneswar,
Hyderabad, Mangalore, Mohali, Mysore, New Delhi,
Mumbai, Trivendrum
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This is how we are organized
Subsidiaries
Infosys Consulting Inc
Infosys Australia Ltd.
Infosys Technologies (Shanghai) Company Ltd
(ITSCo)
Progeon ( BPO)
Express, Transportation, Media and Entertainment
Independent Validation Services
Product Engineering and Embedded services
Systems Integration
Enterprise Solutions
Infrastructure Management Services
Business Process Outsorcing
Enterprise Solutions
Client focused integrated business units ably
supported by ECUs, BEFs and competency centers.
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We have continuously evolved to try and meet
client requirements over the years

• New services defined as services other than
  Application Development, Maintenance,
  Re-engineering and Products

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Infosys rich client base enables it to leverage
the best practices followed in other accounts.
Sample client base
Infosys has 39 Fortune 100 clients and 98
Fortune 500 clients (as of 31st Dec 2005)
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Infosys has strategic alliances with key players
in all the segments to provide best services at
optimal cost..
Key Alliances of Infosys
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Recruitments best-in-class and has the
infrastructure/ practices to retain them.

• Infosys Strategy for Employee -
• Attracting the best
• Laterals joining from Big 5 and global
  corporations
• Employer of choice at IIT, IIM
• Capability to train 14,000 employees in a year at
  Mysore
• Focus on growth retention
• Managed attrition (lt11)
• Stock options for all employees pioneer in
  India
• Training spend gt5 of revenues
• World class work environment
• Campus like facilities and culture
• Fast paced, results oriented ethic
• Empowerment in non-hierarchical organization
• International Program like Instep to ensure
  global work culture

 
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With a deep focus on Process Capability and
Benchmarks itself against high maturity offshore
vendors (CMMI L5) in industry
Parameters
Unit
Benchmark
Infosys
Source
Delivered Defect Density
Delivered
0.105
0.026
Software
Defects/ FP
Assessments,

95
97
Overall Defect Removal
Benchmarks
Effectiveness
and Best
Practices
On-time Delivery
of projects
66
94
by Capers
Jones (2000)
Productivity
LOC/ Person
52
65
Bangalore SPIN
Day
Phase 3 Report Apr 03
Defect Density
Total Defects/
12
6
KLOC
Bangalore SPIN (Software Process Improvement
Network) is a commercially neutral, non-profit
organization supported by leading global software
companies. This has Special Interest Groups
(SIG) for benchmarking (Development), comprising
of over 15 high maturity (Level 5) offshore
vendors.
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To summarize, the strengths of people, process
and technology converge seamlessly within Infosys
to fulfill your end to end IT needs.
End-to-end services
Addressing your complete landscape
Ability to scale
High Confidence Levels in Delivery and
Relationship
Best People, Low Attrition and steep ramp-up
capability
Sustainable Learning Curve Advantages
What we offer
What it brings to YOU
Global Presence and matured Delivery Models
Quick Time to Market, Lower Costs
SEI CMMI Level 5 Processes and high quality focus
Quality Delivered by a very few Companies
worldwide
Express /Logistics Domain and diverse Technical
Competence
Sound Methodologies, Repeatability
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Thank You