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Creative IT Minds

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Creative IT Minds

  1. 1. © Infosys Technologies Limited 2005 - 06 Infrastructure Management Services Priti Rao Vice President – Infrastructure Management Services
  2. 2. Safe Harbor Certain statements made 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 quarterly report on Form 6-K for the quarter ended June 30, 2005. 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. Slide 2
  3. 3. Infrastructure Management Services at Infosys  Strong trend towards offshoring  High potential for growth  Cuts across industry verticals and geographies Pune Operations Center Parameter FY03 FY04 FY05 LTM June 2005 Revenue ($ m) 5.1 17.6 36.8 40.9 Delivery centers 1 1 2 3 Offshore Mix (%) 55% 58% 74% 75% Over 1,000 resources in the business unit Over 1,000 resources in the business unit Services have a focus on IT infrastructure services for global customers Customer testimonial “The Infosys team did extremely well in IT Infrastructure Management Services - we believe that this kind of support could not have been achieved by any other provider” - Steve Uthoff and JohnDel Mixon, CIO, SCI USA
  4. 4. Worldwide spending on external IT services, Outsourced and Discrete, 2003 through 2008 Gartner looks at externally provided IT services in three major categories: IT Outsourcing, BPO, and Discrete or project-based 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
  5. 5. State of 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
  6. 6. IMS services can be provided by offshore players at competitive prices Remote operations reduces costs and improves service levels Savings of 30% to 80% have been reported by customers after availing this opportunity – AMR, Nov 2004 Untapped customer base Infosys is more equipped in staying abreast of technological advancements Global players like Infosys for whom IT is the primary line of business are better equipped to attract, retain, and manage the right resources Infosys provides round-the- clock (24 x 7 x 365) infrastructure management Keeping pace with technology Large existing customer base Cost reduction proposition Attract and retain top talent Round-the-clock operations support Infosys - high quality at competitive prices
  7. 7. Data Center Management Servers Databases Mail Infrastructure Hosting Design Manage Technical Support / Service desk Application Operations Support ITSM Process Consulting Technical Helpdesk Service Desk Desktop Support Business Applications Enterprise Products Infrastructure Off-shorability ITSM Implementation ITIL / BS15000 Six Sigma Design / Model Support / Operate Network Management Enterprise Networks Telco Networks Network Devices Security Network Operations Centers Design Monitor / Manage Advise Implement Production Operations Monitor / Support Service offerings ITIL – IT Infrastructure Library, BS15000 – British Standard 15000, ITSM – IT Service Management,
  8. 8. Success Story : Data Center Management Device Category 24x7 12x5 8x5 Network 120 - - Storage 14 24 - Servers & OS 104 30 42 Security 21 - - Databases (Instances) 17 - 12 Applications 63 137 17 Delivery model for a large electronics manufacturer • Datacenter Management on 24X7 basis using Infosys Global Delivery Model • Migrating & consolidating datacenters within a tight deadline of 6 weeks • Delivering a support model that offers round-the-clock physical coverage globally • Monitoring/managing client’s IT Infrastructure based on ITIL best practices Tools - HP Openview, SolarWinds, Alteris, Siteminder, Netbackup, Sitescope, Autosys, etc. Technologies – SAP, Oracle, SQL Server, Lotus Notes, TIBCO, Webmethods, EDI Harbunger, GenTran, Custom Applications etc. Customer Benefits 1. Round-the-clock - 24x7 coverage from the earlier 12x5 provides higher service levels to client’s customers 2. Savings - Estimated at 30-40% in steady state in addition to providing greater coverage 3. Standards-based documentation to ensure “improved” incident resolution time. (Current Avg. Time/ Incident closure to be reduced by 35-40%) 4. Availability - Reworking vendor contract SLA on applications/ servers directly impacting ‘Service Availability’ 5. Improvements - Refining architecture and contingency planning
  9. 9. Infosys IMS 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 investments Large 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 force Process - BS15000 certification and ITIL best practices Strong HR Massive, scalable training model for infrastructure skills High employee satisfaction in 24x7 model Infosys’s 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. - IO, Firmenich
  10. 10. Challenges and strategy Challenge Strategy Pricing of infrastructure services • Differentiation through process strengths, new solutions, technology edge from Microsoft alliance • Innovative pricing to de-risk effort-based pricing e.g. service-based pricing Expectations on transition Focused transition management team with hundreds of person years of transition experience and best practices 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 e.g. BT, CDW Multilingual support Demonstrated ability in telecom provider story. Geared up with internal capability as well as alliances
  11. 11. © Infosys Technologies Limited 2005 - 06 Thank You www.infosys.com

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