Global 1000 companies and analysts endorse Infosys' "next generation" consulting practice
New Delhi, July 14, 2005
Infosys Technologies today announced that Infosys Consulting Inc. has had a successful first year, redefining the consulting profession. In recent surveys, clients report that consulting projects with Infosys Consulting deliver an average of 103% of the business value expected.
Highlights from Infosys Consulting's first year include:
Analyst from leading research firms had this to say about Infosys Consulting:
"Infosys starts from a strong position and has a value proposition that most other consulting firms do not have. Not only can it provide high-end strategy advice from top-tier US consultants, but it can also wrap affordable, high quality technology and business process solutions around its advice. The combination will be irresistible to existing and prospective Infosys customers." *
"The traditional consulting model is dead. The next-generation consulting model combines global delivery that capitalizes on low-cost resources with high-quality strategic consulting. Knowledge and resources must flow seamlessly between the customer's site and the service provider's global locations.. Fact is, Infosys is building the right expertise to dominate the next generation of consulting and IT." **
"Although most of the major Indian outsourcers claim to offer business consulting services, Infosys Consulting is the first official subsidiary created specifically to address this market opportunity in the United States and Europe....IDC believes that Infosys Consulting's plan to marry traditional business consulting with low-cost offshore technology implementation services will resonate with clients working within the confines of a tight IT budget and ready for alternatives to lengthy high-priced projects. IDC believes this approach will provide a competitive differentiator for Infosys Consulting." ***
Commenting on the benchmarks set by Infosys Consulting, Mr. Stephen Pratt, CEO and Managing Director, Infosys Consulting Inc., named as one of the top 25 consultants in the world by Consulting Magazine, said, "Our team is off to a great start. Clients and analysts are telling us that Infosys Consulting has the right consulting business model - one that is becoming the benchmark of the profession. We combine world class business consulting with a global delivery model. This approach results in a typical savings of 35% over the old model consulting projects. With the money they save, clients are able to invest more with us in business innovation, to become competitive more quickly."
"We also do consulting in a disciplined manner - data driven and with a focus on getting practical, real world business results with our clients. Our profession has strayed from its heritage of rigorous business analysis. We are bringing it back - the Infosys way, " he added.
Five of Infosys Technologies clients billed more than US$ 50 million in the last four quarters. In the next few years, Infosys hopes to have many such clients and perhaps a few entries in the "more than US$ 100 million" category as well. This requires a deliberate strategy and the scalability to service these large accounts.
Commenting on Infosys' growth strategy, Mr. Nandan M. Nilekani, CEO, President and Managing Director, Infosys Technologies Limited said, "Infosys Consulting is an extension of our belief in creating a scalable model to meet the needs of our clients. Large clients have been the engines of growth and developing large clients often means running large programs. Setting up Infosys Consulting has helped us to win and run enterprise change programs that go beyond technology implementation, to leading business change. The expanding capabilities of Infosys allow us to create more value for our clients than ever before."
In April 2004, Infosys Technologies announced the creation of a wholly owned US-based subsidiary, Infosys Consulting Inc., to focus on high value business and technology consulting. It services 25 clients today. Infosys plans to invest $20 million and hire 500 consulting professionals in the US and Europe over the next two years.
Infosys (NASDAQ:INFY) defines, designs and delivers IT enabled business solutions. These provide our clients with strategic differentiation and operational superiority, thereby increasing their competitiveness. Each solution is delivered with the industry-benchmark Infosys Predictability that gives our clients peace of mind. With Infosys, they are assured of a transparent business partner, business-IT alignment with flexibility, world-class processes, speed of execution and the power to stretch their IT budget by leveraging the Global Delivery Model that Infosys pioneered. Infosys has over 36,000 employees in over 30 offices worldwide. For more information, visit www.infosys.com
* Infosys Forms High-End Consulting Unit Infosys Moves Toward Global IT Services Market Dominance, April 16, 2004 by Stephanie Moore with Adam Brown
** AMR Research, India Shows the Way to Next-Generation Consulting, Thursday, April 08, 2004 - Lance Travis, Dana Stiffler
*** Infosys Expands into Consulting with Infosys Consulting (IDC #3121), April 2004 by Barry Mason, Stephanie M. Torto
This press release contains forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934, including statements related to the future prospects for Infosys Consulting; our expectations regarding the amount of revenues from our largest customers; our beliefs and expectations regarding our scalable model; and our plans to invest $20 million and hire 500 consulting professionals in the U.S. and Europe over the next two years. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding the success of our investments, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, intense competition in IT and consulting services including those factors which may affect our cost advantage, wage increases in India, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, restrictions on immigration, industry segment concentration, our ability to manage our international operations, reduced demand for technology and consulting services, disruptions in telecommunication networks or system failures, our ability to successfully complete and integrate potential acquisitions, liability for damages on our service contracts, the success of the companies in which Infosys has made strategic investments, withdrawal of governmental fiscal incentives, political instability and regional conflicts, legal restrictions on raising capital or acquiring companies outside India, and unauthorized use of our intellectual property and general economic conditions affecting our industry.
Additional risks that could affect our future operating results are more fully described in our United States Securities and Exchange Commission filings, including our Annual Report on Form 20-F for the fiscal year ended March 31, 2005 filed on April 26, 2005 and our reports on Form 6-K. These filings are available at www.sec.gov. We may, from time to time, make additional written and oral forward-looking statements, including statements contained in our filings with the Securities and Exchange Commission and our reports to shareholders. We do not undertake to update any forward-looking statements that may be made from time to time by or on behalf of the Company.
For further information, please contact: PR_Global@infosys.com