© infosys technologies limited 2005 - 06 independent validation services v. r. renganathan member...

© Infosys Technologies Limited 2005 - 06

Independent Validation ServicesIndependent Validation Services

V. R. Renganathan

Member – Engagement Management, IVS Unit

November 11, 2005 © Infosys Technologies Limited 2005 - 06

Safe HarborSafe Harbor

Certain statements 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 our reports on Form 6-K. 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.


Introduction to IVSIntroduction to IVS

Independent Validation Solutions (IVS) provides third party validation solutions to clients

IVS acts as a partner and trusted advisor for our clients’ global Quality Assurance needs

Infosys provides a career path in testing and attracts the best validation expertise in India and abroad

The resource pool includes validation experts, business domain specialists and technology specialists to cater to the wide array of testing skill requirements

The validation expertise spans across numerous engagements in areas such asBusiness Process Validation of software solutions

Test Process & Strategy Consultancy

Enterprise Performance Testing solutions

Setting up Testing Centers of Excellence for clients

Test Automation solutions

Our clientele includes several global majors from industries such as Banking & Financial Services, Insurance & Healthcare, Manufacturing, Retail and Telecom


Estimated market opportunity for outsourced testing servicesEstimated market opportunity for outsourced testing services

Year 2000 2001 2002 2003 2004 2005 2006 2007

IT Services market

for Development and

Integration1

169.00 174.00 166.00 177.00 181.00 189.00 200.00 211.00

Testing Services

(25%)

42.25 43.50 41.50 44.25 45.25 47.25 50.00 52.75

Outsourced

Testing Services2

4.22 4.35 4.15 4.42 4.52 4.72 5.00 5.27

1 Assuming Gartner’s estimate of 25% of the market for development is the market for testing 2 Assuming 10% of the market for testing is outsourced

Source: Gartner

$ billions


MetricsMetrics

Customers – Over 45

enterprise customers in

different verticals and 20

product based customers

Over 80% repeat

business

Over 2,300 employees

Onsite Effort – 25%

3.4

5.35.8

6.2

0

1

2

3

4

5

6

7

FY03 FY04 FY05 LTM Sep-05

Contribution to Infosys revenues (%)


DifferentiatorsDifferentiators

Superior skills through Independent Validation Services (IVS) University6 weeks of intensive training

Labs at 3 Development Centers (DCs) with various Test tools

Specialized Performance Test team

Certifications

Alliances Golden Solution Partnership with Mercury (58.8% market share)

Solutions (Enterprise Application Testing)Test Centers of Excellence – Managed testing solutions

Basel II, SOX validations

Industry certifications :• LOMA (Life Office Management Association) – 32• IAQ (Investment Administration Qualification) – 9• CIBOS (Chartered Institute of Bankers in Scotland) – 8• NCFM (National Stock Exchange's Certification in Financial Markets) – 25Testing / QA certifications• CSQA (Certified Software Quality Analyst) – 19• CSTE (Certified Software Test Engineer) – 41


Trends in the MarketTrends in the Market

Tools vendors

Mercury, IBM-Rational, Seague and Compuware are niche players

in this segment

Competition

Not much as the market is still nascent

Most do not understand the Enterprise Application Market

Our view

CXO reach is important

Clients focus on Total Cost of Ownership

Automation will start getting bigger


Challenges and our ResponseChallenges and our Response

Resourcing scale

IVS University and alternate talent pools

Commoditization of services

High value solutions

Go-to-Market with Tool Vendors

Influencing our community

Thought leadership in International conferences, leaders of

Change Forums, etc.

University programs and workshops

© infosys technologies limited 2005 - 06 independent validation services v. r. renganathan member...

Documents

validation experts

party validation solutions

best validation expertise

time frame contracts

additional risks

number of risks

testing centers of excellence

outsourced testing services1