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Company Name

Infosys Technologies Limited

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Table of contents Executive Summary Background

History, Year of Incorporation & other details

Evolution of Edelweiss Behind the LOGO Demographics

Location, Branches, Employee details

Legal structure Corporate Structure

Organizational Structure Leadership, Organizational

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Operational Profile Products /Services /Solutions Business Lines Awards and Ratings

Competitive Strengths Shareholding Pattern Financial Summary

Revenue by segments, Historical revenue growths Profitability

Market Forces Risks & Concerns Key Success Factors SWOT Analysis Company Initiatives & Strategy Annexure

Company in the press

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Executive summaryInfosys Technologies Limited (Infosys) is a provider of technology-enabled business solutions for global companies. The range of services offered includes business and technology consulting, application services, systems integration, product engineering, custom software development, maintenance, re-engineering, independent testing and validation services, Information Technology (IT) infrastructure services and business process outsourcing. The company offers its solutions to clientele spanning diverse industries such as aerospace and defense, automotive, banking and capital markets, communications, consumer packaged goods, education, energy, healthcare, high technology, hospitality and leisure, insurance, life sciences, media and entertainment, resources, retail, transportation services, and utilities. Apart from India, it has operations in various countries such as the Czech Republic, China, Australia, Poland, the UK, the US, Canada and Japan through over 50 offices and development centres. Infosys is headquartered in Bangalore, India. The company reported revenue of (Rupee) INR 216,930.00 million during the fiscal year ended March 2009, an increase of 29.96% over 2008. The company's operating profit was INR 64,340.00 million during the fiscal year 2009, an increase of 38.66% over 2008. The company posted a net profit of INR 59,880.00 million during the fiscal year 2009, an increase of 28.53% over 2008.Infosys gets effectively all of its sales from international markets, with North America accounting for two-thirds of the total. Clients come mainly from the financial services, manufacturing, telecom, and retail industries.

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BackgroundYear of Incorporation & Other details

• Founded in 1981 by Narayana Murthy and six others.

• Second Largest IT company

• Offices in 22 countries

• Development Centers in India, China, Australia, Uk etc.

• Went Public in 1993

• Total No:of employees – 109882

• Revenue – USD 4.6 billion

• Total No:of clients 568

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History• Infosys was founded on 2 July 1981 by seven entrepreneurs, Nagavara Ramarao Narayana

Murthy, Nandan Nilekani, Kris Gopalakrishnan, S. D. Shibulal, K Dinesh and with N. S. Raghavan officially being the first employee of the company. The founders started the company with an initial investment of INR 10,000. The company was incorporated as "Infosys Consultants Pvt Ltd." in Model Colony, Pune as the registered office.

• Infosys headquarters in Bengaluru, India

• Infosys went public in 1993. Interestingly, Infosys IPO was under subscribed but it was bailed out by US investment banker Morgan Stanley which picked up 13% of equity at the offer price of Rs. 95 per share.[8] The share price surged to Rs. 8,100 by 1999. By the year 2000 Infosys's shares touched Rs. 310 before the catastrophic incident of September 11th, changed all that.

• According to Forbes magazine, since listing on theBombay Stock Exchange till the year 2000, Infosys' sales and earnings compounded at more than 70% a year. In the year 2000, President of the United States Bill Clinton complimented India on its achievements in high technology areas citing the example of Infosys. Infosys will invest $100 million (Rs 440 crore) on establishing a 20,000-seater campus in Shanghai.

• In 2001, it was rated Best Employer in India by Business Today. Infosys was rated best employer to work for in 2000, 2001, and 2002 by Hewitt Associates. In 2007, Infosys received over 1.3 million applications and hired fewer than 3% of applicants.

• Infosys was the only Indian company to win the Global MAKE (Most Admired Knowledge Enterprises) award for the years 2003, 2004 and 2005, and is inducted into the Global Hall of Fame for the same.

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DemographicsLocation, Branches & Employee Details

•Location: Infosys is headquartered in Bangalore, India

•Branches: It has operations in various countries such as the Czech Republic, China, Australia, Poland, the UK, the US, Canada and Japan through over 50 offices and development centres in Asia, Europe, and North America.

•Staff Details: . Infosys and its subsidiaries have 127,779 employees as on December 31, 2010.

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Legal Structure Joint Ventures / Acquisition / Subsidiaries

Alliances: Infosys' services and business solutions are strengthened by alliances with leading technology partners. Our network of alliance and teaming relationships creates business value, reduces implementation risk and accelerates speed-to-market.

Global Alliance Partners The partnership focuses on developing solutions that incorporate Infosys IP and the alliance partners' technology and services. We jointly

deliver and market Infosys' solutions to clients across multiple industries and geographies.• Microsoft• Oracle• SAPSubsidiaries• Infosys BPO Infosys BPO provides outsourcing solutions across several industries and functional focus areas. It operates in India, the Czech Republic,

China, Philippines, Poland, Thailand and Mexico.

• Infosys ConsultingInfosys Consulting partners with companies to find the fastest route to competitive advantage. The company focuses on functional areas and delivers solutions that enhance performance and profitability.

• Infosys AustraliaInfosys Australia, a 100% owned subsidiary of Infosys Technologies Limited, is a leading provider of business-driven technology solutions. The company works with clients in the spirit of partnership to assist them in becoming globally competitive, delivering world-class solutions cost-effectively, predictably and in the shortest possible time, utilizing outstanding local talent backed by vast global capability, in-depth industry knowledge and technical excellence.

Locally headquartered in Melbourne, Infosys Australia is home to one of Infosys’ largest delivery centers outside India. With approximately 1000 local employees and a strong local management team, the team collaborates with colleagues all over the world to help Australia and New Zealand’s leading organizations win in a Flat World.

• Infosys ChinaInfosys Technologies (China) Company Limited (ITSCo), is a fully owned subsidiary of Infosys Technologies Ltd.

Infosys has invested an initial capital of US$ 5 million in this subsidiary. Our 20,000 sq. ft. office in the Shanghai Pudong Software Park serves as an alternate delivery hub for Infosys in the Asia Pacific region.

ITSCo seeks to achieve a high level of maturity in terms of software engineering process, by being CMM compliant. We will offer surety of IP protection with a secure development environment by being BS7799 compliant.

• Infosys MexicoInfosys Technologies S. De RL De CV is the Latin American subsidiary of Infosys. Our development center in Monterrey, Mexico serves as a nearshore facility for clients in North America, Latin America and Europe.

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Organizational Structure Leadership

The company has adopted a free form organization devoid of hierarchies. Everyone is known as associates irrespective of his position in the company. Software development is undertaken through teams and the constitution of teams is based on the principle of flexibility. A member, who might have been team leader in one project, may be replaced by another member of the same team for another project. This system not only helps in creating the feeling of equality but also helps in developing project leaders.

LEADERSHIP

• Shri. N. R. Narayana Murthy CBE, 64: Co-Founder, Chairman and Chief Mentor • Mr. S. Gopalakrishnan , 52: Co-Founder, Managing Director, Chief Exec. Officer, Director, Head of

the Exec. Council and Chairman - Infosys Consulting Inc • Mr. K. Dinesh , 56: Co-Founder, Head of Quality, Productivity, Communication Design Group &

Information Systems, Director and Chairman of Infosys Technologies (Australia) Pty Ltd • Mr. S. D. Shibulal , 56: Co-Founder, Chief Operating Officer, Head of Worldwide Sales & Customer

Delivery, Director, Chairman of Infosys Consulting, Chairman of Infosys Technologies (china) Ltd, Chairman of Infosys Technologies (Sweden) AB of Progeon Limited

• Mr. V. Balakrishnan , 46: Chief Financial Officer, Sr. VP, Director of Infosys Consulting Inc of Infosys Technologies Australia Pty Limited

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Operational ProfileMajor Products/ Business Lines

Infosys provides banks a wide range of services that support and complement Finacle. Drawing on its expertise in the banking domain, strong quality orientation, technology expertise and ability to successfully transform large and complex banks, Finacle can help your bank move from planning to seamless implementation.

• Application Development and Maintenance Finacle application development and maintenance services are designed to offer banks the freedom and cost-efficiencies of

reliably outsourcing the maintenance and enhancement of Finacle solutions. Aimed at maximizing the functionality of Finacle, these services ensure that the bank’s solutions evolve as its business does.

• Application Management Finacle application management services are designed to offer banks the freedom and cost-efficiencies of reliably

outsourcing the maintenance and enhancement of Finacle solutions.

• Independent Validation Independent validation from Infosys focuses on enabling banks to function with minimal disruption. These services optimize

business outcome by ensuring that solutions have near-zero defects.

• Migration services Migration services from Finacle focus on enabling banks to upgrade their technology platforms to the latest version of

Finacle, with minimal business disruption. They are differentiated by the business-driven approach adopted.

• Performance Tuning (PTServ) Performance tuning from Finacle is designed to enable the customer to derive optimal system performance from the

Finacle suite of solutions. These services help identify potential performance bottlenecks and recommend changes, for immediate implementation.

• Software Performance Engineering Software performance engineering from Finacle provides performance and availability validation solutions for the

production environment. These enable banks to make critical decisions regarding investments, go-live readiness, new product introduction, mergers, acquisitions and business portfolio expansions.

• System Integration System integration from Finacle is based on an integrated approach to building responsive IT infrastructure and meeting the

critical needs of the banking business.• Value Mining Finacle value mining services enable banks to align business parameters in the Finacle environment to meet the rigours of

their continually optimizing business processes. This is facilitated by conducting structured studies in conjunction with the bank’s operations and IT teams. The service culminates in the submission of a detailed analysis report and the advisory

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Shareholding Pattern - 2010

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FINANCIAL SUMMARY

Financial Summary Comparison

22,742

6,219

22,268

14,804

21,693

5,975

17,846

10,289

0

5,000

10,000

15,000

20,000

25,000

Revenues Net Income AfterTaxes

Total Assets Cash and cashequivalents

Category

Am

ou

nt

in I

NR

Cro

res

2010

2009

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FINANCIAL SUMMARY

Category  2010 2009 Growth

Revenues INR 22,742 Crores INR 21,693 Crores 3%

Net Income After Taxes INR 6,219 Crores INR 5,975 Crores 2.50%

Earnings per ADS INR 109.82 INR 104.89 3.90%

Total Assets INR 22,268 Crores INR 17,846 Crores 24.80%

Cash and cash equivalents INR 14,804 Crores INR 10,289 Crores 43.90%

Comparison of 2010 with 2009 in terms of Growth

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Infosys is highly dependent on

North American and European

markets for 90% revenues…!!

Noth America63%

Europe 27%

India1% Rest of the world

9%

Revenue Break-up by Geography - 2010

Revenue Break up by Geography - 2010

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Revenues from US have

declined and that from

Europe improved.

Revenue growth from different geographical segments over years

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BFSI and Telecom contribute more

than 50% to revenues.

Banking, Financial services & Insurance36%

Manufacturing15%Telecom

21%

Retail12%

Others 16%

Break-up of Revenue by Industry Segment - 2010

Revenue Break up by Industry Segment- 2010

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Focus must shift from BFSI sector to other

sectors.

Revenue growth from Industry segments over years

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Infosys must move up the value chain –

concentrate more in consulting, BPO and

KPO business. 45%

6%24%

5%1%

3%

7% 5%4%

Revenue Break- up by Services Offered - 2010

Application, Development & Main-tenanceBusiness Process ManagementConsulting Services & Package Im-plementationInfrastructure ManagementProduct Engineering ServicesSystem IntegrationTesting ServicesOthersProducts

Revenue Break up by Services offered- 2010

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Market ForcesExternal Forces1.Political stability: Indian political structure is considered stable enough expect the fact that there is a fear of hung parliament‟ (no clear majority). 2. U.S. government has declared that U.S companies that outsource IT work to other locations other than U.S. will not get tax benefit. 3. Government owned companies and PSUs have decided to give more IT projects to Indian IT companies. 4. Terrorist attack or war. 5. Global IT spending (demand) 6. Domestic IT Spending (Demand): Domestic market to grow by 20% and reach approx USD 20 billion in 2008-09 - NASSCOM 7. Currency Fluctuation 8. Real Estate Prices: Decline in real estate prices has resulted reducing the rental expenditures.9. Attrition: Due to recession, the layoffs and job-cuts have resulted in low attrition rate. 10. ECOMONIC ATTRACTIVENESS due to cost advantage and other factors

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Market ForcesInternal Forces

1. Telephony: a) India has the worlds lowest call rates (1-2 US cents). b) Expected to have total subscriber base of about 500 million by 2010. c) ARPU for GSM is USD 6.6 per month. d) India has the second largest telephone network after china. e) Teledensity – 19.86 % f) Enterprise telephone services, 3G, Wi-max and VPN are poised to

grow. 2. Internet Backbone: Due to IT revolution of „90s, Indian cities and India is well connected with undersea optical cables. 3. New IT technologies: Technologies like SOA, Web 2.0, High-definition content, grid computing, etc and innovation in low cost technologies is presenting new challenges and opportunities for Indian IT industry.

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SWOT ANALYSIS OF INFOSYS

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STRENGTHS

Leadership in sophisticated solutions that enable clients to optimize the efficiency of their business

Proven “Global delivery model”

Commitment to superior quality and process execution

Strong Brand and Long-Standing Client Relationships

Status as an employer of choice

Ability to scale

Innovation and leadership

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WEAKNESSES

Excessive dependence on US for revenues – 67 % of revenues from USA

Excessive dependence on BFSI sector for revenues – 36 % of revenues from BFSI

Weak player in domestic market. Only 1 % of revenues from India – low as compared to peers

Low R & D spending as compared to global IT companies – only 1.3 % of total revenues

Rising wage bill – 42.9 % to 44.8 % of revenues

Low expertise in high end services like Consultancy and KPO.

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OPPORTUNITIES

Domestic market set to grow by 20%.

Expanding into new geographies – Europe, Middle East, etc

Infosys is cash rich (Around US $ 1 Billion) - Acquiring companies to increase expertise in Consultancy, KPO and package implementation capabilities

Opening offices and development centres in cost advantage countries such as those in Latin America and Eastern Europe.

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THREATS

The economic environment, pricing pressure and rising wages in India and overseas

Intense competition in the market for technology services could affect cost advantages.

High dependency on a small number of clients, and the loss of any one of the major clients could significantly impact business.

Failure to complete fixed-price, fixed-time frame contracts within budget and on time

Currency fluctuations

Termination of Client contracts can typically be terminated without cause and with little or no notice or penalty.

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SWOT MATRIX

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ANALYSIS OF STRATEGIES OF INFOSYS

Corporate level strategies: Core Strategies:

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Actions Taken:

1. To maintain low-cost advantage they have opened offices in Czech Republic, Mauritius, Poland, Philippines, Thailand and Mexico.

2. Invested in developing training centres

3. Improved quality capabilities – CMM level 5i company.

4. Infosys Consultancy established to provide high end services in value chain.

5. Has hedged currency for more predictability of revenues (risk management).

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GENERIC STRATEGIES:

1) Little differentiation in low-end services of value chain; high differentiation in high end services of value chain like software products and package solutions.

2) Focus on quality, customer relationship management, timely-delivery.

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Ansoff‟s Matrix:

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MARKET PENETRATION STRATEGY:

Current Markets: USA and Europe

Current Products: ADM, BPO, KPO, consultancy services (in BFSI, manufacturing and retail) and software products (financial products).

Recommendation: As most large clients in US and Europe are cutting costs, Infosys needs to be more aggressive on cost and quality front.

Result of strategy: Unlikely to yield good results

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MARKET DEVELOPMENT STRATEGY:

New Market: India, Middle-east and Australia

Current Product: ADM, BPO, KPO, consultancy services (in BFSI, manufacturing and retail) and software products (financial products).

Recommendation: Since these are fast developing IT market, Infosys needs a paradigm shift in focus from US and EU markets to these markets.

Result of strategy: Likely to yield good result.

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PRODUCT DEVELOPMENT STRATEGY:

Current Market: USA and Europe New

Product: Consultancy and package implementation services in relatively growing sectors esp. healthcare, life sciences and aviation sector, and KPO services.

Recommendation: Concentrate on building expertise in these domains by strategic acquisitions.

Result of Strategy: Likely to have good result. (better the company acquired, the better the result).

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DIVERSIFICATION:

New Market: India, Middle-east and Australia

New product: Consultancy and package implementation services in relatively growing sectors esp. healthcare, life sciences and aviation sector, and KPO services.

Recommendation: Changing Brand image from low value service provider to high value service provider.

Result of Strategy: Difficult to achieve overnight (possible in long term)

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OTHER STRATEGIES: CONCENTRATION: 90% of Infosys revenues from American and

European nations.

VERTICAL INTEGRATION: Infosys recently made a bid to acquire a European major – Axon consultancy to improve its business in European markets, but finally called off the deal due to high valuation. Otherwise, Infosys has always believed in organic growth.

INNOVATION: The Software Engineering and Technology Labs (SET Labs) at Infosys is the centre for applied technology research in software engineering and enterprise technology. SET Labs conducted 24 Innovation Workshops with customers from the US and Australia, to identify research collaboration possibilities. Infosys promotes a favourable work environment that encourages innovation and meritocracy.

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STRATEGY SUCCESSFUL OR

NOT…??

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Corporate Social Responsibility Corporate Social ResponsibilityAt Infosys, the distribution of wealth is as important as its legal and ethical creation. A strong sense of social responsibility is therefore an integral part of our value system.

Infosys FoundationWe are committed to contributing to the society and established the Infosys Foundation in 1996 as a not-for-profit trust to support our social initiatives. The Foundation supports programs and organizations devoted to the cause of the destitute, the rural poor, the mentally challenged, and the economically disadvantaged sections of the society.The Foundation also helps preserve certain cultural forms and dying arts of India. Grants to the Foundation aggregated Rs. 19 crore during the fiscal year 2007, as compared to Rs. 13 crore in the previous year.

Community serviceThrough our Computers @Classrooms initiative launched in January 1999, we donated 2,567 computers to various institutions across India. Additionally, we have applied to the relevant authorities for permission to donate computers to educational institutions on an ongoing basis in the future. Microsoft Corporation continues to participate in this initiative by donating relevant software. We would like to place on record our appreciation for their continued support.

Social commitment in educationInfosys' Education & Research group has the pride of anchoring the Infosys Extension Program (IEP), which consists of the Infosys Fellowship Program, Rural Reach program, Catch Them Young and Train the Trainer

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Annexure – Press Releases

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Thank You