Infosys BPO

Prepared by – Sandip Sharma

Brief Overview of the Company

Infosys BPO (formerly Progeon) was started as the business outsourcing subsidiary of
Infosys Technologies in 2002. It was started as a 74% and 26% joint venture between
Infosys and Citibank Investments. In 2006 Infosys bought out Citibank's share at a price
of Rs 592 per share. It operates in India, the Czech Republic, Australia, Canada, UK,
USA, China and Philippines (through a partner). In India, it has offices in Jaipur, Pune
and Gurgaon.
The current CEO and Managing Director is Amitabh Chaudhry.

Business Solutions
The various solutions are grouped into horizontal (functional) and vertical (industry)
solutions. The functional solutions are:
• Customer service
• Finance and accounting
• HR outsourcing
• Knowledge services
• Order management
• Procurement

The various industry solutions are:

• Banking
• Capital markets
• Telecom
• High tech discrete manufacturing (HTDM)
• Insurance
• Healthcare and life sciences
• Automotive and aerospace
• Retail and CPG
• Transportation and services
• Resources, energy and utilities

Major Customers
Could not get the list of clients, but it has signed a multi-million dollar outsourcing
contract with Royal Philips Electronics of Netherlands. As part of the agreement, Philips
will enter into a multi-year contract with Infosys BPO to provide Finance&Accounting
(F&A) services and the processing of purchasing orders. Infosys will also acquire three
shared service centers located in India, Poland and Thailand from Philips. Infosys BPO
has seen significant growth of over 70% in revenues and an increase in client base of over
one-third in FY2007.

Major Events in the company (M&A etc.)

• NelsonHall, a BPO analyst, has positioned Infosys BPO's Securities Processes
Outsourcing operations in the Leaders Quadrant (Oct 17, 2007)
• July 25 In a $250-million seven-year outsourcing deal, structured as an
acquisition, Infosys Technologies will take on board 1,400 employees of Royal
Philips Electronics in three nations including India. As part of the deal, Infosys
BPO will provide finance and accounting (F&A) services and the processing of
purchase orders to Philips.
• TV18 group has tied up with Infosys BPO to launch Source 18 to offer media and
entertainment outsourcing services. SOURCE 18 will provide a full spectrum of
services including digital archiving and metatagging, repurposing content, work
flow charting, ideation and re-editing to media and entertainment companies
globally.
• Mar 28’07 - Bottomline Technologies (NASDAQ: EPAY), a leading provider of
collaborative payment and invoice automation solutions, announced that Infosys
BPO, the business process outsourcing (BPO) subsidiary of Infosys Technologies,
will integrate Bottomline's capabilities for invoice automation into its outsourced
services offering for global corporate clients.

Financials
Infosys BPO is a subsidiary of Infosys Technologies and all the financial data given
below refers to the parent company.

(On BSE)

Year over year, Infosys Technologies Ltd. has been able to grow revenues from $2.2B to
$3.1B. Most impressively, the company has been able to reduce the percentage of sales
devoted to income tax expense from 3.25% to 2.72%. This was a driver that led to a
bottom line growth from $555.0M to $850.0M.
For financials please refer to
http://investing.businessweek.com/research/stocks/financials/financials.asp?symbol=INF
Y.O

Competitors
As per the 2006-07 exporter rankings released by NASSCOM
Rank Company
1 Genpact
2 WNS Global Services
3 Transworks Information Services
4 IBM-Daksh
5 TCS BPO
6 Wipro BPO
7 Firstsource solutions
8 HCL BPO
9 Infosys BPO
10 EXL Service Holdings
The ITES-BPO sector grew by 33.5 percent in the last fiscal contributing 8.4 billion
dollars to the total software and services exports of 31.4 billion dollars. Infy BPO closed
FY 2006-07 with revenues of $148 million.

Company Strategy
• Ranked No.1 in securities processing BPO business
• Wants to be in the top 5 of Finance and accounting BPO service players with the
Philips contract
• Infosys BPO has strong clients in the media sector like TV 18 group and National
Geographic Channel International