Infotech Enterprises Limited

www.infotechsw.com

ENTREPRENEURIALISM FOR GROWTH

AND

SYSTEMS FOR SUSTAINABILITY

By
B V R Mohan Reddy, CMD
Agenda

• Entrepreneurialism
– Infotech Story
• Systems Journey
– Infotech Story
Where did we come from?

Entrepreneurial organization

Crystal clear focus

Strong ethics & value systems

Talent, performance-orientation

Business Model – Predictable, Sustainable,

Profitable and Derisked

Value to customer – Quality, Cost & On-

time delivery

People – Processes – Tool, Technology &

Training
 Company snapshot

• Infotech: A global organization

… 22 locations, customers in 26 countries, 7 nationalities

• Reckoned for creating customer & employee value

… building deep relationships and loyalty

• An end-to-end business transformation player

… with appropriate brand awareness and positioning

• Leveraging the global delivery model

… 6 Global Delivery Centers, sustained excellence in execution

• Managed by talented, best-in-class people

… with a multicultural, strong performance ethic

• Respected corporate citizen for its contribution to industry

… pioneer status, executive council member of NASSCOM (Apex IT
body), CII (Apex industrial policy formulation body)

Founded in 1991 | 4700 People | 22 Locations & 6 GDCs | $ 82 M Revenue (FY 05-06) | Public & Listed

Top - 25 IT Companies | Fast 500 Asia | CMMi Level 5 | ISO 27001 | ISO 9001:2000 | ACE | AS 9100

Utilities | Transportation | Telecom | Government | Aerospace | Automotive | Rail | Industrial | Oil&Gas

Pillars of Strategic Planning – PSPD Model

Predictability Sustainability
Annuity relationships Translating clients to partners
Forecasting systems

Long-term relationship

Offshore Software Development

Centers

Higher value services

Increase revenue productivity
Offshore model - Global Delivery
Upsell to existing customers
Managing client concentration
Geographical diversification
Different models to strategically lock
the customer (Equity, JV, BOT etc)

Profitability De-risking
 Predictability
PSPD

• Annuity type relationships

Revenue more than doubles
in 10 quarters – Contractual obligations
1400 for guaranteed
1200
minimum work
• Visibility statistics every
1000
Rs. Millions

quarter and year against

800 the budgets.
600 • Forecasting systems
400 – SFS (Order Intake,
Pipeline etc)
200
– OTBS (Order backlog)
0
Q1 05Q2 05 Q3 05Q4 05 Q1 06 Q2 06Q3 06 Q4 06Q1 07 Q2 07
 Sustainability PSPD

Same Client Revenues • Repeat business

1805
– Repeat clients generate >95% of
30,000,000 1353
revenues
– 15 new clients added in H1
25,000,000
FY2007
20,000,000 • Translating clients to partners
15,000,000 – Develop deep domain and
634
business knowledge of the
10,000,000
346 customer and offer solutions
5,000,000 that have a high-impact on their
191 business.
0
100
2000- 2001- 2002- 2003- 2004- 2005- 2006- – Partnerships with key technology
01 02 03 04 05 06 07 providers
• Management depth
Fiscal year ended March 31
2006-07 numbers pertain only for 6 months
– “Young achievers” inducted into
the management council
– Strong, diversified board
 Profitability PSPD

• Higher-value services
• Conscious management cost Profits quadruple and margins
structures almost double in 10 quarters

• Upsell 250 18%

– For a leading Aero- 200
16%
14%
engine firm, moved from 12%
150
activities to design and 10%
8%
implementation of full 100
6%
scale sub-system level 50 4%

work 0
2%
0%
• Increased revenue Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
05 05 05 05 06 06 06 06 07 07
productivity
Net profit Margin
Derisking
PSPD

From one-trick-pony to 80%

end-to-end solutions player 70%

60%
50%
40%
80%
30%
70%
20%
60%
10%
50% 0%
40% FY 02 FY 03 FY 04 FY 05 FY 06 FY 07
30%
USA EUROPE AIM
20%
10%
0%
From one geography focus to
FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 multiple growth regions
GSD EMI
Our success story

Project Milestones Review/Approval

(PM/COO) (Customer)

Task checklist preparation Review/Approval

(TM) (TL/PM)

Task Execution
InfoTech has

PROJECT EXECUTION
provided
Customer with
Weekly status reports
detailed
to Customer
examples of (TM/TL/PM)
projects
executed as
previously
advised

Task completion Tools

People (TM )

Technology
Training
Acceptance of task
(PM/TL)

Process
PROCESS rigor
We believe in God, Everyone else must come with Data!

Control Tower
(Client specific example) ƒ Everything that can be measured
has to be measured and
benchmarked.

ƒ Deviations to undergo RCA and

Lessons from RCA to from part of
knowledge repository.

ƒ Key Metrics that are measured:

ƒ Delivery performance against
schedule & cost
ƒ Efficiency
ƒ Cost of Quality, Cost of Poor
Quality
ƒ Customer Feedback
ƒ Rework
PROCESS rigor | Customer’s involvement Vs Cost efficiency

80.0

70.0
Cost Efficiency (%)

60.0

50.0 100%

115%

Estimation
40.0
120%
125%
30.0 130%

140%
20.0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
Support Ratio

100% 115% 120% 125% 130% 140%

Assumptions : Hourly rate differential of 4

Quality Leadership
UTC selected Infotech as Key Supplier of 2006

AS9100 – Global standard for

Aerospace sector

ACE – 6 Gold & 4 Silver cells

ISO 27001 - The most stringent

standard for physical and data
security.

CMMi Level 5 – First to be certified on

all three disciplines

ISO 9001:2000 standard across the

globe

6 Sigma processes for continuous

process innovation
Systems Journey

Feb-08 P CMM
ISO 9001:2000 (UK CMMI-Reappraisal
subsidiary) RBNQA Business
Oct-06
AS 9100B Excellence

May-05 ISO 27001 (Upgradation

BS 7799 ISO 9001:2000 (Noida) of BS 7799)

Jan-04 CMMI L 5
PWC Risk Audit
CMM L 5
Sep-02
CMM L 4 ISO 9001:2000
(Bangalore)
Apr-01
ISO 9001:2000
(Hyderabad)
Dec-99 ISO 9001:1994 (e-Sol)

ISO 9001:1994 (BSD)

Jul-98

Mar-97

Oct-95

Jun-94
Thank You