Infosys Nilu

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    COMPANY PROFILE:

    Infosys is one of the largest businesses in India with revenue of about 7 billion USD in financial year

    2012-13. The company specializes in Information Technology (IT) and consulting. N.R. Narayana Murthy

    and six others started the company in 1981, and it is now the largest IT Company in India with its

    headquarters in Bangalore (although it was started in Pune). It employs more than 90,000 ITprofessionals and was famously rated 'Best Employer in India. It operates in a number of business

    sectors from banking to retail, and its services tend to encompass end-to-end IT solutions which includes

    a whole bundle of added-value solutions from infrastructure to software engineering.

    Infosys Technologies Ltd. was started in 1981.

    Its initial investment was $ 250 US.

    Today, it is a global leader in the "next generation" of IT and consulting.

    Infosys serves the client globally and is one of the pioneers in strategic off shore

    outsourcing of software services

    Milestones:

    In 1987 Infosys got its first foreign client.

    In 1993, Infosys became a public limited company.

    In 1999, Infosys crossed $100 Million and was listed on NASDAQ.

    In 2006, Infosys completed 25 years of its existence and its revenues crossed $ 2 billion.

    Today Infosys has more than 1,03,078 employees and has presence in more than 20 countries

    across the world. Its corporate headquarters is in Bangalore

    Infosys moved up to No. 14 on FinTech 100

    Infosys was awarded the Indias best company to work for in 2009.

    A leader in SAP implementation services.

    VISION of INFOSYS:

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    To be a globally respected corporation that provides best-of-breed business solutions,

    leveraging technology, delivered by best-in-class people."

    MISSION:

    To achieve our objectives in an environment of fairness, honesty, and courtesy towards ourclients, employees, vendors and society at large."

    Infosys pioneered the Global Delivery Model (GDM), based on the principle of taking work to

    the location where the best talent is available, where it makes the best economic sense, with

    the least amount of acceptable risk. Continued leadership around GDM enables Infosys to drive

    extraordinary efficiencies and free up clients resources for strategic transformation or

    innovation initiatives.

    Infosys has a global footprint with 68 offices and 70 development centers in US, India, China,

    Australia, Japan, Middle East, UK, Germany, France, Switzerland, Netherlands, Poland, Canadaand many other countries. Infosys and its subsidiaries have 151,151 employees as on June 30,

    2012.

    Infosys takes pride in building strategic long-term client relationships. 99.1% of our revenues

    come from existing customers (Q1 FY 13).

    Infosys gives back to the community through the Infosys Foundation that funds learning and

    education.

    Infosys is delivering measurable business value in 3 ways:

    Transform

    We can transform the fundamental shape of your business P&L. Regardless of which team you

    engage with, we have a best-practice process for delivering value. We call it IMPACT to ensure

    a clear line of sight from process change to bottom-line impact, ensuring that you receive the

    business value you were promised.

    Optimize

    Beyond transformation and innovation, it boils down to execution - delivering on time, on

    budget and "on value". We can optimize your core operations to drive best-in-class efficiencyand help fund the transformation and innovation.

    Innovate

    We can inject a level of product and service innovation into your business to create new

    revenue opportunities through collaboration and co-creation. We keep abreast of the latest

    technology and how it applies to your business issues. What you get from us is best-of-breed

    http://www.infosys.com/global-sourcing/global-delivery-model/pages/index.aspxhttp://www.infosys.com/contact/pages/index.aspxhttp://www.infosys.com/contact/pages/index.aspxhttp://www.infosys.com/global-sourcing/global-delivery-model/pages/index.aspx
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    solutions. The foundation of our innovation capability is our core lab network Infosys Labs

    and the new thinking that our team of over 600 researchers brings to the table.

    Current Position of IT ITES Sector of India

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    SWOT analysis of Infosys:

    Strengths

    Since the company is based in India its competitive advantage is enhanced. The Indian

    economy, despite weak economic indicators such as relatively high rates of inflation, has

    low labor costs. The workforce has relatively high skills levels in Information Technology.

    Couple these two elements together and you have an operational basis that offers low-

    cost based, highly skilled competitive advantage. Trained Indian personnel often speak

    very good English and are sensitive to Western culture, underpinned by India's colonial

    past.

    Infosys is in a strong financial position. The business turned over more than $4 billion in

    2008. This means that it has the capital to expand, and also the basis to leverage

    potential investors.

    The company has bases in 44 global development centers, most of which are located in

    India, although the company has offices in many developed and developing nations. This

    means not only that Infosys is becoming a global brand but also that it has the capability

    to support the global operations of multinational clients.

    Weaknesses

    Infosys on occasion struggles in the US markets, and has particular problems in securing

    United States Federal Government contracts in North America. Since these contracts are

    highly profitable and tend to run for long periods of time, Infosys is missing out onlucrative business. Added to this is the fact that its competitors do well in terms of

    securing the same Federal business (and one should also take into account that many of

    its competitors are domiciled in the US and there could be political pressure on the US

    Government to award contracts to domestic organizations).

    Despite being a huge IT company in relation to its Indian competitors, Infosys is much

    smaller than its global competitors. As discussed above, Infosys generated $4 billion in

    2008, which is relatively low in comparison with large global competitors such as

    Hewlett-Packard ($91 billion), IBM ($91 billion), EDS ($21 billion) and Accenture ($18

    billion). It is sometimes argued that Infosys is weaker when it comes to high-end management

    consultancy, since it tends to work at the level of operational value creation.

    Competitors such as IBM and Accenture tend to dominate this space.

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    Opportunities

    At a time of recession in the global economy, it may appear that some companies will

    reduce take up of services that Infosys offers. However, in tough times clients tend to

    focus upon cost reduction and outsourcing - with are strategies that Infosys offers. So

    hard times could be profitable for Infosys.

    There is a new and emerging market in China as the country undergoes a huge industrial

    revolution.

    The strategic alliance between Infosys and Schlumberger gives the IT company access to

    lucrative business in the gas and oil industries.

    There has been a trend over recent years for European and North American companies

    to base some or all of their operation in India. This is called an offshore service.

    Essentially there is a seamless link between domestic operations and services hosted in

    India. Examples include telecommunications companies such as British Telecom and

    banks such as HSBC that have customer service and support centers based in India.

    Think about the times that you have made calls to a support line to find that the adviser

    is in Mumbai or Bangalore and not in your home market.

    Threats

    India is not the only country that is undergoing rapid industrial expansion. Competitors

    may come from countries such as China or Korea where there are large pools of low-

    cost labor, and developing educational infrastructures such as universities and

    technology colleges. Customers may switch to other offshore service companies in other countries such as

    China or Korea.

    Other global players have realized that India has the benefit of low-cost, highly-skilled

    labor that often speaks English and is culturally sensitive to Western practices. As with

    all global IT players, Infosys has to compete for skilled labor and this may have the effect

    of driving up wage levels, and making it more difficult to recruit and retain staff.

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    STRATEGIC ANALYSIS

    CORPORATE LEVEL STRSTEGIES: CORE STRATEGIES:

    Global Delivery Model Producing where it is most cost effective to produce & selling

    where it is most profitable to sell.

    Moving up the Value Chain Getting involved in a software development project at the

    earliest stage of its life cycle.

    PSPD Model Predictability of Revenues, Sustainability of Revenues, Profitability, De -

    risking for risk management.

    ACTION TAKEN:

    To maintain low-cost advantage they have opened offices in Czech Republic, Mauritius,

    Poland, Philippines, Thailand and Mexico. Inves