© infosys technologies limited 2005 - 06 infrastructure management services jeffrey bannister...
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© Infosys Technologies Limited 2005 - 06
Infrastructure Management Services
Infrastructure Management Services
Jeffrey Bannister
Associate Vice President - IMS
November 11, 2005 © Infosys Technologies Limited 2005 - 06
Safe HarborSafe Harbor
Certain statements in this Analyst Meet concerning our future growth prospects are forward-looking statements, which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, intense competition in IT services including those factors which may affect our cost advantage, wage increases in India, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, restrictions on immigration, industry segment concentration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks or system failures, our ability to successfully complete and integrate potential acquisitions, liability for damages on our service contracts, the success of the companies in which Infosys has made strategic investments, withdrawal of governmental fiscal incentives, political instability and regional conflicts, legal restrictions on raising capital or acquiring companies outside India, and unauthorized use of our intellectual property and general economic conditions affecting our industry. Additional risks that could affect our future operating results are more fully described in our United States Securities and Exchange Commission filings including our Annual Report on Form 20-F for the fiscal year ended March 31, 2005 and our reports on Form 6-K. These filings are available at www.sec.gov. Infosys may, from time to time, make additional written and oral forward-looking statements, including statements contained in the company's filings with the Securities and Exchange Commission and our reports to shareholders. The company does not undertake to update any forward-looking statements that may be made from time to time by or on behalf of the company.
November 11, 2005 © Infosys Technologies Limited 2005 - 06
State of the businessState of the business
Services have a focus on IT infrastructure services for
global customers
Pune Operations Center
Parameter FY03 FY04 FY05 LTM Sep 2005
Revenues ($ m) 5.1 17.6 36.8 46.7
Delivery centers 1 1 2 3
Offshore Mix (%) 55% 58% 74% 78%
Over 1,100 resources in the business unitOver 1,100 resources in the business unit
Data Center Management
Technical Support /
Service desk
NetworkManagement
ITSM Process Consulting
Application Operations
Support
Strong trend towards offshoring
Cuts across industry verticals and
geographies
High potential for growth in all service towers
November 11, 2005 © Infosys Technologies Limited 2005 - 06
Trends in the marketTrends in the market
Trends
Offshore infrastructure management - A strong emerging trend
Potential - Bulk of Infrastructure Management Services can be offshored
Increasing complexity
Deals are becoming more modular
Selective outsourcing (help desk, email, security / network) growing
Outsourcing including asset / people transfer is approaching decline
Market size
By 2006, Infrastructure Services delivered in a Global Delivery Model from India to US companies will surpass $1 billion (80% probability) – Gartner
Services most likely to be sent to an offshore location
Forrester S-Curve on infrastructure trends
November 11, 2005 © Infosys Technologies Limited 2005 - 06
Trends in the market - Worldwide spending on external IT services, Trends in the market - Worldwide spending on external IT services,
IT outsourcing includes Infrastructure Outsourcing, which consists of Data Center Outsourcing, Desktop Outsourcing, Network Outsourcing and Enterprise Application Outsourcing. The combined Infrastructure Outsourcing segments equal 80 percent of the total outsourcing spending
Data Center Management
ServersDatabases
Mail InfrastructureHosting
DesignManage
Technical Support /
Service desk
Application Operations
Support
ITSM Process
Consulting
Technical HelpdeskService Desk
Desktop Support
Business Applications Enterprise Products
Infrastructure Off-shorability
ITSM ImplementationITIL / BS15000
Six Sigma
Design / ModelSupport / Operate
NetworkManagement
Enterprise Networks
Telco NetworksNetwork Devices
SecurityNetwork Operations
Centers
DesignMonitor / Manage
AdviseImplement
ProductionOperations
Monitor / Support
ITIL – IT Infrastructure Library, BS15000 – British Standard 15000, ITSM – IT Service Management,
November 11, 2005 © Infosys Technologies Limited 2005 - 06
Distinguishing strengthsDistinguishing strengths
Bangalore Operations Center
Management commitment and willingness to invest in IMS
Board-level sponsorship for IMS business
Infosys has outstanding customer references - AMR report, Nov 2004
Largest offshore-based network management engagement with a large European telecom service provider (size of 150-300 FTE’s)
Infrastructure and technology investmentsLarge high-capacity global IP network. 3 large Global Management Centers
Centers of Excellence - Competency building – certifications in technology, process and project management
Best-of-breed tools including BMC and leveraging Microsoft solutions
Strong business pursuit process - Effective cross-selling and enabled sales forceProcess - BS15000 certification and ITIL best practices Strong HR
Massive, scalable training model for infrastructure skillsHigh employee satisfaction in 24x7 model
Infosys strong results are because of its outstanding customer references for both the service offering and customer
relationship management. - AMR Research Report on Data center management – November 2004
First time we came in after Christmas and could start production without waiting for systems. I am proud of all of you at Infosys, and look forward to achieving more with you in providing cost-effective services to the our business. - CIO, Firmenich
November 11, 2005 © Infosys Technologies Limited 2005 - 06
Challenge Strategy
Pricing of infrastructure services » Element based pricing vs. traditional FTE
• Differentiation through process strengths, new solutions, technology
platforms and alliance partners
Security compliance and business
continuity planning for mission critical
services
Multiple levels of security tailored to customer needs. Disaster
recovery plans agreed and signed off
Service levels in remote management Strong process-oriented mechanism for operational level and
service level agreements definition and pyramid reporting
Asset acquisition Openness to new deal models and capability through strong
Partnerships.
Multilingual support Leverage corporate investments in Eastern Europe and China
Demonstrated ability in telecom provider story. Geared up with
internal capability as well as alliances
Challenges and how are we addressing them Challenges and how are we addressing them
© Infosys Technologies Limited 2005 - 06
Thank YouThank You
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