INFOSYS CONSULTING

Building Tomorrows Enterprise Group#2

Agenda An ITL Perspective

Infosys Consulting and Infosys Technologies

Strategic Position Culture Organization Structure Why IT Consulting Market segment in Consulting Structure Future action plan for IC and ITL

How well ITL doing?

Growing extremely quickly Head Count + Revenue 2nd largest s/w exporter by revenue CAGR ~ 26% Hiring +30,000 people annually Trying to push into new areas & become trusted business transformation partner Extremely successful at building business among most valued technology programs
ITL Revenue
Employees

2004 $1 Bn
25,000

2011 $6 Bn
130,000

ITL - Strategic Position

3 primary horizontal businesses

Transform primary focus of IC Operate Outsourcing engagements specific to IT application development & maintenance Innovate platforms & products that would enable ITL to use new avenue to serve clients

Reorganization (2011)

4 vertical industry units

Manufacturing High Tech, A&D, process & auto Financial Services Banking, Capital Markets & Insurance ECS Energy, Comm., Services, Media & Utilities RCL Retail, consumer packaged goods, Logistics & Life Sciences

ITL Culture

+130,000 people Avg Age of 27yrs Indian origin All doing the same thing Rigid Standards & Processes & Tools & Taxonomy & so forth Lack of latitude & flexibility

WHY Infosys Consulting?

Formation of IC Ambition of founders to be more than just offshore software developers Transform identified as one of three key horizontal business IC conceived to lead transformation business IC also responsible to utilize operation infrastructure built by ITL Consulting market segment Not only limited to developed economies but extended to BRICS, Mexico etc Large segment ( Accenture ~ $23bn, IBM~56bn,TCS ~6.7bn

Structure of Infosys Consulting

A new subsidiary Different business entailed different needs Parent company ITL relied on rigid standards and processes while consulting business required flexibility and risk taking Need to build a culture from scratch which could not have been possible without a new business entity Managerial leeway required to manage different growth trajectory and focus on transformation business

Future action plan for IC and ITL

Continue with Value Realization Method Hiring the right candidate that understands market(business) as well as IT IC to play transformation part and ITL to play Technology roles Executive Steering committees Refinement Penetrate into Indian Market G-Local taste Huge Potential in the Market Understanding cultural context essential for Consulting: With large number of Indians as employees this would be easier Sales process can be easier IC to leverage the ITL existing clients and bring technology projects for ITL Infosys Sales teams to be incentivized on ICI Business Organic Growth Like IBM Job Rotation

Appendix

Proposed Hierarchy
CXOs
Escalation Level -4

ITL
Executive Sponsors - Partners

IC
Escalation Level -3

ITL - Delivery Heads

IC Sr. Partners, Partners

Steering Committee
ITL Account Managers, Delivery Managers, Business Manager, Strategic Architects

Escalation Level -2

IC Sr. Consultants
Escalation Level -1

Working Committee
ITL Group Project Managers, Project Managers, Technology Leads, Architects

IC Associate Consultants

How IC supports or complicates ITL?

Intersection of Roles Overlap on P&Ls Career Mobility Confusion in understanding Vision

ITL Leadership says focus on customer value i.e business value through technology work IC Leadership says move the companys core value from customer delight to customer value even it is painful for the customer

Appendix-1: Talent Map over 24,000 employees globally

Appendix-2: Revenue Mix FY11

Total Revenue('000 USD)

120000000

100000000

80000000

60000000

40000000

20000000

0 2010 2009

Accenture 23094078 23170968

IBM 99870000 95758000

TCS 6669400 5331700

Wipro 6058000 5063000

Infosys 4804000 4663000

2010

2009

Appendix-3: VRM

Appendix