Infosys CEO Presents At Goldman Sachs Technology And Internet Conference (Transcript)

Infosys Inc. ( INFY)

Goldman Sachs Technology and Internet Conference

Feb 14, 2012 01:20 PM ET

Executives

Steve Pratt - Head-Consulting & SI and Member-Executive Council

Sandeep Mahindroo - Principal-Investor Relations

Analysts

Julio Contreras - Goldman Sachs

Rishi Jhunjhunwala - Goldman Sachs

Presentation

Julio Contreras - Goldman Sachs

Just by way of quick introduction here my name is Julio Contreras. I'm the U.S. IT Services analyst and actually joining us all the way from India today is Rishi Jhunjhunwala who is responsible for all of the India IT services coverage. Hopefully I did some justice to your last name there.

Rishi Jhunjhunwala - Goldman Sachs

(inaudible).

Julio Contreras - Goldman Sachs

And together we actually work as a part of the global IT services team with responsibility for all the coverage on the consulting and outsourcing models.

So I'm going to actually defer to Rishi for all the big tough hard questions and I'll lob a couple of soft balls you way Steve. And actually joining us today from Infosys, we have Stephen Pratt who is the head of the global consulting and systems integration practice at Infosys is also a member of the executive counsel at Infosys as well. So very exited to finally meet you and have a change to kind of have some dialogue here and a little bit about you guys are finally sort of seeing and doing on the consulting side.

Maybe just as a way of sort of level setting everybody give us a couple minutes in terms of just understanding Infosys and then how the consulting and outsourcing practice or the consulting practice fits inside of the broader Infosys and then we can sort of jump into some specific questions if that's okay.

Steve Pratt

Hi everybody. So Infosys, as all of you know, is a consulting and IT services company and that is headquartered in Bangalore, India. It is probably I think one of the real leaders in the industry and we have always been a trend setter in the things that we have done and this last year is no exception that we have in the last few quarter's reorganized 145,000 people into three fundamentally different businesses. One is the consulting and systems integration business, one is the business IT services business which is mostly the outsourcing business and then a product and platforms business and so the overall strategy of Infosys is to be able to serve our clients in those three different areas and optimize each of those three different businesses. We have obviously been a very successful company. Our Mission Statement is to earn respect as a global corporation and everyday keep earning more and more respect, both from you guys, the investors, from our employees and probably most importantly from our clients. So that's sort of a quick snapshot of Infosys.

Julio Contreras - Goldman Sachs

Sure. And then by way of just conscious in terms of the consulting practice itself, where are you guys in terms of numbers right now? How do we sort of frame the actual capabilities that you guys have in the practice?

Steve Pratt

So if you look at the consulting and systems integration business at Infosys it's about 30% revenue, about $2 billion. It's 27,000 people and the strategy in consulting and systems integration is to combine world class management consulting on site with a world class delivery of technology and process design in remote location, right now mostly in India and China and expanding and so if you look at the employees that we have on-site, our consultant typically work in industry for a few years, go to a top MBA school. We have one feeder mechanism which is right out of a the top MBA schools throughout the U.S. and Europe and a little bit in the rest of the world and that we combine that with the recruiting that we do in India and China and other places.

Julio Contreras - Goldman Sachs

Okay. Maybe just to sort of start top level down help us understand what clients are telling you guys the demand backup, the demand environment. And we came into counter 2012 with questions and concerns about the financial vertical and what was going on in Europe and then you guys put up your numbers for the December quarter and I think Europe was actually surprisingly strong and financial practice seems to actually hold up okay.

So just in terms of where you where you guys are now in your discussions with your clients, how are they talking about the sort of general background for consulting spending I guess specially?

Steve Pratt

Well as you know consulting and systems integration tends to be a little bit more sensitive to the demand environment than certainly outsourcing work. I (inaudible) with the environment where we look opportunities is improving. I think that people were very, very worried even as recently as a few months ago or certainly the last year people were very worried about what was going on in the global economy and I think at this point people have said well we didn’t die and so we're hoping that things will, so that's important thing to establish, is that the probability of having a catastrophic event is very low at this point and so there is a little bit more certainty.

So the good news is that the clients, their timing for decision making is stable at this point whereas historically we've seen them in periods of uncertainty. People tend to stretch out people decision-making cycles and so that's stable right now. From a budget perspective overall though according to our information that the IT services budgets for clients for next year will be flat to moderately down.

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