A Brief Overview of the Indian IT Industry & Infosys

February, 2006

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

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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) Page 3

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

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The Infosys Journey

2005

Infosys crosses USD 1.6B (05-06 projection $2.1B) in revenue and has over 49000 employees, with 454 clients

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Infosys this year will be a $2B organization

Europe:Amsterdam Brussels Frankfurt London Milan Paris Prague Stockholm Stuttgart Utercht Zurich

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

Canada: Toronto

USA: Atlanta Boston Charlotte Chicago Dallas Detroit Fremont Los Angeles New York Reston Seattle Argentina: Buenos Aires

India: Bangalore, Chennai, Pune, Bhubaneswar, Hyderabad, Mangalore, Mohali, Mysore, New Delhi, Mumbai, Trivendrum

Australia: Melbourne Sydney China: Beijing Shanghai Japan: Tokyo Hong Kong Mauritius Sharjah Singapore

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

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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

Business Process Outsorcing

Infrastructu re Managemen t Services

Independent Validation Services

Enterprise Enterprise Solutions Solutions

Systems Integration

Product Engineering and Embedded services

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, Strategy and Re-engineering and Products Transformati on Consulting

70% 65% 60% 55% 50% 45% 40% 35% 30% 25% 20%

68.30% 63.90% 63.70% 61.10% 58.90%

2004

Business Process Management Infrastructure Management Systems Integration Technology Consulting Technology-enabled BPR

38.90% 36.10% 31.70% 36.30%

41.10%

2001

2001

2002 ADM

2003 Non-ADM

2004

2005

1996

Enterprise Solutions Application Development and Maintenance

1981

Software Re-engineering Infrastructu re

People Organization

Process

Quality

Infosys Global Delivery Model

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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 (<11%) Stock options for all employees pioneer in India Training spend >5% 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 0.105 95

Infosys 0.026 97

Source Software Assessments, Benchmarks and Best Practices by Capers Jones (2000) Bangalore SPIN Phase 3 Report Apr 03

Delivered Defect Density Delivered Defects/ FP Overall Defect Removal % Effectiveness On-time Delivery Productivity Defect Density % of projects LOC/ Person Day Total Defects/ KLOC

66 52 12

94 65 6

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 High Confidence Levels in Delivery and Relationship Sustainable Learning Curve Advantages

What we offer

Ability to scale

Best People, Low Attrition and steep ramp-up capability

Global Presence and matured Delivery Models SEI CMMI Level 5 Processes and high quality focus

Quick Time to Market, Lower Costs Quality Delivered by a very few Companies worldwide

Express /Logistics Domain and diverse Technical Competence

Sound Methodologies, Repeatability

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What it brings to YOU

Thank You

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