1、Think ScaleAnnual Report 2004-05The creation of a thousand forests is in one acorn Ralph Waldo EmersonAnnual Report 2004-05Think SCover_Page_95.p655/9/2005,2:24 PM1Think Scale|1Infosys|Annual Report 2004-05Think ScaleIn every industry,companies with similar antecedents and strategies grow differentl
2、y.Some grow with metronomic regularity to become leadersin their segments.Wal-Mart,Dell and Toyota exemplify this trend.Others grow in fits and starts and often languish and die,or at best,getacquired.While several attributes define successful companies,one is often overlooked.Their ability to scale
3、.For companies,scaling up is vital for longevity and prosperity.The growth it generates feeds customer demand for stronger,more stable partners,who deliver more value at ever reducing cost.Employees need the growth to expand their horizons and careers.Investors expect growth as amatter of right.Scal
4、e permits companies to build their brand and human capital,to seize market share,to amortize huge costs on sales,administrationand R&D,and to build a financial war chest.In the IT industry,scale is non-negotiable.The question is how best and how quickly we can scale.Today,old rules no longer apply.I
5、nfosys,builton an entirely new business model,has a chance to grow rapidly and emphatically.Incumbents are now finding their size a disadvantage becauseit is based on an outdated theory of the business.Such realignment of an entire industry landscape comes rarely.But the window of opportunityis tran
6、sient and can shut quickly.It is vital to maximize the available opportunity.Why do some companies scale better than others?The answer lies in their business models,leadership,values and aspirations.The Infosys business model is founded on creating a global platform for delivering intellectual outpu
7、t that solves business problems in diverseindustries across the world.Since this is essentially based on large-scale deployment of human capital,it is critical to be able to attract a largenumber of aspirants and pick the best among them.It is also imperative to train new recruits quickly and effect
8、ively in myriad skills andcapabilities,to best serve the customer.Since the productivity and motivation of our people are maximized in a world-class physical and technicalenvironment,the ability to build spacious,attractive campuses equipped with the best technology is vital.The underlying systems a
9、nd processesmust be enabled to ensure consistency in quality and effective use of our knowledge capital for clients.Customer touch points must be designedto deliver the same value to every customer.Goals,incentives and strategy must be aligned for scale.The focus has to be on execution,speed andcont
10、inuous improvement.The business model is enabled by a leadership that leads by example.A leadership that rolls up its sleeves and dives into the details,be it projectreviews,debugging design or scoping customer needs.The culture of excellence generated attracts the best and the brightest.And,the int
11、imateknowledge of the business helps in driving every aspect of scale.As important as the business model and leadership is the value system.The values that define transparent and ethical conduct also help to scale.When relationships are based on trust,the friction in decision making almost disappear
12、s.The transparency brought in by creating a single globalview of the business in all its facets helps the organization react quickly to opportunities and tackle risks and threats.The culture of openness allowsfor the rapid spread of new ideas and best practices to every corner of the global platform
13、.The free flow of communication enables every member inthe far-flung organization to come up to speed with our core values.The same openness also helps throw light on festering dark spots.Finally,scale is about aspirations.The only difference between the Infosys of the 1980s and the Infosys of the 1
14、990s is that the aspirations changeddramatically.Defining a vision of the future,far ahead of where we stand today,is essential to unlock the imagination and passion of people.We need tointernalize each facet of this vision,see where we are found wanting,and systematically address each shortcoming.T
15、he challenges may change,but theapproach remains the same.Once the vision becomes part of our bloodstream,the scaling up automatically begins.There is no substitute for setting audacious goals;there is no substitute for dreaming big.In a world obsessed with change and flexibility,companies which bui
16、ld scalable resilience will rule the market.There has never been a better opportunity in the history of IT to say,Think Scale.Theme_Pages_Final.p655/12/2005,11:51 AM12|Think ScaleInfosys|Annual Report 2004-05Five of Infosys clients billed more than$50 million in the last fourquarters.In the next few
17、 years,we will have many more,and perhapsa few entries in the more than$100 million category.Large accounts have been our engines of growth.But they have notjust happened.Deliberate strategy and concerted action have madethem possible.In fact,some of these strategies have influenced ourcompanys dire
18、ction.A broad service footprint is necessary to nurture the growth of largeaccounts.The addressable space that Infosys services cover hassteadily increased over the years with the addition of ERPImplementation,Infrastructure Management,Independent Validation,Business Process Management and Business
19、Consulting to our servicesportfolio.Today,our footprint is broad enough for us to go toe to toewith any of the large,incumbent IT services companies.We believe that our clients buy solutions to their business problems,not services.Across the industry,many of these business problemshave common soluti
20、ons that can be pre-built and implemented formultiple clients,with some customization.All our business units havemade investment plans to create and sell such solutions usingoff-the-shelf products along with our services.Alliances with technologyproduct companies give us access to the latest technol
21、ogy and createjoint marketing opportunities for our solutions.Our Alliancesorganization develops and maintains these valuable partnerships.Developing large accounts often means running large programs.WithInfosys Consulting,we now have the ability to win and run enterprisechange programs that go beyo
22、nd technology implementation,tomanaging business change.Very often,we gain entry into an accountwhere we are pitted against an incumbent consulting major.As InfosysConsulting grows,our ability to compete and displace the marketleaders will increase.To become a business solution provider,we must shap
23、e the approachof senior decision makers toward their business problems andsolutions.This requires our Client Services(Sales and EngagementManagement)to be both intimate with senior executives and intimatelyfamiliar with their business.They must be able to enter the sales cycleearly and guide it thro
24、ugh a structured process.Last year,we tookseveral steps to upgrade and develop our Client Services organizationto make the transition from a service provider to a solution provider.Riding value partnershipsBasab PradhanSenior Vice President andGroup Head World-wide SalesInfosys,Fremont,United States
25、Infosys,Melbourne,AustraliaTheme_Pages_Final.p655/12/2005,11:51 AM2Think Scale|3Infosys|Annual Report 2004-05Our most important initiative in this transformational journey in ClientServices is ITRAC(Infoscion as TRusted Advisor to Clients).Theobjective of ITRAC is to help our account leadership team
26、s becometrusted advisors to senior executives in both business and IT,in ourlargest accounts.It defines a process and framework for account andopportunity planning.It lays out a governance process.Training needsfor our Client Services teams have been identified,and programs havebeen developed to upg
27、rade the competencies of the account teams.The ITRAC program is mentored by our Chairman,and is strategic toour ability to scale up to manage and grow large accounts.We have also put in place a structured sales process that unifies the wayInfosys sells and manages sales across the world.As part of t
28、his process,we have a comprehensive account review program where senior leadersreview our business at key accounts and discuss strategies to driveaccount growth.The CEO reviews the top 50 accounts in the company.The sales process is supported by systems developed in-house,to increaseproductivity and
29、 give easy access to client and sales information.We have a great track record with satisfied clients.They have increasedtheir business with us year on year,to forge some truly greatpartnerships that bring them tremendous value.However,companiesthat are behind the curve on offshore outsourcing now w
30、ant to reachthis happy outcome faster.This requires sophisticated tools andtechniques to handle transitions,change management and HR issuesthat can sometimes include employee transfers.Offshore outsourcingon this scale and at this speed has not been done before.We see anopportunity to define this sp
31、ace and make ourselves the lowest riskprovider of large-scale offshore outsourcing.To this end,we havecreated a special unit called Strategic Global Sourcing that has puttogether the necessary tools and techniques and leads the sales anddelivery of complex outsourcing engagements for the company.Sca
32、ling up large accounts is central to Infosys growth and success.Large accounts tend to be very demanding,but that only raises thebar for us and challenges us to scale greater heights.Large accounts have been our engines of growth.But they have not just happened.Deliberate strategy and concerted acti
33、on have made them possible.Infosys,Canary Wharf,United KingdomInfosys,Shanghai,ChinaTheme_Pages_Final.p655/12/2005,11:51 AM34|Think ScaleInfosys|Annual Report 2004-05In Australia,Japan,Hong Kong,Singapore,China,India and Mauritius;in Belgium,France,Germany and the United Kingdom;in Canada,the United
34、 States and in many other locations across the globe,36,750Infoscions sign in to a day that begins with opportunity,and ends inachievement.Speed,agility and excellence are the hallmarks of our HR processes.Our ability to handle scale indicates their robustness:in the lastfinancial year,we processed
35、14,13,018 job applications and conducted47,467 interviews.It resulted in 14,981(gross)new Infoscions withexceptional talent and promise joining the Infosys group of companies.Yet,we remained uncompromising on quality through our highlyselective processes,1%of applicants made it to Infosys.We underst
36、and that todays decisions create tomorrows Infoscions.This realization drives us,as we scan university campuses around theworld for the best and the brightest,secure work permits and visas todeploy resources at client locations,and induct new hires.As Infosys grows,so do Infoscions.Rapid growth urge
37、s us to managerising expectations in an aggressive labor market.In the face of fiercecompetition to retain key talent,the onus is on us to nurture andengage outstanding individuals.To nurture talent pools,we have focused on deepening the industry-academia relationship.We give faculty an industry per
38、spective throughsabbatical opportunities.With project assignments,we enable studentsto bridge academic learning to corporate realities.Through our InStepprogram,international interns return home as brand ambassadors,enriched with Infosys experience.Tomorrow has thrown us the gauntlet,and we have res
39、ponded bysteeling our organization for the future.With growth,human resourcesplay a critical role in organizational transition and effectiveness.Through assertive talent engagement,developing career options fordiverse profiles,cultivating cross-disciplinary competencies andmaintaining a high-perform
40、ance ethic,we have made bold strides infuture-proofing the organization.Technology-aided process innovations are vital to scaling up HRprocesses.Online applications enable employees to review individualutilization records,apply for visas,listen to the CEO at Quarterly TownHalls,and even assess indiv
41、idual lifestyle and health parameters.High-tech and high-touch go together,as we use technology to reachout to our employees.The HR-Business Partner organization embeddedin the business units delivers strategic HR support at the first point ofBest minds on boardS.GopalakrishnanChief Operating Office
42、r,Deputy Managing Director andHead Customer Service&TechnologyTheme_Pages_Final.p655/12/2005,11:51 AM4Think Scale|5Infosys|Annual Report 2004-05contact.Even as we scale at a meteoric pace,we have createdmanageable clusters to keep alive the small-company feel.Employee communication initiatives throu
43、gh senior leaders andidentified Communication Champions help connect a vast,diverseand dispersed workforce.An inclusive environment bridges nationalityand gender,and creates a global,seamlessly integrated team of talentedprofessionals.Leadership by example is a hallmark Infosys Value.We strive towar
44、dsa culture where participation is encouraged,feedback valued and actionnever delayed.As we expand our global footprint,encompassingemployees of 53 nationalities and synergizing cultures through mergersand acquisitions,we deepen employee engagement to integrate bestpractices across the Infosys Group
45、.Individual growth is important,but aligning it to organizationalobjectives is paramount.Measures like a robust variable pay programalign people performance with the Infosys mantra of predictabilityand de-risking even as we scale up with confidence.Today,Infosys is seen as an employer of choice,and
46、a dream company.Rewarding merit and recognizing excellence have earned us top ratingsin global Best Employer surveys such as The Best Companies to workfor in India conducted by Business Today and HR consultants Mercer,and Computerworlds 100 Best Places to Work in IT.We have alsoreceived prestigious
47、accolades like the Excellence in Practice Award2004 from the American Society for Training and Development(ASTD)and the Optimas Award for Vision for excellence in training at Progeon.It is the energy of our Infoscions that make the environment at Infosysexciting,and challenging.Our attention to deta
48、il,quality,speed,andcustomer satisfaction keep us on top as we surf successive waves of change.With every step,we learn.By identifying and fostering learnability inInfoscions,we are enabling an agile organization,at the forefront of change.Scalability is inherent in our HR processes.The very compete
49、nciesthat strengthen us from within enable us to deliver the best to ourcustomers.Our prowess to scale equips us to catalyze thetransformation of talent into productivity,promise into performance.And,manage change that growth inevitably brings.Last year,we processed 14,13,018 job applications and co
50、nducted 47,467interviews resulting in 14,981 new Infoscions joining the Infosys group ofcompanies.Yet,we were uncompromising on quality only 1%of applicantsmade it.Today,Infosys has 36,750 employees of 53 nationalities across theworld.Theme_Pages_Final.p655/12/2005,11:51 AM56|Think ScaleInfosys|Annu
51、al Report 2004-05The changing technological scenario in the industry today is drivingcompanies to focus on greater value-added services.In this competitiveenvironment,the success of the Infosys business model hinges on theability to develop the knowledge competencies and skills of its people;and gui
52、de them to become effective leaders.At Infosys,we are continually experimenting with ways to improvethe quality and productivity of our learning processes,and promotethe culture of excellence among Infoscions.We have scaled up oureducation and leadership development infrastructure significantly,tome
53、et our growing business needs.Training at Infosys is a continuous,integrated process.We have a14.5-week,intensive entry-level,primarily technical training programin place.This program has been certified by educationists as beingequivalent to a BS program in the US.Every Infoscion completes aminimum
54、of 10 days of training each year.We have expanded our trainingcapacity across the Development Centers(DCs),from 2,700 employeesin FY 01 to close to 9,000 in FY 05.We have nearly 150 faculty membersdedicated to our training needs.The Infosys Leadership Institute(ILI)at Mysore,the largest residential
55、education center in the corporate world,has the capacity to train 4,500 employees at a time.Prior to training,we assess the competencies of each Infoscion toidentify high-potential individuals.Training and mentoring programsare designed accordingly.Infosys has invested in creating a reliableassessme
56、nt infrastructure,complete with high-end servers and testingtools.We have assessment certification centers operational at five DCs,to conduct exams,FP programs and surveys for business units.Managerial,behavioral and domain skills are assessed at three levels,while technical skills are measured at f
57、ive levels.Assessments at skilllevels 1 and 2 are largely automated,the rest are semi-automated.In the last five years,we have grown from offering a few hundred trainingand competency development programs,to several thousand,across variousgroups such as Education&Research(E&R),ILI,Domain CompetencyG
58、roup(DCG)and Quality.We achieved an impressive figure of 5,85,000training days in FY 05 for technical skills alone.We have establisheda defined,role-based competency framework across the business,which divides people development into four focus areas,supported bydedicated learning units.The spectrum
59、 of our training programs coverscompetency building in technology,domain,quality process and personaleffectiveness;managerial training and leadership development.Technology competency training at Infosys has over 160 middle-levelprograms across various technologies and capabilities.With our focusMak
60、ing of an InfoscionDr.M.P.RavindraVice President Education&ResearchTheme_Pages_Final.p655/12/2005,11:51 AM6Think Scale|7Infosys|Annual Report 2004-05on quality processes and methodologies,we also offer quality processtraining,tailored to the technical role of the Infoscion.In addition,new courses ar
61、e made available on request.We also encourageemployees to opt for part-time and long-distance training programs.We believe in investing today to create tomorrows leaders.Our trainingprocesses focus on nurturing a large number of high-quality leaderswith a global perspective.The Infosys Leadership Sy
62、stem(ILS)andILI create a formal,defined system to develop leadership andmanagement capabilities in Infoscions.A Leadership CompetencyModel assesses and trains Infoscions on key parameters such asperformance focus,interpersonal effectiveness,organizational savvy,ability to develop leaders and drive c
63、hange,customer partnering andtechnical/functional expertise.Seminars and best-practice sessions,a regular feature at Infosys,focuson knowledge sharing,mentoring,feedback,and continuous reviewingof systems and processes.Mentoring,a key part of our training process,is critical in developing the Infosc
64、ions skills,and aligning individualtargets with overall strategic goals.It sustains employee motivation,and ensures constant communication between various levels at Infosys.With rapid growth,classroom-based training has become increasinglydifficult.The diversity of the audience and time constraints
65、add to thecomplexity.To address these challenges,we have adopted twoapproaches that employ technology to provide flexibility in terms ofspace,time and pace of learning:E-learning:Entails sophisticated infrastructure complete with a localserver in each geography and Learning Management System.Knowled
66、ge Management(KM)based learning:Introduces a centralizedlearning process.Infosys KM practices have won the prestigious MostAdmired Knowledge Enterprise(MAKE)award thrice in asia and twiceglobally.Sustainable growth depends on our ability to nurture and grow theintellectual capital within the company
67、.Today,we have several wellthought out recruitment and competency development programsunderway,to address our growing needs and develop skill sets as weenter new markets,services and industry domains.This ensures that,as we scale,we have the talent to continually delight our customers.In the last fi
68、ve years,we have grown from offering a few hundred training andcompetency development programs,to several thousand,across various groups.The Education&Research group alone offers close to 2,900 technical courses,while the Infosys Leadership Institute offers nearly 1,400 courses.Theme_Pages_Final.p65
69、5/12/2005,11:51 AM78|Think ScaleInfosys|Annual Report 2004-05At Infosys,technology forms the backbone of our commitment tocustomers.We leverage it to foster creativity and productivity in ourpeople and to deliver the highest standards of quality and reliability toour customers.To maintain our edge i
70、n global solutions delivery,wecontinuously improve and scale our technology infrastructure.Witheach step we realize our vision:to create a technology environmentthat is agile,customer-responsive and future-ready,yetuncompromisingly secure to ensure business continuity for our clients.Proven processe
71、s enable us to rapidly scale our technologyinfrastructure to meet our customers ever-growing and ever-changingneeds.Infoscions,who are alert to these needs,work in a networkedenvironment comprising thousands of desktop workstations andnotebook computers,which are periodically upgraded to comply with
72、best-in-class standards.We manage end points in such an intricate ITinfrastructure through a robust system and by adopting best practicessuch as automated management.As privacy and security oforganizational and client data is a top priority,we deploycomprehensive security features such as antivirus
73、tools,hardening,patch management,monitoring and reporting.Stringent physical security procedures are followed at Infosys campusesworldwide.Access to server rooms and critical installations is strictlycontrolled.The logical security of information systems is continuouslyreviewed in anticipation of ne
74、w threats.All external connections onour network are secured by firewalls.Mobile users are required tovalidate their authenticity to connect to our networks.Our clients reap the advantages of a data-secure business atmosphere.Client LAN environments are segregated to ensure comprehensive dataprivacy
75、 and security.Our buildings,self-contained with servers anddeveloper workstations,can at any time be secured physically andlogically in accordance with client requirements.As increased fiber connectivity allows the IT and IT-enabled servicesindustry to offshore more work to India,we anticipate the n
76、eed forgreater bandwidth.As the industry chants the buzzwords of convergenceand collaboration,bigger bandwidth becomes indispensable both forinternal business applications which are GUI-intensive,multimedia-enabled and web-based and for seamless service delivery.Foreseeing organizational growth,we h
77、ave initiated rapid networkexpansion focused on re-architecting,expanding and consolidating ourglobal network bandwidth capacity.Over the last two years,we haveadded around 26,000 nodes and over 250 Solaris,IBM and Intelservers.Our high capacity,high-speed IP network across the globe isengineered an
78、d designed to establish redundant routing paths throughWired for the futureDeepak SinhaVice President Computer&Communications DivisionTheme_Pages_Final.p655/12/2005,11:51 AM8Think Scale|9Infosys|Annual Report 2004-05alternate service providers.Our multi-million dollar investments inhigh-security glo
79、bal command center facilities and tools in variousoffshore centers enable us to offer robust solutions to our customers forcritical,round-the-clock infrastructure management.Consequently,benefits to clients include fast startup,lower cost of transition,lowerestablishment costs,and secure 24x7 suppor
80、t.It is not enough to scale up networks.Each day we address newchallenges to their safety in the form of data security issues and virusthreats.We brace ourselves for business threats both expected andunexpected with a high level of alertness.New programs installedon our networks are scanned,suspicio
81、us email attachments are tracedand quarantined.We use the latest antivirus toolkits to monitor ournetworks and swiftly isolate outbreaks.Our comprehensive Disaster Recovery and Business Continuity Planensures business continuity for both our clients and us.We conductmock drills and audits to ensure
82、their currency.Our Information SecurityManagement practices are audited by Det Norske Veritas and certified forcompliance with BS7799:2002Part 2 standards.Through strongmulti-site project management processes,we can adapt quickly tounexpected situations and ensure service continuity to our clients.R
83、edundant infrastructure at our development centers,together withextensive and proven procedures,provide resilience to client projects byduplicating systems across multiple locations.We have also commissioneda Disaster Recovery and Business Continuity Center in Mauritius.As a technology company,we pr
84、oactively gain insight into leadingand emerging technologies.Our dedicated Centers of Excellence inMicrosoft.NET,Apple,Rationale,Intel and open-source technologiescreate blueprints for the future.Technologists at our RFID ConceptCenter research the power of Radio Frequency Identification,whichis set
85、 to revolutionize manufacturing,retail,transportation andaerospace.We transfer the benefits of these insights to our clients tomake them more competitive.Technology is hardwired to Infosys soul.While we leverage it toenhance value for our clients,it defines our competitive edge.Bybuilding scalabilit
86、y into our technology infrastructure,we create aresilient and future-ready organization.Proven processes enable us to rapidly scale our technology infrastructure tomeet our customers ever-growing and ever-changing needs.Our clients,inturn,reap the advantages of a data-secure business atmosphere.In t
87、heeventuality of a disaster,natural or man-made,our comprehensive DisasterRecovery and Business Continuity Plan ensure business continuity.Theme_Pages_Final.p655/12/2005,11:51 AM910|Think ScaleInfosys|Annual Report 2004-05Infosys has focused on building scalable integrated processes andsystems to ma
88、nage rapid growth.This has facilitated our working acrosstime zones,leveraged talent diversity and established new standardsin execution excellence across our global locations.With growth comes complexity.At Infosys,we simplify this by takinga process view of business.Operations are managed through
89、15 keyprocess families,composed of 143 specific processes.PRidE,ourweb-based platform,is the repository of our company processes.Theprocesses cover the 21 business units and the 14 business enablingareas(e.g.HRD,Finance)of Infosys.These processes are deployedacross the company through more than 100
90、IT applications.This structure enables location-independent execution across 33 GlobalDevelopment Centers;17 in India and 16 in the United States,Europeand APAC.It creates the flexibility to distribute engagements andcapacity across global talent centers,which in turn contributes to higherproductivi
91、ty,client satisfaction and over 95%repeat business.Scalable growth is driven by processes that are modular(distributedacross smaller units)and transparent,such that all modules align andintegrate with each other.We have built a modular yet integratedorganization,with 38 self-governed units.Process m
92、anagementresponsibility is assigned to business units and individuals to increasecompliance,accountability and control.Processes of 14 centralfunctions(e.g.Finance,Quality,HRD)have been re-engineered toclosely integrate with business,while ensuring a transparent portfolioview across the company.This
93、 has also been applied to the processesof the subsidiary companies operating in the United States,China andAustralia.Scalability is enabled by dismantling centralized operating structuresthat enforce process compliance.We have pushed the responsibilityof process adherence to the“point of use,”what w
94、e term“self-service.”By leveraging cross-functional teams,using technology and integratingwith performance review systems,we have implemented“self service”in key business transactions across our global processes.This hashelped us sustain our small-company culture,while retaining theadvantages of a l
95、arge global corporation.At Infosys,“processes”and IT“systems”are discussed in the samebreath.Today,we manage our business using more than 100applications that ride on a state-of-the-art scalable technologyinfrastructure.Extensive automation of business processes using thelatest technology and system
96、-governed workflows,has enabled globaldeployment,and reduced the cost of doing business.Our focus onArchitecting an agile enterpriseS.D.ShibulalDirector andGroup Head World-wide Customer DeliveryTheme_Pages_Final.p655/12/2005,11:51 AM10Think Scale|11Infosys|Annual Report 2004-05creating a paperless
97、work environment has increased productivity,de-risked operations and reduced manual errors(data is captured atthe point of transaction).We have automated our key businessprocesses,such as Client Relationship Management,Order throughRemittance,Integrated Project Management,and Talent Deployment.Busin
98、ess enabling areas such as Talent Development,PerformanceManagement,Recruitment,and Asset Management have also beenautomated.Automated workflows such as Leave,Loans,Reimbursements and Travel ensure seamless and effortless businessacross time zones.Process automation has enhanced the measurability of
99、 key businessprocesses on vital parameters.Infosys has leveraged this to implementmultiple,agile dashboards at various levels.These dashboards servetwo key objectives:they provide a view into performance ofend-to-end processes(e.g.Opportunity to Remittance)and a systemicview into integration across
100、processes(e.g.Budgets vs Commitments).Dashboards assess the pulse of business on fortnightly,monthly andquarterly frequencies,and align the same with the changes in theenvironment.Overlaying these dashboards are the review processesthat assess performance and risks on an ongoing basis.The Infosysint
101、ranet(Sparsh)is instrumental in the global deployment of systems,while the extranet is instrumental in ensuring secure access to themobile workforce across operating locations.Infosys has invested significantly to strengthen the processes andsystems that enable business scalability.Our quality and p
102、roductivitystandards are benchmarked globally,and certified againstCMMi Level 5,PCMM Level 5,Malcolm Baldrige and European QualityStandards.Our processes are also certified to global standards such asISO 9001:2000,TL9000,BS7799,ISO14000 and AS9100.Ourstructured endeavors towards continuous improveme
103、nt assure us thatour operations are repeatable,predictable and scalable.Our processand system scalability has enabled us to build an institution that canscale rapidly and predictably in response to client requirements,ourstrategies,our aspirations and the dynamic business environment.Thisis one of t
104、he building blocks of our promise to our stakeholders:“Improve your odds with Infosys predictability.”At Infosys,“processes”and IT“systems”are discussed in the same breath.Today,we manage our business using more than 100 applications that ride on astate-of-the-art scalable technology infrastructure.
105、Theme_Pages_Final.p655/12/2005,11:51 AM1112|Think ScaleInfosys|Annual Report 2004-05Finding new skiesT.V.Mohandas PaiDirector,Chief Financial Officer andHead Finance&AdministrationImagine a corporation like Infosys,growing at over 10,000 people ayear.Creating the infrastructure required to support t
106、his phenomenalgrowth will always be a challenge.Given the nature of our business,we needed to create a scalable model.The first issue was to define the infrastructure for a unique,state-of-the-art environment to house new recruits.We believed the future was insoftware campuses.In 1994,Infosys set up
107、 Indias first large campus fora software company in Bangalore.This set the precedent for the future.The Infosys campus had to reflect our culture and ethos open,collegialand transparent with a high-quality work environment,and facilitiesfor recreation and training.The campus had to impact the Infosy
108、sbrand positively.This required a unique,diverse and memorable design,capable of creating a powerful impact on our customers and visitors.Cost was an important consideration,as delivery competitiveness couldhave been impacted otherwise.Maintenance costs had to be kept low.We worked on a high-quality
109、,easy-to-maintain model.We decidedthe specifications of the interiors and layout to optimize technologyinputs,and created a set of material choices at a cost we could absorb.Time was an additional challenge.The campuses had to be built justin time to avoid idle investment.When we set out to construc
110、t a100,000 sq.ft.building in 1997,the accepted timeline was 14 months.Construction was not as mechanized as in the West.Finishedcomponents were not available.We wanted a contractor who couldbuild it in our timeframe,an optimal 8 months,without compromisingon quality and creativity.In walked a builde
111、r who had constructedpalaces with exceptional quality and craftsmanship in the Middle East.Our approach to time and quality ushered in a whole new paradigmin construction.We standardized layout,material and building quality.We even created an in-house team of six managers,including twoarchitects.We
112、used sophisticated project management tools to ensurecompletion on time and within budget.We asked our consultants todevelop mark-ups to ensure consistency and quality.We forced ourvendors to scale up to meet our needs,often helping them buildmanagement capacity and train their people.We made paymen
113、ts inadvance,pushed them to bill regularly and ensured that cash wasnever a constraint.The end result was an eco-system that could scaleup effortlessly,when we pulled the trigger.Creating land banks was a key challenge.We persuaded stategovernments to allot us land.This was available only at a dista
114、ncefrom the city,and required good roads to the campuses,power lines,an assured water supply and our own transportation system.Infosys Development Center,Chennai,IndiaInfosys City,Bangalore,IndiaTheme_Pages_Final.p655/12/2005,11:51 AM12Think Scale|13Infosys|Annual Report 2004-05FY 2005 saw us build
115、2.9 million sq.ft.in 6 different locations,equipped with10,400 seats.In the next 12 months,we will complete 3.2 million sq.ft.in7 locations with 16,600 seats.Hence,in 24 months,we would have constructed6.1 million sq.ft.with 27,000 seats.We equipped each campus with power generation facilities,water
116、purification and sewage treatment plants,and security systems to makeus independent and allow stable 24x7 usage.We developed anenvironment policy to save power,use more natural light,recycle water,reduce waste material and create a green campus.A trained team wasput in place to maintain the campuses
117、.To accelerate the process,ourchairman became the single-point decision-maker.Consider this.FY 2005 saw us build 2.9 million sq.ft.in 6 differentlocations,equipped with 10,400 seats.In the next 12 months,we willcomplete 3.2 million sq.ft.in 7 locations with 16,600 seats.Hence,in24 months,we would ha
118、ve constructed 6.1 million sq.ft.with 27,000seats.We have the capacity to generate 50 MVA of power with an UPScapacity of 16 MVA and a water storage capacity of 9.20 million liters.Today,we also run one of the worlds largest corporate training centersin Mysore,capable of training 4,500 people at a t
119、ime.The center isequipped with 2,350 residential units,4,700 beds,58 training rooms,183 faculty rooms and a well-equipped library.Our campuses are equipped with the latest technologies and solutionsfor office productivity,collaborative software engineering,anddistributed project management.The campu
120、ses include facilities fortraining,fitness and sports,multi-cuisine food courts,a multi-levelcar park and residential facilities.An estimated 39 heads of government and state have visited Infosyscampuses as well as innumerable clients and visitors,among themschool and college students.The campuses o
121、ffer an importantcompetitive advantage,enabling us to expand our client engagementcapabilities.Our infrastructure meets our business needs at a costwhich is competitive,and a design that is appealing.We challenged ourselves to innovate,and went on to create campusesthat became role models for the so
122、ftware industry.Today,we have aflexible infrastructure model in place which is strongly aligned to ourrapid growth.We are fully equipped to scale up and address futurechallenges,and at the same time,maintain our attention to detail,quality,customer satisfaction,and culture.Infosys Global Education C
123、enter,Mysore,IndiaInfosys Development Center,Hyderabad,IndiaTheme_Pages_Final.p655/12/2005,11:51 AM1314|Think ScaleInfosys|Annual Report 2004-05Contents71Section 212 report73Consolidated financial statements Indian GAAP92Risk management report99Corporate governance reportAdditional information114Sha
124、reholder information118Share price chart119Frequently asked questions121Selective data123Ratio analysis126Statutory obligations127Human resources accounting128Brand valuation130Balance sheet(includingintangible assets)131Current-cost-adjustedfinancial statements132Intangible assets score sheet134Eco
125、nomic Value-Added(EVA)statement135ValueReportingTM136Management structure138Infosys Foundation139Report on environment,health andsafety142Financial statements(unaudited)prepared in substantial compliancewith GAAP requirements ofAustralia,Canada,France,Germany,Japan and the UnitedKingdom and reports
126、of compliancewith respective corporategovernance standardsAnnual General Meeting(AGM)notice15The year at a glance16Letter to the shareholder18Awards for Excellence21CEO and CFO certification22Directors reportFinancial statements Indian GenerallyAccepted Accounting Principles(Indian GAAP)35Management
127、s discussion andanalysis of financial condition andresults of operations46Auditors report48Balance sheet49Profit and loss account50Cash flow statement51Schedules70Balance sheet abstract andcompanys general business profileTheme_Pages_Final.p655/12/2005,11:51 AM14Think Scale|15Infosys|Annual Report 2
128、004-05Incomein Rs.crore2005200420033,6234,7616,860Exportsin Rs.crore2005200420033,5444,6956,726PAT beforeexceptional itemin Rs.crore2005200420039581,2431,859The year at a glancein Rs.crore,except per share data20052004Growth(%)For the yearIncome6,8604,76144Export income6,7264,69543Operating profit(P
129、BIDTA)2,3251,58447Operating profit/Total revenue(%)33.90%33.26%Profit after tax and before exceptional item1,8591,24350PAT before exceptional item/Total revenue(%)27.10%26.12%Profit after tax and exceptional item1,9041,24353PAT after exceptional item/Total revenue(%)27.76%26.12%Return on average net
130、 worth(%)43.77%40.68%Capital expenditure79443085Dividend per share(excluding one-time special dividend)11.507.3856Dividend amount(excluding one-time special dividend)31019658One-time special dividend per share25.00One-time special dividend amount668EPS before exceptional item(par value of Rs.5 each)
131、Basic69.2646.8448Diluted67.4646.2646At the end of the yearTotal assets5,2423,25361Fixed assets net1,49497054Cash and cash equivalents(including liquid mutual funds)2,8512,7693Net current assets2,3851,22095DebtNet worth5,2423,25361Equity13533309Market capitalization61,07332,90986Note:The figures abov
132、e are based on unconsolidated Indian GAAP financial statements.1 crore=10 millionTheme_Pages_Final.p655/12/2005,11:51 AM1516|Think ScaleInfosys|Annual Report 2004-05The year gone by was a period of growth and consolidation for Infosys.We underwent a wide swath of internal changes over the last twofi
133、scals,and took up new initiatives with Infosys in Australia and China,Progeon,our BPO subsidiary,and Infosys Consulting.Now was thetime to nurture the roots of all that we had done.As the year progressed,the cycle that had been created began to manifest.Our strong brandattracted more customers and e
134、mployees.Our attention to scaleallowed us to grow without noticeable speed breakers.Our investmentin new services,restructuring of our business processes,and our focuson account management all led to buoyant performance.We began the year giving a guidance of 23.5%24.5%revenue growthand 19.5%earnings
135、 growth.As the various initiatives kicked in,weachieved revenue and earnings growth of 46.9%and 46.8%respectively.The year witnessed an important change in our customers perception.As the brouhaha over outsourcing faded,customers began tounderstand the true value of our business model.The realizatio
136、n beganto dawn that offshoring and outsourcing were not just a cost play,butprovided the headroom in cost savings to enable companies re-architecthow they ran their business.Early adopters were quick to seize thisadvantage.They started viewing us as long-term partners,who werevital to their business
137、 strategy.This manifested itself in 8 customersover US$40 million and 166 customers over US$1 million.But asimportant as the numbers,was the change in perception.Our growth was aided by a fundamental shift in the technology world.Four decades of innovation had created a plethora of products and serv
138、ices.The pace of digital technology ensured that computers and communicationswere becoming faster,smaller and more powerful.Layers of technologyand application infrastructure were being reduced to a commodity.Meanwhile,the archeological layers of generations of computers were piledup in our customer
139、s datacenters,waiting to be untangled.As customers grappled with this cornucopia of riches in all itscomplexity,and often underleveraged the technology they had bought,the balance of power started to shift.It began to move from those whoprovided the technology,to those who could put it to use for ma
140、ximumbusiness advantage.Our focus on services,built on an organic platformof global delivery,put us in the right place.This movement is a natural consequence of the maturing of ourindustry.Other industries,like automotive and retail,have seen similarprogression,but what was unanticipated was the spe
141、ed at which thesedifferent trends would collide,creating pools of opportunity that we,at Infosys,could take advantage of.Nandan M.NilekaniChief Executive Officer,President and Managing DirectorS.GopalakrishnanChief Operating Officer and Deputy Managing DirectorLetter to the shareholder“You must eith
142、er modify your dreams or magnify your skills.”Jim RohnTheme_Pages_Final.p655/12/2005,11:51 AM16Think Scale|17Infosys|Annual Report 2004-05This year also brought home the importance of boundary-less behavior.As our customers demanded more value,it became clear that weneeded to configure our services,
143、intellectual assets and experienceeach time,to maximize value for the customer.The alignment of ourinternal structures,processes and incentives to deliver this One Infosyswas an important preoccupation for all of us.This year also saw the beginnings of disenchantment with totaloutsourcing.Customers
144、moved towards strategic outsourcing,wherethey retained their levers of oversight.This trend towards smallerselective deals is working in our favor.We have continued to focus onscalability,the key to rapid growth,and on differentiation,the key tohigher client value.We are building a leaner,aligned or
145、ganization tohandle greater complexity,with our business units focused on verticalsand geographies.This year,Infosys continued to strengthen its relationship with clientsacross industry verticals.Our investments in new services have yieldedreturns both in terms of revenue and value differentiation.S
146、ervicessuch as Independent Validation demonstrated healthy growth,whileSystems Integration continues to deliver higher value throughtechnology solutions.We leveraged technology to assist customers incomplying with the Sarbanes-Oxley Act(SOX)regulations.The InfosysIntegrated Compliance Program identi
147、fies gaps in auditing and businessprocesses for the customer,and suggests internal controls.Our Enterprise Solutions group is growing strong,constituting 15.2%of Infosys revenue today.Along with Infosys Consulting,the EnterpriseSolutions group offers seamless high-end consulting for packageimplement
148、ation and subsequent sustenance-related services.Our Retailsolutions continue to make clients globally competitive,and have helpedestablish Infosys as an innovator and thought leader.Our solutions inmulti-channel commerce,lead-time optimization and enterpriseperformance management,have helped retail
149、ers improve supply chainefficiency and reduce time-to-market and costs in the value chain.Our Infrastructure Management Services have been recommended forBS15000 certification for service delivery.We have allied with BMCglobally for technologies that help Infosys bring a flexible,sharedinfrastructur
150、e managed service to clients.We started a focused practiceon IT Service Management Consulting,to help clients align IT withbusiness,and improve operational efficiencies.Infosys High Tech and Discrete Manufacturing(HTDM)servicesimplemented key solutions in order management,RFID and softwareproduct li
151、fecycle management.The unit also formed the“Leaders ofChange Forum,”a Client Advisory Group,comprising CXOs,VCs,and analysts from the HTDM industry.Our global automotive andaerospace customers expanded the relationship with Infosys intolong-term strategic partnerships,and are using the Infosys-pione
152、eredGlobal Delivery Model to improve efficiency.Finacle,our universal banking solution,expanded its footprint to 44countries and won 14 new clients across geographies.The Bankingand Capital Markets(BCM)business in North America was a significantgrowth driver.BCM added 14 new clients to its portfolio
153、,and its AML(Anti-Money Laundering)solution was successfully rolled out this year.Other solutions such as Operational Risk Management,Data QualityManagement and Intelligent Exception Management are gainingacceptability and traction in the marketplace.Our focus on creating synergies through Infosys C
154、onsulting and Progeonat each end of the services chain has enhanced our competitiveness.Progeon saw strong growth in FY 2005 with Rs.191.22 crore in revenue,representing a 145%increase over the last year.Progeon added 5customers this year,taking the customer count to 19.Geographical diversification
155、has been a key aspect of our growthstrategy.Strong growth across Europe contributed to 22.2%of thecompanys revenues this year.APAC share today accounts for 9.9%ofcompany revenue,up from 7.3%last year.We plan to expand ourrelationships in Australia and Japan to further de-risk our portfolio,and are r
156、apidly scaling up our China operations.Infosys China hasexpanded employee strength to 122,and currently has 12 customersacross North America,APAC and China.The Infosys Global Alliance Program focused on providing greater valueto our clients through the year,working with partners such as Microsoft,Or
157、acle and SAP to develop industry and technology solutions thatenable our clients to lower total cost of ownership,get solutions tothe market faster,and lower the risk of implementation and operation.The Domain Competency Group(DCG)accelerated the domainenablement of employees,and 912 employees were
158、certified by globalindustry bodies and agencies in Insurance,Banking,Energy,CapitalMarkets and Manufacturing verticals.Our DCG consultants published31 articles in global industry journals,demonstrating thoughtleadership across domains.At Infosys,our marketing efforts are geared towards meetingintern
159、ational challenges.During the year,the thrust was on positioningInfosys as an end-to-end business solution provider.WIBTA(WhartonInfosys Business Transformation Awards)and Milan(in the US andEurope)created great opportunities for networking and knowledgesharing.Through AcE,our global academic interf
160、ace program,Infosysaims to build brand capital across prestigious universitiesinternationally.Our proactive effort in branding has helped positionInfosys as a global brand in the minds of its customers,partners,shareholders and employees.People are our key asset,and we have scaled up our education a
161、ndleadership development infrastructure to meet growing business needs.In a pioneering initiative,Infosys has opened a Global Education Centrein the 314-acre Infosys Mysore campus to train technologyprofessionals.The residential education centre,inaugurated byDr.Manmohan Singh,the Prime Minister of
162、India,is one of the largestin the world.This year,Infosys also launched Campus Connect,anindustry-academia partnership initiative.The nation-wide programfocuses on aligning the needs of colleges,faculty and students withindustry needs.This year,Infosys won“Indias Best Managed Company Award,”basedon
163、a study conducted by Business Today and A.T.Kearney.Today,ourcompany has a best-in-class planning process in place.CorporatePlanning at Infosys has devised a two-dimensional framework forcompany planning.The planning framework spans four levels alongthe axis of key stakeholders board,unit heads,sale
164、s and deliveryheads,and key account teams and spans three levels along the timeaxis,one year,three years,and five to eight years.Infosys has been a step ahead of the prevailing Corporate Governancenorms,implementing reforms before they became mandatory.Ourdisclosure standards today are among the bes
165、t in the industry.Wewere ranked No.1 in a Corporate Governance survey conducted byCLSA across Asia(excluding Japan).Infosys scored 87%against anaverage of 81%for the top 10 corporations.Infosys has maintained atop ranking in corporate governance since 2001.We believe corporations have important soci
166、al responsibilities.Infosysand its employees have come together in the past to contribute towardsseveral worthwhile causes.This year,Infosys contributed Rs.5 croreto the Prime Ministers National Relief Fund to assist people affectedby the Asian tsunami.Infoscions contributed an additional Rs.2.4cror
167、e to the cause.At Infosys,it is our mission to continuously strive to set higherstandards.Our unique business model has enabled us to deliver growthand enhanced client value year after year.We believe that to achieveglobal leadership,we must pursue our goals with integrity.Today,ourcompetitive advan
168、tage comes as much from our strong organizationalcommitment to ethics and values,as from our pursuit of excellence.Nandan M.NilekaniS.GopalakrishnanBangaloreChief Executive Officer,PresidentChief Operating Officer andApril 14,2005and Managing DirectorDeputy Managing DirectorTheme_Pages_Final.p655/12
169、/2005,11:51 AM1718|Think ScaleInfosys|Annual Report 2004-05“I dream my painting and paint my dream.”Vincent Van GoghExcellence is about dedicating yourself to a life of continuous improvement.Its about not being content with what youve accomplished,and alwaysrecognizing that there is much more to be
170、 done.Its about weaving thesefundamental beliefs into the core of your character and spirit.And,its aboutinspiring others to begin their own journey to excellence.The Awards for Excellence seek to recognize and reward those who epitomizea high performance work ethic.The individuals chosen for the aw
171、ard arerepresentative of the many talented teams that have worked together toproduce outstanding results.This year,a total of 217 awards were conferred in 11 categories.The winnerswere presented with a framed certificate,silver salver and a cash award.Awards for Excellence 2004-05First prizeAccount&
172、Sales ManagementBritish Telecom TeamJagdish Krishna VasishthaMandeep Singh KwatraMukul GuptaPraveen MahadaniRambabu PallavalliSachidanand SinghSanjeev AryaSundareshwar V.DHL OSDC TeamAbhay Narayan JoshiDeepak AgrawalGopal ParasnisLakshmi Narasimha Rao GundaNitin S.BaravkarSandeep S.ChoudhariSanjay N
173、ambiar R.Vinayak Shankar JadhavDevelopment Center ManagementHyderabad Development CenterChennai Development CenterExternal Customer DelightDaimler Chrysler Europe TeamAnindya TrivediDharmesh ViswanathanHemant Sadanand BhatManoj Kumar GoyalRajesh SinghviRitu Raj SharmaSatish Kumar Sundara SuriSushil
174、Kumar TiwariInnovationAccelerate Solution TeamAjith Kumar MadakasiraKeshavamurthy Badri PrasadNagaraj S.Narasimman R.Prakash GumnurVivek BhattProgram&Project ManagementDHL Airborne Integration TeamAditya MittalKrishnaswamy S.Piyush Dhansukhlal ShahPrashant NegiSrinivas S.Swapnil R.PendhariSwaroop Ra
175、ghu IyengarTejas R.MoogimaneVardini V.V.Vishwanath Shenoy M.Unit ManagementUnit Asia PacificUnit Engineering&IT Solutions forAutomotive&AerospaceSecond prizeAccount&Sales ManagementBP Account TeamAnand Kumar AgarwalKarmesh Gul VaswaniMurali VasudevanRahul ShahRobin GoswamiSanjeev KapoorSurendra S.Fi
176、delity TeamAchuth Gopinath MenonBhavesh ThakurJayantkumar Jugalkrishna JanaKaladhar GorantalaMukesh NakraRajiv RaghuSreedhar Ekbote S.Srinivasulu MallampootyTheme_Pages_Final.p655/12/2005,11:51 AM18Think Scale|19Infosys|Annual Report 2004-05Special PrizeAccount&Sales ManagementOpportunity Pursuit Te
177、amPeter RichesRangarajan V.R.Simon Phillip PowellTony CauseVenkateshwaran A.People DevelopmentIWIN TeamGeetha KannanJacintha D AlmeidaPadma Venkatesh BhamidipatiSailaja ChintalagiriSrimathi ShivashankarZaiba BegumSocial ConsciousnessInfosys Team Salt Lake CityAmit SaxenaAmit Subhash MendaAnand V.Bar
178、un GuptaChakravarthy A.J.K.Dhinakaran T.Manikandan J.Naga Srinivas BodduPryank AgrawalRamesh Bangaru Laxmi ThatavarthiRavi KannanSarathchandran ChandranSunil Kumar Varier T.Vivek Kumar SaxenaZen AbrahamTeam AkankshaArchana SenapatiArdhendu Sekhar DasBikash Kumar BanerjeeNiladri Prasad MishraNirakar
179、SahooPadmalaya MandhataPritam MahapatraSatyadeep MishraSudhanya BasuSuparna MoitraSystems,Processes&InfrastructureProgeon ISO TeamAbhilash ViswanathanAnantha SankaranBhashyam M.R.Girish SwamyMuralidaran AnanthRajiv KuchhalSrinivas S.Value ChampionsGrievance Redress BodyHema RavichandarRama N.S.Ramac
180、handran KallankaraRichard LoboShubha RaoShubha V.SupritiDr.Uttara VidhyasagarYegneshwar SivaramanProject MAXIM Team at TELSTRAGaurav GopalKrishna Reddy JeereddyKrishnan SubramanianRaghu BoddupallyRahul GuptaRavi Kumar PatnagereRavi Kumar S.Ravikumar SreedharanSantosh N.Simon BryantTelstra Activation
181、&Assurance PortfolioTransition TeamAkhil PratapAnand S.Anandaraman V.Anil Kumar GuptaGururaj B.DeshpandeKaushik NagPurushotham BhandarkarSanjeev R.TripathiSreekanth KeshavaSushil KumarThird prizeExternal Customer DelightAccount Team SYSCOBalakrishnan Mayilarangam SundararajanMadhav KondleMadhu Sudha
182、n R.Patrick T.OgawaPrasanna Srinivasan R.Shveta AroraSundar Raman K.Venu Madhav SankaFidelity TeamAnil Braham BhatiaAshok VemuriMayank ManishRitesh KhannaSankar Venkata KonduruSurendra SwamyInnovationINSUIT TeamMohan Devumal MotianiRavi V.Vittal V.ShenoyItem Data Integrity(IDI)Solution TeamAbhijit V
183、ishwanath UpadhyeAmit KalleyAnantha RadhakrishnanGeorge K.O.Prasad VuyyuruPraveen Kumar K.Program&Project ManagementAetna Strategic Systems and Processes TeamAmit SinghBhaskar J.Jayant Chandrakant KaduskarMahalingeshwar S.DhadedMrutunjay Baburao SabaradNeeraj Arvind JoshiPankaj KumarSabyasachi Patna
184、ikShireesh JayashettyTapas MishraFirmenich Account Management TeamJothiganesh NagarajanMahesh Vithal Rao KanagoNagaraj NanjundaramNitesh BansalRajesh K.MurthyRaju BannurViraj MalikExternal Customer DelightDHL Automated Pricing Tool TeamKrishna Sagar B.V.Manish ChandraRahul Gadikar S.Shashank ShuklaS
185、hekhar AylawadiYusuf NajmuddinInnovationInfosys Nortel CallSim TeamKarthik A.V.Manesh SadasivanNarasimha Murthy BasappaRavichandran S.Subramanya Datta G.Sudharshan S.Internal Customer DelightHarmony TeamAnand BalakumarRitesh AgarwalSarala PamidiShailesh Kumar AgrawalVikas Ravindra RevankarVishwanath
186、 B.S.People DevelopmentDomain Enablement TeamEric S.PaternosterPreeti ChandrashekharRavikant Sankaram KarraShefali SonparTapan RayaguruVenkatesh Ramrao PatilE&R E-learning TeamAlok Ratanlal TiwariDinesh Prafulla AnantwarGomatam Srishail ChariRahul Suresh GhaliProgram&Project ManagementDHL CRM TeamAn
187、il MehtaBadrinath SrinivasanKalyan PeriPoorna Chandra TippurRajesh Nellayikunnath KrishnanRavi Sankar KodamartiShantanu DasShweta GuptaSrinivasa Gopal SugavanamVimlesh AnkurLexis Nexis GLP Program Management TeamAdithya K.S.Devasenapathy Murugappan MuthuDhiraj SinhaNirmallya MukherjeeSanjeev GoelSen
188、thil Nathan M.Seshadri Kavanoor MadapoosiSunil ShivappaTheme_Pages_Final.p655/12/2005,11:51 AM1920|Think ScaleInfosys|Annual Report 2004-05Board of directorsN.R.Narayana MurthyChairman and Chief MentorNandan M.NilekaniChief Executive Officer,President and Managing DirectorS.GopalakrishnanChief Opera
189、ting Officer,Deputy Managing Director andHead Customer Service&TechnologyDeepak M.SatwalekarLead Independent DirectorProf.Marti G.SubrahmanyamIndependent DirectorDr.Omkar GoswamiIndependent DirectorRama BijapurkarIndependent DirectorPhilip YeoIndependent DirectorSen.Larry PresslerIndependent Directo
190、rClaude SmadjaIndependent DirectorSridar A.IyengarIndependent DirectorK.DineshDirector and Head Education&Research,Information Systems,Quality&Productivity and Communication Design GroupS.D.ShibulalDirector and Group Head World-wide Customer DeliveryT.V.Mohandas PaiDirector,Chief Financial Officer a
191、nd Head Finance&AdministrationSrinath BatniDirector and Group Co Head World-wide Customer DeliveryCommittees of the boardAudit committeeDeepak M.Satwalekar,ChairpersonRama BijapurkarDr.Omkar GoswamiSen.Larry PresslerProf.Marti G.SubrahmanyamSridar A.IyengarCompensation committeeProf.Marti G.Subrahma
192、nyam,ChairpersonDeepak M.SatwalekarSen.Larry PresslerSridar A.IyengarNominations committeeClaude Smadja,ChairpersonSen.Larry PresslerPhilip YeoDr.Omkar GoswamiDeepak M.SatwalekarInvestor grievance committeeRama Bijapurkar,ChairpersonDr.Omkar GoswamiClaude SmadjaPhilip YeoManagement council inviteesA
193、ashish BansalAssociate Vice President Energy,Utilities&Resources(Sales)Abhay M.KulkarniAssociate Vice President Transportation&Services(Delivery)Abhimanyu AcharyaSenior Engagement Manager Banking and Capital Markets(Sales)and Head Berkeley Heights Proximity Development CenterAlexandre Elvis Rodrigue
194、sAssociate Vice President Transportation&Services(Sales)Amitabh ChaudhryChief Operating Officer,Progeon LimitedAnand NatarajAssociate Vice President Communication Service Providers(Sales)Ananth VaidyanathanAssociate Vice President Strategic Global Sourcing(Delivery)Ankush PatelAssociate Vice Preside
195、nt Energy,Utilities&Resources(Sales)Anup UppadhayayAssociate Vice President Europe,Middle East and Africa andHead Bangalore Development Center(Unit 5)Ardhendu Sekhar DasDivisional Manager and Head Bhubaneswar Development CenterBalakrishna D.R.Delivery Manager Energy,Utilities&ResourcesBikramjit Mait
196、raVice President Talent Management HRDBrian KearnsAssociate Vice President Insurance,Health Care&Life Sciences(Sales)Charles Henry HawkesAssociate Vice President Facilities and Head BangaloreDevelopment Center(Unit 2)Col.Krishna C.V.Vice President Infrastructure&SecurityEshan JoshiAssociate Vice Pre
197、sident HR Compliance HRDGanesh GopalakrishnanVice President Insurance,Health Care&Life Sciences(Delivery)Gaurav RastogiAssociate Vice President Sales OverheadGopal DevanahalliAssociate Vice President Retail,Distribution&Consumer ProductsGroup(Sales)Gopinath SutarAssociate Vice President High Tech&Di
198、screte Manufacturing(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 VasishthaAssociate Vice President Communication Service Providers(Delivery)and Head Bangalo
199、re Development Center(Unit 7)Jitin GoyalAssociate Vice President Europe,Middle East&Africa(Sales)Joydeep MukherjeeAssociate Vice President Energy,Utilities&Resources(Delivery)Koushik R.N.Associate Vice President Computers&Communications DivisionKrishnamoorthy AnanthasivamVice President Retail,Distri
200、bution&Consumer Products Group(Delivery)and Head Thiruvananthapuram Development CenterMerwin FernandesVice President Global Sales&Marketing(Finacle)Nagarajan VenkateswaranAssociate Vice President Banking and Capital Markets(Sales)Narsimha Rao ManepalliAssociate Vice President Enterprise Solutions(De
201、livery)andHead Hyderabad Development CenterNeelesh MarikAssociate Vice President Europe,Middle East&Africa(Sales)Patrick T.OgawaAssociate Vice President Retail,Distribution&Consumer ProductsGroup(Sales)Prabhakar Devdas MallyaVice President Security Audit&ArchitectureRaj JoshiManaging Director Infosy
202、s Consulting,Inc.Rajiv BansalAssociate Vice President Global Business OperationsRama N.S.Associate Vice President Product Engineering andHead Bangalore Development Center(Unit 1)Ramaa SivaramAssociate Vice President High Tech&Discrete Manufacturing(Sales)and Head Boston Proximity Development CenterR
203、amachandran KallankaraAssociate Vice President Enterprise Solutions(Delivery)andHead Bangalore Development Center(Unit 6)Ritesh Mohan IdnaniAssociate Vice President Banking&Capital Markets(Sales)Sameer GoelDelivery Manager Europe,Middle East&Africa andHead Mohali Development CenterSamson DavidAssoci
204、ate Vice President Asia Pacific(Delivery)Sanjay JalonaAssociate Vice President Europe,Middle East&Africa(Delivery)Seshadri ParthasarathyDelivery Manager Banking and Capital Markets andHead Toronto Proximity Development CenterShiv Shankar N.Associate Vice President Retail,Distribution&Consumer Produc
205、tsGroup(Delivery)and Head Chennai Development CenterShreeranganath Krishnarao KulkarniDivisional Manager and Head Pune Development Center(Unit 2)Shubha V.Associate Vice President Insurance,Health Care&Life Sciences(Delivery)and Head Bangalore Development Center(Unit 4)Skanthaswamy T.V.Associate Vice
206、 President Product Lifecycle&Engineering Solutionsand Head Mysore Development CenterSohrab Peshoton KakaliaVice President Systems Integration andHead Fremont Proximity Development CenterSreenivas Bhashyam AsuriAssociate Vice President Automotive&AerospaceSridhar MarriAssociate Vice President Communi
207、cation Design GroupSrikantan MoorthyVice President Communication Service Providers(Delivery)Srinivas UppaluriAssociate Vice President Corporate MarketingSubrahmanya S.V.Associate Vice President Education&ResearchSudhir AlbuquerqueAssociate Vice President High Tech&Discrete Manufacturing(Delivery)and
208、 Head Mangalore Development CenterSudhir ChaturvediAssociate Vice President Europe,Middle East&Africa(Sales)Sudhir SinghSenior Engagement Manager Banking and Capital Markets(Sales)and Head Phoenix Proximity Development CenterSurya Prakash K.Associate Vice President Automotive&AerospaceVenkateswarlu
209、PallapothuChief Operating Officer,Infosys Technologies(Shanghai)CompanyLimitedVishnu BhatAssociate Vice President Australia Operations(Delivery)Voice of YouthDani ParthanSenior Project Manager Energy,Utilities&Resources(Delivery)George ThomasManager Compensation&BenefitsJake PetersSenior Analysis Le
210、ader Jashbir MorzariaAssistant Manager MarketingKomal Kumar JainBusiness Development Manager High Tech&DiscreteManufacturing(Sales)Omer FarooqueTechnical Architect Retail,Distribution&Consumer Products GroupPadmamanasaTest Manager Independent Validation ServicesRohit Aditya SrivastavaProject Manager
211、 Product EngineeringShobha N.RaoSenior Project Manager Insurance,Health Care&Life SciencesInfosys Foundation trusteesSudha Murty,ChairpersonSrinath BatniSudha GopalakrishnanTheme_Pages_Final.p655/12/2005,11:51 AM20Board of directorsPhilip YeoIndependent DirectorK.DineshDirector and Head Education&Re
212、search,Information Systems,Quality&Productivity,andCommunication Design GroupSrinath BatniDirector and Group Co Head World-wide Customer DeliveryRama BijapurkarIndependent DirectorN.R.Narayana MurthyChairman and Chief MentorNandan M.NilekaniChief Executive Officer,Presidentand Managing DirectorS.Gop
213、alakrishnanChief Operating Officerand Deputy Managing DirectorProf.Marti G.SubrahmanyamIndependent DirectorSen.Larry PresslerIndependent DirectorSridar A.IyengarIndependent DirectorT.V.Mohandas PaiDirector,Chief Financial Officer andHead Finance&AdministrationClaude SmadjaIndependent DirectorDr.Omka
214、r GoswamiIndependent DirectorDeepak M.SatwalekarLead Independent DirectorS.D.ShibulalDirector andGroup Head World-wide Customer DeliveryFrom left to right Back rowFront rowBOD_MC.p655/9/2005,3:27 PM1Management councilSrinivas B.G.Senior Vice President Eurpoe,Middle East&AfricaSriram V.Senior Vice Pr
215、esident Asia PacificStephen PrattChief Executive Officer and Managing Director Infosys Consulting,Inc.Subhash B.DharVice President Communication ServiceProvidersSubramanyam G.V.Vice President Microsoft Technology Centreand Software Engineering&Technology LabsNandan M.NilekaniChief Executive Officer,
216、President andManaging Director andChairman Management CouncilSanjay PurohitAssociate Vice President Corporate Planningand Member Secretary Management CouncilAkshaya BhargavaChief Executive Officer andManaging Director Progeon LimitedArun RamuVice President Independent ValidationServicesAshok VemuriS
217、enior Vice President Banking and CapitalMarketsBalakrishnan V.Company Secretary andSenior Vice President FinanceBasab PradhanSenior Vice President andGroup Head World-wide SalesBinod H.R.Senior Vice President Commercial&FacilitiesChandra Shekar KakalVice President Enterprise SolutionsDeepak SinhaVic
218、e President Computer&CommunicationsDivisionDheeshjith V.G.Vice President Transportation&ServicesDinesh KrishnaswamyDirector and Head Education&Research,Information Systems,Quality&Productivity,and Communication Design GroupEric S.PaternosterVice President Insurance,Health Care&LifeSciencesFrank A.J.
219、GonsalvesVice President Automotive&AerospaceGary EbeyanCEO and Managing Director InfosysTechnologies(Australia)Pty.LimitedGirish G.VaidyaSenior Vice President FinacleGopalakrishnan S.Chief Operating Officer,Deputy ManagingDirector and Head Customer Service&TechnologyHema RavichandarSenior Vice Presi
220、dent Human ResourcesDevelopmentJames LinChief Executive Officer and ManagingDirector Infosys Technologies(Shanghai)Company LimitedJohn K.ConlonSenior Vice President Global AlliancesK.G.RamachandranSenior Vice President Infosys LeadershipInstituteMohandas Pai T.V.Director,Chief Financial Officer andH
221、ead Finance&AdministrationMuralikrishna K.Vice President Systems IntegrationNarendran KoduvattatVice President Energy,Utilities&ResourcesParameswar Y.Vice President Product EngineeringPrasad T.P.Vice President High Tech&DiscreteManufacturingPravin Rao U.B.Senior Vice President Retail,Distribution&Co
222、nsumer Products GroupPriti Jay RaoVice President Infrastructure ManagementServices and Head Pune Development Center(Unit 1)Ramadas Kamath U.Senior Vice President Accounts&AdministrationRanganath DwarakanathMavinakereAssociate Vice President DomainCompetency GroupDr.M.P.RavindraVice President Educati
223、on&ResearchRichard BaldygaVice President Strategic Global SourcingSanjay DuttAssociate Vice President Product Lifecycle&Engineering SolutionsSatyendra KumarSenior Vice President Quality&ProductivityShibulal S.D.Director and Group Head World-wideCustomer DeliverySivashankar J.Vice President Informati
224、on SystemsSrinath BatniDirector and Group Co Head World-wideCustomer DeliveryBOD_MC.p655/9/2005,3:27 PM2Think Scale|21Infosys|Annual Report 2004-05Chief Executive Officer(CEO)and Chief Financial Officer(CFO)CertificationWe,Nandan M.Nilekani,Chief Executive Officer,President and Managing Director and
225、 T.V.Mohandas Pai,Director,Chief Financial Officer andHead Finance and Administration,of Infosys Technologies Limited,to the best of our knowledge and belief,certify that:1.We have reviewed the balance sheet and profit and loss account(consolidated and unconsolidated),and all its schedules and notes
226、 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 necessary to make the statements made,in light of the circumstances under which su
227、ch 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,fairly present inall material respects,the financial condition,results of operations and cash flows of t
228、he company as of,and for,the periods presented in thisreport,and are in compliance with the existing accounting standards and/or applicable laws and regulations;4.To the best of our knowledge and belief,no transactions entered into by the company during the year are fraudulent,illegal or violative o
229、f thecompanys code of conduct.5.The companys other certifying officers and we,are responsible for establishing and maintaining disclosure controls and procedures for thecompany,and we have:a)designed such disclosure controls and procedures to ensure that material information relating to the company,
230、including its consolidatedsubsidiaries,is made known to us by others within those entities,particularly during the period in which this report is being prepared;andb)evaluated the effectiveness of the companys disclosure,controls and procedures.6.The companys other certifying officers and we,have di
231、sclosed based on our most recent evaluation,wherever applicable,to the companysauditors and the audit committee of the companys board of directors(and persons performing the equivalent functions):a)all significant deficiencies in the design or operation of internal controls,which could adversely aff
232、ect the companys ability to record,process,summarize and report financial data,and have identified for the companys auditors,any material weaknesses in internalcontrols;b)any fraud,whether or not material,that involves management or other employees who have a significant role in the companys interna
233、lcontrols;c)the companys other certifying officers and we,have indicated in this report whether or not there were significant changes in internalcontrols or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation,includingany corrective
234、 actions with regard to significant deficiencies and material weaknesses;andd)all significant changes in accounting policies during the year,if any,and that the same have been disclosed in the notes to the financialstatements.7.In the event of any materially significant misstatements or omissions,th
235、e signing officers will return to the company that part of any bonusor incentive or equity-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 ma
236、tters involving allegedmisconduct)and we have provided protection to whistle blowers 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 thecur
237、rent year.Nandan M.NilekaniT.V.Mohandas PaiBangaloreChief Executive Officer,Director,Chief Financial Officer andApril 14,2005President and Managing DirectorHead Finance and Administration021_142.p655/11/2005,5:22 PM2122|Think ScaleInfosys|Annual Report 2004-05Directors reportTo the members,We are de
238、lighted to present our report on the business and operationsof the company for the year ended March 31,2005.Financial resultsin Rs.crore,except per share data*Year ended March 31,20052004Income6,859.664,760.89Software development expenses3,654.932,495.31Gross profit3,204.732,265.58Selling and market
239、ing expenses392.12335.08General and administration expenses487.50346.85Operating profit(PBIDTA)2,325.111,583.65InterestDepreciation and amortization268.22230.90Operating profit after interest,depreciation and amortization2,056.891,352.75Other income127.50127.39Provision for investment(0.10)9.67Net p
240、rofit before tax and exceptional item2,184.491,470.47Provision for tax on the above325.30227.00Net profit after tax and before exceptional item1,859.191,243.47Exceptional item income from sale of investment in Yantra Corporation(net of tax)45.19Net profit after tax and exceptional item1,904.381,243.
241、47Balance brought forward70.51Less:Residual dividend paid for fiscal 20042.32Additional dividend tax2.27Amount available for appropriation1,970.301,243.47DividendsInterim133.9396.09Final(proposed)175.8799.96One-time special dividend666.41Aggregate dividend309.80862.46Tax on dividends42.17110.50Trans
242、ferred to general reserve190.44200.00Profit retained in profit and loss account1,427.8970.51EPS before exceptional item(equity shares,par value Rs.5/-each)Basic69.2646.84Diluted67.4646.26EPS after exceptional item(equity shares,par value Rs.5/-each)Basic70.9546.84Diluted69.1046.261 crore equals 10 m
243、illionResults of operationsTotal revenue increased to Rs.6,859.66 crore from Rs.4,760.89 crorein the previous year a growth rate of 44.08%.The operating profitincreased by 46.82%,from Rs.1,583.65 crore(33.26%of total revenues)to Rs.2,325.11 crore(33.90%of total revenues).The profit after taxand befo
244、re exceptional item increased to Rs.1,859.19(27.10%of totalrevenue)from Rs.1,243.47(26.12%of total revenue).The profit aftertax and exceptional item increased to Rs.1,904.38 crore(27.76%oftotal revenue)from Rs.1,243.47 crore(26.12%of total revenue).During the year we sold our investment in Yantra Co
245、rporation,USAfor a total consideration of Rs.49.48 crore(US$11.31 million).AppropriationsDividendIn October 2004,we paid an interim dividend of Rs.5 per share(100%on par value of Rs.5/-).We recommend a final dividend of Rs.6.50 pershare(130%on par value of Rs.5/-),aggregating to Rs.11.50 per share(2
246、30%on par value of Rs.5/-).The total dividend is Rs.309.80 crore,as against Rs.864.78 crore for the previous year(including Rs.668.42crore paid as one-time special dividend).Dividend(including dividendtax),as a percentage of profit after tax is 18.48%as compared to 17.79%in the previous year.The reg
247、ister of members and share transfer books will remain closedfrom June 3,2005 to June 11,2005,both days inclusive.The AnnualGeneral Meeting of the company has been scheduled for June 11,2005.Transfer to reservesWe propose to transfer Rs.190.44 crore to the general reserve.Anamount of Rs.1,427.89 cror
248、e is proposed to be retained in the profitand loss account.BusinessOur software export revenues aggregated Rs.6,725.91 crore,up 43.27%from Rs.4,694.69 crore the previous year.65.8%of the revenues camefrom North America,22.2%from Europe,and 10.0%from the rest ofthe world.The share of the fixed-price
249、component of the business was30.9%,as compared to 34.1%during the previous year.Blended revenueproductivity,in dollar terms,has declined by 1.6%due to increasedshare of the offshore business.Prices have been stable and pricingpressure has eased.The gross profit amounts to Rs.3,204.73 crore(46.72%of
250、revenue)as against Rs.2,265.58 crore(47.59%of revenue)in the previousyear.The onsite revenues have decreased from 53.0%in the previousyear to 50.2%.The onsite person-months comprised 29.4%of totalbilled efforts as compared to 31.6%during the previous year.Theoperating profit amounted to Rs.2,325.11
251、crore(33.90%of revenue)as against Rs.1,583.65 crore(33.26%of revenue).Sales and marketingcosts decreased from 7.04%of our revenue in the previous year to5.72%,while general and administration expenses decreased from7.29%in the previous year to 7.11%.We continue to reap the benefitsof economies of sc
252、ale.The net profit after tax and exceptional itemwas Rs.1,904.38 crore(27.76%of revenue)as against Rs.1,243.47crore(26.12%of revenue)in the previous year.We seek long-term partnerships with clients while addressing theirvarious IT requirements.Our customer-centric approach has resultedin high levels
253、 of client satisfaction.We derived 95.4%of our revenuesfrom repeat business(i.e.a customer who also contributed to revenuesduring the prior fiscal year).We added 136 new clients,including asubstantial number of large global corporations.The total client base atthe end of the year stood at 438.Furthe
254、r,we have 166 million-dollarclients(131 in the previous year),71 five-million-dollar clients(51)42ten-million-dollar clients(25)and five 50-million-dollar clients(3).During the year,one client contributed 80-million-dollar+of revenues.We continued scaling up our infrastructure by adding another 28.8
255、1lakh sq.ft.of physical infrastructure space.The total available spacenow stands at 69.27 lakh sq.ft.The number of marketing offices as ofMarch 31,2005 was 32.FinacleFinacle,our universal banking solution,empowers banks to transformtheir business leveraging agile,new-generation technologies.Thismodu
256、lar solution addresses the core banking,treasury,wealth021_142.p655/11/2005,5:22 PM22Think Scale|23Infosys|Annual Report 2004-05management,consumer and corporate e-banking,mobile banking andweb-based cash management requirements of universal,retail,corporate,community and private banks worldwide.Fin
257、acle emerged as one of the worlds most scalable core bankingsolutions 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 s
258、ites supportingover 12 million accounts,17,000 users and a peak transaction load of8 million.Increase in share capitalDuring the year,upon your approval,a bonus issue of 3:1 was madeby capitalizing a sum of Rs.100.30 crore from the general reserve.Toprovide for the issue of these additional shares,t
259、he authorized capitalof the company was increased to Rs.150 crore consisting of 30 croreequity shares of Rs.5/-each.Also,we issued 33,25,391 shares on the exercise of stock optionsunder the 1998 and 1999 employee stock option plans.Due to this,the outstanding issued,subscribed and paid-up equity sha
260、re capitalincreased from 6,66,41,056 shares to 27,05,70,549 shares as of March31,2005.LiquidityWe continue to be debt-free,and maintain sufficient cash to meet ourstrategic objectives.Liquidity in the balance sheet needs to balancebetween earnings adequate returns and the need to cover financialand
261、business risks.Liquidity also enables us to 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.81.67 crore.As on Marc
262、h 31,2005,we hadliquid assets including investments in liquid mutual funds,of Rs.2,850.67 crore as against Rs.2,769 crore at the previous year-end.These funds have been invested in deposits with banks,highly ratedfinancial institutions and in liquid mutual funds.Standard&Poors ratingStandard&Poors,t
263、he global credit ratings provider,assigned BBBlocal currency and BBB foreign currency rating for us.We are thefirst company in India to obtain a credit rating higher than Indiassovereign rating(BB+/Stable/B)from S&P.According to Standard&Poors,the rating reflects our conservative financial profile a
264、nd policy,ample liquidity,strong operating cash flow,and a debt-free balancesheet.Development centersWe incurred capital expenditure aggregating Rs.623.31 crore on physicalinfrastructure,up from Rs.341.01 crore.Further,we incurred Rs.170.58crore on technological infrastructure,up from Rs.88.86 crore
265、.In all,Rs.793.89 crore has been invested up from Rs.429.87 crore.In Bangalore,two software development blocks of 4,26,000 sq.ft.with 4,130 seats and the Multimedia Center of 26,000 sq.ft.with 110seats were completed.In addition,a software development block of1,96,000 sq.ft.with 2,500 seats,a food c
266、ourt of 61,000 sq.ft.,anemployee care center of 2,64,000 sq.ft.and a multi-level car park of3,10,000 sq.ft.are under construction.The existing capacity at ourBangalore campus comprises 20,84,836 sq.ft.with 14,465 seats.In Pune II campus,two software development blocks of 2,50,000 sq.ft.,with 2,400 s
267、eats,were completed.A food court of 50,000 sq.ft.and two software development blocks of 3,74,000 sq.ft.,with 3,000seats,are under construction.Together,the campuses in Pune have abuilt-up area of 8,48,647 sq.ft.with 5,931 seats.In Bhubaneswar,a software development block of 95,000 sq.ft.,with800 sea
268、ts,and an employee care center of 1,00,000 sq.ft.,werecompleted.Currently,a software development block of 1,39,000 sq.ft.,with 1,300 seats,is under construction.The campus has a built-up area of 3,84,000 sq.ft.with 2,000 seats.In Chennai,an employee care center of 75,000 sq.ft.was completed.Currentl
269、y,the campus has a built-up area of 4,96,317 sq.ft.with2,976 seats.For the second campus in Chennai,work is in progressfor two software development blocks of 2,50,000 sq.ft.,with 2,400seats and a food court of 50,000 sq.ft.In Hyderabad,a software development block of 1,54,000 sq.ft of1,100 seats was
270、 completed.Civil works are in progress for the ES(Enterprise Solutions)University,including employee care facilities,of 3,00,000 sq.ft.Currently,the campus has a built-up area of 6,16,000sq.ft.with 3,965 seats.In Mysore,the 4,41,000 sq.ft.Global Education Centre,capable oftraining 4,500 professional
271、s at a time,an employee care center of1,10,000 sq.ft.,2,350 residential rooms of 11,00,000 sq.ft.and afood court of 36,000 sq.ft.,was completed.Two software developmentblocks of 4,20,000 sq.ft.,with 4,200 seats,258 residential rooms of1,41,900 sq.ft.,a food court of 39,000 sq.ft.and a multiplex buil
272、dingof 56,000 sq.ft.are under completion.Currently,the campus has abuilt-up area of 22,06,650 sq.ft.with 1,734 seats and can train andhouse 4,500 employees.In the new campus at Chandigarh,work is in progress for a softwaredevelopment block of 3,30,000 sq.ft.with 3,100 seats,a food court,a health clu
273、b and employee care center of 1,74,500 sq.ft.In Thiruvananthapuram,interiors were completed in the leased spaceof 22,000 sq.ft.,with 220 seats.In Mauritius,we have relocated to Ebene Cyber Tower to an office of28,000 sq.ft.,with 400 seats.These premises will also house thecompanys Disaster Recovery
274、Center.The company has also leased 25acres of land from the Government of Mauritius.As of March 31,2005,in India,we had 68,99,450 sq.ft.of space with33,111 seats and an additional 31,76,400 sq.ft.,under construction,which would have 16,615 seats.SubsidiariesWe have four subsidiaries,viz.Progeon Limi
275、ted,Infosys Technologies(Australia)Pty.Limited,Infosys Technologies(Shanghai)CompanyLimited and Infosys Consulting,Inc.and one step-down subsidiaryProgeon SRO(wholly-owned subsidiary of Progeon Limited).Progeon Limited(Progeon)Progeon Limited was incorporated in April 2002,in India,to addressopportu
276、nities in the Business Process Management space.We hold99.54%of the equity share capital and voting power of Progeon andthe balance held by employees of Progeon on vesting of stock optionsissued to them.During the year,Progeon added 5 clients,and generatedRs.191.22 crore in revenue,with a net profit
277、 of Rs.30.06 crore.Theemployee strength as on March 31,2005 was 3,966.Infosys Technologies(Australia)Pty.LimitedIn January 2004,we acquired,for cash,100%of the equity in ExpertInformation Services Pty.Limited,Australia for US$24.3 million.Theacquired company was renamed“Infosys Technologies(Australi
278、a)Pty.Limited”.During the year,Infosys Technologies(Australia)Pty.Limitedserviced 11 clients and generated a revenue of Rs.303.23 crore,witha net loss of Rs.1.28 crore.The employee strength as on March 31,2005 was 416.Infosys Technologies(Shanghai)Company LimitedInfosys Technologies(Shanghai)Company
279、 Limited(Infosys China)isa wholly-owned subsidiary and was formed to expand the companysbusiness operations in China.We have invested US$5 million inInfosys China as of March 31,2005.During the year,Infosys China serviced 12 clients,and generatedrevenue of Rs.8.19 crore,with a net loss of Rs.8.39 cr
280、ore.Theemployee strength as on March 31,2005 was 122.021_142.p655/11/2005,5:22 PM2324|Think ScaleInfosys|Annual Report 2004-05Infosys Consulting,Inc.In April 2004,we established a wholly-owned subsidiary,InfosysConsulting,Inc.,in the state of Texas to add high-end consultingcapabilities to our Globa
281、l Delivery Model.We had approved aninvestment of up to US$20.0 million in the share capital of InfosysConsulting.We have invested US$10 million as of March 31,2005.During the year,Infosys Consulting serviced 25 clients,and generatedrevenue of Rs.21.11 crore,with a net loss of Rs.33.03 crore.Theemplo
282、yee strength as on March 31,2005 was 68.As per Section 212 of the Companies Act,1956,we are required toattach the directors report,balance sheet,and profit and loss accountof these subsidiaries.We had applied to the Government of India foran exemption from such attachment as we present the auditedco
283、nsolidated financial statements in the annual report.We believe thatthe consolidated accounts present a full and fair picture of the state ofaffairs and the financial condition and is accepted globally.TheGovernment of India has granted exemption from complying withSection 212.Accordingly,the annual
284、 report does not contain thefinancial statements of these subsidiaries.The annual accounts of thesesubsidiary companies,along with related information,are availablefor inspection during business hours at our registered office.Human resource managementEmployees are vital to the company.We have create
285、d a favorable workenvironment that encourages innovation and meritocracy.We havealso put in place a scalable recruitment and human resourcemanagement process,which enables us to attract and retain high caliberemployees.We added 8,801(net)and 11,597(gross)employees,takingthe total strength to 32,178
286、up from 23,377 at the end of the previousyear.Our attrition rate stands at 9.70%compared to 10.15%for theprevious year.Over the last year,13,48,832 people applied to us foremployment and we continue to remain an employer of choice in ourindustry.Our key focus has been to change the mindset from huma
287、n 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 managing post-acquisition issues brought inkey people challeng
288、es,which helped our people processes matureand led us to explore new domains.We continued with our PCMM journey to ensure that our peoplepractices meet the requirements of proven international standards.Inkeeping with our high performance work ethic,we enhanced ourperformance management process.This
289、 process incorporated objectivesetting as a key requirement.The concept of variable pay has beeninstitutionalized.We plan to further reinforce these concepts on acontinuous basis.We believe in investing in people competencies for the businessrequirements of tomorrow.Toward this,we have been enabling
290、Infoscions to become solution-focused,have a global mindset andstay connected.Launching the ES(Enterprise Solutions)University,reinforcing the leadership development model and furthering theLeaders Teach concept,has enhanced existing initiatives like role-based training and reinforced e-learning.Bra
291、ndingThe year saw us emerging as a true global brand.We were rated as thenumber three IT services company in the world by Business WeekTech100 and among the 100 most respected companies in the worldin a rating published by Financial Times-PricewaterhouseCoopers.Branding through the analyst community
292、Our clients,the IT buyer community,rely extensively on the opinionsand recommendations of industry analysts 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 rese
293、arch,vendor ratings,client advisory,and byspeaking at major conferences.We continue to have top-of-mind recall with leading offshoreoutsourcing and industry analysts.Forrester,in its report Infosys formsHigh-end Consulting Unit said,“This move comes on the heels ofseveral other Infosys investments m
294、ade to boost Infosys from the ranksof the top-tier Indian vendors to the ranks of the top-tier globalvendors.”AMR,in its report India shows the way to Next-GenerationConsulting,said,“Infosys is building the right expertise to dominatethe next generation of consulting and IT”.IDC,in its report Achiev
295、ingCompetitive Differentiation through Innovation:How SystemsIntegrators Are Using Research and Development Labs,said,“Infosyscommitment to excel through innovation extends beyond IT andbusiness.The company also applies it in its processes for managementand leadership and in how it builds its physic
296、al,technological or humaninfrastructure”.Analysts are among the most important brand ambassadors to createpositive awareness and reputation for us with executive decision-makers in our client organizations.Branding through mediaLeading global publications are a powerful vehicle into the minds ofkey
297、corporate decision makers.The year saw us featured on a sustainedbasis as a company that is redefining the IT services business.Apartfrom its presence in industry features,we also received exclusivecoverage in publications such as The New York Times,Business Weekand Fortune.Branding through eventsDu
298、ring the year,we participated in,or held,over 50 events across theUnited States,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 2000companies.Flagship campaigns like WIBTA(
299、Wharton Infosys BusinessTransformation Awards),the CEO event in Japan,and Milan(ourannual customer forum held in the United States and Europe)gainedsignificantly in attendance and quality of coverage.We enhanced ourpresence at the World Economic Forum,attracting a number of CEOsand helping set the a
300、genda on Public Private Partnership.The GlobalSourcing Summit matured into a watering hole of the“power users”of outsourcing.We also had a strong presence in leading industryevents,where our leaders were invited to be speakers.Webinars onvarious topics of relevance were held throughout the year.Qual
301、ityWe firmly believe that the pursuit of excellence is one of the mostcritical components for success in the competitive global market.Wehave achieved high maturity through rigorous adherence to highly-evolved processes,which have been systematically benchmarkedagainst world-class operating models.T
302、hese standards include ISO9001-TickIT,SEI-CMM/CMMI,BS7799,ISO14001;BS 15000;AS9100;PCMM and the Malcolm Baldrige/EFQM Frameworks.Weare rated at Level 5 of the Capability Maturity Models(CMM andCMMI),which are world-class benchmarks in software processmanagement.Regular and rigorous assessments are c
303、onducted byreputed external assessors vis-vis CMM,CMMI,PCMM and CII-EXIM(based on EFQM/Malcolm Baldrige models).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,i
304、ntegrated with tools and knowledge base that optimizes executionacross the globeImproving quality and productivity through standardization ofengineering processes for key technologies with tools,methodologies and reusable components and framework021_142.p655/11/2005,5:22 PM24Think Scale|25Infosys|An
305、nual Report 2004-05Use of Six Sigma for enhanced customer focus and improvedservice delivery in maintenance,production support andengineering designEnabling people with focused accreditation programs like CSQA,PMI,CSTE,CFPE,internal process training on quantitative projectmanagement,statistics for d
306、ecision making,integratedrequirements analysis,etc.STRIDE:An account-oriented 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 provid
307、ing high-end software process consulting services.This is a testimony 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 effe
308、ctive managers in theorganization,we have also chosen to invest in developing top-tierleaders who can help us maintain our lead and momentum in themarketplace.We have identified 530 employees to be supported intheir leadership journey.A set of leadership competencies,distinctfrom managerial skills h
309、as been identified and a number of vehiclesare used to build these competencies.Significant initiatives includethe Leaders Teach Leaders series of Experience Sharing Sessions,Feedback Intensive Programs,nomination to Ivy League courses,andothers.We have also created the best infrastructure in India
310、forleadership development by building a residential campus for the InfosysLeadership Institute in Mysore.AcE Building global academic relationshipsWe had strongly focused our branding efforts on some of the bestnames in academia,knowing that our message extends beyondcampuses to many powerful corner
311、 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.This year,we had hosted stud
312、ent groups and faculty from 32 collegesof international repute.InStep Global Internship ProgramInStep is our global internship program to attract students from thebest academic institutions around the world.While students benefit from learning firsthand in a corporateenvironment,we gain brand equity
313、,value addition to current projects,and enhanced awareness at the universities.Further,interns havepublished case studies and white papers that help position us as aglobal technology leader.InStep also promotes a multi-cultural environment at Infosys.Lastyear,the program enabled interns from 22 diff
314、erent nationalities toshare their experiences and perspectives.Further,we recruit internsfrom diverse academic backgrounds,spanning technology studentsfrom Stanford to business students from Wharton.This year,we heldInStep:Information Sessions in the United States of America,Canada,Mexico,United Kin
315、gdom,France,Germany,India,Australia,Singapore,Thailand and Japan and received over 8,500 applicationsfor 100 internship positions.Research and education initiativesWe have trained 7,390 employees as part of our Foundation Program.Continuing education is imparted in advanced technologies andmanageria
316、l skills to our employees.The aggregate training impartedby us exceeded 5,85,325 person-days.The Infosys Fellowship Program,instituted by us at 14 premieracademic institutions in India to support research work leading to aPh.D.,has been well received.At present,there are 39 InfosysFellowship awardee
317、s undergoing Ph.D.programs at various institutions 15 Infosys fellows have submitted their doctoral research and manyhave already been awarded a Ph.D.by the respective institutions.Our Education&Research(E&R)department has started a newtechnology enablement program for senior executives.The Assessme
318、ntand Certification Center has certified 100 senior executives throughtheir internal certification exams in the area of.NET,J2EE,open sourceand legacy systems.E&R is rolling out a technology enablement program for our middlemanagement executives and is targeting 1,000 employees acrossdifferent count
319、ries.E&R published a book titled Web Services An Introduction(Dr.B.V.Kumar and S.V.Subrahmanya our employees),which is used asreference in several universities in India.In all,10 papers have beenpublished in the area of technology at international conferences andin journals.Knowledge managementWe co
320、ntinue to leverage the collective knowledge of the organizationfor competitive advantage.The Knowledge Management(KM)program,initiated in August 2000,has resulted in the active generation and wide-spread use of reusable knowledge.The central knowledge repositoryhas,as of date,over 12,000 knowledge a
321、ssets.Additionally,more than25,000 artifacts were created by employees as direct deliverables.Onan average,4,000 knowledge assets are downloaded every workday byInfoscions from our Knowledge Portal for use in various engagements.We won the prestigious Global MAKE(Most Admired KnowledgeEnterprises)aw
322、ard for 2004 along with 19 other leading globalcompanies from a wide cross-section of industries.Campus ConnectInfosys Campus Connect,an industry-academia interaction programwhich started in May 2004,has scaled up significantly by December2004,taking the total number of partnering colleges to 96.We
323、shareour educational experience with the faculty of these partnering colleges.This has been done through a structured Faculty Enablement Program(FEP).Three FEPs have been conducted so far,with 101 participatingfaculty from 50 partnering colleges.About 15 of these colleges havealready started the Cap
324、sule Program rollout.So far under Campus Connect,32 road shows,10 industrial visits,40technical/soft skill seminars,eight sponsorships to college events,and two sabbatical projects have been completed with collegesconnected across various Infosys Development Centers.The Campus Connect portal shares
325、our educational and professionalexperience with the students/faculty of engineering colleges.It is anactive site containing courseware for 20 courses(eight generic and 12stream-specific),a student project bank with 50 project specifics,afacility for students to interact with their alumni who work wi
326、th us,an active discussion forum to discuss technical and soft skills on relatedtopics,and a students newsletter.As on March 2005,6,946 students,490 faculty and 386 alumni Infoscions are registered as members ofthe portal.The download rate for courseware and project specs is alsoimpressive,with abou
327、t 23,000 downloads in the courseware sectionand about 14,000 downloads in the student projects section.Thisshows the interest that students and faculty have shown in informationshared by us.Corporate governanceWe continue to be a pioneer in benchmarking our corporategovernance policies with the best
328、 in the world.Our efforts are widelyrecognized by investors in India and abroad.We have undergone thecorporate governance audit by ICRA.ICRA has rated our corporategovernance practices at CGR 1.We have complied with the recommendations of the KumarmangalamBirla Committee on Corporate Governance cons
329、tituted by the Securities021_142.p655/11/2005,5:22 PM2526|Think ScaleInfosys|Annual Report 2004-05and Exchange Board of India(SEBI).For fiscal 2005,the compliancereport is provided in the Corporate governance report section of thisannual report.The auditors certificate on compliance with themandator
330、y recommendations of the committee is annexed to thisreport.We have documented our internal policies on corporate governance.In line with the committees recommendations,the managementsdiscussion and analysis of the financial position of the company isprovided in this annual report and is incorporate
331、d here by reference.We continue our practice of providing a report on our compliancewith the corporate governance requirements of six countries,in theirnational languages,for the benefit of our shareholders in thosecountries.During the year,we continued to ensure full compliance with the USSarbanes-
332、Oxley Act of 2002.Several aspects of the Act such as theDisclosure Committee Requirements,Whistleblower Policy,Code ofConduct for Senior Officers and Executives have already beeninstituted.DirectorsAs per Article 122 of the Articles of Association,Mr.N.R.NarayanaMurthy,Mr.Nandan M.Nilekani,Mr.K.Dine
333、sh,Mr.Philip Yeo andMr.Claude Smadja retire by rotation in the forthcoming Annual GeneralMeeting.All of them,except Mr.Philip Yeo,being eligible,offerthemselves for reappointment.Mr.Yeo has expressed his intentionnot to seek re-election.We place on record our deep appreciation ofthe services rendered by Mr.Yeo during his tenure on the board.Mr.Yeo participated actively in the deliberations of the
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