While NR Narayana Murthy was busy taking up cudgels against the government to save Bangalore from crumbling infrastructure, and jet-setting across the world delivering lectures, Infosys was running at full steam. The global superbrand wants to transform itself into a next generation IT company with a value proposition that will get customers the best of two worlds: consulting, which is about business knowledge and solutions, and global execution abilities.  Its consulting subsidiary now forms a strategic part of the company's movement towards higher revenue productivity work. About Rs 76 crore had been invested into it.

Growth in high productivity services like enterprise solutions-16% of overall revenues-have reduced Infy's total reliance on application development and maintenance, which still comprise 50% of its revenue basket. Pricing continued to be stable and the company reported that new contracts came at rates of 2-5% above existing contracts.  The number of  $50-mn customers has gone up from 5 to 9 in 2005-06, and $1 mn to 221, up from 166 the previous year, indicating that large customers are key customers. Repeat business remained stable at over 90%.  Meanwhile Infosys acquired Citicorp's holding in its BPO arm Progeon for $115  mn.

To feed this growth, Infosys announced a huge 550-acre campus in Hyderabad, and another in Thiruvananthapuram. Europe, from a geographic perspective, was the success story, as it contributed to about 25% of the company's revenues, up from 22% the year before. Infosys' story in 2005-06 was not just about large orders and global thrust. To enhance expertise in newer areas, it set up two global engineering and R&D centers-for
Alsthom, and for Spirit AeroSystems.

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