Financial Services Ashok Vemuri Vice President Head

Financial Services Ashok Vemuri Vice President & Head – Banking and Capital Markets © 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 » Introduction to the Financial Services Practice » Market overview and client imperatives » Financial Services Strategy » Industry Expertise » Risk management » Solutions and Alliances » Integrated Outsourcing » Benefits of our new Strategy » Q&A © Infosys Technologies Limited 2004 -2005 Analyst Meet 2004 | New Game. New Rules. Slide 3

The financial services industry is the largest end-user of Infosys’ services NORTH AMERICA Banking and Capital Markets Insurance & Healthcare EUROPE Europe Financial Services Practice ASIA-PACIFIC Asia-Pacific Financial Services Practice Global Accounts Banking Business Unit (Finacle Banking products) • Financial Services is the largest contributor to Infosys’ revenues, accounting for 34% of total revenues • 74% of Financial Services revenues comes from North America • The Banking Business Unit develops and markets the Finacle ® suite of banking products and solutions © Infosys Technologies Limited 2004 -2005 Analyst Meet 2004 | New Game. New Rules. Slide 4

It contributes to over a third of company revenues and has been growing at a CAGR of 39 percent REVENUE BY INDUSTRY VERTICAL (Q 1 05) FINANCIAL SERVICE REVENUE ($ M) Others CAGR=39% Retail Financial Services Telecom Manufacturing KEY METRICS Number of active clients : 127 Number of large clients* $ 30 m+ : 5 $ 5 m+ : 13 Practice Strength : 8, 500 © Infosys Technologies Limited 2004 -2005 FY 02 FY 03 FY 04 LTM Q 1 05 REVENUE PROFILE Consulting & Package Implementation : 12. 8% ADM Testing and Re-engg. : 55. 5% : 11. 8% : 19. 9% Others Analyst Meet 2004 | New Game. New Rules. Slide 5

We service the complete spectrum of the financial services industry… Banking Capital Markets Diversified Financial Insurance Retail Banking & Cards Investment Management Leasing & Finance Life Insurance Transaction Banking Brokerage Benefits Administration Property & Casualty Treasury Advisory Services Travel Related Services Insurance Brokerage Corporate & Credit Custody Trust Services Re-Insurance Private Banking Depository & Exchanges Specialty Finance Health Care © Infosys Technologies Limited 2004 -2005 Analyst Meet 2004 | New Game. New Rules. Slide 6

… through a suite of end-to-end business advisory and execution services CAPABILITIES BUSINESS TRANSFORMATION OPERATIONAL EFFICIENCY • Global Sourcing Strategy • Portfolio Rationalization • Benchmarking & Best Practices BUSINESS CONSULTING • Org-wide BPR • Post-Merger Integration • Time-To-Market Reduction • Straight Through Processing • Claims Process Automation (Paperless office) • Process & System Optimization • CMM & Six-Sigma Consulting RISK MANAGEMENT & COMPLIANCE • • Anti-Money Laundering, HIPAA Trading Compliance Basel II Sarbanes Oxley CUSTOMER & REVENUE MANAGEMENT • • Unified Customer View Data Management Pricing Strategy Client Reporting © Infosys Technologies Limited 2004 -2005 ADM & ENHANCEMENT INFRASTRUCTURE MAINTENANCE PROGRAM MANAGEMENT STRATEGIC PLANNING SERVICES BUSINESS PROCESS OUTSOURCING Analyst Meet 2004 | New Game. New Rules. Slide 7

Market Overview and Client Imperatives © Infosys Technologies Limited 2004 -2005

The worldwide financial services industry spends about $129 billion annually on IT services WORLDWIDE FINANCIAL SERVICES IT SERVICES SPENDING ($ Billion) CAGR 6. 3% FY 02 FY 03 FY 04 FY 05 Source – Gartner © Infosys Technologies Limited 2004 -2005 FY 06 FY 07 Financial Services IT Services – Key Facts § Technology is one of the top 5 business issues for financial services CEOs § The financial services industry represents the largest market for IT Services spending worldwide § Financial institutions have been at the forefront of global sourcing both in technology as well as in operations § We are now seeing growth in all segments in this industry, due to the recovery in the US and world economy § Several other drivers are also contributing to this growth: » The quest for competitive advantage » M&A related IT integration » Regulatory mandates (e. g. Patriot Act, AML, HIPAA, Basel II, etc. ) § The era of buying technical expertise is on its way out and that of buying business-IT expertise is emerging Analyst Meet 2004 | New Game. New Rules. Slide 9

Certain mega trends are driving clients strategies and expectations from service providers - THE NEW GAME FINANCIAL SERVICES MEGATRENDS § Improve customer management – increase cross-sell and reduce churn CLIENT EXPECTATIONS § Global sourcing and delivery capability critical to IT services purchase § Increased regulatory oversight – focus on risk management & compliance – Deep knowledge, not just familiarity, on their industry vertical and sub-vertical § Global Sourcing for competitive advantage – Familiarity with market actualities § Growing global competition and entry of non-traditional competitors § Increased complexity and sophistication of financial products and services § Importance of scale leading to industry consolidation through M&As § Increased use of technology to deliver products and services § Cost reduction though operational improvement © Infosys Technologies Limited 2004 -2005 – Pure low cost strategy by itself is inadequate § Expectation of partner size and scale – Risk Management – Ability to scale and rapidly – Potential for strategic partnerships § Expectation of providing an integrated operations and technology offering § Ability to provide industry-focused solutions rather than plain vanilla services Analyst Meet 2004 | New Game. New Rules. Slide 10

Infosys Strategy to meet Client Expectations © Infosys Technologies Limited 2004 -2005

Our strategic response is driven by client imperatives CLIENT EXPECTATIONS § Global sourcing critical to IT services purchase – Deep knowledge, not just familiarity, on their industry vertical and sub-vertical – Pure low cost strategy is inadequate § Importance of partner size and scale – Risk management – Ability to scale – Potential for strategic partnerships § Need for an integrated operations and technology offering § Need for industry-focused solutions rather than plain vanilla services © Infosys Technologies Limited 2004 -2005 OUR RESPONSE AND FOCUS 2004+ § Increase focus on building domain and process skills § Achieve partner-of-choice status through process innovation to provide low risk and high value solutions and services § Develop industry-focused services and business solutions internally or through third party alliances § Provide an integrated, end-toend, outsourcing service Analyst Meet 2004 | New Game. New Rules. Slide 12

We are investing in our people to build depth and breadth of industry expertise… OUR RESPONSE AND FOCUS 2004+ § Increase focus on building subject matter expertise across the organization § Achieve partner-of-choice status through low risk (and high value) proposition § Develop industry-focused services and business solutions internally or through alliances § Provide integrated, end-to-end, outsourcing services © Infosys Technologies Limited 2004 -2005 BUILD SUBJECT MATTER EXPERTISE § Emphasis on recruiting business consultants and analysts, both in local markets and India, with structured training programs delivered in-house (banking, securities, insurance) § Aggressive focus on domestic and international certifications (NCFM, Securities Institute UK, GARP, Certified Treasury Professional, LOMA, HIPAA, Actuarial Certification, etc) § Quantify various key assets from existing projects to leverage innovation and enhance capability for new initiatives Analyst Meet 2004 | New Game. New Rules. Slide 13

…and are taking steps to ensure Infosys remains the highest value & lowest risk provider OUR RESPONSE AND FOCUS 2004+ § Increase focus on building subject matter expertise across the organization § Achieve partner-of-choice status through low risk (and high value) proposition § Develop industry-focused services and business solutions internally or through alliances RISK MITIGATION FOR CLIENTS § Leverage multiple world-wide and Indian locations to mitigate geographical concentration risk § Appointment of Chief Risk Officer for key accounts § Disaster Recovery and Business Continuity plan for all accounts § Provide integrated, end-to-end, outsourcing services © Infosys Technologies Limited 2004 -2005 Analyst Meet 2004 | New Game. New Rules. Slide 14

Our response is a solutions-led strategy that will quickly address common business and technology problems for our clients OUR RESPONSE AND FOCUS 2004+ § Increase focus on building subject matter expertise across the organization § Achieve partner-of-choice status through low risk (and high value) proposition § Develop industry-focused services and business solutions internally or through alliances § Provide integrated, end-to-end, outsourcing services © Infosys Technologies Limited 2004 -2005 DEVELOP INDUSTRY-FOCUSED SOLUTIONS § Solutions comprise process know-how, domain and industry expertise and strong technology competency § Solutions have been identified after extensive client validation (Exceptions Management, AML, Claims Process Automation, etc) § Forged alliances with established and emerging technology vendors focused on this industry Analyst Meet 2004 | New Game. New Rules. Slide 15

We are also redefining our established outsourcing model to offer a seamless IT & Operations offering to our clients OUR RESPONSE AND FOCUS 2004+ § Increase focus on building subject matter expertise across the organization § Achieve partner-of-choice status through low risk (and high value) proposition § Develop industry-focused services and business solutions internally or through alliances § Provide integrated, end-to-end, outsourcing services © Infosys Technologies Limited 2004 -2005 INTEGRATED OUTSOURCING § Integrate Technology & Operations at the strategic, operational and tactical level using our GDM to ensure long term value § Strategic Level § At the Board level to capture value and provide direction § Operational level • Change Management and Organization changes to facilitate integration § Tactical Level • IT Awareness of Operations • Process Application Clustering • Innovation Management § Integrated service offering with Progeon Analyst Meet 2004 | New Game. New Rules. Slide 16

The structure for the next generation company-the new rules of the new game. Weak Very Strong Infosys • Next Generation GDM High – Seamless delivery – Scalability • Process Maturity • Talent Attraction & Retention • Solution-led Selling Industry Competence Offshore Players Infosys Execution Ability Global Majors Offshore Players • Deep Industry Knowledge • Client Engagement & Account Mgmt Global Majors Low Industry Competence High “Over the years, [Infosys] has developed the domain expertise to service the financial services community and offers support for such core business responsibilities as asset management, investment banking, brokerage services, risk management and custody and clearing. ” – Waters Financial Publication © Infosys Technologies Limited 2004 -2005 Analyst Meet 2004 | New Game. New Rules. Slide 17

Thank You © Infosys Technologies Limited 2004 -2005