Infosys Technologies (INFY)

Madhavan

I wanted to ask you something, may be Nandan or Hema can answer this. It is more about the whole thing on multinationals coming in a big way. Now that you have a demand revival in the industry in outsourcing, but have you lost relative to companies like Accenture or IBM, the offshore advantage in a strategic sense because they are all here hiring away, and what does this say for about your mid-level attrition.

Nandan Nilekani

I will ask Hema to comment on the attrition and middle level.., in fact, I think our attrition this quarter is lower then ever before, lower than the last two quarters. I think this goes back Madhavan, to the whole issue of business model, and let me repeat what we have been seeing now for sometime. We believe that a Global Delivery Model based IT service organization has fundamental value proposition because they deliver higher quality at a lower cost, basically produces more business value. This is now accepted unequivocally by everybody in the game, whether it is customers, competitors, employees, everybody has understood that this model is inherently superior. This is precisely the reason why multinationals have come in here. However, Global Delivery Model is something that is best done by an organic growth. You start and build that model. If you have a company, which is based on a legacy model, which is the old model of doing business, it is not that simple to graft the Global Delivery Model on that and it has other implications about internal conflicts, about cost structure, about power issues and all that. So fundamental we believe that organically built global delivery in our model is fundamentally superior to trying to re-jig some old model, obsolete model and trying to make it work this way.