Infosys Technologies chairman and chief mentor N.R. Narayana Murthy Saturday said global outsourcing had become a strategic function for corporations worldwide.
Addressing the company's shareholders at its 24 annual general meeting (AGM), Murthy said corporations around the world had recognised the role of offshore development in streamlining and improving their core capabilities.
"Corporations have shifted away from the 'one-size-fits-all' approach to outsourcing. They now view global outsourcing as a strategic function, impacting their value chain, capabilities and competitive position.
"As a result, our clients have begun to see us as long-term partners working with them to contribute to their business goals," Murthy said.
Admitting that the IT industry was operating in a marketplace where client preferences were changing rapidly, Murthy said globalisation, advancements in technology and faster communication channels had made competitive advantage a constantly moving target for corporations.
"In this environment, we are reaping the benefits of the initiatives taken over the last three years. Our investments in new services and industry verticals have enabled us in the delivery of effective technology-leveraged, end-to-end business solutions to our clients," Murthy told about 1,000 shareholders.
Highlighting the company's robust performance during the fiscal 2004-05, which led to net profit of 48.5 percent and a revenue growth of 46.9 percent, Murthy said by the end of the current fiscal 2005-06, the consolidated revenue would grow to $2 billion as against $1.6 billion in the last fiscal.
"Our success hinges on our ability to manage rapid growth. Today, we have all the ingredients in place to manage growth. The restructuring of the organisation into integrated business units has created more focused and aligned teams."
In line with the company's policy of limiting the dividend payout to 20 percent of the net income, the total dividend for FY 2005 was declared 18.48 percent as against 17.79 percent in the last fiscal.
With an interim dividend of Rs.5 per share (100 percent) and a final dividend of Rs 6.50 per share (130 percent), the total dividend was Rs.11.50 (230 percent).
Addressing the company's shareholders at its 24 annual general meeting (AGM), Murthy said corporations around the world had recognised the role of offshore development in streamlining and improving their core capabilities.
"Corporations have shifted away from the 'one-size-fits-all' approach to outsourcing. They now view global outsourcing as a strategic function, impacting their value chain, capabilities and competitive position.
"As a result, our clients have begun to see us as long-term partners working with them to contribute to their business goals," Murthy said.
Admitting that the IT industry was operating in a marketplace where client preferences were changing rapidly, Murthy said globalisation, advancements in technology and faster communication channels had made competitive advantage a constantly moving target for corporations.
"In this environment, we are reaping the benefits of the initiatives taken over the last three years. Our investments in new services and industry verticals have enabled us in the delivery of effective technology-leveraged, end-to-end business solutions to our clients," Murthy told about 1,000 shareholders.
Highlighting the company's robust performance during the fiscal 2004-05, which led to net profit of 48.5 percent and a revenue growth of 46.9 percent, Murthy said by the end of the current fiscal 2005-06, the consolidated revenue would grow to $2 billion as against $1.6 billion in the last fiscal.
"Our success hinges on our ability to manage rapid growth. Today, we have all the ingredients in place to manage growth. The restructuring of the organisation into integrated business units has created more focused and aligned teams."
In line with the company's policy of limiting the dividend payout to 20 percent of the net income, the total dividend for FY 2005 was declared 18.48 percent as against 17.79 percent in the last fiscal.
With an interim dividend of Rs.5 per share (100 percent) and a final dividend of Rs 6.50 per share (130 percent), the total dividend was Rs.11.50 (230 percent).
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