This is very important

1. Financial Services
Ashok Vemuri
Vice President and Head – Banking and Capital Markets

2. Analyst Meet 2004 | New Game. New Rules.
© Infosys Technologies Limited 2004-2005
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,
2004 and quarterly report on Form 6-K for the quarter ended June 30, 2004. 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. Analyst Meet 2004 | New Game. New Rules.
© Infosys Technologies Limited 2004-2005
Agenda
» Introduction to the Financial Services Practice
» Market overview and client imperatives
» Financial Services Strategy
» Industry Expertise
» Risk management
» Solutions and Alliances
» Integrated Outsourcing
» Benefits of our new Strategy
» Q&A
Slide 3

4. Analyst Meet 2004 | New Game. New Rules.
© Infosys Technologies Limited 2004-2005
Banking and Capital
Markets
The financial services industry is the largest end-
user of Infosys’ services
Insurance &
Healthcare
ASIA-PACIFIC
EUROPE
• Financial Services is the largest contributor to Infosys’ revenues,
accounting for 34% of total revenues
• 74% of Financial Services revenues comes from North America
• The Banking Business Unit develops and markets the Finacle®
suite of
banking products and solutions
NORTH AMERICA
Europe Financial
Services Practice
Asia-Pacific Financial
Services Practice
Global Accounts
Banking Business Unit (Finacle Banking products)
Slide 4

5. Analyst Meet 2004 | New Game. New Rules.
© Infosys Technologies Limited 2004-2005
It contributes to over a third of company revenues
and has been growing at a CAGR of 39 percent
REVENUE BY INDUSTRY VERTICAL (Q1 05)
283
416
200
389
FY 02
FINANCIAL SERVICE REVENUE ($ M)
FY 03 FY 04
34.0%
15.0%
17.9%
11.4%
21.7%
Manufacturin
g
Financial
Services
Telecom
Others
Retail
CAGR=39%
Number of active clients
Number of large clients*
$ 30 m+
$ 5 m+
Practice Strength
: 127
: 5
: 13
: 8,500
Consulting & Package
Implementation
ADM
Testing and Re-engg.
Others
: 12.8%
: 55.5%
: 11.8%
: 19.9%
KEY METRICS REVENUE PROFILE
LTM Q1 05
Slide 5

6. Analyst Meet 2004 | New Game. New Rules.
© Infosys Technologies Limited 2004-2005
We service the complete spectrum of the
financial services industry…
Treasury
Retail Banking &
Cards
Transaction Banking
Corporate & Credit
Private Banking
Investment
Management
Custody
Depository &
Exchanges
Diversified Financial
Brokerage
Insurance
Banking Capital Markets
Advisory Services
Leasing & Finance
Benefits
Administration
Trust Services
Travel Related
Services
Specialty Finance Health Care
Life Insurance
Property & Casualty
Insurance
Brokerage
Re-Insurance
Slide 6

7. Analyst Meet 2004 | New Game. New Rules.
© Infosys Technologies Limited 2004-2005
CAPABILITIES
• Global Sourcing Strategy
• Portfolio Rationalization
• Benchmarking & Best Practices
STRATEGIC
PLANNING
BUSINESS
TRANSFORMATION
OPERATIONAL
EFFICIENCY
RISK
MANAGEMENT &
COMPLIANCE
CUSTOMER &
REVENUE
MANAGEMENT
• Org-wide BPR
• Post-Merger Integration
• Time-To-Market Reduction
• Straight Through Processing
• Claims Process Automation
(Paperless office)
• Process & System Optimization
• CMM & Six-Sigma Consulting
• Anti-Money Laundering, HIPAA
• Trading Compliance
• Basel II
• Sarbanes Oxley
• Unified Customer View
• Data Management
• Pricing Strategy
• Client Reporting
ADM &
ENHANCEMENT
BUSINESS
PROCESS
OUTSOURCING
INFRASTRUCTURE
MAINTENANCE
BUSINESS
CONSULTING
… through a suite of end-to-end business
advisory and execution services
SERVICES
PROGRAM
MANAGEMENT
Slide 7

8. Market Overview and Client Imperatives
Slide 8

9. Analyst Meet 2004 | New Game. New Rules.
© Infosys Technologies Limited 2004-2005
154
145
136
114
129
123
WORLDWIDE FINANCIAL SERVICES IT SERVICES
SPENDING ($ Billion)
The worldwide financial services industry spends
about $129 billion annually on IT services
Source – Gartner
FY 02 FY 04 FY 06
FY 03 FY 05 FY 07
CAGR
6.3%
 Technology is one of the top 5 business issues
for financial services CEOs
 The financial services industry represents the
largest market for IT Services spending
worldwide
 Financial institutions have been at the
forefront of global sourcing both in technology
as well as in operations
 We are now seeing growth in all segments in
this industry, due to the recovery in the US
and world economy
 Several other drivers are also contributing to
this growth:
» The quest for competitive advantage
» M&A related IT integration
» Regulatory mandates (e.g. Patriot Act,
AML, HIPAA, Basel II, etc.)
 The era of buying technical expertise is on
its way out and that of buying business-IT
expertise is emerging
Financial Services IT Services –
Key Facts
Slide 9

10. Analyst Meet 2004 | New Game. New Rules.
© Infosys Technologies Limited 2004-2005
Certain mega trends are driving clients strategies and
expectations from service providers - THE NEW GAME
 Improve customer management –
increase cross-sell and reduce churn
 Increased regulatory oversight – focus
on risk management & compliance
 Global Sourcing for competitive
advantage
 Growing global competition and entry
of non-traditional competitors
 Increased complexity and
sophistication of financial products and
services
 Importance of scale leading to industry
consolidation through M&As
 Increased use of technology to deliver
products and services
 Cost reduction though operational
improvement
FINANCIAL SERVICES MEGATRENDS CLIENT EXPECTATIONS
 Global sourcing and delivery capability
critical to IT services purchase
– Deep knowledge, not just familiarity, on
their industry vertical and sub-vertical
– Familiarity with market actualities
– Pure low cost strategy by itself is
inadequate
 Expectation of partner size and scale
– Risk Management
– Ability to scale and rapidly
– Potential for strategic partnerships
 Expectation of providing an integrated
operations and technology offering
 Ability to provide industry-focused
solutions rather than plain vanilla
services
Slide 10

11. Infosys Strategy to meet Client
Expectations
Slide 11

12. Analyst Meet 2004 | New Game. New Rules.
© Infosys Technologies Limited 2004-2005
Our strategic response is driven by client
imperatives
 Increase focus on building
domain and process skills
 Achieve partner-of-choice status
through process innovation to
provide low risk and high value
solutions and services
 Develop industry-focused
services and business solutions
internally or through third party
alliances
 Provide an integrated, end-to-
end, outsourcing service
OUR RESPONSE AND FOCUS 2004+
 Global sourcing critical to IT services
purchase
– Deep knowledge, not just familiarity, on
their industry vertical and sub-vertical
– Pure low cost strategy is inadequate
 Importance of partner size and scale
– Risk management
– Ability to scale
– Potential for strategic partnerships
 Need for an integrated operations and
technology offering
 Need for industry-focused solutions
rather than plain vanilla services
CLIENT EXPECTATIONS
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13. Analyst Meet 2004 | New Game. New Rules.
© Infosys Technologies Limited 2004-2005
 Increase focus on building subject
matter expertise across the
organization
 Achieve partner-of-choice status
through low risk (and high value)
proposition
 Develop industry-focused services
and business solutions internally or
through alliances
 Provide integrated, end-to-end,
outsourcing services
We are investing in our people to build depth and
breadth of industry expertise…
OUR RESPONSE AND FOCUS 2004+ BUILD SUBJECT MATTER EXPERTISE
 Emphasis on recruiting business
consultants and analysts, both in local
markets and India, with structured
training programs delivered in-house
(banking, securities, insurance)
 Aggressive focus on domestic and
international certifications (NCFM,
Securities Institute UK, GARP, Certified
Treasury Professional, LOMA, HIPAA,
Actuarial Certification, etc)
 Quantify various key assets from existing
projects to leverage innovation and
enhance capability for new initiatives
Large Investment Manager & Benefits Administrator
• Conducted classroom training, offsite working programs and brown-bag
lunch sessions to build subject matter expertise
• Problem solving was built into the training programs
• Shared standard industry templates, guidelines, and process highlights
• Also helped build a documentation library
Benefits
• Rapid account ramp-up (20 times within 6
months) while maintaining & improving quality
• Condensed implementation time by ~25-35%
• Infosys now considered as Benefits Experts to
end-users of the client
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14. Analyst Meet 2004 | New Game. New Rules.
© Infosys Technologies Limited 2004-2005
…and are taking steps to ensure Infosys remains
the highest value & lowest risk provider
 Increase focus on building subject
matter expertise across the
organization
 Achieve partner-of-choice status
through low risk (and high value)
proposition
 Develop industry-focused services
and business solutions internally or
through alliances
 Provide integrated, end-to-end,
outsourcing services
OUR RESPONSE AND FOCUS 2004+ RISK MITIGATION FOR CLIENTS
 Leverage multiple world-wide and
Indian locations to mitigate
geographical concentration risk
 Appointment of Chief Risk Officer for
key accounts
 Disaster Recovery and Business
Continuity plan for all accounts
Leading US Retail and Investment Bank
• Appointed a Chief Risk Officer for the account
• Conduct semi-annual Business Continuity Planning exercise
• Conduct external & internal audits to asses information security risks
• Quarterly review of Gramm Leach Bliley compliance
• Compliance with BS7799 security standards
Benefits
• Infosys now ranked as the lowest risk and
highest value service provider
• Significant reduction in account risk leading to
faster adoption of outsourcing
• Business has grown by more than 240% in the
last 1 year
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15. Analyst Meet 2004 | New Game. New Rules.
© Infosys Technologies Limited 2004-2005
Our response is a solutions-led strategy that will quickly address
common business and technology problems for our clients
 Increase focus on building subject
matter expertise across the
organization
 Achieve partner-of-choice status
through low risk (and high value)
proposition
 Develop industry-focused services
and business solutions internally or
through alliances
 Provide integrated, end-to-end,
outsourcing services
OUR RESPONSE AND FOCUS 2004+ DEVELOP INDUSTRY-FOCUSED SOLUTIONS
 Solutions comprise process know-how,
domain and industry expertise and strong
technology competency
 Solutions have been identified after
extensive client validation (Exceptions
Management, AML, Claims Process
Automation, etc)
 Forged alliances with established and
emerging technology vendors focused on
this industry
AML Solution for a Leading Investment Bank
• Leveraged engagement experience to develop solution for Anti-Money
Laundering
• Partnered with leading AML technology provider – Mantas
• Conducted training programs on regulatory compliance and AML to
build expertise
Benefits
• Significant traction on regulatory compliance
engagements
• Compliance solution has attracted higher
margin consulting & solutions business
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16. Analyst Meet 2004 | New Game. New Rules.
© Infosys Technologies Limited 2004-2005
We are also redefining our established outsourcing model
to offer a seamless IT & Operations offering to our clients
OUR RESPONSE AND FOCUS 2004+ INTEGRATED OUTSOURCING
 Integrate Technology & Operations at the
strategic, operational and tactical level using
our GDM to ensure long term value
 Strategic Level
 At the Board level to capture value and
provide direction
 Operational level
• Change Management and Organization
changes to facilitate integration
 Tactical Level
• IT Awareness of Operations
• Process Application Clustering
• Innovation Management
 Integrated service offering with Progeon
 Increase focus on building subject
matter expertise across the
organization
 Achieve partner-of-choice status
through low risk (and high value)
proposition
 Develop industry-focused services
and business solutions internally or
through alliances
 Provide integrated, end-to-end,
outsourcing services
Leading mortgage and investment products firm
• Client wanted to reduce its total cost of loan servicing operations
• Infosys recommended IT & process improvements in loan servicing
operations including redesigning and implementing several applications
( loan origination, reporting & workflow and customer service)
• Progeon provided mortgage back office functions such as loan servicing,
financial accounting and customer support
Benefits
• Client ramp-up of over 300%
• Savings of more than $5 million a year for client
• 100% increase in transactions handled per day
• 70% improvement in rate confirmation
turnaround time
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17. Analyst Meet 2004 | New Game. New Rules.
© Infosys Technologies Limited 2004-2005
The structure for the next generation company-
the new rules of the new game.
Global
Majors
• Next Generation GDM
– Seamless delivery
– Scalability
• Solution-led Selling
• Deep Industry
Knowledge
• Client Engagement &
Account Mgmt
• Process Maturity
• Talent Attraction &
Retention
Offshore
Players Infosys
Weak
Very Strong
Execution
Ability
Industry
Competence
Execution
Ability
Industry Competence
High
Low
High
Global
Majors
Infosys
Offshore
Players
“Over the years, [Infosys] has developed the domain expertise to service
the financial services community and offers support for such core
business responsibilities as asset management, investment banking,
brokerage services, risk management and custody and clearing.” –
Waters Financial Publication
Slide 17

18. Thank You