Eco Ppt
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Transcript of Eco Ppt
HighlightsHighlights
• Background
• Next generation business Model
• Market opportunities
• Comparison study of Infosys
• Financials
• Challenges
• Recommendations & conclusion
They changed the way the world looks at India.They changed the way the world looks at India.
BackgroundBackground
• NASDAQ listed global consulting and
IT services company
• Established in 1981
• Grown from a capital of US$ 250 to
become US$ 4 billion company
• Infosys pioneered the Global
Delivery Model (GDM)
• Industry-wide preferred employer
• Has won the BEST award from the
American Society for Training and
Development (ASTD)
Next generation business Model of InfosysNext generation business Model of Infosys
Expand addressable markets
Build relationships and trust
Develop competencies and capabilities
GeographicalFootprint
VerticalFootprint
ServicesFootprint
ClientRelationships
TrustedBrand
OperationalExcellence
Expanding The Global Delivery Model
Best-in-classPeople
World-classInfrastructure
Five subsidiaries:
1. Infosys BPO Limited,
2. Infosys Technologies (Australia) Pty. Limited,
3. Infosys Technologies (China) Company
4. Limited, Infosys Consulting, Inc.
5. Infosys Technologies S. deR. L. de C. V. (FY08)
Five step-down subsidiaries: (FY08)
• Infosys BPO S.R.O.,
• Pan Financial Shared Services India Private Limited,
• P-Financial Services Holdings B. V.,
• Infosys BPO (Poland) Sp. Z.o.o, and Infosys
• BPO (Thailand) Limited.
Geographical footprintGeographical footprint
Geographical footprintGeographical footprint
Finacle® 10, the universal banking solution, further expanded its global footprint
Revenue by Geography
North AmericaEuropeIndiaRest of the World
• Reorganized the business units,
• Differentiate vis-à-vis our competitors
• Enhance “One-Infy” experience and broaden customer base
• Strengthen our current portfolio through scale benefits
• 6 vertical Industry Business Units (IBUs) :Manufacturing, Banking, Financial Services & Insurance, Telecom, Retail, Energy & Utilities, Transportation & Logistics
Revenue by Industry Vertical
Insurance, Banking & Financial ServicesManufacturingTelecomRetailOthers
Vertical footprintVertical footprint
Service footprintService footprint
Enhance the portfolio of solutions new service offerings have been added, such as • Consulting, • Business process management, • Systems integration• Infrastructure management• Product engineering services
Increased contribution from new services (% to total revenue)
0
10
20
30
40
50
60
2004 2005 2006 2007 2008
Other Services
Product Engineering Services
Business ProcessManagement
Infrastructure Management
Testing Services
Consulting Services andPackage Implementation
Client relationships
Large, Growing Client Relationships Increasing Share of WalletRevenue Contribution by Years of Relationship
Execution excellence resulted in high share of repeat business(97% in FY 08)
Operational excellenceOperational excellence
Utilization rate based on standard hours, calculated by dividing direct labor hours for the period by total standard hours for the period.
• Enhanced focus on tools and reuse to improve productivity
• 2 patents issued, 199 patent applications pending with USPTO
• In February 2007, Infosys BPO was certified for eSCM level 4.0
• In August 2007, Infosys China was appraised at Level 5 of the latest CMMI model, v1.2. It is the first company in China to hold this certification.
69.5%70.9%
77.6% 77.3%
2007 2008
Including Trainees
Excluding Trainees
Utilisation Rate *
30.1 29.8
69.9 70.2
2007 2008
Onsite (%)
Offshore (%)
Onsite Mix *
Brand valueBrand value
• Diamond Award for the best global brand campaign in the category of Sharpening Brand and Competitive Differentiation from the IT Services Marketing Association (ITSMA)
• Extensive coverage in global tier 1 media• Newsweek referred to us as a “Titan of globalization” • Time magazine commented on our professionalism with the headline “Meritocracy is
the model” • BusinessWeek, The Independent, The Guardian, Financial Times, BBC World, CNBC
and CNN covered Infosys during the year• Featured on leading online business and technology destinations like www.cio.com,
www.businessweek.com and www.forbes.com• Best Investor Relations Website and Company with Best Corporate Governance Practices
in Investor Relations (IR) Global Rankings 2008 in APAC categories• The Reputation Institute named Infosys, a globally respected company• Moved up to No 14 on Fintech 100, an international listing of the top 100 global application
and service providers• Named Best Outsourcing Partner in Waters Readers’ Survey• Fortune’s Top 10 Companies for Leaders• Among several client awards, together with our client BT, awarded the National
Outsourcing Association award for Innovative Outsourcing Project for 2007
Global Delivery Model - ExpansionGlobal Delivery Model - Expansion
Human resource managementHuman resource management
» Industry wide preferred employer
» Global hiring
» Tapping non-traditional labor pool− Employing non-engineers for infrastructure
management, testing and BPO
− Proactive assistance provided to India’s
educational system to produce engineers with high quality software skills
Human resource managementHuman resource management
9.711.2
13.7 13.4
2005 2006 2007 2008
Att rition (%)
77.6% 77.3%
69.5%70.9%
2007 2008
Including Trainees
Excluding Trainees
Utilization rate
Human resource managementHuman resource management
Employee value and retention
Corporate Social ResponsibilityCorporate Social Responsibility
Empowering society:
Creating sustainable frameworks with educational institutes
Dedicated team to reach out the underprivileged
Board level members contribute in the advisory council of NGOs and civil bodies
Employee level, location wise CSR teams address local requirements
5 key CSR themes
• Education
• Healthcare
• Art & culture
• Rural up-liftment
• Inclusive growth
Market opportunitiesMarket opportunities
Market opportunitiesMarket opportunities
Comparative study - InfosysComparative study - Infosys
Revenue by geography
Comparative study - InfosysComparative study - Infosys
Client industry / vertical domain
Comparative Study – InfosysComparative Study – Infosys
Type of contract comparison
Financial analysisFinancial analysis
Ratio analysis
Financial analysisFinancial analysis
Financial analysisFinancial analysis
Financial analysisFinancial analysis
Financial analysisFinancial analysis
Economic Value-Added (EVA®)
Economic value-added measures the profitability of a company after taking into account the cost of capital.
2007: Rs.2122 crore
2008: Rs.2286 crore
Increased by 7.8% as compared to last year
Financial AnalysisFinancial Analysis
Financial analysisFinancial analysis
Financial analysisFinancial analysis
Short-term and long-term challengesShort-term and long-term challenges
Short-term
• Uncertain economic environment
Long-term
• Resource availability
• Ability to expand addressable market
• Wage inflation
• Stronger rupee
• Increase in tax rate
Recommendations and conclusionsRecommendations and conclusions
Recommendations
• Reduce its attrition rates and retain their best employees.
• Adopt the policy of performance benchmarking
• Infosys should increase its onshore business.
Conclusions
• Highly liquid
• High quality receivables Superior Return on Invested Capital and Capital Employed than benchmarks
• Zero debt
• Dividends upto 30% of annual post-tax profits
Presented by:
Roll no. Name
8175 Zeenal Jhobalia (Shah)
8017 Ashish Vasandani
8019 Asutosh Mehta
8020 Avinash Gore
Presented by:
Roll no. Name
8175 Zeenal Jhobalia (Shah)
8017 Ashish Vasandani
8019 Asutosh Mehta
8020 Avinash Gore
– N. R. Narayana Murthy, Chairman and Chief Mentor
“Our core corporate assets walk out every evening. It is
our duty to make sure that these assets return the
next morning, mentally and physically enthusiastic
and energetic.”
“Our core corporate assets walk out every evening. It is
our duty to make sure that these assets return the
next morning, mentally and physically enthusiastic
and energetic.”
www.infosys.comThank YouThank You