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Infosys rated as a Leader for Basic Offshore Capabilities

Unique Strengths in IT Process Leadership and Deepest Pool of Modern Technology Talent Among the Six Firms

Bangalore, August 20, 2004 : In its recently published report, Low - Cost Global Delivery Model Showdown, Forrester Research has rated Infosys as a Leader for Simple Offshore Capabilities and a Strong Performer for Low - Cost GDM Capabilities using their Forrester Wave™ methodology. The report also showed Infosys to be the largest of the six in terms of revenue for application - related services using a low - cost GDM or offshore - delivery model.

For this report, Forrester graded the top three players from two main starting points: onshore suppliers (Accenture, EDS, and IBM) and Indian offshore providers (Infosys, TCS, and Wipro), using 60 different low - cost GDM criteria to understand the state of the evolution of GDM.

The report highlighted Infosys’ IT process leadership as a unique strength that created a culture focused on consistent and repeatable processes and value - added tools. The report cited a client reference who stated that the typical time and budget variance with one of the competitors also rated in this report was 20%; and that dropped to less than 1% when the application work was shifted to Infosys. Infosys is also noted to have the deepest pool of modern language talent among the six firms, and scored the highest for its breadth and depth of technical skills.

About the report, John McCarthy, Vice President at Forrester Research stated “Higher user sophistication and shifting industry economics are forcing IT services vendors to ramp up their low - cost remote delivery capabilities. This is part of a broader shift to a more distributed, process - centric, low - cost global delivery model (GDM).”

Commenting about the vendors and their position on the Forrester Wave™, John added, “All six vendors are making significant investments in skills, processes, tools, locations, and infrastructure, and none is in the leader category for a fully developed low - cost GDM. However, when the scoring is weighted toward a simple, basic offshore delivery out of a single country like India or the Philippines, the ranking is very different and Infosys and Wipro, move into the Leader category, with very little difference between these two firms in either Forrester Wave™.

Responding to the favourable rating, Kris Gopalakrishnan, Chief Operating Officer, Infosys Technologies said, “It is a strong reflection of Infosys’ market presence and leadership to be recognized the leading company providing GDM - based services among the six firms in this analysis. Infosys’ prominent position on both Forrester Wave™ charts, for basic offshore capabilities and for evolving low - cost GDM, validates the investments Infosys has made and continues to make in shaping the future of IT Services, Consulting, and Outsourcing.”

Basab Pradhan, Senior Vice President and Head of Worldwide Sales also observed that “The analysis by Forrester clearly highlights Infosys’ commitment to help our clients benefit from global delivery. ”An illustration in the report shows Infosys having the largest GDM revenue among the six firms, while the other firms have significantly smaller GDM revenues. Another illustration indicates comparable or mostly greater number of clients that leverage Infosys’ low - cost GDM capabilities - 53 clients with revenues more than $5million and 27 with more than $10million. Basab added “Forrester estimates of GDM revenues and clients for the six vendors clearly demonstrate the greater depth in Infosys’ client relationships and commitment to use of global delivery for every client.”

About the Forrester Wave TM and Low - Cost GDM

Forrester defines a low - cost GDM as “ Integrating rich domain expertise, broad technical skills, and project management discipline across a network of low - cost locations through consistent and robust processes, tools, and infrastructure to maximize the timely delivery of superior IT and BPO solutions. ” Using this definition, Forrester created 60 criteria for measuring a firm's low - cost GDM skills and focused on application - related work, which is currently the bulk of clients' work in a low - cost GDM. The 60 criteria are split into the three Forrester Wave™ categories:

  • Current offerings: evaluating current global delivery model capabilities
  • Strategic direction: judging the providers' low - cost GDM investments for the future
  • Market presence: providers' low - cost GDM scale and overall financial strength
Safe Harbor Provision

Certain statements in this release related to the Offering constitute forward - looking statements. This Offering is subject to shareholder approval, which may not be obtained. Although the Offering is expected to be made to our equity holders in India, we may be required to exclude certain equity holders outside India to comply with U. S. rules and regulations. Our business is subject to a number of risks and uncertainties that could affect our future operating results including those described in our United States Securities and Exchange Commission filings including our Annual Report on Form 20 - F for the fiscal year ended March 31, 2004 and on Form 6 - K for the quarter ended June 30, 2004 and September 30, 2004. These filings are available at www.sec.gov Opens in new window . Infosys may, from time to time, make additional written and oral forward - looking statements, including statements contained in the company's filings with the Securities and Exchange Commission and our reports to shareholders. The company does not undertake to update any forward - looking statements that may be made from time to time by or on behalf of the company.

For further information, please contact:

The Americas
Peter McLaughlin
Infosys Technologies Ltd, USA
Phone: +1 213 622 4949, Ext 206

Asia Pacific
Sarah Vanita Gideon
Infosys Technologies Ltd, India
Phone: +91 80 4156 4998

Cristin Balog
Infosys Technologies Ltd, Australia
Phone : +61 3 9860 2277
Antonia Maneta
Infosys Technologies Ltd, UK
Phone: +44 0 207 715 3499

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