Bangalore, India - July 25, 2007
Infosys Technologies Ltd (NASDAQ: INFY) today announced that it has signed a multi-million dollar outsourcing contract with Royal Philips Electronics (NYSE: PHG, AEX: PHI) ("Philips") of the Netherlands. As part of the agreement, Philips will enter into a multi-year contract with Infosys BPO to provide Finance & Accounting (F&A) services and the processing of purchasing orders. Infosys will also acquire three shared service centers located in India, Poland and Thailand from Philips. The contract is amongst the largest Finance & Accounting BPO engagements from India and will expand Infosys' global network, particularly strengthening its European operations.
"Infosys clearly demonstrated a willingness to invest in people with a strong HR process, better solution quality, ability to leverage end-to-end process improvements and a robust risk mitigation and transition plan. Their leadership capabilities were clearly evident in all interactions and proposal submissions, with a strong focus on the customer," said Gerard Ruizendaal, Chief Strategy Officer and Group Controller for Royal Philips Electronics.
The deal extends Infosys' global network with new centers in India, Poland and Thailand. Infosys will gain approximately 1,400 Philips professionals who will add to the Infosys BPO team a wide range of valuable skills and abilities, which include diverse language capabilities, technical expertise and domain knowledge.
"Global corporations require transformation partners like Infosys to enhance their competitiveness in the flat world," said S. Gopalakrishnan, CEO, Infosys Technologies Limited. "We are excited to partner with Philips to take their F&A and procurement functions to the next level of transformation," he added.
The deal with Philips reinforces Infosys' leadership position in transformation-based BPO services. Infosys BPO has seen significant growth of over 70% in revenues and an increase in client base of over one-third in FY2007.
"During our interactions with the Philips employees, we found them to be very bright with a high level of energy and strong skill-sets. We look forward to welcoming them to the Infosys family," said Amitabh Chaudhry, CEO, Infosys BPO. "The deal will further enhance our capabilities and make us one of the top 5 players in the F&A outsourcing space in the world."
Royal Philips Electronics of the Netherlands (NYSE: PHG, AEX: PHI) is a global leader in healthcare, lifestyle and technology, delivering products, services and solutions through the brand promise of "sense and simplicity". Headquartered in the Netherlands, Philips employs approximately 125,800 employees in more than 60 countries worldwide. With sales of EUR 27.0 billion in 2006, the company is a market leader in medical diagnostic imaging and patient monitoring systems, energy efficient lighting solutions, personal care and home appliances, as well as consumer electronics. News from Philips is located at www.philips.com/newscenter.
Infosys (NASDAQ: INFY) defines, designs and delivers IT-enabled business solutions that help Global 2000 companies win in a Flat World. These solutions focus on providing strategic differentiation and operational superiority to clients. With Infosys, clients are assured of a transparent business partner, world-class processes, speed of execution and the power to stretch their IT budget by leveraging the Global Delivery Model that Infosys pioneered. Infosys has 75,000 employees in over 41 offices worldwide. Infosys is part of the NASDAQ-100 Index. For more information, visit www.infosys.com.
Infosys BPO Ltd. ( www.infosys.com/bpm), the business process outsourcing subsidiary of Infosys Technologies, was set up in April 2002. Today, it is ranked among the leading BPO companies in India by NASSCOM, Dataquest, the International Association of Outsourcing Professionals, Red Herring, and others. Infosys BPO focuses on integrated end-to-end outsourcing and delivers transformational benefits to its clients through reduced costs, ongoing productivity improvements, and process reengineering. Infosys BPO operates in India, the Czech Republic, China, and Philippines (through a partner), and employs about 11,200 people. It closed FY 2006 -07 with revenues of $ 148 million.
Statements in connection with this release may include forward-looking statements within the meaning of US Securities laws intended to qualify for the "safe harbor" under the Private Securities Litigation Reform Act. These forward-looking statements are subject to risks and uncertainties including those described in our SEC filings available at www.sec.gov including our Annual Report on Form 20-F for the year ended March 31 2007 and our other recent filings, and actual results may differ materially from those projected by forward-looking statements. We may make additional written and oral forward-looking statements but do not undertake, and disclaim any obligation, to update them.
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