Infosys Story So Far
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Infosys Story – So Far Kris Gopalakishnan Chief Operating Officer Member of the Board and Co-founder Infosys Technologies Ltd.
Infosys Today Global Headquarters:
Bangalore, India
Founded:
1981
India IPO: ADS Offerings:
1993 1999, 2003 & 2005 (Secondary)
Global Presence:
32 Sales Offices in 16 Countries 33 Development Centers
Employees:
40,000+
FY 05* Revenue / 5 Year CAGR:
$1,592 million / 51%
FY 05* Net Income / 5 Year CAGR:
$419 million / 47%
Services:
Consulting, IT Services, BPM
* Fiscal Year end March 31
2
Infosys Through the Years
Big Leap
Growth
III
Run Up Foothold I 1981
1992 3
II 1999
Phase I – Getting the Foothold
Working with Shackles • • • • • • •
Command and Control Economy Import Restrictions Punitive taxes Under-developed Capital Markets Foreign exchange controls Capital shortage for Infrastructure Investments Poor Telecom Infrastructure
5
Strategy during Phase I • Onsite Focus • Few Large Customers • Indirect Sales
6
Phase II – The Run-up
Seeds of an IT Boom •
Liberalization of the Economy – Abolishing of Licenses – Rationalization of taxes – Export incentives – Rationalization of tariffs – Abolishing of wealth tax on productive assets – Foreign exchange reforms – Free pricing of IPOs – Encouraging Foreign Institutional Investments – Employee stock option plans – Setting up of Software Technology Parks
8
Market Opportunities • Entry of multi-nationals and acceptance of India as a software sourcing location • Y2K problem • Client Server computing • Internet and telecom boom
9
Strategy during Phase II • • • •
IPO in India in 1993 Nasdaq listing in 1999 Global investor base Investment in sales, marketing, systems & processes, quality systems, training, world class development centers • Brand building
10
Strategy during Phase II • Global Benchmarking – International accounting norms – World-class Quality • 1993 - Among the first Indian companies to be ISO 9001 certified • 1997 - First to be assessed at SEICMM Level 4 • 1999- Assessed at SEI Level 5 • 1999- Infosys featured in the first ever case study of successful CMM implementations, worldwide
11
Strategy during Phase II • Global Delivery Model – Do work where it makes economic sense and reduce the total cost of ownership – Continuous work-day to reduce time to market – Ramp up resources in multiple continents
Client Location
Offshore Development Centers
Project
Analysis and planning High level design User interface design Project co-ordination Onsite testing Implementation
Project
Post implementation support
Rapid reaction support
Post implementation support
12
Project management Detailed design Coding Testing Documentation
Bug fixes Warranty support Maintenance
Strategy during Phase II • Employee attraction and retention – Innovative HR practices – World class training program and infrastructure – Knowledge Management – World class physical infrastructure – Employee Stock Option Plan – Employer of choice in India
13
Phase III – The Big leap
Market Environment • Globalization, Deregulation and Consolidation are changing businesses fundamentally • Financial markets are integrated and capital flows globally • Increasing competition from developing economies • India and China are creating large markets
15
Technology Trends • Vast and low cost telecom infrastructure – ubiquitous connectivity • Ubiquitous computing • Internet • Mobile and personal devices • Intelligent appliances
16
Enterprise Challenges Today • • • • •
Global competition Rapid changes in technology Rapid business process changes Emergence of technology intensive business models Business process standardization and integration across organizations • Reduced time to market for new products and services • Knowledgeable consumers
17
Strategy for Phase III • • • •
Scalable business Value added services Business solution focus End-to-end capabilities – Consulting – IT services – Business Process Management • Modular Global Sourcing (MGS) • Large Development Centers – India & China
18
Lessons learned • • • • • • •
Right team Team commitment Vision – Global, Changing the world Excellence in execution Values – C-LIFE Sharing of wealth increases the pie Build institutions
19
Thank You [email protected]
Infosys Today Global Headquarters:
Bangalore, India
Founded:
1981
India IPO: ADS Offerings:
1993 1999, 2003 & 2005 (Secondary)
Global Presence:
32 Sales Offices in 16 Countries 33 Development Centers
Employees:
40,000+
FY 05* Revenue / 5 Year CAGR:
$1,592 million / 51%
FY 05* Net Income / 5 Year CAGR:
$419 million / 47%
Services:
Consulting, IT Services, BPM
* Fiscal Year end March 31
2
Infosys Through the Years
Big Leap
Growth
III
Run Up Foothold I 1981
1992 3
II 1999
Phase I – Getting the Foothold
Working with Shackles • • • • • • •
Command and Control Economy Import Restrictions Punitive taxes Under-developed Capital Markets Foreign exchange controls Capital shortage for Infrastructure Investments Poor Telecom Infrastructure
5
Strategy during Phase I • Onsite Focus • Few Large Customers • Indirect Sales
6
Phase II – The Run-up
Seeds of an IT Boom •
Liberalization of the Economy – Abolishing of Licenses – Rationalization of taxes – Export incentives – Rationalization of tariffs – Abolishing of wealth tax on productive assets – Foreign exchange reforms – Free pricing of IPOs – Encouraging Foreign Institutional Investments – Employee stock option plans – Setting up of Software Technology Parks
8
Market Opportunities • Entry of multi-nationals and acceptance of India as a software sourcing location • Y2K problem • Client Server computing • Internet and telecom boom
9
Strategy during Phase II • • • •
IPO in India in 1993 Nasdaq listing in 1999 Global investor base Investment in sales, marketing, systems & processes, quality systems, training, world class development centers • Brand building
10
Strategy during Phase II • Global Benchmarking – International accounting norms – World-class Quality • 1993 - Among the first Indian companies to be ISO 9001 certified • 1997 - First to be assessed at SEICMM Level 4 • 1999- Assessed at SEI Level 5 • 1999- Infosys featured in the first ever case study of successful CMM implementations, worldwide
11
Strategy during Phase II • Global Delivery Model – Do work where it makes economic sense and reduce the total cost of ownership – Continuous work-day to reduce time to market – Ramp up resources in multiple continents
Client Location
Offshore Development Centers
Project
Analysis and planning High level design User interface design Project co-ordination Onsite testing Implementation
Project
Post implementation support
Rapid reaction support
Post implementation support
12
Project management Detailed design Coding Testing Documentation
Bug fixes Warranty support Maintenance
Strategy during Phase II • Employee attraction and retention – Innovative HR practices – World class training program and infrastructure – Knowledge Management – World class physical infrastructure – Employee Stock Option Plan – Employer of choice in India
13
Phase III – The Big leap
Market Environment • Globalization, Deregulation and Consolidation are changing businesses fundamentally • Financial markets are integrated and capital flows globally • Increasing competition from developing economies • India and China are creating large markets
15
Technology Trends • Vast and low cost telecom infrastructure – ubiquitous connectivity • Ubiquitous computing • Internet • Mobile and personal devices • Intelligent appliances
16
Enterprise Challenges Today • • • • •
Global competition Rapid changes in technology Rapid business process changes Emergence of technology intensive business models Business process standardization and integration across organizations • Reduced time to market for new products and services • Knowledgeable consumers
17
Strategy for Phase III • • • •
Scalable business Value added services Business solution focus End-to-end capabilities – Consulting – IT services – Business Process Management • Modular Global Sourcing (MGS) • Large Development Centers – India & China
18
Lessons learned • • • • • • •
Right team Team commitment Vision – Global, Changing the world Excellence in execution Values – C-LIFE Sharing of wealth increases the pie Build institutions
19
Thank You [email protected]
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