European markets B. G. Srinivas Vice President and Head – European Practice B. G. Srinivas Vice President and Head – European Practice

Analyst Meet 2004 | New Game. New Rules.© Infosys Technologies Limited Safe Harbor Certain statements made in this Analyst Meet concerning our future growth prospects are forward- looking 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, These filings are available at 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. Slide 2

Analyst Meet 2004 | New Game. New Rules.© Infosys Technologies Limited 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 Slide 3

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

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

Analyst Meet 2004 | New Game. New Rules.© Infosys Technologies Limited Local presence in Europe »Service capability in 14 countries »Belgium, Czech Republic, Denmark, Finland, France, Germany, Ireland, Italy, Netherlands, Norway, Spain, Sweden, Switzerland and 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 Slide 6

Analyst Meet 2004 | New Game. New Rules.© Infosys Technologies Limited 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 Slide 7

Analyst Meet 2004 | New Game. New Rules.© Infosys Technologies Limited European IT services market – considerable room for growth TPI reports a surge in outsourcing deals signed in H1 04 as compared to H Source: Gartner Slide 8

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

Analyst Meet 2004 | New Game. New Rules.© Infosys Technologies Limited Our approach to Europe Today’s challenges »Distinct streams of consumer behaviour across Europe »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’ Differentiators »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 re- deployment approach »Infosys has shifted the paradigm in the market place away from “body- shopping” towards a more mature, managed services approach Slide 10

Analyst Meet 2004 | New Game. New Rules.© Infosys Technologies Limited 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 Slide 11

Analyst Meet 2004 | New Game. New Rules.© Infosys Technologies Limited A full spectrum of services for European clients Infosys Europe has matured its service offering to provide the full spectrum of capabilities to European clients Enterprise Application Integration Strategy & IT Consulting Systems Integration IT Outsourcing Re-engineering and Maintenance Enterprise Architecture Definition Business Process Reengineering e-Business Integrated Roadmap m-Business Package Evaluation & Implementation Custom Application Development CRMSCMERPE-Procurement DesignDevelopTestDeploy Industry Specific ProcessesCross-industry Processes TOTALOUTSOURCINGSOLUTIONTOTALOUTSOURCINGSOLUTION Business Process Management Progeon Ltd. – An Infosys subsidiary Slide 12

Analyst Meet 2004 | New Game. New Rules.© Infosys Technologies Limited 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 Slide 13

Analyst Meet 2004 | New Game. New Rules.© Infosys Technologies Limited 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 CP186 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 Slide 14

Analyst Meet 2004 | New Game. New Rules.© Infosys Technologies Limited 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 Slide 15

Analyst Meet 2004 | New Game. New Rules.© Infosys Technologies Limited 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 Slide 16

Analyst Meet 2004 | New Game. New Rules.© Infosys Technologies Limited 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 Slide 17

Analyst Meet 2004 | New Game. New Rules.© Infosys Technologies Limited 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 Slide 18

Analyst Meet 2004 | New Game. New Rules.© Infosys Technologies Limited 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 Slide 19

Analyst Meet 2004 | New Game. New Rules.© Infosys Technologies Limited 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 Slide 20

Analyst Meet 2004 | New Game. New Rules.© Infosys Technologies Limited 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 Slide 21

Analyst Meet 2004 | New Game. New Rules.© Infosys Technologies Limited Core principle 5 - Portfolio approach to managing Europe Invest »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 Others »Pursue opportunities in new geographies, new verticals »Start-up in potentially lucrative new markets and treat according to segment Regenerate »Utilities, Pharma »Develop specialized services »Kick-start through alternate strategies, then build incrementally Slide 22

Analyst Meet 2004 | New Game. New Rules.© Infosys Technologies Limited Open to questions… Slide 23

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