Company: INFY
Filing Date: 2025-07-01
Form Type: 20-F
Source: 0000950170-25-091925
Chunk: 90

Company: Infosys Ltd
Filing Date: 2025-07-01
Form: 20-F
Item: Item 5
Chunk 90
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 the initial deal period.

Life sciences profitability was lower in fiscal 2025 mainly on account of lower realization, higher cost of third-party items bought for service delivery to clients as part of deals and higher onsite mix.

Our revenues are also segmented into onsite and offshore revenues. The table below sets forth the percentage of our revenues by location from billable IT services professionals for fiscal 2025 and fiscal 2024:

                   Percentage of revenues                       
                   Fiscal 2025                 Fiscal 2024      
Onsite revenue     52.3            %           52.4            %
Offshore revenue   47.7            %           47.6            %

We typically assume full project management responsibility for each project that we undertake. We divide projects into components that we execute simultaneously at client sites and our Development Centers located outside India (‘onsite’) and at our Global Development Centers in India (‘offshore’). The proportion of work performed at our facilities and at client sites varies from period-to-period. We charge higher rates and incur higher compensation and other expenses for work performed onsite. The services performed onsite typically generate higher revenues per-capita, but at lower gross margins in percentage as compared to the services performed at our own facilities in India. As a result, our total revenues, cost of sales and gross profit in absolute terms and as a percentage of revenues fluctuate from period-to-period.

The table below sets forth details of billable hours expended for onsite and offshore on our IT services professionals for fiscal 2025 and fiscal 2024:

                    Fiscal 2025         Fiscal 2024    
Onsite effort              23.9   %            24.5   %
Offshore effort            76.1   %            75.5   %

Revenues from software services including BPM services represented 95.3% and 94.5% of total revenues for fiscal 2025 and fiscal 2024, respectively. We also generate revenue from products and platforms, which represented 4.7% and 5.5% of our total revenues for fiscal 2025 and fiscal 2024, respectively.

The percentage of revenue from fixed price contracts for fiscal 2025 and fiscal 2024 was approximately 54% and 53%, respectively.

Revenues and gross profits are also affected by employee utilization rates. We define employee utilization for IT services as the proportion of total billed person months to total available person months, excluding sales, administrative and support personnel. We manage utilization by monitoring project requirements and tim