Infosys Technologies

 
 
 
 
 
 
 
  
 
 
  
 
 
Dear Shareholder,
 
The credit crisis in the U.S. is becoming a global recession by degrees. The resulting loss of jobs and
credit across the globe is of enormous proportion, not witnessed for many decades. Customers in the markets
in which we operate are cutting costs to overcome the impact on their businesses
 
We closed fiscal 2009 reporting annual revenues of Rs. 21,693 crore, a year-on-year growth of 30.0%. The
profit after tax for the year was Rs. 5,988 crore, a year-on-year growth of 28.5%. As per the International
Financial Reporting Standards (IFRS), our annual revenues for fiscal 2009 stood at US ,663 million, a
year-on-year growth of 11.7%. The net income as per IFRS was US ,281 million with a year-on-year growth of
10.1%. The Board of Directors has recommended a final dividend of Rs. 13.50 per share (270% on par value of
Rs. 5 per share) for fiscal 2009.
 
We continue to grow our business notwithstanding its decreasing velocity. Infosys and its subsidiaries
added 156 clients and 28,231 (gross) employees in fiscal 2009. The contribution of North America and the Rest
of the World to our revenues grew to 63.2% and 9.1%, respectively, during the year. The number of our
million-dollar clients grew from 310 in fiscal 2008 to 327 in fiscal 2009
 
A recent survey of our top 135 clients revealed that majority of them will downsize their IT budgets.
This, along with our own take on the current situation, has led us to give a revenue guidance, in US Dollar
terms, of a decline between 3.1% to 6.7% in fiscal 2010
 
Our business model is based on enduring relationships with clients. We have clients with whom we have
worked for the last 10-15 years. We have been together through economic upturns and downturns. This is one
reason why we are able to sustain most relationships in this downturn. In order to strengthen these
relationships, we are increasing our focus on new engagement models such as solution-based offerings,
platform-based BPO, Software as a Service (SaaS) platform, and Finacle™, the universal banking solution from
Infosys. Some of these models are based on value-based pricing such as billing the client based on the number
of transactions that ensures the maximum return on investments and increased productivity, especially suitable
for challenging times such as these
 
Finacle™ was named a Leader in the January 2009 report, The Forrester Wave™ : Global Banking Platforms,
Q1 2009. Finacle™ was ranked no. 1 in overall strategy and earned the top score for its current offering as
well as product strategy nfosys is considered one of the best-positioned organizations to deliver agile
banking platforms
 
Earlier in fiscal 2009, we had launched the Digita Convergence Platform that currently powers Airtel
Digital TV. We also launched ShoppingTrip360™ - a platform which enables a suite of managed-information
services to create a 360-degree view of real-time in-store shopper and shelf activity
 
We see significant opportunities in markets where our presence is relatively new. We started our Mexico
operations in August 2007 and established a subsidiary in Monterrey, which is serving as a near-shore
Delivery Center to provide IT and BPO services to our existing global clients and new Latin American clients.
Our second center in Monterrey, Mexico, will be operational soon. We expect the Latin American region to be
among the fastest growing markets for us.
 
We believe in growing responsibly. We have been exploring ways to minimize the impact we create on the
environment. We now monitor our energy consumption, and have reduced our per capita utilization by 5%. All
our buildings are designed to be in compliance with the IGBC-LEED Gold rating (minimum). We monitor our
carbon footprint and have consciously reduced carbon emissions by 5%. We have launched a patent-pending
carbon footprint calculator InGreen that measures an individuals carbon emissions and generates a report of
the carbon credits required to offset them. Our first Sustainability Report for 2007-08 was published during
the year. You can read it at www.infosys. com/beyond-business/sustainability-report.asp.
 
Young Indians, constituting over 50% of the nations population, are an asset. We have taken several
initiatives in the past to engage with and enable youth in the company as well as in our society. As an
impetus for them to take up scientific research, we have set up the Infosys Science Foundation, a
not-for-profit trust to promote research in sciences in India. The first Infosys Prize, instituted by the
Foundation in five categories, will be announced in January 2010. In fiscal 2009, we, along with the National
Institute of Advanced Studies, instituted and awarded the Infosys Mathematics Prize that will be integrated
with the Infosys Prize in 2010. Earlier in fiscal 2009, the first Association for Computing Machinery (ACM) –
Infosys Foundation Award was given.
 
We continue to concentrate on research and innovation. As of fiscal 2009, we have 200 patent applications
(pending) in India and the U.S. We have been granted two patents by the United States Patent and Trademark
Office, earlier in fiscal 2009. Our Australian subsidiary and our research group have jointly participated in
establishing the Smart Services Cooperative Research Centre to develop an R&D program for creating
Intellectual Property valuable to Australias services market. Infosys signed an agreement with the
International Institute of Information Technology, Hyderabad (IIIT-H) to sponsor research in unstructured
data analytics, inference and diagnostics tools and the development of next-generation business intelligence
tools. We have also partnered with The University of Southern California (USC) Viterbi School of Engineering
for joint research.
 
Leading organizations across the world continued to entrust us with transformational responsibilities. A
manufacturing major selected us as its services partner to enable a multi-year transformation project for
product innovation and lifecycle management. We turned around the enterprise application architecture of a
leading relocation services organization to support its emerging business channels and
 
growth opportunities. In India, the Uttar Pradesh Power Corporation Limited and three Rajasthan-based
power distribution companies consulted us for power reforms programs. The Income Tax Department (ITD) –
Ministry of Finance, Government of India, has engaged us to set up a Central Processing Center (CPC) to
collect, digitize and process IT Returns. Thermax, a global solution provider in energy and environment
engineering, consulted us to implement an end-to-end IT-enabled business program.
 
Awards and accolades affirmed our market leadership yet again. We were selected as an original component
member of The Global Dow – a new world-wide stock index made up of 150 leading blue-chip stocks. We were
named a Leader in Global IT Infrastructure Outsourcing in the Forrester report, The Forrester Wave™ : Global
IT Infrastructure Outsourcing, Q1 2009, published on April 6, 2009. The report states, “Outstanding reference
client scores – and a standout story on innovation for clients – gave Infosys a significant boost in the
current offering rating.” Infosys BPO received a positive rating in Gartners Market Scope for Comprehensive
Finance and Accounting Business Process Outsourcing, 2008.
 
Fiscal 2009 witnessed several upheavals, natural, economic, and otherwise. While responding to these,
Infosys displayed its quiet indomitable spirit. The employees contributed significantly to the relief funds
for the floods in the eastern states of India, the terror attack in Mumbai, the earthquake in Sichuan
province of China, the bomb blasts in Jaipur, and the wildfires in Australia. In view of incidents such as
the terror attack in Mumbai, we have undertaken security measures such as ensuring identification of all
personnel on campus, monitoring movement of visitors, limiting entry of vehicles and movement of goods into
the campus, restricting access to sensitive areas, and ensuring 24/7 security on campus.
 
A sense of achievement and satisfaction meets us as we put fiscal 2009 behind. We are confident of
navigating through the economic uncertainty successfully. The short-term challenges have not impeded our
pursuit of excellence, set for the long term. We, as ever, are single-minded on delivering enhanced value to
our clients, investors and employees. With increased investments in training our employees in multiple
domains and technologies, and focus on new engagement models, we reiterate our promise of emerging stronger
when the economic uncertainty ends. We immensely value the faith you rest on us and look forward to your
continued support.
 

 

 

 
S. Gopalakrishnan
 
Chief Executive Officer and Managing Director
 
 

 
S. D. Shibulal
 
Chief Operating Officer and Director
 
 
 

 

 
Bangalore
 
 

  
 
 
 

 

 
April 15, 2009