1、C H A N G I N G M I N D S E T S|1I N F O S Y S A N N U A L R E P O R T 2 0 0 5-0 6“Make no little plans;they have no magic to stir mens blood.”Daniel Hudson BurnhamVisionary Architect001_024.p655/8/2006,11:23 AM12|C H A N G I N G M I N D S E T SI N F O S Y S A N N U A L R E P O R T 2 0 0 5-0 6What c
2、an one say about the coming of age of a child youloved,nurtured and protected?A child whose successesyou rejoiced,and whose failures you suffered quietly.Commitment,admiration and affection for Infosys areunparalleled among my colleagues,who have always putthe interest of this child first in every t
3、hing they do.Completing 25 years is a watershed event in a personslife.It signals the arrival of a strong,confident youngperson,who is ready to take on bigger challenges.Energy,enthusiasm,confidence,idealism,daring,openness andcuriosity find utterance and fruition.Nothing seemsimpossible.This is the
4、 time you move on to higheraspirations,and learn to accept failures with equanimity.We need all of this and more for Infosys to achieve biggerand more ambitious targets.This journey of 25 years has been a symphonic marathon.It has been symphonic because every Infoscion,a maestroin his or her own rig
5、ht,subordinated individual intereststo work as part of a fine team,and produced spectacularresults year after year.It is a marathon since we have along way to go before we hit the tape.There have been many happy events during these 25 years.Prominent among them are:enrolling the first customer;On en
6、tering adulthoodN.R.Narayana MurthyChairman and Chief MentorC H A N G I N G M I N D S E T S|3I N F O S Y S A N N U A L R E P O R T 2 0 0 5-0 6asset for a corporation.Performance leads to recognition.Recognition bringsrespect.Respect enhances power.Humility and grace inones moments of power enhances
7、the dignity of anorganization.Leadership by example is,perhaps,the most essentialinstrument to encourage youngsters to demonstratecommitment and dedication towards any cause.Rolemodels are powerful catalysts in raising the confidence,enthusiasm and energy of an entire generation.An environment of op
8、enness,meritocracy,speed,imagination and excellence in execution are the fivecontext-invariant and time-invariant attributes for thesuccess of a corporation.Progress is possible only if wemeasure improvements in every dimension of ouroperations and take timely corrective action.Openness to new ideas
9、;encouraging the youth;shunningbiases and using data in every decision;and learning andadopting good practices from other cultures help acompany become more confident and effective.Global benchmarking has helped us emulate the bestcompanies in the world in specific attributes and,in somecases,improv
10、e upon them to serve our customers better.Staying relevant in a changing market and creating greaterimpact on customers are the only means of strengtheningour relationship with clients.Innovation is an importantinstrument for this.Proactively obsoleting our owninnovations by widely disseminating the
11、m creates goodincentives for employees to continue innovation.Following the best practices of corporate governance attractsthe best investors.Investors understand that everycorporation will go through lean days.Bringing bad newsto investors early and proactively enhances their trust in us.Aspiration
12、 is the main fuel for progress.Aspirations transform a set of ordinary peopleinto extraordinary achievers.arrival of the first employee;signing of the first milliondollar contract;opening of the first sales office abroad;installation of our first computer a DG MV/8000;inauguration of the Electronics
13、 City campus,the GlobalEducation Center and the Infosys Leadership Institute;CMM Level 5 certification;listing in India and onNASDAQ;our first acquisition(in Australia);founding ofInfosys Foundation,Progeon,Infosys Consulting andInfosys China;and reaching the magical figure of onebillion dollars in
14、sales.There have been a few sad momentsas well the departure of valued colleagues;death of a fewyoung Infoscions;and the loss of a few major contractsdespite our best efforts.A great corporation must live for hundreds of years.Hence,we are still very young,but these initial years have taughtus sever
15、al lessons.These lessons are valuable not just forour future journey but for other corporations in the countryand perhaps,the world.Let me recount a few major ones.Aspiration is the main fuel for progress.Aspirationstransform a set of ordinary people into extraordinaryachievers.They provide the ment
16、al and physical energyfor people to convert plausible impossibilities intoconvincing possibilities.An enduring value system based on openness,honesty,integrity,meritocracy,fairness,transparency andexcellence,helps raise our confidence and the confidenceof customers in the company.It gives the courag
17、e tohandle tough situations with confidence,and sacrificesbecome easy and natural.Our experience has demonstrated that respect and dignity,challenging work and a promising career growth path aremore important motivators than just money.People wantto be part of a defining moment that transforms the s
18、ocietyand the world.Emotional energy is an invaluable4|C H A N G I N G M I N D S E T SI N F O S Y S A N N U A L R E P O R T 2 0 0 5-0 6I would urge Infosys to choose a worthydream,to go after it confidently,and to playa role that will make all of us proud in theyears to come.We have realized that it
19、 is better to focus on growing thewealth pie for every one of us rather than focusing on howto preserve it for a few.In fact,this has been the mainmotivation in our experiment in democratizing wealththrough stock options.Profit is just an opinion.Real wealth is cash in the bank.Cutting the coat acco
20、rding to the cloth is the surest wayto be financially strong.Ships are safest in the harbor,but they are not meant to bethere.They have to sail long and hard and face stormyseas to reach the comfort of a desirable destination.Hence,progress requires us to take calculated risks and makebold moves.We
21、have realized that corporations must reach out to thesociety if they want longevity.In a poor country likeIndia,it is very important to build a fund of goodwillamong the people.What is the contribution of Infosys to India,the main hubof our operations?In my opinion,Infosys is a shiningexample of the
22、 success of economic reforms introduced in1991.We have demonstrated that it is possible to dobusiness legally and ethically in India.Thanks to Infosys,a large number of youngsters have stayed back in India,and millions of youngsters in the country aspire to becomeentrepreneurs.The first large scale
23、experiment indemocratization of wealth using stock options took placeat Infosys.Infosys has taken the lead in raising the bar forcorporate governance in the country,and we havedemonstrated that Indian brands can receive attentionand respect in G-7 countries.What would I want Infosys to achieve in th
24、e next 25years?I want Infosys to be a place where people of differentgenders,nationalities,races and religious beliefs worktogether in an environment of intense competition bututmost harmony,courtesy and dignity,to add more andmore value to our customers day after day.I want it to bea place that pra
25、ctices Voltaires much-celebrated statement:I disapprove of what you say,but I will defend till deathyour right to say it.I would like more women leaders toshape the future of Infosys.Finally,I would urge Infosys tochoose a worthy dream,to go after it confidently,and toplay a role that will make all
26、of us proud in the years tocome.But always,without fail,she should follow her bliss.Thousands of people,from all over the world,inside andoutside Infosys,have enabled the company to reach thisstage.There is no better way for Infosys to acknowledgetheir contribution than to express her appreciation b
27、yborrowing the words of my favorite soprano,RussellWatson:“You raise me up,so I can stand on mountains;You raise me up,to walk on stormy seas;I am so strong,when I am on your shoulders;You raise me up:to more than I can be.”C H A N G I N G M I N D S E T S|5I N F O S Y S A N N U A L R E P O R T 2 0 0
28、 5-0 620062005Growth(%)For the yearIncome 9,028 6,86031.60Export income 8,864 6,72631.79Operating profit(PBIDTA)2,989 2,32528.56Operating profit/Total income(%)33.11%33.89%PAT before exceptional items2,4211,85930.23PAT before exceptional items/Total income(%)26.82%27.10%PAT after exceptional items2,
29、4211,90427.15PAT after exceptional items/Total income(%)26.82%27.76%EPS before exceptional item(par value of Rs.5 each)Basic 88.67 69.2628.02Diluted 86.20 67.4627.78Dividend(excluding special dividend)Per share 15.0 11.530.43Amount 411 31032.58Silver Jubilee special dividendPer share 30.0Amount 827R
30、eturn on average net worth39.89%43.77%Capital expenditure 1,048 79431.99At the end of the yearFixed assets net 2,133 1,49542.68Cash and cash equivalents(including liquid mutual funds)4,463 2,85156.54Net current assets 3,832 2,38460.74Total assets 6,897 5,24231.57DebtEquity 138 1352.22Net worth 6,897
31、 5,24231.57Market capitalization 82,154 61,07334.52Note:The figures above are based on unconsolidated Indian GAAP financial statements.1 crore=10 millionThe year at a glancein Rs.crore,except per share data4,7612005200420062005200420062005200420066,8609,028Income4,6956,7268,864Exports1,2431,8592,421
32、PAT beforeexceptionalitem001_024.p655/8/2006,11:24 AM56|C H A N G I N G M I N D S E T SI N F O S Y S A N N U A L R E P O R T 2 0 0 5-0 6C.K.Prahalad is a renowned management guru,professor,researcher,speaker and author.He waslisted third on Suntop Medias 2005 Thinkers 50list,just after Michael Porte
33、r and Bill Gates.Of late,he has been working on an innovative approach toaddress the concept of profit beneath poverty.BusinessWeek called him the most influential thinkeron business strategy today.His published worksinclude The Fortune at the Bottom of the Pyramid,Competing for the Future,and The F
34、uture ofCompetition:Co-Creating Unique Value withCustomers.Democratizing entrepreneurship:The Infosys legacyC.K.PrahaladPaul and Ruth McCracken Distinguished University Professor,Stephen M.Ross School of Business,University of Michigan001_024.p655/8/2006,11:24 AM6C H A N G I N G M I N D S E T S|7I N
35、 F O S Y S A N N U A L R E P O R T 2 0 0 5-0 6The corporate model at Infosys has servedas a powerful inspiration and motivator forentrepreneurial young professionals acrossthe country.As Infosys celebrates its first 25 years,its founders canbe proud of the companys many accomplishments.Fromhumble be
36、ginnings,Infosys,today,has grown into aUS$2 billion global IT solutions company,with a marketcapitalization of over US$21 billion.However,to realizethe true impact Infosys has had both in India and globally,it is important to look beyond the companys financialfigures,its clientele and the various ho
37、nors it has receivedover the last two decades.I believe that Infosyssignificant,unique accomplishment is the role thecompany has played in democratizing entrepreneurshipin India.Indias business environment in the 1980s was verydifferent from what we see today.The economy wasclosed,red tape was perva
38、sive.High levels of protectionto domestic,state-dominated industries preventedcompetition.A system of financial repression andcomplex licensing discouraged entrepreneurship.Thevision of the Infosys founders to start a“professionallymanaged”corporation in such an environment wasunprecedented.The foun
39、ders came from outside theranks of well-established business communities andfamilies,lacked industry and government contacts,andin the absence of venture capital had to borrow the$250seed capital to start the business.Yet,over the years,Infosys has managed a series of“firsts”for Indian business.It b
40、ecame the first truly globalsoftware solutions company headquartered in India,with a list of clients that have now expanded to theGlobal 2000.It was the first Indian company to list onthe NASDAQ,and the first to benchmark itsorganizational practices to global standards.Infosys,thus,was the first com
41、pany to successfully take Indianentrepreneurship to a global level.The success of firms led by Indians outside India cannever match the impact of the growth of a truly globalfirm in India,given the barriers to business that existedin the country during the pre-reform years.Today,anInfosys experience
42、 on a resume has the same globalcachet as leading US consulting firms or investmentbanks.The corporate model at Infosys has served as a powerfulinspiration and motivator for entrepreneurial youngprofessionals across the country.The Infosys ecosystemof meritocracy,wealth creation and good governance
43、hasmade an impact across Indian industry in terms of raisingconfidence and aspiration levels.In fact,with thediscussion of the Indian IT industry often focusing onthe big five,we forget that there are over 3,000 IndianIT firms with less than US$25 million in sales and allof them are global in their
44、aspirations and building on amodel that Infosys inspired.Infosys had the courage to pioneer what has emerged asa truly effective model for wealth creation for the country.The company has demonstrated how the vision,willpowerand entrepreneurial energy of ordinary people can beharnessed to attain rema
45、rkable success at a global level.001_024.p655/8/2006,11:24 AM78|C H A N G I N G M I N D S E T SI N F O S Y S A N N U A L R E P O R T 2 0 0 5-0 6Rajat Kumar Gupta joined McKinsey and CompanyWorldwide in 1973.Mr.Gupta has been instrumentalin the firms vast expansion over emerging marketssuch as China
46、and India.His consulting experiencespans telecommunications,energy,and consumergoods.He is associated with many educational,professional and business affiliations,includingChairman of the Board of the Indian School ofBusiness;Co-chairman of the United NationsAssociation of the USA;Chairman of the Bo
47、ard ofAssociates of the Harvard Business School;andDeans Advisory Council,Massachusetts Institute ofTechnology Sloan School of Management.Mr.Guptaholds a bachelor of Technology degree in MechanicalEngineering from the Indian Institute of Technologyand an MBA from Harvard Business School.Redefining I
48、ndias imageRajat Kumar GuptaSenior Partner Worldwide,McKinsey and Company001_024.p655/8/2006,11:24 AM8C H A N G I N G M I N D S E T S|9I N F O S Y S A N N U A L R E P O R T 2 0 0 5-0 6Today,no-one can deny that India is hometo a world-class IT industry.Infosys,recognized globally as a leading techno
49、logysolutions company,has been a driving forcebehind this trend.When global business leaders speak with excitement andpassion about India and we are hearing them do somore now than ever before they often begin with praisefor Indias achievements as a hub for technology andoutsourcing.Today,no-one can
50、 deny that India is hometo a world-class IT industry.Infosys,recognized globallyas a leading technology solutions company,has been adriving force behind this trend.At the time when Infosys and other firms first enteredthe software services market,some people found it hardto believe that companies fr
51、om India could successfullycompete with international corporations.But throughthe course of the next two decades,Indias blend ofentrepreneurship,economic reform,investment inquality infrastructure and strength in intellectual capitalcreated an industry offering IT solutions that were bothcost-compet
52、itive and world-class.The industry has proven that small Indian companiescan compete with first-world competitors and make areal,significant impact at the global level.Success in thesector has helped establish a new perception of theIndian company that of the professionally-managedorganization which
53、 is truly global in its ambitions,businessoutlook and vision.And the growth of knowledge-intensive organizations that adhere to global standardshas created tremendous brand equity for the whole ITindustry,helping enable the markets dramatic expansion.This progress has given Indian companies acrossin
54、dustries new confidence in building internationalbrands,helping redefine Indias image as a powerful,emerging knowledge economy.Firms are buildingreputations that span national boundaries,bringing Indiato the world.A key part of all this success is Indias prodigiousintellectual capital.In some techno
55、logy spheres,Indiapossesses the worlds best talent something for whichInfosys and firms like it are in good part responsible.And as competition increases in the global marketplacefor the best people,India should prioritize efforts to buildthe“soft infrastructure”that will grow its talent poolfurther
56、.Creating new intellectual capital is not the only challengeto which India must respond in order to cement itsposition as a global leader.Its strength in the IT industrymust now be replicated in many other sectors.Substantialnew investment is needed in public services andinfrastructure,both to incen
57、tivize foreign investment andsupport the efforts of Indias legendary entrepreneurs.Adramatic effort must come to tackle inequality andassociated problems of poor public health,educationalunder-achievement and below-poverty incomes the lotof the majority of Indias people.Corporations can make a vital
58、 contribution to the taskof Indias development as the engines of economicgrowth,and in bringing their assets,skills and expertiseto bear against social ills.The private sector must act asfull partners in the development debate:helpingconfirming Indias reputation as a growing economicpower,and bolste
59、ring its status as a place where the worlddoes business.001_024.p655/8/2006,11:24 AM910|C H A N G I N G M I N D S E T SI N F O S Y S A N N U A L R E P O R T 2 0 0 5-0 6Mark Mobius was described as“the ultimate roadwarrior”by USA Today and The Wall Street Journalproclaimed him“the king of the emergin
60、g marketfunds.”As the head of Templeton Investments,Mr.Mobius is one of the most successful managersin the emerging-markets,and his belief in the potentialof world economy rewrote the fortunes of Franklin/Templeton funds.He holds a Ph.D in Economics andPolitical Science from the Massachusetts Instit
61、ute ofTechnology.His published works include TheInvestors Guide to Emerging Markets,Mobius onEmerging Markets,and Passport to Profits.A leader in corporate governanceMark MobiusManager,Franklin Templeton Emerging Markets Fund001_024.p655/8/2006,11:24 AM10C H A N G I N G M I N D S E T S|11I N F O S Y
62、 S A N N U A L R E P O R T 2 0 0 5-0 6Infosys focus on corporate governance notonly brought global visibility to the company,but also created pressure on other Indianfirms to raise their governance standards.It has been a remarkable journey for Infosys over thelast 25 years and for our relationship
63、of over a decade.Infosys was incorporated in 1981 with the vision ofbuilding a globally respected corporation a vision whichhas translated into a strong organizational commitmenttowards discipline,fair play,and good corporategovernance.Infosys was the first Indian company to emphasize strongcorporat
64、e governance practices in India.The companyexpanded its corporate governance practices significantlybeyond what was required by the letter of the law.Itvoluntarily compiled with the US GAAP accountingrequirements,and was the first company to preparefinancial statements in compliance with the GAAPreq
65、uirements of eight countries.Infosys also set aprecedent in releasing quarterly financial statementsbefore this was the norm or the requirement.Thecompany was also among the first in the country toincorporate a number of innovative disclosures in itsfinancial reporting,including human resourcesvalua
66、tion,brand valuation,value-added statement andEVA report.Integrity,fairness and transparency across its operationsis the mantra for Infosys.Infosys emphasizes itscommitment to a strong value system and corporategovernance practices,by making this an integral part ofthe training of every employee.Mer
67、itocracy has prevailed in the company even insuccession issues.Infosys was a pioneer in inductingindependent directors to its Board,thus greatlystrengthening Board oversight of senior management inthe company.Over the years,the managementemphasized continuous dialogue with its investors,andplaced a
68、high priority on investor relations and feedback.For example,Infosys early investments in stock marketsended as soon as it was apparent that investors felt thatthese added no value.Infosys focus on corporate governance not only broughtglobal visibility to the company,but also created pressureon othe
69、r Indian firms to raise their governance standards.This led to an encouraging trend of companies acrossindustries scaling up their corporate governancestandards and going beyond mandatory requirements.Infosys believes that good corporate governance mustalso translate into being a responsible corpora
70、te citizen.The senior executives of Infosys have also served onvarious task forces set up by the Indian government todevelop meaningful corporate governance codes andethical industry practices.Over the last 25 years,Infosys has remained committedto being ethical,sincere and open in its dealings with
71、 allits stakeholders.It has enabled the company to build anorganization that is trusted and admired not just in India,but by companies across the world.001_024.p655/8/2006,11:24 AM1112|C H A N G I N G M I N D S E T SI N F O S Y S A N N U A L R E P O R T 2 0 0 5-0 6With an entire working career in in
72、dustry associationsand 30 of those years as the head of Confederationof Indian Industries(CII),Tarun Das has been the faceof Indian industry internationally.At present,he isthe Chief Mentor of CII.An Honors Graduate inEconomics and Commerce,Mr.Das has beenawarded an Honorary Degree of Doctorate in S
73、cienceby the University of Warwick,UK,and has beenconferred an Honorary CBE by Her Majesty for hiscontribution to the Indo-British Partnership.Mr.Dasis the President of The Aspen Institute and memberof the International Advisory Board of the Coca-ColaCompany Ltd.He is also the non-executive Chairman
74、of Haldia Petrochemicals Ltd,India;non-executiveDirector on the Boards of John Keells Holdings Ltd.,Sri Lanka,and GIVE Foundation.Democratizing wealthTarun DasChief Mentor,Confederation of Indian Industries001_024.p655/8/2006,11:24 AM12C H A N G I N G M I N D S E T S|13I N F O S Y S A N N U A L R E
75、P O R T 2 0 0 5-0 6The founders of Infosys emphasized that thesuccess of a corporation depended on howmuch wealth it could create for itsstakeholders its customers,shareholders,and employees.At a time when corporations were busy strategizingmargins and markets,Infosys,then a$27 millioncompany based
76、in Bangalore,included human capitalon its balance sheet.It probably didnt come as a surprisefor many as Infosys has always been a peoples business.The companys key competitive advantage has been theintellectual capital of its employees.Even as the companyevolved and scaled rapidly over the last two
77、decades,ithas sustained a culture which emphasizes the value ofeach employee in the organization whether it was sevenpeople in 1981 or 52,700 people today.Infosys believes in a culture that upholds respect for eachindividual and creates a sense of ownership amongemployees across the organization.A f
78、ocus onmeritocracy and fairness towards employees has helpedInfosys attract,retain and motivate its people.Thecompany embraced principles of equitable treatment ofemployees,across all levels of the company,and hasfocused on creating a challenging work environment,where the core people principles hav
79、e been a drivetowards commitment,self-motivation,ownership andpride.The work environment at Infosys enables afree-flow of ideas employees are free to dissent fromthe views of their managers,and are encouraged to beentrepreneurial in their thinking.A focus on assertive talent development is a key asp
80、ectof Infosys employee retention strategy.The companystraining capabilities are among the best in the world Infosys has created several thousand programs spanningskill development in technology,domain,quality processand personal effectiveness,as well as managerial trainingand leadership development.
81、The emphasis on talentdevelopment has enabled the companys workforce toremain highly adaptable in a changing environment.The founders of Infosys emphasized that the success ofa corporation depended on how much wealth it couldcreate for its stakeholders its customers,shareholders,and employees.In 199
82、4,Infosys became the firstcompany in India to conceive and implement EmployeeStock Option Plans(ESOPs).The concept of sharingwealth with employees was unprecedented in the Indianindustry,and encouraged other Indian companies to offersimilar incentives.Since 1994,Infosys also invested significant res
83、ourcesin creating campus-like offices that offered employeesworld-class work and recreational facilities.Thestate-of-the-art campuses along with attractive salariesand a professional,hard-working culture have enabledInfosys to maintain a turnover rate that is much lowerthan other companies in the in
84、dustry.This is anachievement in itself considering that the fight for talentand market share has never been greater.The high levelof employee engagement at Infosys is a key factor that hasmade the organization a corporate role model forcompanies in India.The different aspects of Infosys growth,emplo
85、yeeinvolvement,entrepreneurship,governance have allserved to create and build a unique ambience aboutInfosys as a company with a difference.Today Infosys is competing in a global,rapidly changingenvironment,where the fight for talent and market sharehas never been greater.I believe that the Infosys
86、Boardof Directors will continue to ensure the sustainability ofthe organizations vision,its dreams,and its contributionbeyond the corporate world to society as a whole.Thefirst 25 years of Infosys have been truly amazing;theexpectation is that the company will continue to evolveand set new global st
87、andards in its next 25 years.001_024.p655/8/2006,11:24 AM1314|C H A N G I N G M I N D S E T SI N F O S Y S A N N U A L R E P O R T 2 0 0 5-0 6Subramanyam has been with Infosys for the last 18years.He has spent more than a decade in ITconsulting,project management and solution deliverymanagement.Subr
88、amanyams key focus areas forstudy include technological forecasting,innovationmanagement,technology management,R&D in thecontext of software services,and benchmarking.Heis a member of the Management Council andmanages the companys Technology Council.Hereceived a Bachelor of Engineering(BE)degree fro
89、mMangalore University in Electrical and Electronicsin 1988.People at its coreSubramanyam G.V.Vice President Microsoft Technology Centre andSoftware Engineering&Technology Labs,Infosys Technologies Limited001_024.p655/8/2006,11:24 AM14C H A N G I N G M I N D S E T S|15I N F O S Y S A N N U A L R E P
90、O R T 2 0 0 5-0 6The phenomenal success of Infosys and the values-drivenmanner in which it achieved that success led the way inchanging several established beliefs and practices.Threeaspects are probably the most significant from anemployees perspective.First,the realization that it ispossible to de
91、liver world-class work from India.Second,the recognition that employees are the most importantassets of any company.And third,the confidence thatperformance and values can be the sole criteria to besuccessful in an organization.Not long ago,being an Engineer in India meant eitherworking on cutting-e
92、dge projects abroad,or maintainingoutdated technology in India.But,along came Infosyswith a vision of creating a globally respected organization.A company that valued people as its greatest asset andlisted“human resources”on its balance sheet.A companythat rewarded both innovation at work and social
93、responsibility equally.One of Infosys employee-related initiatives has been torecruit engineers and graduates,not necessarilyComputer Science graduates,and equipping them to takeon roles in the software industry,expanding the availabletalent pool in India.Moreover,investments in skillsacquisition an
94、d competency enablement are aligned withproject needs and market trends.This focus on assertivetalent engagement and the cultivation of cross-disciplinary competencies has enabled employees toremain flexible in a changing environment.You may not find“learnability”in a dictionary,but thathas been the
95、 prime criteria for recruitment.The modelhas helped Infosys create one of the finest people forcesin the world and has become the industry norm.To attract,retain and motivate the best and the brightest,Infosys has believed in empowering its employees.Infosys was the first Indian company to institute
96、 aformalized leadership institute.The company hasdeveloped a 3-tier leadership model,based on the belief“the company is the campus,the business is the curriculumand leaders shall teach.”Senior members of the Infosysmanagement conduct courses on leadership at theInstitute,drawing from their experienc
97、es.Infosys has always encouraged a culture that upheldrespect and dignity for the individual,emphasizingmeritocracy over hierarchy.It has also eschewed anytransaction that created an asymmetry of benefitsbetween the founder-employees and other employees.In fact,Infosys was the first Indian company t
98、oimplement Employee Stock Option Plans(ESOPs)on awidespread basis,instituting a strong employeeownership within the organization.Infosys has emphasized the culture of the Infoscionfamily a culture where employee participation isencouraged,feedback is valued and action is neverdelayed.There are sever
99、al forums through whichemployees can impact company policy and futuredirection.STRAP,the Annual Strategy Retreat,is a forumof Infosys leaders across the globe,focused on strategyformulation and action-planning.The Voice of Youthallows young minds to influence overall corporatestrategy,while IWIN,a f
100、orum for women employees,functions as an advisory body to ensure inclusivemanagement policies and decisions.Additionally,Infoscions across levels and geographies are part of ourInfyPlus change management initiative.Regardless of the growth,Infosys people principlesremain unchanged:a focus on meritoc
101、racy,and a drivetowards commitment,innovation,self-motivation,ownership and pride.Today,a young Indian graduate can be confident ofrelying on his competence and performance to succeed.This is a huge mindset change.I am proud to belong toa company that pioneered this change.Infosys has always encoura
102、ged a culture thatupheld respect and dignity for the individual,emphasizing meritocracy over hierarchy.001_024.p655/8/2006,11:24 AM1516|C H A N G I N G M I N D S E T SI N F O S Y S A N N U A L R E P O R T 2 0 0 5-0 6Creating a positive changeArun S.Vinayak14 years,Std.IXNational Hill View Public Sch
103、ool,BangaloreArun S.Vinayak is the winner of the first prize in theessay contest Infosys organized for students inBangalore.The contest was an attempt tounderstand the impression Infosys has left on theyounger generation.The students wrote theirperspective on how Infosys touched their lives.Aswe tur
104、n 25,we cherish the thought that we havebeen able to change old mindsets and live youngdreams.Arun describes himself as competitive,experimental,logical and multifaceted.He loves to read sciencemagazines and says he never misses the monthlyedition of Popular Mechanics.He likes playing cricket,basket
105、 ball and practicing karate.He loves toparticipate in competitive exams.His chosen careerwould be in the field of nanotechnology.He stronglybelieves that one must always do something uniquein whichever field one chooses.Arun wins a cash prize of Rs.20,000,apart fromgetting featured in the Annual Rep
106、ort.001_024.p655/8/2006,11:24 AM16C H A N G I N G M I N D S E T S|17I N F O S Y S A N N U A L R E P O R T 2 0 0 5-0 6I am not 25 years old.I was not born whenInfosys founders started the company.ButI know what it takes to build a global leader.Two billion dollars the revenue of Infosys is a lot ofmo
107、ney.So,when a company from my city,Bangalore,earns so much every year,it makes me feel proud.But itisnt important how much money a company earns everyyear;it is how it spends the money.I think this is whereInfosys excels over other profit-making companies aroundthe world.Capitalism,from what I learn
108、 in Social Studies,is thephilosophy of making money,for the sake of makingmore money,again for making more money.But moneydoesnt eat,sleep or breathe.Money doesnt feel pain,feel tired or feel hopeless.People do.So,when a companyuses its money to improve the lives of others,I thinkcapitalism redefine
109、s itself as humanism.For a brief moment,we will put aside the fact that Infosyshas made millionaires out of its employees with its stockoption plans.A large part of India does not use IT.The benefits of theIT revolution such as quick retrieval of dates,transparency and ease of work have not reached
110、them.Yet,people know what IT means and that it can make adifference in their lives.That is the aura Infosys creates.When I think of children in villages who have a libraryfilled with books,thanks to the Infosys Foundations ruralupliftment projects or education and learning projects,or old people hel
111、ped through the Foundations healthcareprojects,I realize that people who are in no way relatedto IT,are benefited by ITs profits.When a natural disasterlike the Tsunami strikes,Infosys cares to reach out and help.After I finish my education,I would like to travel todifferent countries,to learn and e
112、xperience variouscultures.For sure,I can never let go of the integrity,values and principles I have learnt in India hard workand honesty being the most important.Infosys constantlyrepeats this mantra,while sailing through rough tides.Thus Infosys practices what it preaches,as corporate ethicsand gov
113、ernance.Infosys is a large organization with more than 52,700employees and more are joining every passing day.I thinkthe reason so many people work here is becausethey enjoy working here!Its why Infosys has been voted“The Best Employer in India.”Infosys is responsible formaking its employees feel th
114、at way.Infosys nurtures youthand talent through the Catch Them Young program,andI am one of the few,lucky enough to experience thisfeeling.My father tells me about schooling in his days and howthey never had computers and that most of the referencebooks had to be imported.Today,I study in an Indians
115、chool,my books are published in India and even thecomputers are made in India.So,when an Indiancompany like Infosys is listed among the leading ITcompanies in the world,and also as a strategic partnerat the World Economic Forum to shout out loud“IndiaEverywhere,”I think we have arrived on the global
116、 scene.More so,when world leaders troop past the Infosyscampus as a true example of how Infosys leads India intothe future,I am truly elated.When people feel good on hearing a name and feel proudabout it,then that name brings a positive change in theirlives.Thats what I see happens in India,when peo
117、plespeak about Infosys.Powered by intellect and driven by values,Infosys is aleader in its business and service offerings.No magicthen,that Infosys is the leader in the Gartner ServicesMagic Quadrant.I am not 25 years old.I was not born when Infosysfounders started the company.But,I know what it tak
118、esto build a global leader.Infosys shines and helps Indiashine even better.001_024.p655/8/2006,11:24 AM1718|C H A N G I N G M I N D S E T SI N F O S Y S A N N U A L R E P O R T 2 0 0 5-0 6Sneha Abhyankar is the winner of the second prizein the essay contest Infosys organized for studentsin Bangalore
119、.Snehas favorite word is art.She is passionate abouteverything creative,and is a painter.She loves to playmusical instruments,and strums the guitar thoughshe has had no formal training.She likes to readfantasy and is a self-proclaimed greatest fan ofHarry Potter.She describes herself as artistic,ope
120、n-minded,analytical and logical.Her chosencareer would be in designing,and is greatly interestedin product designing.Sneha wins a cash prize of Rs.10,000 for herwinning entry,apart from getting featured in theAnnual Report.Giving back to societySneha Abhyankar14 years,Std.IXNational Public School,Ba
121、ngalore001_024.p655/8/2006,11:24 AM18C H A N G I N G M I N D S E T S|19I N F O S Y S A N N U A L R E P O R T 2 0 0 5-0 6What is most important to me about Infosysis that it is a socially responsible company it believes in giving back to society.I dont remember when I first heard about Infosys.I have
122、grown up in Bangalore and for as far back as I canremember,Infosys has been a part of my awareness.Whether it was in the headlines for winning an award,seeing the Infosys logo on signboards across the city orhearing its name being mentioned when the adultstalked shop.Now that Im a little older,I kno
123、w that the employees atInfosys are among the most satisfied in the world.I knowthat Infosys works in the field of Information Technology.I know that it does this very well so well,that it hasmade India a force to reckon with globally.I knowthat financially,Infosys does extremely well and makesbig pr
124、ofits.But all that aside,what is most important to me aboutInfosys is that it is a socially responsible company itbelieves in giving back to society.I have heard about theInfosys Foundation,which provides resources andtraining in the field of education.The Catch Them Youngprogram itself is an exampl
125、e of how Infosys identifiesand encourages young talent.I also know that Infosys isassociated with the Bangalore Agenda Task Force,whichis dedicated towards making the city a better place tolive in.It is these efforts that make Infosys stand out,shining among all those big money-making companies.I ha
126、ve heard that the workforce at Infosys is hardworking,intelligent and dedicated.But what impressesme most are the values that guide them.The companysmotto Powered by Intellect,Driven by Values neverceases to touch a chord.This is exactly how I would liketo lead my life.This is exactly how the world
127、shouldfunction.Maybe these are the values that set Infosys apartfrom the other companies.I remember the proud note in Lakshmi auntys voicewhen she told us that her son had got a job at Infosys.Iremember the excitement in my friend Shalinis voicewhen she told me that Mr.Narayana Murthy had beenon the
128、 same flight as her.And now,I find that my parents are being embarrassinglyvocal about me participating in this essay contest,tellingabsolutely each and every person about it.All this tells me just one thing any kind of associationwith Infosys,evokes a sense of pride.When I go home,my friends will b
129、e envious of me forhaving got the chance to be at Infosys.I admit,I feel justa wee bit proud and happy.I was at Infosys today!001_024.p655/8/2006,11:24 AM1920|C H A N G I N G M I N D S E T SI N F O S Y S A N N U A L R E P O R T 2 0 0 5-0 6“To accomplish great things,we must not only act,but also dre
130、am;not only plan,but also believe”Anatole FranceNandan M.NilekaniChief Executive Officer,President and Managing DirectorS.GopalakrishnanChief Operating Officer and Deputy Managing DirectorDear Shareholder,It took us 23 years to reach the revenue milestone of one billion dollars.The next billion doll
131、ars took us only 23 months to achieve.This sums up the remarkable change in scale and speed that Infosyshas experienced over the last 25 years.We have managed this growthwithout sacrificing quality,client satisfaction and corporate culture.We have balanced the triad of market expansion,resources and
132、capabilities.Market opportunity expands partly because of the natureof the market itself.In our case,since we have essentially invented anew business model in IT services that is faster,better and moreeconomical than the legacy model,there is great momentum becausecustomers are switching from the ol
133、d to the new.We still have towork very hard,however,to expand our client base,to gain morerevenue from existing clients,to add new services that increase theaddressable share of our clients spend,and to create a trusted,well-known brand that clients can rely on.We have to match this in the growth of
134、 our resources.We need adequatepeople,space,technical infrastructure and money,all at the right time.And finally,we need the right capabilities.These are both the individualcapabilities of our people,in terms of technical or domain knowledgeor relationship skills,and also our institutional capabilit
135、ies.Theinstitutional ones are embedded in our systems,our processes,ourknowledge management,our corporate governance,our educationalinfrastructure,our HR policies,and our risk framework.The challenge is to keep all three elements in equilibrium.Expanding the market without resources and capabilities
136、 leads to clientdissatisfaction and failure to meet the promise.Expanding resourceswithout markets and capability building leads to unhappy employees.And,expanding capabilities without a market need to fulfill,andemployees to absorb the enhanced capabilities,leads to a mismatchin expectations.The In
137、fosys story thus far has been to successfully balance the triad.We began the last financial year by offering a guidance of 24.7%26.6%growth in revenues and 23.0%24.9%growth in earnings.Owing to the success of our various initiatives,we achieved growthin revenues of 33.5%and 30.9%growth in earnings.W
138、e added 144 clients in the last fiscal.Today,nine of our clientscontribute over$50 million each in annual revenue.We also inducted22,868(net 15,965)employees,growing our total strength,includingsubsidiaries,to 52,715.We completed the largest international equity offering from India ofover a billion
139、dollars.In Japan,our Public Offer Without Listing(POWL)has awakened Japanese interest in India and opened themarket for Indian companies.The success of our Sponsored SecondaryADS issue reaffirmed the worlds faith in our business model.Standard&Poors assigned Infosys a credit rating higher than itsso
140、vereign rating on India.Infosys was assigned a BBB rating.We alsobecame one of the first companies outside the United States to complywith Section 404 of the US Sarbanes-Oxley Act(SOX),well in advanceof the mandatory deadline of March 31,2007.This was performedvoluntarily under the SOX Act,which req
141、uires management to assessand report on the companys internal controls over financial reporting.Our efforts to build a portfolio of integrated services enabled us tomeet the increasingly complex demands of our clients.We helpedclients realize value from investments in Enterprise Resource Planning(ER
142、P),Customer Relationship Management(CRM)and otherenterprise applications for business transformation.Letter to theshareholder001_024.p655/8/2006,11:24 AM20C H A N G I N G M I N D S E T S|21I N F O S Y S A N N U A L R E P O R T 2 0 0 5-0 6Our customers responded enthusiastically to our One Infy servi
143、ceoffering,which has synergized the multiple strengths of our deliveryunits.Evidence of this is in our winning a large five-year deal withABN AMRO.The multi-year,multi-million dollar contract with ABNAMRO to develop,support and enhance a wide spectrum ofapplications signifies our entry into the aren
144、a of large,global,multi-year outsourcing contracts and is an endorsement of our competitivebusiness model.Our focus on enhancing skills and domain expertise across theorganization is yielding impressive results.We have built a scalabledelivery engine and will continue to invest substantially in syst
145、emsand processes to leverage our capabilities and provide superior services.Our investments in developing competencies differentiated us fromother players and enhanced our domain expertise.New services suchas Infrastructure Services and Independent Validation Services haveyielded rich returns both i
146、n terms of revenue and value differentiation.The banking community reaffirmed its trust in Finacle,our acclaimedbanking product,by presenting it The Banker Technology Award for2005 in the CRM category.Finacle continued to make inroads in thestrategic European and Middle-Eastern markets,winning keycu
147、stomers from among banks in the Tier 1,Tier 2 and regionalcategories.Finacle further expanded its global footprint by poweringthe business transformation of top banks in Nigeria,Switzerland,Australia and Panama.Quality in every aspect has been an enduring Infosys hallmark.OurShanghai Development Cen
148、ter was awarded the BS7799 certification,which is a reassurance of global standards of security and quality toour customers worldwide.Our Infrastructure Services unit has been recommended for ISO20000-1:2002,the only worldwide certification aimed at IT ServiceManagement.On certification,Infosys will
149、 be one of the firstorganizations globally to be certified on this standard,which describesan integrated set of management processes for effective service deliveryto the business and its customers.Infosys is actively engaged in software services and solutions researchand development.The Software Eng
150、ineering and Technology Labs(SETLabs),which spearheads Infosys commitment to innovation andIntellectual Property(IP)development,generated over 82 inventiondisclosures and filed over 20 patents this year.India is increasingly being seen as a global engineering hub.Infosys,with its high-quality talent
151、 and its world-class business practices andprocesses,is catalyzing this trend.In partnership with two globalengineering giants,Infosys set up global engineering centers(GEC)in Bangalore.The R&D centre in partnership with ALSTOM,a globalleader in power generation and rail transport infrastructure,wil
152、l enableus to jointly create next-generation solutions for the power sector.Infosys has also set up a GEC with Spirit AeroSystems,the worldslargest independent supplier of structures for commercial aircraft.Thecenter will focus on high-end engineering services including productdevelopment,design and
153、 analysis of airframe structures,engineeringchange management and stress engineering support.Clients and analysts have commended Infosys Consulting Inc.,ourUS subsidiary,for our highly competitive consulting business model.Many of our clients reported that consulting projects with InfosysConsulting
154、delivered more than the expected business value,ensuringthat the value proposition we have created is making InfosysConsulting the benchmark of the profession.Our marketing efforts are focused on strengthening the Infosys brandand honing our organization for global challenges.The Wharton-Infosys Bus
155、iness Transformation Awards,presented to path-breakingentrepreneurs and organizations that leverage technology to transformbusiness,has bolstered Infosys association with positive social change.InStep,our global internship program,Genesis,our studentempowerment program,and Campus Connect,our nation-
156、wideindustry-academe partnership program,brought the Infosys spiritcloser to the student community.Confluence and Milan,our customeroutreach programs in the US and Europe respectively,facilitatedwidespread networking and created multiple touch points with ourcustomers.Infosys was the cynosure of ind
157、ustry analysts in 2005.We scoredhigh in client satisfaction for consulting and outsourcing services,ina survey conducted by an independent research firm among US clientsof 11 major global IT service providers.We also top-scored amongoffshore IT service providers in a ranking of consulting and inform
158、ationtechnology service providers to the Consumer Products industry,published by another independent research firm.This year,we celebrated the tenth anniversary of three of ourdevelopment centers outside Bangalore.These centers have maturedand are now contributing significantly to our growth.Our exp
159、ansionplans gained momentum as we began the groundwork for spaciousnew campuses in Hyderabad and Thiruvananthapuram.We also investedsignificantly in education and training.Our Global Education Centerat Mysore was the subject of a comprehensive story in Fortune magazine.Our people are the soul of our
160、 much-admired company culture.Astudy by Business Today,Mercer and TNS rated Infosys the bestcompany to work for in India,a view echoed by Computerworldmagazines Best Places to Work in IT,which listed Infosys among theworlds top 100 companies.At Infosys,Knowledge Management(KM)is central to our core
161、strategyof providing differentiated value to customers and enabling theirbusiness growth.KM has helped us develop a pervasive culture ofbeneficent knowledge exchange across geographies.We are proud tobe ranked among the worlds Most Admired Knowledge Enterprises(MAKE)and to be the first company from
162、India to be inducted intothe Global MAKE Hall of Fame.We view change as a positive factor and are always equipped to manageit.This year,the Board of Directors welcomed two additional Directors Mr.David L.Boyles and Prof.Jeffrey Sean Lehman.Mr.Philip Yeoretired as a Director of the company.We are gra
163、teful for his significantcontributions on strategic matters and wish him the very best for thefuture.Mr.T.V.Mohandas Pai will be voluntarily giving up his positionas CFO from April 30,2006.He will continue to be a member of theBoard and will be responsible for Human Resources Development(HRD),Educat
164、ion&Research(E&R)and Administration.Mr.V.Balakrishnan,currently Senior Vice President Finance andCompany Secretary,will take over as CFO from May 1,2006.A strong sense of social responsibility is central to Infosys values andbeliefs.In the spirit of a caring corporation,we responded to the recentnat
165、ural disasters in Asia and the US with an open heart.We announceda relief of Rs.1 crore for flood-affected people in northern Karnataka,India.In addition,we unanimously committed Rs.2 crore for the victimsof the October 8 earthquake Rs.1 crore for the people in Jammu andKashmir,and an equal amount f
166、or those in Pakistan.We also gaveRs.50 lakh in aid of the victims of Hurricane Katrina in the US.The first 25 years are behind us.We look back in gratitude andinternalize the wisdom gained from our experience.It is our missionto set even higher standards for our performance in the future.Welook forw
167、ard to new milestones and challenges of greater magnitude,and remain firmly committed to pursuing our goals with renewedintegrity and a reaffirmation of the values we idealize and practice.Nandan M.NilekaniS.GopalakrishnanChief Executive Officer,PresidentChief Operating Officer andand Managing Direc
168、torDeputy Managing DirectorBangaloreApril 14,2006001_024.p655/8/2006,11:24 AM2122|C H A N G I N G M I N D S E T SI N F O S Y S A N N U A L R E P O R T 2 0 0 5-0 6Board of DirectorsN.R.Narayana MurthyChairman and Chief MentorNandan M.NilekaniChief Executive Officer,President and Managing DirectorS.Go
169、palakrishnanChief Operating Officer,Deputy Managing Director andHead Customer Service&TechnologyDeepak M.SatwalekarLead Independent DirectorProf.Marti G.SubrahmanyamIndependent DirectorDr.Omkar GoswamiIndependent DirectorRama BijapurkarIndependent DirectorSen.Larry PresslerIndependent DirectorClaude
170、 SmadjaIndependent DirectorSridar A.IyengarIndependent DirectorDavid L.BoylesIndependent DirectorJeffrey LehmanIndependent DirectorK.DineshDirector and Head Communication Design Group,Information Systems and Quality&ProductivityS.D.ShibulalDirector and Group Head World-wide Sales and CustomerDeliver
171、yT.V.Mohandas PaiDirector,Chief Financial Officer and Head Finance&Administration,Education&Research and HumanResourcesSrinath BatniDirector and Group Co Head World-wide CustomerDeliveryCommittees of the BoardAudit committeeDeepak M.Satwalekar,ChairpersonDavid L.BoylesProf.Marti G.SubrahmanyamDr.Omk
172、ar GoswamiRama BijapurkarSridar A.IyengarCompensation committeeProf.Marti G.Subrahmanyam,ChairpersonDeepak M.SatwalekarJeffrey LehmanSen.Larry PresslerSridar A.IyengarNominations committeeClaude Smadja,ChairpersonDavid L.BoylesDeepak M.SatwalekarJeffrey LehmanSen.Larry PresslerDr.Omkar GoswamiInvest
173、or grievance committeeRama Bijapurkar,ChairpersonClaude SmadjaJeffrey LehmanSen.Larry PresslerDr.Omkar GoswamiManagement CouncilInviteesAashish BansalAssociate Vice President Energy,Utilities&Resources(Sales)Abhay M.KulkarniAssociate Vice President Transportation&Services(Delivery)Abhimanyu AcharyaM
174、ember Engagement Management Banking&CapitalMarkets(Sales)Alexandre Elvis RodriguesAssociate Vice President Transportation&Services(Sales)Anand NatarajAssociate Vice President Communication Service Providers(Sales)Ananth VaidyanathanAssociate Vice President Strategic Global SourcingAnkush PatelAssoci
175、ate Vice President Energy,Utilities&Resources(Sales)Ardhendu Sekhar DasDivisional Manager and Head Bhubaneswar DevelopmentCenterBalakrishna D.R.Delivery Manager Energy,Utilities&Resources(Delivery)&Head Bangalore Development Center(Unit 6)Charles Henry HawkesAssociate Vice President and Head Bangalo
176、re DevelopmentCenter(Unit 2)Col.Krishna C.V.Vice President Infrastructure&SecurityDeepak Nanjunda SwamyAssociate Vice President Communication Service Providers(Sales)Dharmendra PatwardhanAssociate Vice President Operations,Progeon LimitedGanesh GopalakrishnanVice President Insurance,Health Care&Life
177、 Sciences(Delivery)Gaurav RastogiAssociate Vice President Sales OverheadGeetha KannanAssociate Vice President HR Business Partner(HumanResources Development)George ThomasCorporate HR Manager Compensation&Benefits(HumanResources Development)Gopal DevanahalliAssociate Vice President Retail,Distributio
178、n&ConsumerProducts Group(Sales)Gopinath SutarAssociate Vice President High Tech&DiscreteManufacturing(Sales)Haragopal M.Vice President Professional Services Group(Finacle)andHead Bangalore Development Center(Unit 3)Harsha H.M.Vice President Banking&Capital Markets(Delivery)Jagdish Krishna VasishthaA
179、ssociate Vice President and Head Bangalore DevelopmentCenter(Unit 7)Jamuna RaviAssociate Vice President and Head Bangalore DevelopmentCenter(Unit 5)Jasmeet SinghUnit Sales Head Banking&Capital Markets(Sales)Jitin GoyalAssociate Vice President Europe,Middle East&Africa(Sales)Joydeep MukherjeeAssociat
180、e Vice President Energy,Utilities&Resources(Delivery)Krishnamoorthy AnanthasivamVice President Retail,Distribution&Consumer ProductsGroup(Delivery)and Head ThiruvananthapuramDevelopment CenterNagarajan VenkateswaranAssociate Vice President Banking&Capital Markets(Sales)Narsimha Rao ManepalliAssociat
181、e Vice President and Head HyderabadDevelopment Center(Unit 2)Nitin Govind KulkarniDivisional Manager Europe,Middle East&Africa andHead Pune Development Center(Unit 2)Patrick T.OgawaAssociate Vice President Retail,Distribution&ConsumerProducts Group(Sales)Prabhakar Devdas MallyaVice President Securit
182、y Audit&ArchitectureR.K.KalluriAssociate Vice President and Head HyderabadDevelopment Center(Unit 1)Rajiv BansalAssociate Vice President Global Business OperationsRama N.S.Associate Vice President and Head Bangalore DevelopmentCenter(Unit 1)Ramaa SivaramAssociate Vice President High Tech&DiscreteMan
183、ufacturing(Sales)Ravi KiranAssociate Vice President Systems Integration(Delivery)001_024.p655/8/2006,11:24 AM22C H A N G I N G M I N D S E T S|23I N F O S Y S A N N U A L R E P O R T 2 0 0 5-0 6Ritesh Mohan IdnaniVice President Sales,Progeon LimitedRohit KhannaAssociate Vice President Banking&Capita
184、l Markets(Sales)Romil BahlManaging Director Infosys Consulting,Inc.Sameer GoelDelivery Manager Europe,Middle East&Africa andHead Mohali Development CenterSamson DavidAssociate Vice President Asia Pacific(Delivery)Sanat RaoAssociate Vice President Product Strategy&Management(Finacle)Sandeep Deepak Da
185、dlaniAssociate Vice President Retail,Distribution&ConsumerProducts Group(Sales)Sanjay JalonaAssociate Vice President Europe,Middle East&Africa(Delivery)Sathisha B.K.Associate Vice President Automotive&Aerospace(Sales)Senthil Kumar NallasamyDelivery Manager Europe,Middle East&Africa andHead Mauritius
186、 Development CenterSeshadri ParthasarathyDelivery Manager Banking&Capital Markets(Delivery)Shaji FarooqAssociate Vice President Banking&Capital Markets(Sales)Shaji MathewDivisional Manager and Head Mysore Development CenterShiv Shankar N.Associate Vice President and Head Chennai DevelopmentCenterShu
187、bha V.Associate Vice President and Head Bangalore DevelopmentCenter(Unit 4)Sohrab Peshoton KakaliaVice President Systems IntegrationSreenivas Bhashyam AsuriAssociate Vice President Automotive&Aerospace(Sales)Sridhar MarriAssociate Vice President Communication Design GroupSrikantan MoorthyVice Presid
188、ent Communication Service Providers(Delivery)Srinivas UppaluriAssociate Vice President Corporate MarketingSudhir AlbuquerqueAssociate Vice President and Head Mangalore DevelopmentCenterSudhir ChaturvediAssociate Vice President Europe,Middle East&Africa(Sales)Sudhir SinghGroup Engagement Manager Bank
189、ing&Capital Markets(Sales)Surya Prakash K.Associate Vice President Automotive&Aerospace(Delivery)Thothathri V.Associate Vice President and Head Mahindra CityDevelopment CenterUday BhaskarwarAssociate Vice President Asia Pacific(Sales)Venkateswarlu PallapothuChief Operating Officer Infosys Technologi
190、es(Shanghai)Company LimitedVibhuti Kumar DubeyDelivery Manager Enterprise Solutions and Head PuneDevelopment Center(Unit 2)Vishnu G.BhatChief Operating Officer Infosys Technologies(Australia)Pty.LimitedYezdi M.MehtaAssociate Vice President Insurance,Health Care&LifeSciences(Sales)Voice of YouthArvin
191、d RamanConsultant Infrastructure Management ServicesBryan Michael MallinsonSystems Analyst Banking&Capital Markets(Delivery)Jerry CaoSr.Technical Evangelist Education&Research,InfosysTechnologies(Shanghai)Company LimitedKavitha KesavanConsultant Infosys Leadership InstituteMadhu Sudhan RamachandranT
192、echnical Evangelist Education&ResearchNishant ThusooConsultant Domain Competency GroupPooja PuranikSenior Analyst Computers&Communications DivisionShailaja NairProject Manager Europe,Middle East&AfricaSubramanya H.S.Senior Officer Accounts&AdministrationInfosys FoundationTrusteesSudha Murty,Chairper
193、sonSrinath BatniSudha Gopalakrishnan001_024.p655/8/2006,11:24 AM23Awards for Excellence25CEO and CFO certification28Directors report29Financial statements Indian Generally AcceptedAccounting Principles(Indian GAAP)Managements discussion and analysis of43financial condition and results of operationsA
194、uditors report57Balance sheet59Profit and loss account60Cash flow statement61Schedules62Balance sheet abstract and83companys general business profile84Section 212 report86Consolidated financial statements106Risk management report114Corporate governance reportAdditional information130Shareholder info
195、rmation134Share price chart135Frequently asked questions137Selective data139Ratio analysis142Statutory obligations143Human resources accounting144Brand valuation146Balance sheet(including intangible assets)147Current-cost-adjusted financial statements149Intangible assets score sheet151Economic Value
196、-Added(EVA)statement152ValueReportingTM153Management structure155Infosys Foundation156Report on environment,health and safety159Financial statements(unaudited)prepared insubstantial compliance with GAAP requirements ofvarious countries and International FinancialReporting Standards and reports of su
197、bstantialcompliance with the respective corporategovernance standardsAnnual General Meeting(AGM)noticeContents001_024.p655/8/2006,11:24 AM24C H A N G I N G M I N D S E T S|25I N F O S Y S A N N U A L R E P O R T 2 0 0 5-0 6“With our thoughts we make the world.”Gautama BuddhaExcellence is nothing sho
198、rt of an obsession at Infosys.The Awards for Excellence is notabout random achievements,but consistent brilliance of teams and individuals,acrossprojects,units and geographies.The winners are united in their commitment to consistentlydeliver the highest quality to customers,on time,every time.Awards
199、 for Excellence 2005-06First prizeAccount ManagementAmeriprise Financials TeamGanesh RajamaniJamuna RaviMadan MohanRajaram VenkataramanRituparan SharmaSuryanarayanan M.S.Thirumala ArohiVivek Kumar SaxenaBank of America Account ManagementTeamManish Kumar MehtaPraveen GulabraniRajeev RajagopalanRoopa
200、BhandarkarSantosh Vithal ShekdarShashidhar B.RamakrishnaiahVijaya Raghavan SrinivasanVijaysimha A.J.DHL Account Management TeamKiran M.PotdarPankaj Ghotkar B.Prashant NegiSamir Vasant ChaudhariSanjay Nambiar R.Sanjeev RanaShekhar S.PotnisUday BhaskarwarBrand ManagementInstitutional Shareholder Servi
201、cesCo-branding TeamDevadatta S.J.Dileep Arvind KasargodMing TsaiMohit JoshiSatish G.Vikesh GuptaWorld Economic Forum Event TeamAndrea BradyBani Paintal DhawanMahesh RaviRajeev SuriRicha GovilSophia SinhaCustomer DelightAOL VoIP Program TeamAnand NatarajBhagabati Prasad MaharanaDivya NarayanIshwar C.
202、HalalliNarayan B.Rajesh GirotraRajesh VaithalingamSridhar JayaramanDevelopment Center ManagementChennai Development CenterThiruvananthapuram Development Center025_127_pap.p655/8/2006,11:22 AM2526|?C H A N G I N G M I N D S E T SI N F O S Y S A N N U A L R E P O R T 2 0 0 5-0 6The Infosys Customer Sa
203、tisfactionSurvey 2005Industry Business Unit with HighestCustomer Experience IndexRetail Distribution and CPGEnterprise Capability Unit with HighestCustomer Experience IndexIndependent Validation SolutionsThe Infosys Internal PartnershipSurvey 2005Best Internal PartnerCommunication Design GroupFastes
204、t MoverComputers and Communications DivisionInnovation for InitiativesBusiness Process Center TeamAnamika MahajanAnkur BhanDevinder Singh ChahalKapil GuptaMandeep Singh KwatraSanjeev KumarInnovation for SolutionsInfosys Sarbanes-Oxley Solution TeamKeerthana MainkarPradeep SanyalRaghupathi N.CavaleRa
205、vikant Sankaram KarraSreekumar SukumaranVishakha ChhawchhariaMaster Data Management Solution TeamAbhijit Vishwanath UpadhyeAmit KalleyAnantha RadhakrishnanGanapathi Bhat BalikePrasad VuyyuruYogesh Thrikkur VijayanInternal Customer DelightThe Health Assessment&LifestyleEnrichment Plan TeamNanjappa Bo
206、ttolanda SomannaNitesh KumarRichard LoboSriram S.R.Sujith Kumar John PeterProgram ManagementNordstrom Point of Service System R3 TeamAjay R.Amitabh SaranAmrit Raj T.K.Deepak GuptaJohn SewellMadasamy T.Narinder SinghPraveen R.HedaVenkataraghavan SeshadriVijay Kumar NetiProject ManagementDHL Quality A
207、ssurance TeamJagadeesh Babu ParvathaneniPavan Kumar RavulapalliPrabhu Ravindra MerugaRajesh SahadevanRamesh PusalaSachi SinghSantosh Namdevrao JadhavSateesh Kumar MoolaSwaminathan VaradarajanVenkata Narasinga Rao GullipalliFreight Management System TeamAjay Parameswaran NairChakradhar Rao GandheHite
208、sh LuthraPremchand GarrepalliRaja Sekhar Reddy B.Rajeev AgarwalSaleem ShaikSandhya Rani RajaputraVenugopal Rao VennamaneniYasodhara Varma RangineeniQTC Everest Quality Assurance TeamAjay Prasad PandeyAshwathanarayana ShastryAshwini Begur NadigerKapil SaxenaKrishna Prasad C.N.Piyush KothariPrabhoo K.
209、Shailesh KaushikSiddharth RaviSudarshana SharmaSystems and ProcessesPRidE TeamAnoop KumarGanapathi Raman BalasubramanianGeetha DasMadhusudhan MarurRamakrishnan M.Satyendra KumarTechnology ChampionsSatish Kumar Sundara SuriSourav MazumderVikram MeghalUnit/Department ManagementFacilities DepartmentInd
210、ependent Validation SolutionsSecond prizeAccount ManagementBritish Telecom Account TeamMukul GuptaRambabu PallavalliSachidanand SinghSanjeev AryaShailendra JhaSundareshwar V.Sushil AgarwalCustomer DelightDHL Account Receivables TeamAmanpreet SinghDipanjan DasNikhil MahajanPrasenjit GhoshSakthivel Mo
211、handossSuma SureshSuparna RaoYogesh Satyanarayana HebbaleInnovation for InitiativesCampus Connect TeamAditya Nath JhaMukundh NagarajanNarasimha Prasad D.Rajani Kanth KatragaddaRamesh Babu S.Subraya B.M.Progeon Czech Republic TeamJan SkotakLars JepsenLucie ZakovaMathias von EssenOliver BrunsRashmi Mo
212、diQuality of Service(QOS)TeamGaurav CaprihanNikhil VenugopalRajeshwari G.Ram Kumar Chintalapati N.Sachin Ashok WaghSurendra Babu BysaniInnovation for SolutionsRFID Solutions Core TeamGirish A.R.Kumareswar K.Mayank ShridharOmer FarooqueShashi Shekhar VempatiVibin BalakrishnanPeople DevelopmentFinishi
213、ng School TeamBharathi RaoJagadeeshiahManoj Kumar JaiswalPadma Rajeswari TataVeda Srinivasan SurajProgram ManagementLexisNexis Rosetta Release 4 TeamDhiraj SinhaManu K.P.Prabhat KumarRekha HegdeRohit PathakSanthosh G.R.Senthil Nathan M.Seshadri Kavanoor MadapoosiSunil ShivappaProject ManagementEasyS
214、hip TeamAjaykumar Nagnathrao YerawarAmit Ratan VermaBhaskar AgarwalHarsh GulatiHemang Dhirajlal ShahPritam Haribhau MungseShridhar Achyut GuneVikas DewanganVikram SharmaVishal Mohanlal ChaudhariFuturEDGE Support Transition TeamAkhil PratapJoydeep Amalkumar MukherjeeMadhukar Mudhadu HebbarMukesh Vadh
215、yar025_127_pap.p655/8/2006,11:22 AM26C H A N G I N G M I N D S E T S|27I N F O S Y S A N N U A L R E P O R T 2 0 0 5-0 6Sathish Reddy GeetlaSoma Shekhar GantiSrinivasa Vijaya Chander VattikullaSusanto Kumar DeSushil KumarSushil Ramsukh JethaliyaInfosys Boeing Graphics Art TeamAnkan MukherjeeBhaskar
216、KakuturuChandrasekhar RavuriHarmeet SainiJayateerth Shreekant MirjiMihir KumarPriyaRadhika Yash SaveVenkata Seshu GulibhiVikas RaoRate Quote and Pickup Management SystemTeamAmit BajajArun ChandramouliBrindavan Krishna DasikaErshad Ali MohammadIndira Sri Harsha KotaKodandapani MavillapalliPrabir Maju
217、mderPurnachandrika DasariSuneetha Nanda BangaloreVijaya Shankar KonamSystems and ProcessesESTEEM TeamAman Kumar SinghalDinesh GanesanMilind V.BadkundriParthasarathy M.A.Siddharth SawhneySubrahmanyam Venkata RavinuthalaUnit/Department ManagementCommunication Service ProvidersThird prizeCustomer Delig
218、htDHL CRM Program TeamAnil MehtaBadrinath SrinivasanKalyan PeriRajendra Vinayak JoshiShantanu DasShyamalee Pramod SamvatsarSrinivasa Gopal SugavanamVimlesh AnkurPeople DevelopmentMangalore DC People Development TeamAjith Kumar K.G.Anil Kumar P.N.Mahesh Kamath P.Sampath S.ShettySandeep Aaron DsilvaPr
219、ogram ManagementHerbalife Global SupplychainImplementation TeamAshish KumarDeepak HangalGiriraj SomaniKrishna Kumar A.V.S.S.Rajiv KakaRatnaprasad I.Shivaprasad KambalimathSrinivasa Reddy KunamVed VyasVenkatachalam R.Sales ManagementMcAfee Program SAP Code Red PursuitTeamBalasubramanian Venkatachalam
220、Komal Kumar JainRaj JoshiSajit VijayakumarSanjai HayaranSusan LuskTony GerthMcKesson Medical Management PlatformPursuit TeamGautam KhannaPuspamitra MishraRaja Ranjan SenapatiRakesh DasRohit Manipal BhojarajSeema PandeyShyam Kishor MishraVenkat Narayan S.Systems and ProcessesAXON TeamBinod H.R.Chandr
221、akanth DesaiRajkumar R.Shyam Sundar V.Special prizeInternal Customer DelightHurricane Rita TaskforceBrundhabhan M.S.Gopal DevanahalliJackson MathewKoushik R.N.Kush KochgawayMuralikrishna K.Praveen Bhat K.Prem Shyam MirchandaniRobin GoswamiSheena KunhiramanShveta AroraSudhir G.PaiVijayeendra S.Purohi
222、tLandscape Management TeamInvestor DelightSecondary ADR TeamAnjali BalagopalHari S.BhardwajJohn Ponvelil PhilipParvatheesam KanchinadhamRamadas Kamath U.Rikhab ChandVeerabhadraswamy K.R.Vinayak Pai V.SOX Compliance TeamAmarnath R.R.Deepak BhallaGeorge ThomasJayesh Dhanvantkumar SanghrajkaPraveen Vis
223、wasRajiv BansalSanjesh Kumar ThakurShailesh Kumar AgrawalVisveswaran C.R.Sales ManagementABN AMRO Monsoon Deal TeamDaxesh PatelDeepak AggarwalDeepak Natraj RamamurthiJitin GoyalMritunjay Kumar SinghNavoneil BhattacharyyaRekha Dipanjan DeySamuel Mani KallupurakalSanjay JalonaSrinivas B.G.Suketu Patel
224、Swadish Damodar KulhalliThothathri VisvanathanUrvesh Bipin ShahSocial ConsciousnessTeam AKANKSHAAbhijeet LenkaAkshaya Kumar SatpathyAtanu SilGouri Kumar MisraKali Charan DasPadmalaya MandhataPritam MahapatraSutirtha SenguptaZahid Choudhury HossainTeam MAMTAAmandeep Singh SyaliKumar M.S.S.R.R.Manjula
225、 M.K.Rambabu Sampangi KaipaRaviraj ChandrabhattaRohit MunjalSreedhar KomalaVamsi Krishna KothakondaTeam PRERANADheeraj HejmadiDinha Pramila DSilvaGirish Aithal U.R.Gopikrishnan KonnanathPriya RadhakrishnanRashmi Gattavadipura RamachandraRaviraj BelmaShanteri G.ShanbhagValue ChampionsHTDM Value Champ
226、ionNithya PrabhakarSave Life and Make a DifferencePreeti BatraSachin Batra025_127_pap.p655/8/2006,11:22 AM2728|?C H A N G I N G M I N D S E T SI N F O S Y S A N N U A L R E P O R T 2 0 0 5-0 6Chief Executive Officer(CEO)and Chief Financial Officer(CFO)CertificationWe,Nandan M.Nilekani,Chief Executiv
227、e Officer,President and Managing Director and T.V.Mohandas Pai,Director,Chief Financial Officer andHead Finance and Administration,Education&Research and Human Resources of Infosys Technologies Limited,to the best of our knowledgeand belief,certify that:1.We have reviewed the balance sheet and profi
228、t and loss account(consolidated and unconsolidated),and all its schedules and notes onaccounts,as well as the cash flow statements and the directors report;2.Based on our knowledge and information,these statements do not contain any untrue statement of a material fact or omit to state a materialfact
229、 necessary to make the statements made,in light of the circumstances under which such statements were made,not misleading withrespect to the statements made;3.Based on our knowledge and information,the financial statements,and other financial information included in this report,present in allmateria
230、l respects,a true and fair view of,the companys affairs,the financial condition,results of operations and cash flows of the company asof,and for,the periods presented in this report,and are in compliance with the existing accounting standards and/or applicable laws andregulations;4.To the best of ou
231、r knowledge and belief,no transactions entered into by the company during the year are fraudulent,illegal or violative of thecompanys code of conduct;5.We are responsible for establishing and maintaining disclosure controls and procedures and internal controls over financial reporting for thecompany
232、,and we have:a)designed such disclosure controls and procedures to ensure that material information relating to the company,including its consolidatedsubsidiaries,is made known to us by others within those entities,particularly during the period in which this report is being prepared;b)designed such
233、 internal control over financial reporting,or caused such internal control over financial reporting to be designed under oursupervision,to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements forexternal purposes in accordance with
234、 generally accepted accounting principles;c)evaluated the effectiveness of the companys disclosure,controls and procedures.andd)disclosed in this report any change in the companys internal control over financial reporting that occurred during the companys mostrecent fiscal year that has materially a
235、ffected,or is reasonably likely to materially affect,the companys internal control over financialreporting6.We have disclosed based on our most recent evaluation,wherever applicable,to the companys auditors and the audit committee of thecompanys Board of Directors(and persons performing the equivale
236、nt functions)a)all deficiencies in the design or operation of internal controls,which could adversely affect the companys ability to record,process,summarize and report financial data,and have identified for the companys auditors,any material weaknesses in internal controls overfinancial reporting i
237、ncluding any corrective actions with regard to deficiencies;b)significant changes in internal controls during the year covered by this report;c)all significant changes in accounting policies during the year,if any,and that the same have been disclosed in the notes to the financialstatements.d)instan
238、ces of significant fraud of which we are aware,that involves management or other employees who have a significant role in thecompanys internal controls system;7.In the event of any materially significant misstatements or omissions,we will return to the company that part of any bonus or incentive ore
239、quity-based compensation,which was inflated on account of such errors,as decided by the audit committee;8.We affirm that we have not denied any personnel,access to the audit committee of the company(in respect of matters involving allegedmisconduct)and we have provided protection to whistle blowers
240、from unfair termination and other unfair or prejudicial employmentpractices;and9.We further declare that all board members and senior managerial personnel have affirmed compliance with the code of conduct for thecurrent year.Nandan M.NilekaniT.V.Mohandas PaiChief Executive Officer,Director,Chief Fin
241、ancial Officer andBangalorePresident and Managing DirectorHead Finance and Administration,April 14,2006Education&Research and Human Resources025_127_pap.p655/8/2006,11:22 AM28C H A N G I N G M I N D S E T S|29I N F O S Y S A N N U A L R E P O R T 2 0 0 5-0 6Directors reportAppropriationsDividendIn O
242、ctober 2005,we paid an interim dividend of Rs.6.50 per share(130%on par value of Rs.5/-).We recommend a final dividend ofRs.8.50 per share(170%on par value of Rs.5/-per share)and a SilverJubilee special dividend of Rs.30.00 per share(600%on par value ofRs.5/-per share)aggregating to Rs.45.00 per sha
243、re(900%on par valueof Rs.5/-per share).The total dividend amount is Rs.1,238 crore,asagainst Rs.310 crore for the previous year.Dividend(including dividendtax)as a percentage of profit after tax excluding Silver Jubilee specialdividend is 19.36%as compared to 18.48%in the previous year.The register
244、of members and share transfer books will remain closedfrom May 27,2006 to June 10,2006,both days inclusive.The AnnualGeneral Meeting of the company has been scheduled for June 10,2006.Transfer to reservesWe propose to transfer Rs.242 crore to the general reserve.An amountof Rs.2,195 crore is propose
245、d to be retained in the profit and loss account.Bonus issue of sharesWe recommend an issue of bonus shares in the ratio of 1:1,i.e.oneadditional equity share for every one existing equity share held by themembers on the date to be fixed by the Board,by capitalizing a part ofthe general reserves.Cons
246、equently,we also recommended a stock dividend on the companysAmerican Depositary Shares(ADSs)in the ratio of 2 for 1,i.e.oneadditional ADS for every single existing ADS held by the holders ofthe ADS,as on the date to be fixed by the Board.BusinessOur software export revenues aggregated Rs.8,864 cror
247、e,up by 31.79%from Rs.6,726 crore the previous year.65.58%of the revenues camefrom North America,24.22%from Europe,and 8.37%from the restof the world.The revenue from Europe increased from Rs.1,524 croreto Rs.2,187 crore,with a growth rate of 43.5%which was higher thanthe other regions.The share of
248、the fixed-price component of thebusiness was 29.3%,as compared to 30.9%during the previous year.Blended revenue productivity,in dollar terms,has increased by 1.2%during the year.Prices have been stable with an upward bias.The gross profit amounts to Rs.4,141 crore(45.87%of revenue)asagainst Rs.3,205
249、 crore(46.72%of revenue)in the previous year.Theonsite revenues have decreased from 50.2%in the previous year to49.8%.The onsite person-months comprised 29.2%of total billedefforts as compared to 29.4%during the previous year.The operatingprofit amounted to Rs.2,989 crore(33.11%of revenue)as against
250、Rs.2,325 crore(33.90%of revenue).Sales and marketing costsdecreased from 5.71%of our revenue in the previous year to 5.53%,while general and administration expenses increased from 7.11%inthe previous year to 7.23%.We continue to reap the benefits ofeconomies of scale.The net profit after tax and exc
251、eptional item wasRs.2,421 crore(26.82%of revenue)as against Rs.1,904 crore(27.76%of revenue)in the previous year.The decrease in net margin is primarilydue to the increase in the depreciation by 0.62%and impact of Rupeeappreciation by 0.85%.We seek long-term partnerships with clients while addressin
252、g theirvarious IT requirements.Our customer-centric approach has resultedin high levels of client satisfaction.We derived 95.0%of our revenuesfrom repeat business(i.e.a customer who also contributed to revenuesduring the prior fiscal year).We added 144 new clients,including asubstantial number of la
253、rge global corporations.The total client baseTo the members,We are delighted to present our report on the business and operationsof the company for the year ended March 31,2006.Financial resultsin Rs.crore,except per share data*Year ended March 31,20062005Income from software services and products9,
254、0286,860Software development expenses4,8873,655Gross profit4,1413,205Selling and marketing expenses499392General and administration expenses653488Operating profit before interest and depreciation2,9892,325InterestDepreciation409268Operating profit before tax and exceptional item2,5802,057Other incom
255、e,net144127Net profit before tax and exceptional item2,7242,184Provision for taxation303325Net profit after tax and before exceptional item2,4211,859Exceptional item income from sale ofinvestment in Yantra Corporation (net of taxes)45Net profit after tax and exceptional item2,4211,904Balance brought
256、 forward1,42871Less:Residual dividend paid3Additional dividend tax2Amount available for appropriation3,8491,970DividendInterim177134Final234176Silver Jubilee special dividend827Total dividend1,238310Dividend tax17442Amount transferred to general reserve242190Balance in profit and loss account2,1951,
257、428Earnings per share before exceptional item(equity shares,par value Rs.5/-each)Basic88.6769.26Diluted86.2067.46Earnings per share after exceptional item(equity shares,par value Rs.5/-each)Basic88.6770.95Diluted86.2069.101 crore equals 10 millionResults of operationsTotal revenue increased to Rs.9,
258、028 crore from Rs.6,860 crore in theprevious year,at a growth rate of 31.60%.The operating profit increasedby 28.56%,from Rs.2,325 crore(33.90%of total revenues)toRs.2,989 crore(33.11%of total revenues).The profit after tax andbefore exceptional item increased to Rs.2,421 crore(26.82%of totalrevenue
259、)from Rs.1,859 crore(27.10%of total revenue).The profitafter tax and exceptional item increased to Rs.2,421 crore(26.82%oftotal revenue)from Rs.1,904 crore(27.76%of total revenue).025_127_pap.p655/8/2006,11:22 AM2930|?C H A N G I N G M I N D S E T SI N F O S Y S A N N U A L R E P O R T 2 0 0 5-0 6at
260、 the end of the year stood at 460.Further,we have 221 million-dollarclients(166 in the previous year),81 five-million-dollar clients(71),54ten-million-dollar clients(42)and 9 fifty-million-dollar clients(5).Duringthe year,one client contributed 90-million-dollar+of revenues.We continued scaling up o
261、ur infrastructure by adding another 20.99lakh sq.ft.of physical infrastructure space.The total available spacenow stands at 90.26 lakh sq.ft.The number of marketing offices as ofMarch 31,2006 was 37.FinacleFinacle,our universal banking solution,empowers banks to transformtheir business leveraging ag
262、ile,new-generation technologies.Thismodular solution addresses the core banking,treasury,wealthmanagement,consumer and corporate e-banking,mobile banking andweb-based cash management requirements of universal,retail,corporate banks worldwide.Finacle emerged as one of the worlds most scalable core ba
263、nkingsolutions by achieving an unparalleled performance of 40 milliontransactions per hour(11,180 TPS),in a scalability test reviewed byErnst&Young.Today,Finacle powers some of the largest opensystems-based core banking sites in the world:live sites supportingover 17 million accounts,34,000 users an
264、d a peak transaction load of10 million.Increase in share capitalDuring the year,we issued 49,84,431 shares on the exercise of stockoptions under the 1998 and 1999 employee stock option plans.Dueto this,the outstanding issued,subscribed and paid-up equity sharecapital increased from 27,05,70,549 shar
265、es to 27,55,54,980 shares asof March 31,2006.LiquidityWe continue to be debt-free,and maintain sufficient cash to meet ourstrategic objectives.Liquidity in the balance sheet needs to balancebetween earning adequate returns and the need to cover financial andbusiness risks.Liquidity also enables us t
266、o make a rapid shift indirection,should the market so demand.During the current year,internal cash accruals have more than adequately covered workingcapital requirements,capital expenditure and dividend payments,leaving a surplus of Rs.1,612 crore.As on March 31,2006,we hadliquid assets including in
267、vestments in liquid mutual funds,of Rs.4,463crore as against Rs.2,851 crore at the previous year-end.These fundshave been invested in deposits with banks,highly rated financialinstitutions and in liquid mutual funds.Standard&Poors ratingStandard&Poors(S&P),the global credit ratings provider,assigned
268、BBB rating for us.We are the first company in India to obtain a creditrating higher than Indias sovereign rating(BB+/Stable/B)from S&P.According to S&P,the rating reflects our conservative financial profileand policy,ample liquidity,strong operating cash flow,and a debt-freebalance sheet.Development
269、 centersWe incurred capital expenditure aggregating Rs.849 crore on physicalinfrastructure,up from Rs.623 crore during the previous year.Further,we incurred Rs.199 crore on technological infrastructure,up fromRs.171 crore.In all,Rs.1,048 crore has been invested,up from Rs.794 crore.As of March 31,20
270、06,in India,we had 90.26 lakh sq.ft.of space with41,666 seats and an additional 53.43 lakh sq.ft.,under construction,which would have 20,200 seats.SubsidiariesWe have four subsidiaries,viz.Progeon Limited,Infosys Technologies(Australia)Pty.Limited,Infosys Technologies(Shanghai)CompanyLimited and Inf
271、osys Consulting,Inc.and one step-down subsidiaryProgeon S.R.O.(wholly-owned subsidiary of Progeon Limited).Progeon Limited(Progeon)Progeon Limited was incorporated in April 2002,in India,to addressopportunities in the Business Process Management space.We hold71.74%of the equity share capital and vot
272、ing power of Progeon.Duringthe year,Progeon added 6 clients,and generated Rs.379 crore inrevenue,with a net profit of Rs.93 crore.The employee strength as onMarch 31,2006 was 7,021.Infosys Technologies(Australia)Pty.LimitedIn January 2004,we acquired,for cash,100%of the equity in ExpertInformation S
273、ervices Pty.Limited,Australia,for US$24.3 million.Theacquired company was renamed“Infosys Technologies(Australia)Pty.Limited”.During the year,Infosys Technologies(Australia)Pty.Limitedserviced 57 clients and generated Rs.321 crore in revenue,with a netprofit of Rs.18 crore.The employee strength as o
274、n March 31,2006was 335.Infosys Technologies(Shanghai)Company LimitedInfosys Technologies(Shanghai)Company Limited(Infosys China)isa wholly-owned subsidiary and was formed to expand the companysbusiness operations in China.We have invested US$5 million in InfosysChina and advanced a loan of US$3 mill
275、ion as of March 31,2006.During the year,Infosys China serviced 32 clients,and generated arevenue of Rs.27 crore,with a net loss of Rs.17 crore.The employeestrength as on March 31,2006 was 525.Infosys Consulting,Inc.In April 2004,we established a wholly-owned subsidiary,InfosysConsulting,Inc.,in the
276、state of Texas to add high-end consultingcapabilities to our Global Delivery Model.We had approved aninvestment of up to US$20 million in the share capital of InfosysConsulting.We have invested US$17 million as of March 31,2006.During the year,Infosys Consulting serviced 54 clients,and generateda re
277、venue of Rs.143 crore,with a net loss of Rs.36 crore.The employeestrength as on March 31,2006 was 176.Particulars required as per Section 212 of the Companies Act,1956As per Section 212 of the Companies Act,1956,we are required toattach the directors report,balance sheet,and profit and loss accounto
278、f these subsidiaries.We had applied to the Government of India foran exemption from such attachment as we present the auditedconsolidated financial statements in the annual report.We believe thatthe consolidated accounts present a full and fair picture of the state ofaffairs and the financial condit
279、ion and is accepted globally.TheGovernment of India has granted exemption from complying withSection 212.Accordingly,the annual report does not contain thefinancial statements of these subsidiaries.The company will makeavailable the audited annual accounts and related information of thesubsidiary co
280、mpanies,where applicable,upon request by any investorof the company.These documents will also be available for inspectionduring business hours at our registered office.Human resource managementEmployees are vital to the company.We have created a favorable workenvironment that encourages innovation a
281、nd meritocracy.We havealso put in place a scalable recruitment and human resourcemanagement process,which enables us to attract and retain high caliberemployees.We added 12,480(net)and 16,878(gross)employees,taking the total strength to 44,658 up from 32,178 at the end of theprevious year.Our attrit
282、ion rate stands at 11.2%compared to 9.7%for the previous year.Over the last year,14,23,611 people applied to025_127_pap.p655/8/2006,11:22 AM30C H A N G I N G M I N D S E T S|31I N F O S Y S A N N U A L R E P O R T 2 0 0 5-0 6us for employment and we continue to remain an employer of choicein our ind
283、ustry.Our key focus has been to change the mindset from human resourceutilization to nurturing and leveraging talent.We have instituted theEngage and Enable Infoscions program as a key strategy to focus onour quest to achieve global leadership.Transitioning business to theconcept of verticals and ma
284、naging post-acquisition issues brought inkey people challenges,which helped our people processes mature andled us to explore new domains.BrandingThe year saw us emerging as a true global brand.We were the highestranked IT services company in the world,and No.10 overall,in theannual BusinessWeek Info
285、Tech100.We have also featured regularly inthe top 10 companies in the world in IT services,on parameters otherthan size,in surveys and reports carried out by various media andanalyst firms.The leading players of the global media,including TV,print and online,continued their coverage of Infosys last
286、year.These included Fortune,Newsweek,BusinessWeek,Wall Street Journal,Forbes,CNBC,InvestorsBusiness Daily,San Jose Mercury News,New York Times,Information Week,Smart Money,ABC,CBS and Le Croix.Our clients,the IT buyer community,rely extensively on the opinionsand recommendations of industry analysts
287、 for their selection and usageof IT vendors,and their products and services.Industry analysts alsoinfluence market opinion about specific vendors,their business modelsand offerings through research,vendor ratings,client advisory,and byspeaking at major conferences.We have sustained top-of-mind recal
288、l with leading offshore outsourcingand industry analysts.Infosys is positioned as one of six in the LeadersQuadrant of Gartners Magic Quadrant for Offshore ApplicationServices.Forrester,in its report on business process and technicalconsulting practices,rates Infosys as the only company that can mat
289、chthe former Big Five firms for business process consulting work whilehaving the traditional strength in the follow-on technical work.Forresteralso recommends Infosys as a top choice for SAP related work andstates that“the SAP practice looks like the rest of Infosys:well organizedand managed,and ful
290、l of smart people.”Forrester also rates us amongstthe highest ranked IT services companies in client satisfaction.We continue to gain recognition for the solutions we have created forspecific industry verticals and technology practices.We are the topscoring offshore service provider in the AMR evalu
291、ation of serviceproviders offering sales&marketing initiatives for consumer products,and Progeon is the top scoring offshore service provider in the AMRevaluation of service providers offering full service Finance BPO.During the year,we participated in,or held,over 50 events across theUnited States,
292、Europe and Asia Pacific regions.Through these events,we reached out and demonstrated our domain expertise,capabilitiesand thought leadership to a large cross-section of Global 2000 companies.At the World Economic Forum(WEF),we were one of the pillars ofthe“India Everywhere”theme.We were the top leve
293、l sponsor ofSapphire,the annual SAP event.Flagship campaigns like WIBTA(Wharton Infosys Business Transformation Awards),the CEO event inJapan,and Confluence(our annual customer forum held in the UnitedStates,Japan and Europe,earlier known as Milan)gained significantlyin attendance and quality of cov
294、erage.We also had a strong presence inleading industry events,where our leaders were invited to be speakers.Webinars on various topics of relevance were held throughout the year.QualityWe firmly believe that the pursuit of excellence is one of the mostcritical components for success in the competiti
295、ve global market.Wehave achieved high maturity through rigorous adherence to highly-evolved processes,which have been systematically benchmarkedagainst world-class operating models.These standards include ISO9001-TickIT,SEI-CMM/CMMi,BS7799,ISO14001;BS 15000;AS9100;PCMM and the Malcolm Baldrige/EFQM
296、Frameworks.Weare rated at Level 5 of the Capability Maturity Models(CMM,CMMiand PCMMi),which are world-class benchmarks in software processmanagement.Regular and rigorous assessments are conducted byreputed external assessors vis-vis CMM,CMMi,PCMM and CII-EXIM(based on EFQM/Malcolm Baldrige models).
297、To address future challenges and to ensure performance improvementin an integrated manner,we have launched a number of initiatives:PRidE:Process Repository Infosys for Driving Excellence,integrated with tools and knowledge base that optimizes executionacross the globeImproving quality and productivi
298、ty through standardization ofengineering processes for key technologies with tools,methodologies and reusable components and frameworkUse of Six Sigma for enhanced customer focus and improvedservice delivery in maintenance,production support andengineering designEnabling people with focused accredit
299、ation programs like CSQA,PMI,CSTE,CFPE,internal process training on quantitative projectmanagement,statistics for decision making,integratedrequirements analysis,etc.We have also launched our ownoptimized certification programs on Project Management(PM Elite)and Estimation(ESTEEM)STRIDE:An account-o
300、riented CMMi implementation added withtools and new processes to add client value,improve estimationaccuracy,and enhance quality and productivity.We have also helped many of our clients improve their processes andsystems by providing high-end software process consulting services.This is a testimony
301、to our process leadership.Infosys Leadership InstituteOur phenomenal growth in the past decade,coupled with globalization,has given us the impetus to focus on developing leaders for the comingdecades.As we create thousands of effective managers in theorganization,we have also chosen to invest in dev
302、eloping top-tierleaders who can help us maintain our lead and momentum in themarket place.During the last fiscal,we successfully facilitated thedevelopment of more than 450 employees in their leadership journey.A set of leadership competencies aligned to nine leadership types,distinct from manageria
303、l skills has been identified and a number ofvehicles are used to build these competencies.Significant initiativesinclude the Leaders Teach Leaders series of experience sharing sessions,feedback intensive programs,nomination to Ivy League courses,andothers.We have also created the best infrastructure
304、 in India forleadership development by building a residential campus for the InfosysLeadership Institute in Mysore.AcE Building global academic relationshipsWe have strongly focused our branding efforts on some of the bestnames in academia,knowing that our message extends beyondcampuses to many powe
305、rful corner offices.AcE(Academic Entente),our academic branding program,drives our effort in proactivelybranding ourselves on international university campuses.The programhas helped position us as a global brand in the minds of students,customers,partners,shareholders and employees.As a part of this
306、 program,we have been working on case studies thathelp position Infosys as a thought leader in the industry.Infoscionshave participated in a number of industry-academia conferences andhave spoken at classrooms.The Product Engineering group at Infosyshas also initiated a scholarship at University of
307、Illinois at Urbana-Champaign.We have also embarked on collaborative research withfaculty from leading universities in technical and functional areasrelevant to the company.025_127_pap.p655/8/2006,11:22 AM3132|?C H A N G I N G M I N D S E T SI N F O S Y S A N N U A L R E P O R T 2 0 0 5-0 6This year,
308、we have hosted over 55 student groups and faculty fromcolleges of international repute.InStep Global internship programInStep is our global internship program to attract students from thebest academic institutions around the world.While students benefitfrom learning first-hand in a corporate environ
309、ment,we gain brandequity,value addition to current projects,and enhanced awareness atthe universities.Further,interns have published case studies and whitepapers that help position Infosys as a global technology leader.InStepalso promotes a multi-cultural environment at Infosys.Last year,theprogram
310、received over 11,000 applications and enabled 106 internsfrom 35 different nationalities to share their experiences andperspectives.Further,we recruit interns from diverse academicbackgrounds,spanning technology students from Stanford to businessstudents from Wharton.This year,we held InStep:Informa
311、tionSessions in the United States of America,Canada,Mexico,the UnitedKingdom,France,Germany,The Netherlands,Belgium,China,Australia,Singapore,Philippines,Thailand,Korea and Japan.Education and Research initiativesOur Global Education Centre(GEC)caters to a peak training need of4,500 trainees.Modern,
312、futuristic training facilities and methodologiesis the norm at GEC.Trainees have a 24x7 access to the onlineclassrooms,cyber caf and futuristic library.The training program beingresidential in nature fosters good team building.We have trained 13,978 trainees as part of our Foundation Programlast yea
313、r.Continuing education is imparted in advanced technologiesand managerial skills to our employees.The aggregate training impartedby us exceeded 7,90,000 of trainee consumed days.To meet the growing expectations from our clients for more value-added services from us,we have conceived and implemented
314、acompetency framework for certifications across all roles on technologyand domain.In the pilot roll-out,we have covered about 120 DivisionalManagers/Delivery Managers and 1,100 Group Project Managers/Senior Project Managers.Roll out for other roles is under progress.Through sustained research,E&R ha
315、s published three books authoredby our employees.The books are titled:J2EE Architecture(B.V.Kumar,S.Sangeetha and S.V.Subrahmanya),Integrated Approach to WebPerformance Testing:A Practitioners Guide(Subraya B.M.),and TenSteps to Maturity in Knowledge Management Lessons in Economy(J.K.Suresh and Kavi
316、 Mahesh)which are used as references in severaluniversities in India.In all,nine papers have been published in thearea of technology at international conferences and in journals.Inaddition,a patent has been filed at USPTO and India patent office.Software Engineering and Technology Labs(SETLabs)SETLa
317、bs is the center for research and innovation at Infosys.SETLabsmonitors advances in technologies that could impact the businessof our clients such as collaborative technologies,convergencetechnologies and web services.This group also develops newmethodologies and software tools that assist us in the
318、 execution of ITservices projectsProject Management Competency CenterExecuting projects being the key aspect of our business,we havefocused on enhancing project management competency of ouremployees to meet the changing project environment.To date,wehave over 1,100 Managers/Senior Managers certified
319、 as ProjectManagement Professionals of PMI,USA,the de-facto world body inpromoting professional project management.We continue to innovateto bring new methodology and techniques that enhance are projectmanagement skills at different levels.Knowledge managementWe continue to leverage the collective k
320、nowledge of the organizationfor competitive advantage.The Knowledge Management(KM)program,initiated in August 2000,has resulted in the active generationand wide-spread use of reusable knowledge.The central knowledgerepository has,as of date,over 16,000 knowledge assets.This is inaddition to the exte
321、nsive documentation that gets done in projects ascustomer deliverables and process-mandated artifacts.More than 4,000knowledge assets are downloaded every workday by Infoscions fromour Knowledge portal,resulting in an estimated annual saving of over50,000 person-days of effort.On an average,there is
322、 5%improvementin productivity in software development projects of a specific category,through the use of sound KM practices.It has also been observed thatthe time required to induct new people into projects has been on thedecline in units where KM maturity is high.We won the Global MAKE(Most Admired
323、 Knowledge Enterprises)award for 2005 along with 20 other leading global companies from awide cross-section of industries.This is the third consecutive timeInfosys is winning this prestigious award a distinction that is sharedby no other Indian company.Infosys is the first and only Indiancompany to
324、be inducted into the Global MAKE Hall of Fame.Campus ConnectInfosys Campus Connect,the industry-academia collaboration programwhich was reported in the last Annual Report has established itself;ithas grown from 96 to 250 engineering colleges across the country.We share our educational experience wit
325、h the faculty of the partneringcolleges and this has been done through a structured FacultyEnablement Program(FEP)with 188 faculty members from 250partnering colleges.The Infosys Foundation Program(Generic Courses)is being conducted in the colleges by the faculty members who havegot enabled through
326、the FEPs.25%of the 6,700 students areundergoing this program have completed the same.A typical shortcoming observed in our education system has been lackof focus on soft skills.To bridge this gap,as part of Campus Connect wehave created a Train the Trainer initiative which has been received verywell
327、 by the colleges.This is expected to bring down the gap in the“Industry Readiness”of our graduates on the behavioral skills front too!The Campus Connect portal,a digital collaboration platform to achievehigh levels of productivity through use of technology,is anasynchronous channel to share our educ
328、ational and professionalexperience in technology space with the students/faculty of engineeringcolleges.Corporate social responsibility in educationE&R has the pride of anchoring Infosys Extension Program(IEP)whichconsists of Infosys Fellowship Program,Rural Reach program,CatchThem Young and Train t
329、he Trainer.Infosys Fellowship ProgramThe Infosys Fellowship Program,instituted by us at 12 premieracademic institutions in India to support research work leading to aPh.D,has been well-received.At present,there are 58 InfosysFellowship awardees undergoing Ph.D programs at various institutions 18 Inf
330、osys fellows have submitted their doctoral research and manyhave already been awarded a Ph.D by the respective institutions.Rural Reach ProgramThe Rural Reach Program is a one-day program delivering basicknowledge of computers to students of classes 5,6 and 7 in ruralschools.This year,over 4,500 stu
331、dents from 33 schools across Indiawere benefited from this Program.025_127_pap.p655/8/2006,11:22 AM32C H A N G I N G M I N D S E T S|33I N F O S Y S A N N U A L R E P O R T 2 0 0 5-0 6Catch Them YoungCatch them young and watch them grow.Aimed at students of class 9,this program focuses on encouragin
332、g students to dream big and aimhigh.Opening a world of knowledge about computers and how friendlyand useful they can be.Written tests are conducted for the 9th standardstudents wherein 30-40 students are selected.The selected studentsare trained on computer languages like C,and are introduced tomult
333、imedia and e-commerce for about 15 days.The best two out of the group are selected and are allowed to do asmall real-time project for the company.During this period,thecompany also gives a stipend amount as a sign of recognition for theirefforts,which also serves as an encouraging factor for the students.This year six events were conducted which covered more than 240students from 156 schools acros
0731-84720580
sgpjbg002
工作日 9:30 - 18:00
研報
新質生產力
DeepSeek?
低空經濟
大模型
AI Agent
AI Infra
具身智能
自動駕駛
寵物
銀發經濟
人形機器人
企業出海
算力
微短劇
薪酬
白皮書
創新藥
人工智能
AI產業
信息科技
互聯網
消費經濟
汽車交通
電商零售
傳媒娛樂
醫藥健康
投資金融
能源環境
地產建筑
傳統產業
英文報告
其它
最新報告
中英對照
全文搜索
報告精選
PDF上傳翻譯
多格式文檔互轉
入駐&報告售賣
會員權益
機構報告
券商研報
財報庫
專題合集
英文報告
數據圖表
會議報告
其他資源
行業聚焦
芯片產業
熱點概念
全球咨詢智庫
人工智能
500強
新質生產力
會議峰會
新能源汽車
企業年報
互聯網
公司研究
行業綜觀
消費教育
科技通信
醫藥健康
人力資源
投資金融
汽車產業
物流地產
電子商務
傳統產業
傳媒營銷
其它
2025低空經濟/低空產業報告合集（共49套打包）
2025年智算中心/AIDC/AI數據中心研究報告合集（共37套打包）
AI、科技與通信
廣告、傳媒與營銷
消費、零售與支付
HR、文化與旅游
金融、保險與投資
能源、環境與工業
醫療制藥與大健康
物流、地產與建筑
其他行業
AI ? 科技 ? 通信
數字化
金融財經
智能制造
電商傳媒
地產建筑
醫療醫學
能源化工
其他行業
收藏
下載
2025-05-20
AI查數
行業數據
政策法規
商業模式
產業鏈
競爭格局
市場規模
產業概述
其它
2025年
AI讀財報
年報
一季報
半年報
三季報
IPO招股書
社會責任報告
A股
IPO申報
港股
美股&全球
新三板
掃碼登錄
手機快捷登錄
賬號登錄
