European markets B G Srinivas Vice President and

European markets B. G. Srinivas Vice President and Head – European Practice © Infosys Technologies Limited 2004 -2005

Safe Harbor Certain statements made in this Analyst Meet concerning our future growth prospects are forwardlooking statements, which involve 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 fluctuations in earnings, our ability to manage growth, intense competition in IT 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 in our key focus areas, 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, 2004 and quarterly report on Form 6 -K for the quarter ended June 30, 2004. These filings are available at www. sec. gov. Infosys may, from time to time, make additional written and oral forwardlooking 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. © Infosys Technologies Limited 2004 -2005 Analyst Meet 2004 | New Game. New Rules. Slide 2

Agenda » Infosys in Europe » A brief historical perspective on Europe » The Market Place » Market overview - the fastest growing segments » Market characteristics » What Sells » A profile of services » Strategy for growth » Core principles for the next phase of growth © Infosys Technologies Limited 2004 -2005 Analyst Meet 2004 | New Game. New Rules. Slide 3

Europe : A key engine of growth for Infosys R AG C % 80 = » Infosys serves Europe clients in all verticals – BFSI, Telecom, Manufacturing, Retail and Others © Infosys Technologies Limited 2004 -2005 Analyst Meet 2004 | New Game. New Rules. Slide 4

Infosys Europe : a historical perspective Germany Office Opened in 1999 Benelux Office 1999 - Belgium France Office 2001 Paris office established Nordic Office 2001 - Office in Sweden Swiss Office UK was the first Infosys office in Europe Opened in 1996 2002 - Office opened in Zurich Growth UK Office Continuous investment in Europe has led to accelerated growth © Infosys Technologies Limited 2004 -2005 Analyst Meet 2004 | New Game. New Rules. Slide 5

Local presence in Europe » Service capability in 14 countries » Belgium, Czech Republic, Denmark, Finland, France, Germany, Ireland, Italy, Netherlands, Norway, Spain, Sweden, Switzerland UK » Serviced by 9 sales offices and one Development Centre » » » » » Amsterdam (Netherlands) Brussels (Belgium) Milano (Italy) London (UK) – HQ & Development Centre Frankfurt (Germany) Stuttgart (Germany) Paris (France) Stockholm (Sweden) Zurich (Switzerland) » Strategy of direct marketing through dedicated offices and local presence, delivers growth and differentiation © Infosys Technologies Limited 2004 -2005 Analyst Meet 2004 | New Game. New Rules. Slide 6

Agenda » Infosys in Europe » A brief historical perspective on Europe » The Market Place » Market overview - the fastest growing segments » Market characteristics » What Sells » A profile of services » Strategy for growth » Core principles for the next phase of growth © Infosys Technologies Limited 2004 -2005 Analyst Meet 2004 | New Game. New Rules. Slide 7

European IT services market – considerable room for growth 183 171 144 147 158 Source: Gartner TPI reports a surge in outsourcing deals signed in H 1 04 as compared to H 2 03 © Infosys Technologies Limited 2004 -2005 Analyst Meet 2004 | New Game. New Rules. Slide 8

European IT services market by geography (Year 2005) Source: Gartner © Infosys Technologies Limited 2004 -2005 Analyst Meet 2004 | New Game. New Rules. Slide 9

Our approach to Europe Today’s challenges » Distinct streams of consumer behaviour across Europe Infosys’ Differentiators » Europe is highly regulated » Cost is not the only driver for outsourcing in Europe » The shift towards global sourcing presents a significant challenge in Europe » Outsourcing is frequently associated with staff augmentation in Europe © Infosys Technologies Limited 2004 -2005 » Increased local presence, hiring local talent, developing language skills, near-shore development centres » Strict compliance with regulatory terms, proactive work with government bodies » Providing a flexible, modular, value driven proposition, tailoring our services to European clients » Providing an innovative modular sourcing solution, combined with proactive human resource redeployment approach » Infosys has shifted the paradigm in the market place away from “bodyshopping” towards a more mature, managed services approach Analyst Meet 2004 | New Game. New Rules. Slide 10

Agenda » Infosys in Europe » A brief historical perspective on Europe » The Market Place » Market overview - the fastest growing segments » Market characteristics » What Sells » A profile of services » Strategy for growth » Core principles for the next phase of growth © Infosys Technologies Limited 2004 -2005 Analyst Meet 2004 | New Game. New Rules. Slide 11

A full spectrum of services for European clients Strategy & IT Consulting Systems Integration Integrated Roadmap e-Business Process Reengineering Enterprise Application Integration Package Evaluation & Implementation CRM m-Business Enterprise Architecture Definition SCM ERP E-Procurement Custom Application Development Design Develop Test Deploy Business Process Management Progeon Ltd. – An Infosys subsidiary Industry Specific Processes Cross-industry Processes IT Outsourcing Re-engineering and Maintenance © Infosys Technologies Limited 2004 -2005 T O T A L O U T S O U R C I N G Infosys Europe has matured its service offering to provide the full spectrum of capabilities to European clients S O L U T I O N Analyst Meet 2004 | New Game. New Rules. Slide 12

Delivering tangible value to clients in Retail Challenge » A leading food and grocery retailer needed to transition the maintenance and support of over 100 applications from several other IT vendors » Many of the applications were business critical » Had to be achieved in under 6 months, and without any impact on the service levels to the end users Solution » Infosys deployed tried and trusted transition methodologies » Providing 24 x 7 Production support, Maintenance, Enhancements and Bug fixes, System Testing, Regression Testing, Performance Testing, Support for Integration Testing and Support for Production Implementation Benefit » Improved service levels, with ‘Priority 1’ response time as low as 15 min » Freeing up key resources within the client, redeployed for business initiatives » Approximate saving of ₤ 1. 9 m per annum » Flexibility to cope with fluctuating requirements at short notice © Infosys Technologies Limited 2004 -2005 Analyst Meet 2004 | New Game. New Rules. Slide 13

Delivering tangible value to clients in Financial Services Challenge » One of Europe’s largest Financial Services organizations » Retain and expand the customer base whilst continuously improving the quality of service » Needed to improve the cost-to-income ratio Solution » Engaged in application development/enhancement of core banking systems, cards, payments and other retail systems, leveraging expertise in other areas like infrastructure management, business consulting and IT process consulting » Working with the bank to help meet regulatory requirements including CP 186 and Basel II compliance Benefit » Delivered systems that enabled the bank to launch an offset banking product in time to remain competitive in the market » Predictable delivery - 100% milestone adherence, zero budget variance » Cost benefits of up to 60% as compared to internal development © Infosys Technologies Limited 2004 -2005 Analyst Meet 2004 | New Game. New Rules. Slide 14

Delivering tangible value to Automotive clients Challenge » A leading automobile manufacturer » Needed to extend its application support capability to encompass diverse technologies for Sales and Marketing, Manufacturing and Dealers » Includes highly critical and complex plant floor applications Solution » Infosys leveraged its experience in manufacturing and sales environment to provide an improved support service » Carried out system enhancements where necessary Benefit » Upgraded service to be available 24 X 7 » Cost savings to date of over € 460, 000 © Infosys Technologies Limited 2004 -2005 Analyst Meet 2004 | New Game. New Rules. Slide 15

Delivering tangible value to clients in Telecom Challenge » A telecommunication company based in Europe, providing telephony, internet and television services » In a highly competitive environment, the client wanted to improve back-end systems to deliver competitive advantages and efficiency gains Solution » Deployed web based operations support system, linked to online provisioning and real-time technician allocation » Infosys handles maintenance, help desk, development, re-engineering and package implementation work for the customer Benefit » Reduced bad debt rate, improved collection process and eliminated data entry of 100 paper contracts per day on an average » Online provisioning and real-time technician allocation reduced cycle time from 3 -5 days to a few minutes » Automated back-office operations has enabled the customer to re-deploy nearly 10% of its resources to serve its expansion plans © Infosys Technologies Limited 2004 -2005 Analyst Meet 2004 | New Game. New Rules. Slide 16

Agenda » Infosys in Europe » A brief historical perspective on Europe » The Market Place » Market overview - the fastest growing segments » Market characteristics » What Sells » A profile of services » Strategy for growth » Core principles for the next phase of growth © Infosys Technologies Limited 2004 -2005 Analyst Meet 2004 | New Game. New Rules. Slide 17

Core principle 1 - Structured solutions approach » Europe is a highly fragmented market. Legislation, changes in market dynamics and political change are pushing European companies to reduce fragmentation » Strong pace of change makes Europe an ideal place to develop solutions » There are some specific opportunities within Europe that Infosys has identified, built solutions for and successfully marketed. » Solutions are being developed for horizontal & vertical market segments » In Financial Services » Financial messaging » Compliance – e. g. Basel II » In Retail » RFID » Distributed Order Management » Lead Time Optimisation » Across sectors, Infosys is developing solutions to deploy, migrate and integrate between technologies and versions of technologies © Infosys Technologies Limited 2004 -2005 Analyst Meet 2004 | New Game. New Rules. Slide 18

Core principle 2 - Deeper, targeted Alliance partnerships » Infosys Europe is deriving growth and differentiation through strategic relationships with key partners such as Microsoft, SAP, Informatica, Oracle and Yantra » Joint business planning and joint go-to-market strategies with key alliance partners is resulting in rapid scaling and rapid result » Joint solution development bring rapid benefits to clients from our solution delivery capabilities and our alliance partners’ technology solutions » Treating alliance partners like we treat clients brings differentiation through jointly planning targets and replicating well honed skills © Infosys Technologies Limited 2004 -2005 Analyst Meet 2004 | New Game. New Rules. Slide 19

Core principle 3 - Strengthened focus on key verticals » Infosys has developed additional capabilities for distinct markets such as the Automotive and Telecommunications sectors » Infosys has been able to penetrate into these sectors by developing the required specialist skill sets and applying Global Delivery Model methodologies » Infosys is able to cross sell and up sell solutions, ensuring the market potential is maximised » Capability and solutions are being developed for these markets » CAD-CAM » Finite element analysis © Infosys Technologies Limited 2004 -2005 Analyst Meet 2004 | New Game. New Rules. Slide 20

Core principle 4 - Focus on Consulting » Consulting services provide a high value-add to our clients » Such engagements generate larger downstream opportunities, and provide a valuable insight into the business of our clients » Consulting in Europe mixes a local talent pool with the power of the Global Delivery Model to provide superior services » Strong differentiator for Infosys against its competitors » Providing a mix of on-site and offshore consulting capability » Bringing rich mix of consulting skill and delivery resource, managing the risk of offshore deployments for clients, resulting in rapid scaling and mitigating the risk of failure © Infosys Technologies Limited 2004 -2005 Analyst Meet 2004 | New Game. New Rules. Slide 21

Core principle 5 - Portfolio approach to managing Europe Invest Regenerate » Growth markets include Financial Services, Retail, Manufacturing, Automotive & Aerospace, Telecom » More aggressive localisation plans » Near shore options » Solutions and alliances orientated towards these markets Sustain » Sustaining business levels in selected geographies » Apply best practices from ‘Invest’ markets » Focus on maintaining revenue streams and profitability © Infosys Technologies Limited 2004 -2005 » Utilities, Pharma » Develop specialized services » Kick-start through alternate strategies, then build incrementally Others » Pursue opportunities in new geographies, new verticals » Start-up in potentially lucrative new markets and treat according to segment Analyst Meet 2004 | New Game. New Rules. Slide 22