Infosys Limited (INFY) Earnings Call Transcript & Summary

Hello, everyone. Good morning, good afternoon and good evening to all of our attendees joining us from different parts of the globe. A warm welcome to all of you to the Infosys Analyst Meet 2020, the first ever virtual edition. So thank you so much, everyone, for joining us. My name is Kavea R. Chavali, and I will be your host for the event. I'm in fact broadcasting live here from my home studio, staying in doors and staying safe. So I also hope all of you and your family members are all safe and healthy. With that, it's time to march ahead towards our event. In fact, over the course of this event, you will get to hear more about Infosys, the key focus areas and future plans for success from the leaders of Infosys. But before we please dive into the session, I thought I take probably a couple of minutes to share just some pointers with you so that all of you have seamless experience at the event. So to begin with. At the bottom of the screen on the right side, you will find 3 buttons. The first being the events chart, the second being questions and the third being event help desk. I'm going to urge all the few to please drop in your questions to all of our presenters in the Q icon, which is a question tab. And please do note, we'll answer your questions during 2 sessions. One right after the first session from the Chairman, and of course, the last being during the Q&A with the management team. So please do use the Q icon in order to share your questions with the presenters. We also request you all to please share your feedback on the sessions that will also enable us to make some improvements or probably improve the event better during the future. Another interesting segment that I'd like to talk about is the Virtual Living Labs. Now this is something that or towards the end of the event as well. And you can know more about the Infosys technovations and this link actually opens up in a new window altogether. So those who wish to actually take a look can also do so during the end of the event. Now this is one of my feature that I'd like to share with all of you. This is the social launch space. I do believe that in a physical event where we have met face-to-face, we would have had this kind of an opportunity, but we've tried to make it possible in a virtue of that as well. So what do you do in the social space? Now this is where you can get a digital caricature made of yourself. I think I would have loved doing that. But I'm going to urge you all please go ahead, get that digital caricature made. But most importantly, please do share it on the social media using hashtag, Infosys Analyst Meet, and don't worry about looking out into sessions because you know what is happening parallelly. So we made it sure that you can get your digital caricature made and you can simultaneously attend the sessions as well. The last point that I would wish to share is with regard to the presentation. All the PPTs that you get to witness here, in fact, we'll ensure that you can access them even after the event at the Investor Relations website. So in case you wish to revisit the viewpoints, the data points, you can do so by visiting the Investor Relations website. With that, ladies and gentlemen, it's now time to also bring on board our opening speaker, who needs no introduction. In fact, this is my honor to introduce the Co-Founder and Chairman of Infosys who will talk about the technology trends, the changing business landscape and significant digital disruptions in the COVID world. And for this session, you can please put in your questions in the questions tabs, we'll take them towards the end of the session. So without any delay, ladies and gentlemen, please welcome the Co-Founder and Chairman of Infosys, Mr. Nandan Nilekani.

Thank you, Kavea, and it's really wonderful to be talking to all of you through this Virtual Analyst conference. Today, I'll talk about technology trends and the impact of COVID. Now just to put it in a historical context, I think up until about 2007, technology leadership essentially came from the enterprises and not so much from consumers. But with the launch of the iPhone in 2007, followed a year later by Android, the leadership of technology innovation moved to the consumer space. And people started using -- and then up to the rapid growth of smartphones, billions of smartphones and so on, led to people getting their experience of technology from using these very user-friendly devices just tapping and getting things done. So the first impact of that on the enterprise was the consumerization of user experience because people who are using business apps, some that they were very clunky, unimaginative and difficult to use, whether they were used to this very super friendly intuitive apps on their phones. And then for the first wave of the impact of consumers on the enterprise was the building of consumerization of apps and building new kinds of applications, which were far more intuitive, user-friendly design-first and so on. So the first trend essentially was this consumerization of the user experience. The second thing that happened was that as the smartphones took off, we finally entered arenas, which had billion use of platforms. People like Google and Facebook and Alibaba and all have billion user platforms be it WhatsApp or be it Chrome or Android, Search, or whatever. And this required people to really things: one, required people to really very highly scalable systems, which were very low cost. And the driver for that led to the rise of open source. Open source was already there, thanks to Linux and so on, but there was a big acceleration of open source because of the rise of the consumer Internet. And these companies also put many of these open source products into the public domain from their own R&D. So many of the Open Source things like Hadoop or [ Bird ] and so on have actually come out of the labs of the Internet companies and have been put out as open source or use. And enterprises began to realize that these open source products were highly scalable, they were cheaper to operate. And therefore, the second trend, which happened was the adoption of open source technology in the enterprise. The third thing which happened was as these Internet giants built their capability, they realized that they could offer a computing-as-a-service, and that's what led to the rise of the Cloud. It began with Amazon, again, around 2006 or so, followed by Microsoft Azure and followed by Google. And today, that is one of the biggest trends in the world, which is moving away from having in-premise computing to using the public cloud as far as possible. And the initial users of the cloud where the consumer giants themselves for their own usage. And then we had a class of digital-first companies coming up, whether it's Netflix or Dropbox or all these companies, which began natively on the cloud. And then the last 2 to 3 years, it is the enterprises adopting the cloud as regulators and other people began to become more comfortable with the use of the cloud. And therefore, what we're seeing now is the huge rise of cloud migration. The third issue was also because of consumerized -- a third -- the fourth issue, I mean. The fourth issue was the whole data which came out. As you had billions of consumers and you had their interactions and telemetry at every point, data became a big thing and so the rise of big data applications and particularly the rise of AI. And the AI took a big leap forward with what's called as deep learning, which came about 2012 or so. And deep learning was able to dramatically improve the accuracy of AI and the object recognition was a good example that went from very high error rate to error rate less than human beings, and we are seeing that across the board. And again, these AI tools, a lot of them are in open source and enterprises started saying if you can have AI for the consumer, can you not have AI for the enterprise. So that was another trend which came out of the consumer world. And then we had -- as these systems became more exposed on the public Internet, cybersecurity became a big issue because these are very valuable systems and people could either attack them for competitive reasons or for ransom or in many cases, cyber attacks became a part of the state-sponsored attacks. I mean the first cyber attack was on Estonia in 2007 and since then, we are seeing cyber attacks around the world. And therefore, as systems and applications had to become more opened up to the outside world, cybersecurity started becoming very, very important. And businesses began to realize that unless they make the systems secured, they would be very, very vulnerable to these attacks or to ransoms, and that's become a big issue for everyone. And then we had the rise of the platforms. I think what people saw when they saw the rise of Amazon and Facebook and Google was how well they had used platform thinking. And classical enterprises started saying, why can't we also build digital platforms. So a lot of the work among these companies are always to think about platforms. And finally, as incumbent companies began to realize that technology was changing things so much, they realized that their legacy systems were very monolithic, very inflexible, required huge amount of support and took several months to bring changes. So modernization of these legacy applications using the brand-new concepts of agility, micro services, open source, user experience became very, very important. So these are the 7 trends that began approximately in 2007, '06, '07. And last 2, 3 years have taken the enterprise world by storm and led to the whole digital revolution as we call all of them collectively. Now these trends existed before COVID. It's not that COVID created these trends. But COVID for once accelerated these strengths because companies had no other way to function and they had to go digital, offer online services, and whether it was e-commerce, whether it was food delivery or groceries or retail or health or education. Suddenly, we saw an acceleration of digitization and stuff that would have taken several years were compressed into several months. However, another important implication of COVID, which is companies began to realize that unless they were digitally agile and unless there were state-of-the-art, actually the business was at risk. So the realization that this digital is so important was accentuated and accelerated by the pandemic in the Boards of corporations around the world. And we saw that in every sector. If you look at in retail, we have seen the largest number of bankruptcies of retailers who are essentially physical operations. But there are many large retailers who, because they had a very good e-commerce capability, because they could do delivery to the home, because they could do pick up at the shop or pick up on the curb side did very well. And therefore, the lesson became very clear to boards around the worlds, that digital was not just an afterthought, it was not just a nice to have, it was fundamental and critical to the business of the future. And I think that's the big impact of COVID that we have. Essentially, people have woken up to the fact that if they have to have a future in every business whether its telecommunication, retail, financial services, you name it, every business is facing this challenge. And I think that's the big change that COVID has brought. Now this change is obvious to everyone, but a lot depends on how companies who provide services in this business adapt. And then I think I want to congratulate our management team led by Salil, who in the last 3 years, have done a dramatic reinvention of Infosys. It was not done with COVID in mind. It was not done with the assumption that something would happen, but it was done to prepare Infosys for the future. And Infosys was very fortunate that when the unfortunate event of COVID happened, it was very well prepared to deal with this calamity. And that was whether it was working from home, whether it was new services that Infosys had introduced, which are more relevant digital services, whether it was galvanizing the sales engine, whether it was investing in learning and making sure that people had the latest skills, whether it was creating employee engagement, whether it was making Infosys agile and many, many other things that our management team took up. And these are not small superficial reforms. They were root and branch reforms that went to the -- [ heart of ] the company and prepared it for the future. And these are the reforms that were set up by excellent management team under Salil and as part of the first strategy, which you heard of in April, May of 2018. And executing on that strategy, galvanizing sales, creating a sense of alignment and purpose, and that is what is really has been at the heart of what is happening today. And I think the Board has fully endorsed the strategy, fully endorsed the management backed it 100%, and we'll provide that backing, we want to have stability, we want to have coherence, we want to have strategic alignment, we want to have a highly motivated team. And I believe all those things are in place, and I think the results have started to speak for themselves. So to summarize, technology trends have been around because of a transfer of ideas from the consumer space to the enterprise space. They evolved over the last 13 years in 7 different areas, whether it was cloud or open source or consumerization or data and AI or whatever. COVID not only accelerated this implementation, but COVID also made it clear that becoming digital was an existential choice for large businesses. And Infosys' investment of the last 3 years in getting ready for the future came in very handy when this outsized calamity struck the world. So that in a nutshell is where we are. I will now stop and take questions from all of you. Over to you, Kavea.

Thank you so much, Nandan. Setting the tone for the rest of the event and most importantly, we've managed to gather some very interesting insights in terms of the trends, or for that matter how the pandemic made all those consumers or even enterprises view that digital activation. So let's quickly now, deep dive into the questions as well. We've managed to, in fact receive, some questions beforehand as well Nandan, so let me quickly share that with you.

The first question, in fact, is a common one that we received from Ankur Rudra from JPMorgan and Kunal Tayal from Bank of America. The question is what are your next focus areas for the company, including management stability and strategic continuity? And do you think your work on overseeing strategic changes, leadership and Board reconstitution process is largely done?

Well, I think the [indiscernible], this is done. We have excellent and stable management team in place. And so I think that's really very well done. The Board is -- continues to be reconstituted and that is -- we will see how that develops. On the strategic side, I believe that the first set of strategic choices have been made and implemented. But as we look at the pandemic and as we look at the future, I think there's going to be a massive shift in the way the world is going to implement technology. And therefore, I think the strategic transformation is still to be completed. And as I've said before, I will stay as long as is required to complete my job.

Thank you, Nandan, for answering that question. Meanwhile, I'm also going to request our attendees to please drop your questions in the questions tab, the Q icon. So with that, let's also move on to the second question. So the next question is from Kawaljeet Saluja from Kotak Securities, and a very interesting question there. What are the new set of competitors that IT companies need to keep a close eye on, and every crisis creates a shakeout [ bunch ] themes that COVID has not caused the new trend, but only accelerated earlier trends. So what's your view on this?

As I said in my talk, not only COVID accelerate the trend. That is correct. None of the trends are new. They're all existing. It also fundamentally brought to the leadership of the world's top companies how critical digital was. I think that's an important lesson for everyone. And that lesson has raised the profile of digital transformation in every boardroom. And that's what I think is the bigger difference, not just -- what is acceleration, but the other is the mindset change. Also, I think we have to -- when we look at the landscape, it is -- we have a set of traditional competitors. But clearly, we are going to see new players and we have the public [ scalers ] of the clouds who are very great partners for us, but also, over time, would like to have a larger part of the IT spend. So I think it's -- but this game has always been about partners being competitors, being collaborators. So that's the way the game is played. So I do believe that we will have a new kind of marketplace or competitive scenario. But I am very confident that a systems integrator like Infosys, which is able to orchestrate many diverse technologies, many diverse approaches ultimately, to bring business value to the world's great companies. That need is never been more than before, never been -- I mean this has never been -- so really more than ever before.

All right. So that also brings us to our next question again. This is also from Ankur from JPMorgan. And the question is, how do you see the impact on the opportunity for IT services firms and Infosys on a structural basis from the acceleration of digital, cloud, AI and the move into cloud-based platforms? So the question actually is, wouldn't this make everything more efficient and shrink the opportunity for bespoke services as we move away from legacy?

Well, I think it's really about how -- what happens in our business is that at every point, we bring a new level of abstraction into our business, and the value migrates above that level. I mean when computers began without an assembler. And then assembler was abstracted to write in PL/I or COBOL or whatever, and then -- and so on. So think of the cloud as one more abstraction and which hides a lot of complexity, which allows you to be highly scalable, you can go up and down and so on. But it doesn't change the need for formulating business strategic opportunities, which leverage that. That will never go away. And building that and helping companies migrate from where they are to where they want to be. And I think later on, you'll hear about Vanguard and all that. They're all examples of the challenges that companies are facing. They have these legacy systems built 40 years back on COBOL and CICS and DMS and IMS and all that, and they all have to go to the new world. And they have -- they have to be done without impacting upon customer service. So this transformation of companies from the old to the new is a very sophisticated exercise and cannot be abstracted easily. And that's a place where I think companies like Infosys can play.

Okay. Nandan, we have one more question coming in from Diviya from UBS. And I think this goes back to the answer that you just shared, which is to do with, could you explain what you meant by the strategic should not yet being complete? So what is pending?

Yes. First of all, execution is pending and execution is a big thing. So I think the articulation of the strategy, I think we are all reasonably clear about that. Its execution is pending because we are in the middle of the journey. I mean, if you believe that we are very early days of the cloud in the next 4 to 5 years, every major company is going to migrate most of its applications to the cloud. So that's a big thing, and that's one thing. Second thing is the whole AI journey has just started. I mean, yesterday, I think Infosys announced Applied AI platform. And the use of AI, the way to think about this is not applying AI to existing processes. It's about designing digital-first, AI-first processes and then amplifying that with human judgment. That's a whole new say, early days of that, and that's going to be a huge trend. And also the business model is changing because the way company will spend on technology is change buying hardware and buying capacity. So these are all very early days and has to be done strategically and in execution to make it happen.

Thank you very much, Nandan. With that, we actually come to the end of the Q&A round as well with you, but thank you so much to sharing your thoughts with the attendees with us all.

Thank you. It was a great pleasure to be here and I wish them all the best.

Thank you, again. Thank you very much. And yes, ladies and gentlemen, attendees, please do note, we will have the next round of questions happening with the management team. So please you be sure you use the questions tab. I believe we managed to get some dynamic thoughts from Mr. Nandan Nilekani. So let's actually now march ahead and move on to our next speaker. It's in fact my privilege to also introduce our next speaker person, who's been at the forefront all the digital disruption that our clients have gone through and Infosys as well. Now leading with purpose and seeing through a trying times with a very close lens on the things, he will, in fact, shed his perspective on how to drive digital acceleration. I think this is something we are truly looking forward to as well. So ladies and gentlemen, please welcome the CEO of Infosys, Mr. Salil Parekh.

Good afternoon, and good evening to everyone that's joined us. Thank you very much for joining us for this financial analyst session from Infosys. You've just heard from Nandan, and you've got a good sense of really the vision across the technology landscape and indeed our own vision in where Infosys is [indiscernible] work. Now over the next few minutes, I want to share with you a strategic approach and the method we've put in place to execute that strategic approach and share with you what we see as we look out over the next few years. What we've really done in the last few years is put together a consistent strategy and have a very disciplined approach to execution. The first point, really, that I want to cover is how are clients looking at the situation today. Here, one of the key things we are seeing is most large enterprises are driving their own digital transformation journeys. In fact, during the last 6 months, those enterprises that have been already in the digital framework who put in place infrastructure are benefiting massively from how they're connecting with their end customers, with their suppliers and with their employees. The technology investments that are being used for digital are really helping them drive growth and gaining much more market reach in their businesses. We are seeing cost efficiency is still very critical, and it remains a big driver for all businesses. And finally, there's an increased focus on consolidation where many large enterprises are looking to consolidate, especially with vendors that are strong, that have delivered well in the past 6 months. and have a strong history over the past several years of consistent delivery and supporting the clients. With that in mind and keeping together what our strategic blueprint is, we've been consistent with this blueprint over the past 3 years. And there are 4 key elements of that blueprint: The first, we are scaling our digital capabilities, and I'll come to that in a couple of minutes to what that really represents; second, we have an extreme focus to deepen the automation area and support it with artificial intelligence, improving everything in the core technologies of our clients and within our portfolio. The third, an extreme focus on reskilling employees, and you'll hear a little bit later in the session from Pravin on what we are doing in that space; and finally, a lot more focus on localization. And again, you'll hear a little bit later in the session how we are driving localization by expanding in Europe, in U.S., in Australia. Now in scaling digital capabilities, we've kept 5 areas in the forefront from the very beginning, and we see immense traction, for example, in the cloud space, whether it is a public cloud, private cloud, hybrid cloud, the software-as-a-service players, the platform-as-a-service players, we have a tremendous ecosystem there that's working. Also in data, in IoT, in cybersecurity and then in the whole area of experience, how does human experience in [ tutor ] experience work as clients are dealing with technologies. In cloud, we really made an extreme push. And you might have seen a few weeks ago, we launched our own brand called Infosys Cobalt, which combines all of our cloud capabilities, platforms, solutions offering. The idea for Cobalt is to help our clients go faster in their cloud journey and to do it with less risk because we have a lot of things that have been tried and tested. Today, we already have 200 industry solutions and 15,000 cloud assets that form a part of Cobalt. And again, you'll hear a little bit more detail on this when Ravi shares his updates. We have essentially 4 growth drivers that are helping us as we look at the business in the past 3 years and as we look at the business going ahead: The first is digital. Everything is shifting to digital. Today, our business is almost half, 47% of our business in digital. It was growing at 25% in the last quarter; second is large deals. Our momentum is very strong, and last quarter, we had the largest large deal value over $3 billion. You'll hear a little bit more about this when Mohit shares our sales acceleration approach. The next is account expansion, which is something that we work on extensively within the company. We don't talk a lot about the specifics outside. It's a focused plan to work with our existing clients and work with what they want to do next, what is their -- what is relevant for them and how we can help them in navigating their next by then becoming deeper in the relationships with those clients. And we have some statistics where our accounts greater than $100 million have steadily expanded because of this attention to our clients. And finally, there's also attention to new accounts, or working with new clients, and those are percentages and statistics we are tracking internally and driving to an expansion. Those 4 areas become the real growth drivers for what we see going ahead. And then there are several margin drivers. A little bit detail of this will come when Nilanjan shares which you his update. But at a high level, we focus on the mix, on-site offshore, we look at the pyramid, we look at automation, we look at our subcontractors, [ should be handled ] and we look at what's the best value we can derive from the digital work that we are doing for our clients. Now to be clear, all of the investment phase that we have is well behind us. We are today in a phase where all new investments are funded from the P&L, and we believe many of these strategic margin drivers will support us as we look to maintain our margin and has an ambition to expand our margin in the coming quarters and years. We are extremely focused on employee wellbeing, you'll hear a little bit more on this from Pravin. But there are several elements where we engage, where we enable employees where we [ re-hone ] our employs. And those targeted interventions and focus areas over the last few quarters have resulted in attrition being extremely low in the last quarter was 7.8% and, and we believe attrition will be in good shape as we go ahead and we come out of this COVID environment. We're also extremely focused on a discipline in our operating approach. We look at all of our businesses and the unit performance, we focus on things which are not working to try to address them and solve them. But delivery excellence is really the cornerstone of everything at Infosys, and there's a continuous attention to how delivery is progressing across all of our clients. A focus on cost discipline is an ongoing cost program, both strategic cost areas and onetime cost areas, you'll hear a little bit more about this from Nilanjan, and a focus on cash collection where you've seen improvement in the way that we've collected cash in our DSO numbers. And therefore, what we will be able to return as cash to shareholders as we go ahead with the improved capital allocation policies. And finally, our leadership team, I believe, is working extremely well. It's been stable from the last 3 years. The team is working collaboratively. In fact, through this COVID time, of course, we've not been able to travel, but we are connected with each other on daily, weekly, once in 2 weeks, once in a month calls, video sessions where we are making sure that we are cohesive and we have a common focus in how we are serving our clients and how are we focusing to improve all aspects within the company. So in conclusion, I think we've had a successful journey over the past 3 years, not just for client relevance, for growth, the margin, for attrition, for cash return, for earnings and, of course, for shareholder value creation. We believe we are the only large IT services company, which has year-on-year growth in Q1 and in Q2. We also have a growth guidance for the full year. And we believe we are gaining market share, which is really helping us to further consolidate the position we have from over the years. We made strategic investments in the growth drivers that I referenced, for example, the investments in digital, in automation and so on. We've also got a clear set of margin drivers, which are in place and which we are strategically executing on, which I believe will help us sustain and over time, in the medium term, expand our margins. With all of that, I believe we are well positioned to continue our growth and continue our margin trajectory as we come out of COVID. You saw, as we finished the -- last financial year, we grew at 9.8%, the year before that at 9%. And even in this COVID time, we are still growing last quarter at 2.2%. With this, we believe as we come out of the crisis, we will be back to the momentum we were at before. All of our investments are really making us more and more relevant for clients, and we feel confident given the market dynamics and the way we have positioned ourselves to continue with that journey. With that, thank you, and thanks again for joining us. We, of course, have several more sessions. Following this will be Pravin. Thank you.

Thank you very much, Salil. I must admit those were the leadership insights coming from the leader himself. So with that, let's also move on to our next session. In fact, our next speaker will talk about the immense operational agility and resilience of Infosys in the new normal. So ladies and gentlemen, please welcome the COO of Infosys, Mr. Pravin Rao.

Hello. Good day to everyone. Hope you are all doing good, safe and healthy. We are very proud of the speed and agility with which we responded to the pandemic and ensuring business continuity for our clients without compromising on safety and security of our employees. This has been very well appreciated by all the stakeholders. In my presentation, I'll be talking about various steps taken in this regard and continuing efforts to build on the same. This is the standard safe harbor clause. Having addressed the immediate priorities of the pandemic, our focus is now on embedding resilience in every aspect of our operations to deal with the post COVID world. This includes remote and hybrid working models, driving productivity improvements, focus on employee engagement and wellbeing, enhancing capability build, derisking through localization. Today, 99% of our 240,000 plus workforce are working from home globally. Percentages vary across geos. In Continental Europe, we have seen gradual return to office with about 10% of people working out of officers. We have seen similar trends in New Zealand, Middle East and parts of Asia. In China, on the other hand, we've had over 92% working from office. In India, in May, when lockdown was partially lifted, we had up to 5% of workforce coming back to office. However, after a couple of months with increasing number of cases, majority of those switched to work-from-home. Likewise, with parts of Europe now facing second wave, we are seeing some movements back to work-from-home. We have been able to switch between work-from-home and work from office seamlessly without any loss of productivity while ensuring that client deliverables are met. With over 90% work-from-home, the risk due to cyber attacks has dramatically increased as home offices rarely have the same firewalls, network-based intrusion detections and other defenses integrated to the office spaces. Hackers are exploiting the situation with increased phishing attacks. We have invested significantly to strengthen our cybersecurity infrastructure. This include secure VPN, 100% multi-factor authentication, endpoint controls, encryption, minimizing USB and admin access, strengthening our [ FOG ] teams, 24/7 monitoring with visibility and control over the entire IT infrastructure, including servers, networks and endpoints. We have also planned tabletop simulations and implemented cloud proxy for Internet access from home and cloud security controls to secure all Infosys cloud workloads. We have also invested in [indiscernible] intelligent platforms, advanced protection and data leak prevention tools. The real-time detection of vulnerabilities and automatic patch management as well as automatic configuration compliance is in place. Security awareness campaigns on risk, company's privacy and security policies and best practices to avoid falling prey to phishing attacks has been implemented. All this without compromising on user experience or productivity. Given how far we are more into digital spaces, it is hard to imagine people will return fully to brick-and-mortar alternative. We have also seen remote working does not necessarily hit productivity levels. And at the same time, help deliver added benefits such as reducing travel hours, business expenses and [ carbon ] footprint. As such, companies will look at embracing this hybrid model going forward. Future will be a hybrid model with people having flexibility to work-from-home and work from office and switch between the two in a seamless manner. Today, we are technologically enabled the transition between any of the nodes on the screen. However, there are benefits to work from office including building social capital, et cetera. My guess is that in the post COVID world we'll mostly operate between hybrid remote and remote first nodes, deriving benefits of both work-from-home and work from office. For our employees working in office, we have ensured a safe working environment through temperature checks, self declaration, usage of masks, frequent sanitation of workplace and practicing social distancing during commute in workplace as well as in common areas. We also have well-defined SOPs to deal with any positive cases. We have used technologies like AI, Edge, IoT, et cetera, to enable safety at our workplace. And the same is now being offered to our clients as Infosys Return to Workplace solution [ on our ] platform as a service model. We are moving away from conventional workplace management to one with or hoteling or hot desk features. Instead of dedicated seats, employees will have ability to work from any location in the office by reserving space through a mobile app and enabled through new connectivity models. We have also introduced safe huddle spaces in each of our locations in India. These are meeting spaces with connectivity for limited set of people to meet in a safe and secure environment. These collaboration spaces can be prebooked and can be used for [ higher ] activities ranging from brainstorming, project meetings, other project activities, onboarding new people as well as team building. Overall, both our quality and productivity have sustained or improved in work-from-home mode. We have been able to meet all our service levels and have not had any client escalations in this regard. While a vast majority of projects have sustained productivity levels, we have also seen a good percentage of projects improve on them as well. Agile projects lend themselves well to work from home, and we are reaping the benefits of accelerated agile adoption in the past 24 months. We have done detailed analysis of our 2,500-plus projects on what is enabling or hurting productivity in the remote world. In the work-from-home world, two things clearly helped in productivity: #1, lack of commute time; and #2, flexibility teams display to organize their times. Teams have reorganized their workday to maximize the overlap between client and on-site teams and offshore teams, and eliminate wait times for decisions and clarifications. Some of the inhibitors to productivity include starting new projects remotely, or onboarding new people in project teams as it takes longer to get them to bond, create social capital and get used to ways of working remotely. We have also seen lower productivity in some of the support projects due to reduced number of tickets. We have created comprehensive playbooks for each type of work we do, which guide teams on how to adapt to new ways of working, tools to use, people practices, et cetera, and so on, in order to maximize productivity. These playbooks are constantly enhanced based on learnings from all the projects. We have also invested in collaboration tools and in Meridian, our homegrown digital workplace platform. Along with the support measures extended to every COVID-positive diagnosed employee and family, we have also launched multiple employee wellness measures. Given the unique situation, we have gone extra mile in employee engagement with specific focus on health and wellness. In the past 6 months, we've had over 200-plus interventions around physical and emotional wellness including podcasts, awareness campaigns, yoga and meditation sessions, leisure activities, external talks, counseling support and so on. We have involved families as well. Our focus on re-skilling continues. It's 1 of the 4 pillars of our navigate your next strategy and 1 of the critical success factors in huge growth of our digital revenues. Over 80% of our digital leads have been fulfilled either through internal re-skilling efforts, or through hiring, adjacent skills and then training them on digital. Our investment in digital-first, cloud native, anytime anywhere learning platform Lex has paid good dividends. Over 90% of Infoscions use Lex. The platform houses over 1200 structured courses and 270,000 plus [indiscernible] packs. On any working day, over 19,000 unique learners spend an average 40 minutes on Lex. Our client facing learning platform Wingspan, is being leveraged by over 30-plus clients. InfyTQ has gained a significant hold. It's a free platform open to all engineering students in their third and fourth year across India offering the best learning and engagement experience and helping them become industry-ready. InfyTQ certification assessment, for the graduating back of 2021 was conducted recently, and this witnessed over 1.57 lakh students appearing for the same. Our strategy to build digital readiness over the individual and enterprise level is through focused and purposeful learning. This is driven through 3 principles: The Why : Designing a learning model that is purposeful, engaging and motivating enough for individuals to take charge of their development and move forward. The What : Focusing the comprehensive skill [ starter ] that is relevant today and for the future, a combination of technical, functional and cognitive skills that build a digital-first mindset for business. And finally, the How : Infosys learning approach is a learn by doing method, that also gauges effectiveness of learning. And through this approach, we ensure that learners are gradually guided from conceptual knowledge to impact and eventually creating value for clients and businesses aligned. We continue to see challenges to mobility of talent, new proposed immigration regulations in U.S.A. would impact on-site wage costs, granting of visas, tenure of visas and overall cost of compliance. Our localization program across U.S.A., Europe and Australia [ born ] 3 years ago, mitigates many of these. Today, we have 8 innovation hubs across U.S. and EU, 9 global digital studios, including a 5G lab in Melbourne and 7 global cyber defense centers. We are close to 63% Visa independent in the U.S. and over 50% in Europe and [ AMZ ]. We have been intensely focused on creating jobs in the U.S. for the past 3 years. And our new commitment to hire 12,000 American workers by 2022 expands on the previous initiative. Through our academia partnerships will Purdue, Trinity, and [indiscernible] we have trained a large number of employees as well. We will also leverage the training and reskilling programs that we have built with partners. We recently launched re-skill and restart platform, which will play a crucial role in hiring local talent. We'll bring a specific focus on building pathways for those have been impacted by the economic downturn and look forward to building onboard individuals without traditional 4-year degrees. We'll also expand our presence in nearshore locations like Mexico and Canada. The outcome of our efforts are clearly visible. We have had a stable operational performance in spite of the pandemic. This has contributed to an industry-leading performance this year. We have made excellent progress in the past 6 months and rated as leaders in many of the industry analyst ratings across multiple dimensions. These are ratings from Gartner, Forrester, NelsonHall, IDC, HfS, et cetera. We have been ranked 2 in the overall leadership ratings and number 3 in digital leadership ratings. This is a clear reflection of the significant efforts that have been put in towards capability building and value delivery. We have received very positive feedback from our clients and analysts on resilience demonstrated during the pandemic and, of course, our performance. Sharing few of the accolades. In addition, the results from our recently concluded client feedback survey has also been very positive. This is conducted annually by an independent agency. We had the highest ever ratings on overall experience since the survey started about 15 years back. We saw significant improvement in ratings across several dimensions. That's all for now, look forward to engaging with you during the Q&A session. Thank you.

Thank you very much, Pravin, for sharing across some very interesting viewpoints, the strategy towards digital readiness and also accentuating on how the future will be hybrid. In fact, it looks like the communication will also be digital. So thank you so much indeed for sharing those thoughts. Well, ladies and gentlemen, now before we move on to the next session, we also have a short video that introduces Infosys Cobalt, a set of services, solutions and platform for enterprises to accelerate their cloud journey. Let's take a look. [Presentation]

All right. Welcome back, everyone. Well, it's time to switch the gears now because to speak more about our cloud offering, it gives me great pleasure to invite the President and the Deputy COO of Infosys, Mr. Ravi Kumar.

Thank you, Kavea. The next session is about Infosys Cobalt, the cloud services brand of Infosys. We've launched it a couple of weeks ago. Last year, during the financial analyst conference in November, we've spoken about the cloud, the potential of the cloud, and over the last 1 year, we've evolved this into a services brand. We are the first service provider in the market, the first system integrator in the market to actually launch a services brand on the cloud, Infosys Cobalt. So let me talk to you in the next 15 minutes about what this is all about. And hopefully, at the end, we get some time for some videos of some of our clients. So let me just start with a little bit of context about the agile digital narrative of emphasis. Over the last few years, we have had a significant growth in digital services, 47% of our business today actually comes from Infosys digital. It kind of pivots around the 5 pillars of the digital pentagon we spoke about. The digital pentagon is a manifestation of the digital services our clients are consuming. The cloud in many ways is a part of every access of the pentagon. I actually call it a general purpose technology. The cloud is a general-purpose technology. What I mean by a general-purpose technology is that it has 3 attributes: It's very pervasive; it improves over time; and it spawns downstream innovation. The cloud in many ways, ticks all 3 boxes. And we see it as one of those transformational pillars in digital journeys, 50% of the spend of large enterprises actually comes from the cloud. $1 trillion is going to be spent on digital journeys in the next 2 to 3 years and in some ways, this has got accelerated with the current health crisis. Of which half of it, $500 billion of it, actually comes from the cloud. So why is it that the cloud is such an important foundational pillar in digital journeys? I just want to set a little bit of context around it. Between 2007 to 2017, we call it the consumer era, and we saw a proliferation of platforms, mega platforms, which we're riding on the massive capital outlays in telecom infrastructure. These platforms were consumer-centric and they were global in nature. What happened to companies like Amazon, Facebook, Google, Microsoft and a variety of them, in fact, all the assets of Alphabet, a variety of them is they've built massive infrastructure, massive data center infrastructure on compute, on storage, on routers, on security, and they kind of created these mega platforms for consumption. In the process, these firms also created automated operations. And the capital expenditure spent by these firms was so much that they started to lend this infrastructure to large enterprises. Just to give you an order of magnitude, $75 billion in the last 2 years has been spent between Microsoft, Amazon and Google. This $75 billion in some ways is a reflection of the amount of data center infrastructure, which has been built by these firms. As this infrastructure was available to large enterprises and automated operations of this -- of these platforms was available for large enterprises. There was an opportunity to create an over-the-top layer as much as these firms created an over-the-top layer on telecom infrastructure. That over-the-top layer, now leads to new services and new products, new services from companies like Infosys, new products from new age cloud companies like Snowflake, if I have to take an example. That is the opportunity we're all talking about, new age services orchestrated over-the-top on hyperscalers and private cloud platforms. And we could potentially reimagine an enterprise and create in some ways in network effect, as I call it. The network effect of the cloud is reimagining, process reimagining, data reimagining content and in many ways, reimagining an enterprise. To me, this is an inflection point, an inflection point to reengineer an enterprise. 30 years ago, a reengineering era started when enterprise software was adopted by large enterprises. Now reimagining the enterprise in some ways, is nonlinear as well. As I said, cloud is a general-purpose technology, it has nonlinear impact. You could leverage the cloud for a variety of reasons. Initially, the cloud was leveraged for agility so that you could create cost variability, you could step up and step down as and when you need the business and operating models. But thereafter, as digitally native companies used it for innovation at scale, building innovation infrastructure, the cloud manifested into multiple purposes. In the times we are all living in where resilience is very important, business continuity is very important. The cloud almost straddles from agility innovation to resilience. In fact a large number of our clients have started to look at taking noncore service and actually shifting them out as a service to companies like Infosys. In fact, you could actually shift a business function and potentially give it to a cloud services provider, which can actually enable it through a platform enabled on the cloud. The cloud, in conjunction with other digital technologies, can actually be much more powerful and much more nonlinear. A good example is telecom companies doing edge computing on 5G network. And this is going to be manifested by an extraordinary power in terms of confluence of digital technologies. As operational spend for field technologies goes up, the cloud plays a big role because field technologies want you to be virtualized. In many ways, our office setups, which have now gone hybrid, also to manifest itself with a large consumption of cloud and virtualization on demand, which the cloud enables. So in a way, the health crisis has started to accelerate digital journeys. And the cloud is the foundational pillar on those digital journeys. So this sets the context of what the network effect of the cloud is. You can reimagine an enterprise, reimagine the process, takeaway functions of the process, which are not core, move from agility to resilience, power your innovation and create connected products in the market. And I'm going to speak about 1 or 2 such examples of Infosys clients who are doing this. So what does Cobalt constitute? Cobalt constitutes a set of assets, top-down and bottom-up. And on this specific instance, I'm going to talk about the top-down assets that we are building before I come to the bottom-up. Industry solutions, platforms, in fact, the universe of companies like Infosys was all about the tech spend of enterprises. We are transitioning to the operations spend of enterprises powered by the cloud. And these platforms, which are actually born on the cloud actually enable us to transition from tech spend to operations spend, data-related platforms, data solutions and a poly cloud environment. What does poly cloud do? The reality, as we go into client enterprise landscapes is, we are going to find the landscapes to be a hybrid multi-cloud environment. It wouldn't as much be a single provider. And as this multi-cloud environments actually evolve, and that is real, 70% of the enterprises today are actually thinking about multi-cloud, hybrid environments. And as this hybrid environments are real, we have this very unique opportunity to orchestrate workloads across various cloud environment in a client landscape, in an enterprise landscape. Now orchestration means managing data, managing process and managing applications on the cloud. And as cloud journeys evolve, enterprises would start to look at orchestration as a starting point and they will start to look for interoperability. What I mean by interoperability is working between clouds, where the data and the apps are in 2 different environments, and you actually create a mechanism for them to have an interplay. As cloud journeys evolved from interoperability, they would actually go to portability, which essentially means you've got to move applications from one cloud to the other cloud, we're going to move data from one cloud to the other cloud. So this entire poly cloud management layer is a part of our Cobalt infrastructure. So platforms, solutions, industry templates, the poly cloud infrastructure to straddle between a multi-cloud hybrid environment, so that you could reimagine the process data and content on the cloud. In many ways, the reengineering of an enterprise will be driven by a force multiplier, which the cloud can actually enable to. Here is the view of the Cobalt community, and in many ways, it is a bottom-up. And why is the bottom-up needed? A bottom-up is needed because a lot of our clients are looking at day-to-day problems to be solved by the cloud. And what we're doing here is we're curating day-to-day problems dealt by our project teams. And we're curating them into a service store and we have an engineering team, which makes sure that these reusable, repeatable business use cases are assets, as you call it, are kind of going through a filter and they're curated by this central engineering team. So we have 35,000-plus people working on cloud-related projects, and we've created 15,000 assets, 200-plus industry templates. And the idea of the cloud community, the Cobalt community, as we call it. The idea is, we want to actually move best-in-class use cases into the service store with gold standards, but we also want our teams to draw from it. And as they draw these assets, you're going to find them to be derisked, you're going to find them to be best-in-class so that it could be leveraged by every cloud project at Infosys. These communities will expand itself to retained organizations of our clients because our clients actually need this more than us. And as our clients start to use this they're going to be a part of these communities because they're build innovation infrastructure at scale, grassroots innovation will drive the leverage of the cloud and the network of cloud, as we call it. We have a playground or experimentation in infrastructure so that our project teams as well as our client organizations can actually leverage the experimental infrastructure to solve more futuristic problems for our clients. We are hoping that this would expand itself to our partners and thereafter to a gig cloud worker in the market, and we are hoping that this could be the largest cloud community to drive innovation at scale for Infosys clients. So here is what the community also constitutes in addition to all the assets we have built, in addition to the communities of our clients as well as our employees. It's also about the partner ecosystem. It's a very, very fast-moving evolving space. So we have hyperscalers, we have private cloud players, we have SaaS-based players, and we have a large number of new-age cloud innovation companies that are part of the network. One of the things large enterprises are looking forward to is the ability of a service provider to tell them what ecosystem needs to be embraced so that their cloud journeys are top-notch. So our endeavor is to bring this community, which is, in some ways, we are creating a bridge of innovation network, which can actually access large enterprises and large enterprises and access the innovation network as we progress. So this innovation network is going to be curated by the Infosys Cobalt community. This is what our analysts are saying. Our analysts are saying that Infosys is transitioning cloud journeys from a lift-and-shift opportunity to a transformational opportunity. It is transitioning cloud journeys from the focus around just agility to straddling between agility and resilience, straddling into innovation, confluence of new age digital technologies, the [ whole idea ] of things. Our analysts are saying the 200-plus industry blueprints are going to be a significant part of the acceleration of cloud journeys, which is the need of the hour. So the initial feedback from industry analysts have been very, very positive. So we spoke about the possibilities. And here are some real stories. These are real stories of our clients who have leveraged the cloud to get the network effect. And I'm going to go through 6 of them just to make my point. The first one is about a food and beverages company, which is unlocking real-time insights. And they have powered the data warehouse on Snowflake and remember, we spoke about Snowflake as one of the new age cloud product companies over the top on top of the hyperscaler infrastructure. The possibilities are many, because once you actually have your warehouse on a hyperscaler infrastructure or on a platform like Snowflake, you could reimagine data. You could append third-party data. You could monetize your data for other companies to actually leverage. And you could power it with a variety of things so that you could get better insights. The second one is one of our popular offerings called ESM Café, which is a set of industry micro vertical templates on service cloud. It's a award-winning set of assets from Infosys. It's part of a Cobalt repository. This is a consumer packaged food company, which used ESM Café, the industry vertical template. Remember ServiceNow is a low core platform with just workload, we've built those templates above it. This particular implementation we actually completed it in 13 working days. The speed at which we did it was almost attributable to the huge repository of assets we had [indiscernible]. The third one is health care -- Medicare healthcare company in the U.S. As you know, Medicare healthcare companies are in a constant path of [indiscernible]. This company wanted to onboard new members at rapid pace, both organic and inorganic. And we actually increased the -- we actually increased their speed at which they would onboard and therefore, the ability to go to the market faster. The next one is a manufacturing company, which is focused on building efficiencies. And we actually powered the distribution and logistics processes on Google Cloud. This company has made their logistics and distribution processes very agile because they moved it to a hyperscaler infrastructure. But they're starting to think about how they can take the products also on to the cloud. A manufacturing company using cloud to enable the manufacturing is one thing. It's a different thing to actually make connected products by enabling the products on the cloud, that's what this firm is directionally going to. The next one is a customer care platform which we are building. During the health crisis, the customer care function is one of those functions, which has gone completely virtual from a very physical on-prem kind of function. Infosys is building AI-first cloud-first customer care platform to humanize customer experience. And we know that on the other side of the crisis, we want to have customer care functions, delivered out of homes of people, through gig workers, and we're building a digital platform to enable that. The last one is a health insights platform on AWS for public health and human agencies. And I'm not going to spend a lot of time on this because we have right after this a video to elaborate what the Health Insights platform is all about. And this is very apt for the times we are all living in. And I thought it will be an exciting opportunity to present a little bit of detail about it through year. Thank you again for listening to me, and we're very very excited about Infosys Cobalt, the first cloud services brand of the market. And very excited about the fact that the cloud is going to have a network effect on enterprise landscape and Infosys is orchestrating that change in large enterprises. Thank you again for listening to me. [Presentation]

Thank you so much, Ravi, for also accentuating on how cloud has become a fundamental pillar towards digital journeys. With that, ladies and gentlemen, I hope all of you are having maximum takeaways from all the sessions. Please remember that these presentations will also be made available and you can access them on the Investor Relations website. With that, let us move on to our next session. As we agree that over the past couple of years, we have helped clients navigate through digital transformations like never before and have also witnessed acceleration in the deal momentum. So talk more about how we do these. I'd now like to invite Mr. Mohit Joshi, who's the President; and Martha King, EVP and Chief Client Officer of Infosys.

Thank you, Kavea, and it's really a privilege to be here to talk to all of you about the transformation that we're driving from a sales perspective and specifically some of the initiatives that we have from a financial services perspective and especially one key partnership that we announced very recently. So let me start. First, we have the safe harbor statement. Then moving on to the themes within the sales transformation. This is something that we have spoken to you about in the past as well. But essentially, we've got 3 market-facing strategy, which is a focus on Infosys delivering large deals, a focus on mining our largest and most important accounts, and finally, a focus on new client acquisition. But these 3 client-facing strategies are also supported by a significant amount of work that is happening within the organization to really enable the sales teams to be more effective. This draws on the larger digital transformation that's happening within Infosys as a group, and so some of the capabilities, some of the infrastructure solutions that we've created organization-wide are being used very effectively from a sales perspective, and I'll talk about it briefly in the slides to come. But let me just start by giving you a snapshot of our performance from a large deal perspective. As you know, this has been a great area of focus for us for the past few years, and clearly, the results are spectacular. As you will see from this slide, we've had significant acceleration over the past few quarters, in the past few years from a large deals perspective, specifically from a 2021 perspective FY 2021. Just in the first half of the year, we've delivered over $3 billion in net new deals and close to $5 billion in overall large deal volume. Just as a point of comparison, just the net new large deal volume delivered in the first half of the year is actually greater than the total volume of large deals were delivered not so far back ago, just in FY '18. Again, the digital component of our large deals is very significant, it's over 50%. And we're also starting to see a significant acceleration in our large deal volumes and our large deal pipeline since the pandemic started. So while we're not sharing the exact pipeline numbers over here, I can assure you that based on the key things that we've been working with our clients on the digital transformation phase, the need to consolidate, we've seen an acceleration of the pipeline. And I think of it like a flywheel, right? We've got the flywheel turning initially. And now thanks to all the efforts that have been made, the flywheel is moving faster and faster. As I move to the next slide, I just want to give you a perspective on what our thinking and what our actions have been over the past few months and how we're thinking about the future. So I'm going to start at the bottom of this slide. When the pandemic hit us, there was a very concerted effort to make sure that the deals that we had in the pipeline that we were in regular communications with our clients to make sure that these deals progress. We wanted to make sure that we were able to address their concerns about transitions that we were able to address their concerns about virtual onboarding, that we were able to demonstrate flexibility, the clients who are clearly looking for protections in terms of insurance, in terms of business continuity and it was important for us to bake it into the contracts. And I'm happy to tell you that we were very successful, right, not just in terms of deal closures, but even in terms of offer acceptances. Our offer acceptances for the deals done since the pandemic started, have been over 90% which really is a significant demonstration of the very strong employee value proposition brand that we created. Among other things, what we've also done is build targeted propositions that we're taking to our clients. We see that in the pandemic, clients are focused on changing the long-term shape of their cost curve. And this goes towards simplification, this goes to consolidation, this goes to a greater degree of automation. But clients are also very interested in moving forward on the digital proposition. And this goes to data, this goes to experience, this goes to the public cloud adoption. And so the themes that we created reflect both of these propositions. I think IT as a service, device as a service for propositions that are really very attractive to companies as they're facing uncertain certain revenues. And so moving them to more of a variable cost model, moving them from a CapEx and OpEx model has been something that has given us a huge degree of success. And again, the propositions that you see on the right-hand side of this slide are ones that we will be taking to our clients even in the months and quarters to come. At the same time, as we've been building out client specific propositions, we've also made sure that we're equipping our sales force for this very new environment that we find ourselves in. So it goes towards via mapping, how is virtual -- how is the virtual selling cycle different from what it used to be pre-pandemic? How do we equip our teams to effectively engage with customers using our platforms when required? So our Infosys Meridian platform, for instance, has been a huge hit, it has been successful for us in engaging with our customers in onboarding new teams, but also as a powerful platform for our own clients to use as they're looking for virtual showrooms. So we worked with a very large auto manufacturer. We showcased Meridian has a new virtual car showroom. We work with banks so that the Meridian capabilities can be used for virtual tellers or for virtual branches. We've also been using our Lex platform extensively for training our teams. And finally, communication has been the keystone of everything that we've worked on for the past few months. So it's consistent and clear communication to our sales teams, a regular cadence of review so that we're building out the discipline when it goes towards our sales effort. So a very comprehensive strategy to build propositions to enable the team and to close the deals that we had in the pipeline. Moving on to the next slide. Just to give you a perspective beyond large deals, we've also been focused on our account expansion program. The account expansion program is essentially a way for us to increase our share of the wallet for our top 100 clients and to increase our relevance. And so this goes towards the new digital propositions, making sure our teams understand this. We've created a special fund within the company such that we're able to fund interventions that are required for our largest clients. These interventions go towards things like resource investments, towards building living labs, towards using external help where needed. And this comprehensive and targeted strategy of building out our largest client is really paying off spectacularly. Apart from revenue growth, I can also tell you that our client feedback scores for our largest of our [ clients ] have done extremely well. And so this targeted intervention that we have for our largest customers has also resulted in the number of $100 million accounts went from 27 to 30. And this is a tangible validation of our strategy to increase client relevance and to increase wallet share. Finally, talking about our new client acquisition strategy, you'll see with Vanguard in these [ 3 months ] to very significant relationship that we opened up. But the new account program is very comprehensive, it goes towards increasing the size of our hunting teams. It goes towards building out new incentive models, a new compensation model that has been [ rolled at rough ] geographies. It goes towards creating an ecosystem so that hunters can learn from each other, it goes towards building out propositions that our hunter teams can take to clients effectively. And finally, it goes towards building a powerful set of platforms that enable our hunters to spot opportunities. We're looking to build a sentient enterprise. And so to that regard, we've built a platform that sources data from a host of providers. So social media companies, it's media, it's executive movements, let's say on LinkedIn. It's our own internal information, it's information that we're getting from analysts and provides really clear nudges and clear directions to our hunting teams about where large deals may be available and the propositions that they should be reaching out to clients with. This is being used equally by the hunting teams and the farming teams. But as an example of the new digital tools that we've created, allowing our sales teams to be more effective. So that in a nutshell is a snapshot of everything that we're doing from a sales transformation perspective. I'm now really pleased to hand you over to one of our newest colleagues, our Chief Client Officer, Martha King, who's joined us from Vanguard. And Martha will be talking to us about the new partnership with Vanguard and the digital transformation that we're driving there, and about our ambitions for building out a large retirement practice within Infosys. Thank you, and over to you, Martha.

Thank you, Mohit. In July, Infosys and Vanguard announced an important partnership. This embodies the strategy that Mohit has outlined. Vanguard is recognized as the largest defined contribution asset manager in the U.S. and one of the largest D.C. record keepers. For decades, Vanguard propelled best practices and innovations that helped steward the financial features of millions of Americans who are saving for retirement. As Vanguard thought about how to continue to innovate and serve plan sponsors and participants, they turn to Infosys, which, as you all know, is a global leader in next-generation digital services. Infosys' tremendous capabilities combined with Vanguard's capabilities in advice and client experience are an incredibly powerful combination. This relationship is a true partnership across operations, technology and transformation. 1,300 operations and technology crew joined Infosys from Vanguard to help build Infosys capabilities in the retirement space and to accelerate Vanguard's enhancement and evolution of their DC business. As part of the partnership, Infosys is modernizing Vanguard's platform, building the first cloud-native recordkeeping platform and creating a new standard for the industry. Through cutting-edge digital technologies and Infosys' CX capabilities, together with Vanguard, we will dramatically improve the retirement savings experience for plan participants and plan sponsors. Our technology will allow for on-demand data and insights that would have been impossible to create in the legacy technology architecture. Across the 2 firms, there is a relentless client-first focus that comes together in a powerful way. We see this as a real partnership and a set of truly transformative changes for the industry. I mentioned briefly before that as part of the Vanguard partnership, 1,300 employees transitioned to Infosys. Over the last 3 weeks, that experience has been seamless. All of us who transitioned are very excited to be Infosyians. It has been incredibly gratifying to experience firsthand the commitment Infosys has to bringing on talent in the regions where their clients are and ensuring that we have the deep technical acumen needed to serve those clients well. It's also been incredibly impressive for me to see so closely the Infosys commitment to ongoing development, in particular, the Lex platform for learning is really something that's unparalleled in my career. I'm very impressed by it. Moving on, these 1,300 people alongside them, many more tenured Infosys leaders and staff, are the foundation of our new global retirement center of excellence we're building. The COE creates a physical presence near Eastern Pennsylvania, which will be home to over 2,000 employees. And it creates a global center of expertise in serving retirement clients. As many of you know, the retirement industry sees a real need for digital transformation. Firms are seeing margin pressure and are operating off of legacy technology and see rising expectations of digital experiences from their own clients. In the U.S. alone, the DC industry supports over $9 trillion in assets, and 110 million individual investors. With Vanguard as the anchor client, we see this as a place where Infosys can bring together a unique set of capabilities in the mid-Atlantic retirement center to help future clients transform. Let me share just 2 examples. Embedded in the COE are teams dedicated to working with clients in living labs, where teams can prototype ideas, will run joint hackathons to push the edge of what's possible. Outside of technology, we're building a strong bench of employees and a robust training program with real operational expertise in the retirement space. I am incredibly excited to lead the retirement center of excellence and to build an even larger presence near many of our clients and enable Infosys to build on what are incredibly deep capabilities to serve clients in the critical retirement industry. Thank you.

Thank you so much, Mohit, and thank you very much, Martha, for sharing across the different initiatives and strategic partnerships as well. With that, ladies and gentlemen, I also hope all of you are getting your digital caricatures made. If so, please don't forget to share it on social media using the #Infosys Analyst Meet. Meanwhile, as we understand, the strategy for mergers and acquisitions have always been around the client's requirement, adding digital capabilities, expanding geographical footprint in order to add value to our clients. So now to speak more about our M&A strategy, please welcome the EVP and Deputy Chief Financial Officer of Infosys, Mr. Jayesh Sanghrajka.

Good morning, good afternoon, and good evening, everyone, and I sincerely hope all of you are doing well in these trying times. Coming to the session on M&A., as we all know, it's no longer optional to have M&A as part of your growth strategy. Rather, it's absolutely critical to have an M&A as an integral part of your strategy. Over the last few years, we have built a systematic M&A approach and a model that is repeatable with a lot of cumulative experience to create value from the same. There are 3 aspects to a systematic M&A approach; a right M&A strategy, identifying the right targets, successfully integrating and capitalizing on synergies. Over the next few minutes, I will take you through the Infosys approach to the same. Our M&A strategy is in complete alignment to the agile digital strategy we outlined over 2 years back and has a 3-pronged approach; strengthening service line or digital capabilities; deepening our vertical expertise; and expanding our geo footprint. And if you look at all our acquisitions, these are in alignment to this strategy. For instance, Brilliant Basics, WONGDOODY and the recently acquired Blue Acorn are in experience space, strengthening Infosys' creative branding and customer experience capabilities across U.K. and U.S. This also gets us an access to the CMO buying center. In the excellent space, which is the largest amongst the digital services for us, Fluido and Simplus, strengthen our sales force capabilities in U.S., Europe and Australia, similarly, the recently acquired GuideVision, which specializes in offering strategic advisory consulting and support on the ServiceNow platform in Europe. Kaleidoscope innovation is a great example of expansion in health care vertical in engineering services by strengthening presence in medical devices, consumer and industrial market across U.S. Similarly, if you look at the joint ventures that we have done, these are all with a strategic plan in specialized platforms and strengthens our geo footprint. For example, Stater in mortgage platform and financial services in Continental Europe, HIPUS in Japan and ICompaz in Singapore are examples of geo focus and expansion. The other areas like AI, data analytics and cybersecurity, which is increasingly showing up on the CXO agenda, continue to remain areas of focus for us. Let us look at few quotes and acknowledgments from industry analysts on our various acquisitions that we have done. They expect these acquisitions to help build capabilities and strengthen our digital services. And I'll pause here for a few seconds. That brings us to the second aspect on how do we identify a target and what do we look at when we evaluate a target. First and foremost is the cultural fit and alignment of vision. Culture, values and alignment of vision are very important as we look at people and companies to come on board. We believe these are founding stones and play a very significant role in success or failure of any acquisition. Secondly, we are always looking at assets that have a potential to become beachhead in the areas of their specialization in our key markets. We have also tried to do an early assessment of what will it take to integrate, be it go to market, business, IT, offerings, et cetera, as we evaluate any target. Valuation, returns and cash flows have also been very important to us. We've been very measured in the valuation that we pay. We've also tried and structured our purchase consideration as a combination of upfront and earn out as well as management incentive or retention bonuses. These structures ensure smooth transition, alignment of objectives and retention of talent and thereby achieving the object -- targeted value creation over time. Last but not the least, the real success of any transaction is its ability to cross-leverage and cross-pollinate. We try and capture all possible synergies, including upselling, cross-selling, driving downstream revenues, cost optimization through offshoring, G&A optimization and so on. Every dollar matters and every dollar counts. And there are various instances where we have been able to approach many engagements jointly and made a meaningful impact. For instance, WONGDOODY's early involvement and focused approach helped winning an engagement with a large pharmacy, where we created a vision for future, including modernization to deliver complete wellness, system automation that supports holistic view of customer health and freeing up users' time to enable clinical delivery and personalized patient care. In another instance, using WONGDOODY's experience capabilities, we built a solution for a large bank's corporate clients, mainly the treasurers. We provided consolidated view of their accounts across the globe with respect to risk, liquidity and personalized market intelligence with recommendations. Similarly, Fluido helped in creating a customer engagement transformation journey for an auto major, where we created a unified platform, and bringing dealers, customers, operators and service agents on a single platform. We also enabled sales executives with advanced analytics with respect to pipeline, dealer Net Promoter Score at their fingertips, enabling access to customer for products, spares over mobile and internet through e-commerce with an end-to-end integration to back-end inventory. This resulted in a superior service delivery and a customer experience. And these are just a few examples of the joint go-to-market and joint wins and deliveries that we have done, leveraging some of our recent acquisitions. And that brings me to the last but most important aspect of M&A, which is integration. Over the years, we have built a very comprehensive integration playbook. At the same time, we clearly understand that integration will have to be tailored to the need of each acquisition for it to be successful. These integration plans are carefully crafted, covers all aspects of integration, from people, culture, sales, brand, delivery, systems, processes, policies, et cetera. And there are different versions of it depending on the need of each acquisition. We have set up a central team to oversee the integration process and capturing the synergies. We also have a strong reporting and an early warning process to address issues, if any, or plan deviations. And while doing all of this, we have always, always ensured we set up a right structure, leverage the brand for differentiation and, most importantly, ensure agility to stay focused on growth. We believe a successful integration can create a multiplier effect. Using Infosys' platform, these companies can ride on our existing client base and expand across geos or industries. They can also leverage Infosys' strength of training, reskilling and a unique ability to quickly scale using our well oiled engine that supports talent acquisition, expansion in newer markets and so on. We have successfully leveraged this framework for all our assets, and we continue to do so. To summarize, we have done 10 acquisitions, including 3 JVS, $800 million of investment and onboarded 2,700 employees. These have helped us address capabilities gap where most of the talent is right in the market, doing upstream work that has helped us move up the value chain, driving downstream synergies, strengthen our ratings and positions in various service offerings, engage with different buying centers, whereby increasing our share of wallet, and we continue to have a strong pipeline, adequate capital allocation, strong balance sheet as we evaluate various assets. Thank you, and look forward to continued interaction.

Thank you very much, Jayesh. I believe we'll manage to gather some very interesting nuggets of insight from your session as well and your presentation. Well, ladies and gentlemen, Infosys is committed towards creating value for stakeholders. Now while a partnering client in their digital transformation journey, Infosys also has an unrelenting focus on shareholder return as well as governance. It is my honor now to welcome the Chief Financial Officer of Infosys, Mr. Nilanjan Roy, to share more thoughts on this.

Good morning, and good evening, everyone. Hope all of you are doing well and are safe. I am going to cover 2 topics, the first on shareholder value creation and a connected topic on our ESG vision, which speaks to the larger shareholder value creation. So if you see and as what Salil mentioned around our consistent execution of our strategy, our growth rates over the last 3 years continues to be industry-leading. We were near double-digit growth last year. And even in 2021, in the year of COVID in the first half, we are one of the only few large companies showing double -- continuously showing growth on a year-on-year basis as well, speaking to all the building blocks, which we put into place during 2019 and beyond our -- Navigating Your Next strategy. If you look at our operating margins as well, we made our investments in 2018 and '19 around our new Navigating Your Next behind localization, our pyramids, our large-scale reskilling. We saw some impact of that in 2019 and going into '20. And clearly, our guidance last year of 21% to 23% was demonstrating our stability of our margins and, of course, in this year, we have, of course, done better than that with some puts and takes, which I will talk to you a bit later in my presentation. So all in all, I think this is a very competitive growth, competitive performance. And we are quite pleased in terms of our track record of executing on our strategy. If you look at the cost management exercise, which we did at the beginning of COVID, in the early part of March, these were under 3 buckets, looking at the uncertainty of the impact of COVID on our clients, on our own business model. The first was around what we call the cost deferrals. These were largely temporary deferrals, which we did in terms of cost promotions for our employees in terms of our hiring, in terms of our compensation hikes. And of course, as you know, we have now rolled these back with our pay hikes now coming into effect from quarter 4, our promotions, of course, we kick started back in Q2 and hiring, of course, both on freshers and lateral talent has, of course, commenced as well to support our volume growth. The second, which we call the more temporary benefits and the cost deferrals in terms of cost reduction, these are more active cost levers, which we have deployed. Some of these, of course, naturally, because of COVID have come to the fall, like travel and visa cost, but some we have actually worked on in terms of our marketing, brand building costs, facility costs and other professional charges. We think some of these are, of course, on a more permanent basis here to stay as remote working picks up. And some of these will, of course, come back as we open up these expenditures again. And finally, our strategic cost levers, which we've been always talking about around onsite-offshore mix, automation, subcontractor costs, operating leverage, which I will talk to you in more detail. So if you see our -- first around AI and automation, I think one thing is very clear as we look ahead, the AI element in our automation exercise becomes much, much more rigorous as well. If we need to get sustainable automation benefits, this has to be backed up by sustainable AI as well. We've talked about an example in front of you around how a typical bot has been built in our automation factory. A call lands in our call center, it's on a ServiceNow platform, and our bot basically picks up what is the nature of that call, what was the intent of the call looking at past algorithms, and giving a resolution of what is the most likely resolution for such a call. We've built bot factory with about 3,000 active bots and growing every day. This has been rolled out across our delivery teams who now can use these on similar activities rather than rewriting automation programs for each and every business case. So I think on a sustainable basis, we think this is a leading-edge practice. We have, as you know, delivered over 20,000 FTE savings and repurposed them over the last 3 years, both giving these backup savings to our clients or giving these back to the bottom line of the company. The second initiative around our on-site mix. As you know, this is something we've been continuously looking at over the years, and we're seeing a steady improvement, part of this, of course, in the last quarter due to the COVID impact. But we believe, as we take new deals, new large deals, the proportion of work over the period of time can be offshored continues to increase and that's the trajectory we have seen. On the pyramid side, both on the on-site and offshore, historically, on-site pyramids have been much more steeper. But with our strategy on building out our 6 innovation hubs in the U.S. and in other geographies and our ability to hire freshers in mass from local community colleges, we believe we can improve -- continuously improve the pyramid, both on-site and offshore, and we have seen that continuing over the last 6 quarters as an index as we see that benefit as well flowing into the bottom line. In terms of our subcon costs, we continue to be one of the lowest in the industry in terms of utilization of subcons as well. And you can see the trends, we're down to 6.6% in our subcons. And our approach to subcons is actually not in terms of reducing the intake or the ingest of subcons into our businesses, but how fast we can replace these subcons either through hiring or through replacement with our own employees. Subcons, as you know, have a place in the business because of either talent shortage or in terms of lead times. And therefore, we still believe it's important to get subcons into the business, but to take them out as fast as we can so that we can reduce the cost impact. And finally, on SG&A costs, we can see a continuous improvement through our operating leverage, and we continue to invest back in frontline GTM and other frontline marketing activities with the benefits we get from our operating leverage. So through these -- some of these examples of the strategic levers, as we mentioned last year, we've delivered a target. We had a target of about $150 million. And this year, we are well going to exceed that. An important discussion point, I think, in a lot of people's mind is what is this remote working from home, working from everywhere bring to the business model as well. Now these are early days, but I think all in all, the impact of this is quite beneficial to the larger IT services industry. While it needs to be seen in terms of what will be the real financial impact, and that's something which will play out, but if you see from a positive impact, I think, most importantly, this will increase the availability of talent across -- in all geographies, which we operate in, both in India and on site. The availability of getting more people from Tier 2, Tier 3 cities rather than just looking at Tier 1 cities, where the hubs would be existing and where our DCs are. Similarly, ability to attract more talent in terms of gender and giving that flexibility to women workforce to join the digital economy. We can also, at the same time, with -- remote working from home, and as you know, today, more than 99% of our work has been delivered over the last 6 months from home, thanks to our investments in Agile and DevOps. And therefore, clients would prefer to be in the same time zone can work out -- we can work out of our innovation hubs. We can work out of near-shore locations as well. As you know, travel is something which has seen a massive reduction, and we've been able to pivot our go-to-market on a virtual method. Mohit has talked about that in his presentation. And we've been able pretty much to sign up about $3.1 billion of large deals virtually through a video call. So I think that's some of the benefits in the long run, which we will be able to see. And finally, in terms of facilities and infrastructure, we acquired ourselves with our campuses. But over a period of time, we say that a lot of the work can be done from home. In fact, as part of our ESG vision, we've announced that about 1/3 of our work in the medium to long-term can be delivered from home. And consequently, we would see some benefits of that onto our P&L as well. On the other hand, this will still require -- work from home will require investments, investments behind communication, behind IT infrastructure, behind communication platforms, behind collaborative tools as well. And of course, this will require permission of clients on a sustainable basis. But I think all in all, this is something which the industry can look forward to in the new ways of working in a hybrid model. Moving on to our capital allocation policy. As you know, last year, we revised our capital allocation policy to pay out more money to our shareholders and to give more predictability in their returns. So we increased our payout from 70% of our free cash flow to 85% and also over a period of 5 years, so that we can have a sustainable payout policy as well. Consequently, we have increased the focus in terms of our cash generation inside the company, as you can see, with steadily increasing cash flows. And in fact, this year, with a combination of higher margins, with a combination of higher -- tighter working capital management and lower CapEx, we have been able to increase the first half of cash flow by over 60% on a year-on-year basis as well. So consequent to that, if you see our dividends, we've been consistently increasing our dividends over the last few years. In fact, last year, during FY '20, of course, we took a pause in terms of our dividend payout due to the uncertainty of COVID, but I think we more than made up for that with a 50% increase in our H1 dividend over the last year as well. If we look at our overall shareholder return, which is something we monitor very closely, this is also something which is in-built into our management compensation plans. We continue to lead in terms of our rolling 3-year TSR. This is both from a return perspective, 120% return over 3 years, I think industry-beating returns, both in absolute and competitive returns as well. So this is something which we believe is as a result of this consistent strategy we have deployed and the building blocks on our Navigating Your Next strategy, which is helping us win in the marketplace as well. Moving on to our ESG. This is something we have just rolled out, as you would have seen in our press announcements last week. Infosys has always been at the forefront in terms of sustainability, and taking sustainability targets, which are ahead of the curve. Consequent to that, we've also announced our ESG vision of 2030 and also are meeting our sustainable -- our carbon-neutrality target in 2020, which is 30 years ahead of what we had announced in the Paris -- as per the Paris Accord as well. We believe this -- we are one of the few companies in the world to achieve this in terms of our holistic approach to carbon emissions and neutrality. And most of this, in fact, entire part of our carbon neutrality is meant through community projects and not through carbon credit purchases. Some of the highlights of our carbon neutrality is we've achieved about 25 million square feet of LEED platinum rated infrastructure. Our electricity across our campus, about 44% of that is through renewable sources. And over the last 12 years, our per capita consumption of energy has come down by about 55%. Like I mentioned, our carbon neutrality is 30 years ahead of the targets, which have been set by the Paris Agreement. Some of the achievements on our larger ESG over the last 10 years, you're well aware of what we've been doing on our diversity. We are now 38% of our workforce is women employees, 22% on the Board as well. If you see a community record in terms of our Infosys Foundation, we spend over $55 million a year across in terms of our giving back to the community and supporting the UN SDG goals where we operate as well. Our local talent, we have over 144 nationalities, and nearly 92% of our hiring is local -- talent of local origin as well. And our rewards, which we've seen across and our recognition, number one is from the UN. I think, again, one of the few companies, which receive the UN Global Climate Change award. We are part of a number of ESG ratings across the world and also in ESG Fund Indices, where Infosys is a part of as well. As you also know, in 2019, we were recognized by Forbes in terms of the Global Respected Company List being #3 as well, which is something we are very proud of. Looking ahead, in terms of 2030, I think we were very clear that our purpose has to be in terms of our sustainability has to be deeply entwined with the way we do business in the long run, and these 2 cannot be independently seen in terms of value creation and sustainable purpose, which is why our 2030 vision is more holistic and speaks to all the 3 pillars of environment, social and governance. On the environment side, whilst we continue to profess our carbon neutrality year-on-year, in terms of further stretching ourselves, we have decided to take absolute targets in terms of reductions of our emissions, both on scope 1, 2 and 3 as well. On the social dimension, I think 2 important parts in looking at our business model. One is, of course, reskilling and that -- digital talent at scale. You are all aware of our Lex platform where we train our own employees in digital skills. And we think it's important that we take this beyond our immediate employees to our clients, our clients' workforce and, of course, largely to -- also to the population in countries in terms of students in colleges and high school as well. And to that, we are launching a new program in India as well on digital talent, which we will take across the country. Similarly, in terms of diversity and inclusion, we are already one of the leading employees in terms of diversity of 38%, which we will take up during this period to 45% as well. On the energizing local communities, we've talked about, 1/3 of our work in the future we believe can be delivered remotely wherever employees are based and in a remote home environment, which we think, like I mentioned earlier, will help both in attracting talent as well as helping in our workforce diversity and our cost structure. Finally on the governance and vision, 2 important call outs is on the data privacy, which is becoming very, very critical, both for our employees and for our clients' data, which we handle and how we will adopt leading practices on data privacy, and also an information management where we have a securities -- information security practice, how we will work and adopt information practices, which are leading across the world. We think this ESG vision, which is quite pathbreaking in the context of the environment we operate, is something which we will continuously challenge and look forward to and wishing this can set good milestones for other companies to follow in terms of their ESG vision as well. So with that, I would like to wrap up my session for the evening, and hand over to the moderator. Thank you.

Thank you very much, Nilanjan, for sharing those dynamic thoughts, especially on how sustainability has been at the core of value creation. So thank you so much. [Presentation]

All right. It's finally the time that all of you have been waiting for. And let me also inform you all that while we may have limited time, we'll try answering as many questions as possible. So please keep posting your questions in the Q icon in the questions tab. And so with that, what we're going to do now is actually bring 3 of our speakers here on the hot seat to answer your questions. So may I please welcome Salil Parekh, Pravin Rao and Nilanjan Roy, and let's have them all here on the hot seat.

Hello. Hi, everyone.

Hi, good evening everyone.

All right. Welcome, indeed, Nilanjan, Salil, Pravin. And as I was telling the attendees, we're putting on the hot seat, actually, to answer the questions. So give me a thumbs up if you're ready to deep dive in already.

All set.

Yes. All set. All right. So then on that note, as indeed, keep posting your questions. What we'll do first up is get these questions that we already received from our attendees beforehand. And I have these questions with me. So let me start off with the first question. Now the first question is actually a very common one that we received from Diviya Nagarajan from UBS and Rishi Jhunjhunwala from IIFL. And the question is, we are now past the 3-year mark that the management has set out for itself. So what are the next steps in terms of strategic direction and investments for the company?

So thanks for that question. The way we're looking at it is, first, we've set our plan for 3 years. We've been fortunate that several of the decisions we made on digital, on automation, reskilling, localization have all paid out quite well, as you saw through the entire session. Many of those have resulted in good outcomes for the company over the past couple of years. At this stage, with the COVID situation, we're in the middle of even more acceleration. We are continuing our focus with digital with cloud. And indeed, with that program, we continue to see more acceleration as we go through. The main focus really for us is going to be as we start to think of what will the next 3 to 5 years hold, you heard from Nandan, there's some mega trends that are propelling our industry, our clients, and those are the trends that continue to dominate a lot of the work that we're doing. But we're really happy with the digital and cloud focus that we have for now, and that's giving us a lot of growth and benefit.

Thank you, Salil, for answering that. And with that, let's move on to the next question. This is from Surendra Goyal from Citi. And Surendra asked that given the expectations of growth, returning to prepandemic levels and likely higher offshore, what are your thoughts on the supply side for next year? And with high utilization with limited head count increase, is there a risk that hiring staff across the board and results in spike in attrition and high bench pressures?

This is Pravin. I can take that question. Overall, as you are aware, the voluntary attrition has come down dramatically. This quarter, it was less than 8% as compared to over 18% about a year back. Definitely, part of it is due to COVID and low demand. But a significant part of it is also due to various people initiatives that we have taken in the past few quarters. In addition, we have gone the extra mile during the COVID pandemic, which Salil and myself talked about earlier in our presentation, people are very appreciative of it. So net-net, we expect -- while the attrition will probably increase going forward, we expect it to be lower than a typical attrition of 13% to 15%, which we are normally comfortable with. I mean that's what we take in our audit. And on the supply side, we are fairly equipped. We have about 16,500 freshers joining us this year. Next year, we expect about 15,000 plus to join us as well. In terms of lateral as well in quarter 2, we added about 2,300 people globally. So we are gradually ramping up -- ramping back on our recruitment capability as well. So we'll get the momentum in a quarter or so. So I don't anticipate any challenges on the supply side, and we are well equipped to deal with the growth opportunities that come our way.

Thank you, Pravin. And from what I see, we are getting a lot of insightful questions as well. So let's move on to the next one. And this is from Yogesh Aggarwal from HSBC. And Yogesh says that over the next 2 to 3 years, can we expect significant reduction in CapEx and hence the D&A. And even if assume 20% to 30% of the workforce may work from home, that should lead to decent reduction in CapEx and hence D&A over the next few years. So what will be the margin implications of the same?

Okay. Thanks, Yogesh. I think you've bundled 5 questions into that. But I think, firstly, you've seen over the last few years, we have steadily brought down our CapEx as a percentage of our revenue. Clearly, of course, with work from home, the infrastructure elements of the spend will come down. If you look at in any company's spend on CapEx, basically, it's in 2 parts today, it's in infrastructure mostly and there's a technology aspect as well. Now of course, with COVID, the technology spend will go up as you start spending more behind laptops, behind communication, behind such tools, infrastructure tools, so that part will see an increase. But of course, with work from home, you will see the infrastructure element coming down as well. So I think the pivot, where today it's more infrastructure heavy and slightly lighter in terms of spend, I think that will flip around. And overall, yes, it should have, I think, a positive impact on the overall CapEx of our company. I think a bit premature to say what will be the margin impact. I think probably all of you already know the spreadsheets and are modeling that ahead of us.

Thank you, Nilanjan. I think that fairly answers actually Yogesh's question. And so meanwhile, let me also inform the attendees, please keep posting your questions in the question tab. And with that, let me also now bring forth the next question for you all. This is from Nitin Padmanabhan from Investec. And Nitin is asking how does SAP's change in strategy impacts the maintenance part of the business considering SAP expects most of its clients to shift to the cloud by the end of 2022. So what could be the potential impact on the revenue?