Infosys growth dropped to 19%, as compared to 45% in FY 07. It did not have the stabilizing factor of a domestic business, which helped, for example, peer Wipro.

FY 08 was one of the quietest year for Infosys in recent times. There were few big announcements, as the company worked at the fundamentals to ensure that the rupee appreciation did not hit the bottom lines. It succeeded in keeping the operating margin intact, by and large. Infosys had a better performance on almost all operating metrics. Revenue per employee went up by a steep 5% as compared to FY 07, thanks to a combination of factorsoffshore/onsite ratio improved, resulting offshore realization going up from 50.1% to 51.6%; utilization went up from 68.4% to 70.1%; fixed price contracts contributed significantly higher to overall revenue at 31% as compared to just 26.7% in FY 07. But the biggest achievement was that Infosys managed to increase average price by 3-4% in case of new clients and 1-2% in case of existing clients.

The positive change in average pricing was a result of changing the services offering mix. While ADM revenue dropped to 45.4% of total from 48% in FY 07, shares of all new areasconsulting services and package implementation, testing, infrastructure management, and systems integration went up.

Rank-3
l Start-up Year: 1981 l Products & Services: IT services, IT products, BPO, consulting l Employees: 91,187 l Address: Plot No 44 & 97A, Electronic City Hosur Road, Bangalore-560100 l Tel: 91-080-2852 0261 l Fax: 91-080-2852 0362 l Website: www.infosys.com
Highlights n  Sustained margins despite a tough market n Signed a $300 mn plus client; number of $100 mn plus clients doubled from 3 to 6 n Number of patents filed doubled n Formed a separate SaaS group to explore opportunity in that area Strengths p Still the top employer brand in campuses p Is increasingly being positioned as an integrated player Weaknesses q India business too small q Global delivery is still not as integrated as US companies q Has not been able to grow the product business despite being an early starter		S Gopalakrishnan,CEO and MD V Balakrishnan, CFO SD Shibulal, COO & director TV Mohandas Pai, director K Dinesh, director & head, Communication Design Group, Information Systems Srinath Batni, director & head, Delivery Excellence

Tough times ensured that every small part of the business got attention. Subsidiaries Infosys Consulting and Infosys China finally became profitable even as BPO grew by 41%, with significant progress on platformizing.

Where Infosys failed was in developing the domestic market quickly. Infosys is trying to take corrective action by setting up a new business unit focused on India, and larger deals.

CEO Gopalakrishnans agenda is to get back as quickly as possible to growth mode, offer more integrated offerings, and work with other technology companies to create platforms.

With the US elections, the year could prove to be challenging for all offshoring companies including Infosys in the US even as one major test factor will be its success in India.

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