Infosys

INTRODUCTION TO IT SECTOR

IT-BPO industry in India has today become a growth engine for the economy,

contributing substantially to increases in the GDP, urban employment and exports, to

achieve the vision of a “young and resilient” India.

While the effects of the economic crisis are expected to linger in the near term future,

the Indian IT-BPO industry has displayed resilience in countering the unpredictable

conditions and reiterating the viability of India’s fundamental value proposition.

Consequently, India has retained its leadership position in the global sourcing market.

The Indian IT-BPO industry is estimated to achieve revenues of USD 71.7 billion in

FY2012, with the IT software and services industry accounting for USD 60 billion of

revenues. During this period, direct employment is expected to reach nearly 2.23

million, an addition of 226,000 employees, while indirect job creation is estimated to

touch 8 million.

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INFOSYS – PROFILE

Infosys Technologies was started in 1981 by seven professionals with US $250. The

company designs and delivers technology enabled business solutions.

Their offerings span business and technology consulting, application services, system

integration, product engineering, custom software development, BPO etc.

The company has 104850 employees and a large global presence in India, China,

Australia, Poland, UK, Canada and Japan.

VISION

"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 our clients, employees, vendors and society at large”.

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ORGANIZATION STRUCTURE

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ACHIEVEMENTS

1. First Indian company to be listed on a US stock exchange and the first

company to do a Public offering without listing

2. Ranked number 14 among the most respected companies in the world

3. Listed on the Forbes Asian Fabulous 50 for the fourth consecutive year.

4. Five time ‘Global MAKE Winner’.

5. Championed Corporate Governance in India.

VALUE SYSTEM

The value systems that underscores their commitment to these achievements are-

CUSTOMER DELIGHT

It mainly deals with giving the customer the perfect solution to his problem.

Furthermore, the company tries its level best to keep hold of that customer which has

now become one of the most important things in running a business or a company.

LEADERSHIP BY EXAMPLE

Infosys as accompany, from its earliest stages have always been leading in its own

area of excellence. The company had a humble beginning and then grew due to its

core values, vision and its mission.

INTEGRITY AND TRANSPARENCY

The company has always integrity within itself and also with the government helping

the company and India as a whole in carrying them forward in to the global market.

FAIRNESS

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The company always has maintained a standard in maintaining fairness in all regards

of its operation and towards its customer and the nation.

PURSUIT OF EXCELLENCE

Infosys as a company has always believed in excellence in whatever it provides. This

extraordinary belief has taken to the heights at which they are present now.

INITIAL GOALS

They started off with one client and right from the beginning understood the concept

of an offshore delivery model. Conceptually, they tried to leverage globalization for

customized software development - producing where it is most cost-effective, and

selling where it is most profitable, all without being constrained by national

boundaries. Infosys believed that the key to success is to ensure that it executes our

engagements well every time. We have based our whole operation on a foundation of

strong value systems. We were careful never to compromise on that despite many

challenges.

PRESENT GOALS OF INFOSYS

AREA OF GOVERNANCE

To define and implement a training module and create awareness about sustainability.

Status-It was achieved by providing sustainability training for seniors

PRODUCT RESPONSIBILITY

Sustain customer satisfaction in the annual customer survey.

Status- It was achieved; the overall customer satisfaction was at 81 %

ENERGY

Monitor energy consumption to become energy efficient.

Status- This was achieved by implementing new monitor mechanisms.

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Reduce per capita energy consumption by 5 %.

Status- This was partially achieved by reducing the per capita electricity

consumption to 10%.

ENVIRONMENT

Plant a tree for every new employee

Status- Below the target – planted 16,000 trees in Mangalore.

HUMAN RIGHTS

Create a framework for employees, suppliers and vendors to be educated on human

rights.

Status- Below target- developed a basic training module on human rights which will

be implemented in 2010.

EMPLOYEE ENGAGEMENT

Track impact of employee health related activities.

Status- Target achieved by receiving feedbacks after health check ups.

SOCIETY

Define and implement metrics for measurement.

Status- Achieved target by developing guidelines and dashboards.

FUTURE GOALS OF INFOSYS FOR THE YEAR 2013-

2014

STRATEGIC LEVEL

1. They will develop processes to integrate business and sustainability goals.

2. Improve accountability in the business units through iSOP framework.

3. Strive to meet stringent short term goals.

OPERATIONAL LEVEL

1. 5% reduction in energy, water and carbon foot print.

2. To educate vendors on our green procurement policies.

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3. To create Large, global deals

4. Continued linear relationship between revenue-manpower

To implement Enterprise scale Solution Design and Integration as key focus

areas in the telecom sectors.

KEY INDUSTRIES

(Infosys Media Centre in Bangalore.)

Infosys serves various industries through its Industrial Business Units (IBU), such as:

Banking & Capital Markets (BCM)

Communications, Media and Entertainment (CME)

Energy, Utilities and Services (EUS)

Insurance, Healthcare and Life Sciences (IHL)

Manufacturing (MFG)

Retail, Consumer Product Goods and Logistics (RETL)

New Markets and Services (NMS) : Non US and Non European markets,

SaaS, Learning Services

Finance : Core Banking Product

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IMPLEMENTATION OF PLAN (RECENT

ONE)

RFID ARCHITECTURE STRATEGY

EXECUTIVE SUMMARY

Early Adopters of RFID are beginning to look beyond proof of concept pilots and

field trials. Enterprise scale Solution Design and Integration are emerging as key

focus areas. Key to success in both of them is the architecture for integrating data

from the RFID hardware layer with a multitude of Enterprise Systems. A Large

Enterprise piloting RFID in multiple global sites is recognizing the limitations of a

traditional Enterprise scale Application Server in performing RFID Middleware

functions. A European Specialty Retailer seeking to adopt RFID is grappling with the

cost of ownership implications of Point Solutions for RFID integration. Both of these

Enterprises are recognizing the need for a RFID Architecture Strategy.

Implementation of this plan presents Infosys views on a optimal RFID Architecture

Strategy Approach for Enterprises based on lessons learnt from Early Adopters and

Infosys experience in providing Real Time Control and Data Acquisition Solutions in

the Telecom and Process Control Industries.

PITFALLS AND LESSONS LEARNT FROM EARLY ADOPTER PILOTS

A common refrain across Early Adopter Pilots is that RFID Applications are quite

unlike I.T. applications that have been traditionally implemented within Enterprises.

The contact-less communication between the tags and readers and its sensitivity to

the physical environment together adds a new dimension. Enterprises are evolving

implementation strategies mindful of the many challenges posed by RFID across

layers.

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BUSINESS PROCESS TRANSFORMATION

Early Adopters are recognizing that the value of RFID lies in operational efficiencies

resulting from changes in business processes. These Enterprises continue to be

challenged however in determining how processes can be improved in a RFID

enabled enterprise.

RFID characteristics for business include:

• Readability

• Rate

• Accuracy

• Duplicates

• Interference

• Programmability

• Memory

DATA COLLECTION

Early Adopters especially those with Global Deployments are grappling with the

question of which Technology/Vendor to bet on. They are recognizing that choosing

of RFID Tags and Readers is dependent on multiple variables. These Enterprises

recognize the strategic nature of the technology and design decisions to be made in

this layer and are evolving vendor selection strategies balancing the below

considerations:

• Geographic spectrum and power regulations

• Multiplicity of air interface protocols

• Standards based Interoperability across vendors

• 3rd party certifications for standards compliance

• Maturity and failure rates of vendor specific products

• Protocol performance benchmarks for vendor specific products

• Packaging material modification challenges and costs

• Security and Privacy Policies and Commitments

• Financial viability of vendors

Early Adopters are also recognizing that vendor selection needs to factor how

business processes will be changed to leverage the technology

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THE NEED FOR A RFID ARCHITECTURE STRATEGY

RFID is clearly a disruptive technology. But to ensure that enterprises realize its

potential optimally, it is important that they understand the multi-dimensional impact

that such disruptive technologies have on the enterprise. A critical element of this is

to have an RFID Architecture strategy.

Different layers within the Enterprise are likely to be impacted differently. It is

important for all parts of the Enterprise to develop a common understanding of what

this impact is and what it means to existing investments. It is also important to help

identify what new investments will be required to be made within the Enterprise. A

key area of concern for Enterprises adopting disruptive technologies is the Total Cost

of Ownership. By clearly understanding the impact on existing investments and by

evolving a holistic view of new investments, Enterprises will be able to better

manage the TCO by future proofing investments and putting in place the right

architecture for new investments.

INFOSYS VIEWS ON RFID ARCHITECTURE STRATEGY

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Infosys believes that current approaches to RFID Integration generally suffer from

many deficiencies, ranging from a point solution approach to confusing RFID with

EAI. Adopting traditional enterprise architecture design approaches to RFID run the

risk of failure on account of not recognizing the true nature of RFID Integration.

RFID Integration is about Real Time Asynchronous Event Handling and Real Time

State-based decision making. RFID Integration calls for an architecture design

paradigm that reflects this.

The RFID Architecture Strategy should enable Enterprises to take a holistic view of

the impact of the RFID Business Vision on their Enterprise. The RFID Architecture

Strategy should enable Enterprises to create a platform that will help realize the RFID

Business Vision through Value Creating RFID Applications deployed in a Low Total

Cost of Ownership Environment that is flexible, extensible and future proof.

To assess the complexity of implementing RFID and the impact on existing systems

and infrastructure Infosys has evolved a 7 Layer Reference Model for RFID that can

be the basis for Business and IT to share a common understanding and vision of a

RFID enabled Enterprise. This model provides a layered view of the technology,

infrastructure and process elements that constitute a RFID implementation within an

enterprise. Drawing upon its experience in developing Real Time Asynchronous State

Event Handling Solutions in the Telecom and Networking world, Infosys has evolved

a robust Functional Model and Reference Architecture for designing and integrating

Enterprise scale RFID Applications.

The 7 Layer Reference Model, together with the Functional Model and the Reference

Architecture provide a robust foundation for any RFID Architecture Strategy by:

• Deconstructing the complexity of RFID by providing a layered view

• Identifying the impact of RFID on existing layers within the Enterprise

• Identifying new layers to be implemented by the Enterprise

• Providing a framework to analyze RFID Business Requirements to articulate RFID

Application Requirements.

• Providing a framework to design RFID Application Scenarios within the Event

management Layer

• Providing a Reference Architecture to demonstrate how RFID Events of Business

Significance are integrated with Enterprise Systems

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ORGANIZATION BEHAVIOUR AND

PRACTICES

LEADERSHIP STYLE:

Infosys believes that leadership is one of the most essential ingredients of

organizational success which is provided by its Chairman, N R Narayanmurthy.

Leadership is based on high business vision and predominantly supportive styles.

There is emphasis on developing leadership qualities among employees. For this

purpose, it has established “Infosys Leadership Institute”. Top management

emphasizes on open door policy, continuous sharing of information, takes inputs

from employees in decision making, and builds personal rapport with employees. As

we have seen over last few years, they have seen smooth transition from N R

Narayanmurthy to Nandan Nilakeni and from Nandan Nilakeni to Kris

Gopalkrishnan without any adverse effects on the company outlook and each one has

proved to be an able leader taking company forward.

STAFF (HUMAN RESOURCES) :

Since Infosys is in knowledge-based industry, it focuses on the quality of the human

resources. Out of total personnel, about 90 per cent are engineers. At the entry level,

it emphasizes on selecting candidates who find the company’s meritocratic culture

satisfying, superior academic records, technical skills, and high level of learn ability.

The company emphasizes on training and development of its employees on

continuous basis and spends about 2.65 per cent of its revenues on up gradation of

employees’ skills, and around 50% as employee costs. In spite of thousands of people

joining every month, Infosys has been able to maintain its training standard mostly

due to its highly matured processes capabilities and investment in infrastructure.

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STRATEGY :

Infosys has adopted a client-focused strategy to achieve growth. Rather than focusing

on numerous small organizations, it focuses on limited number of large organizations

throughout world. In order to cater its clients, the company emphasizes on custom-

built software’s. Another differentiating factor for Infosys is that it commands

premium margins. Company does not negotiate over margins beyond a certain limit

and some time prefers to walk-out rather than compromise on quality for low-cost

contracts. This has helped in building an image for quality driven model rather than

cost-differentiating model. Increase business from existing and new clients: Infosys

has focused on expanding the nature and scope of engagements for the existing

clients by increasing the size and number of projects and extending the breadth of its

service offerings. For new clients, it provides value added solutions by leveraging its

in-depth industry expertise.

DEVELOP DEEP INDUSTRY KNOWLEDGE :

Infosys has specialized industry expertise in the financial services, manufacturing,

telecommunications, retail, transportation and logistics industries. Enhance brand

visibility: Infosys invests in the development of its premium brand identity in the

marketplace by participating in media and industry analyst events, sponsorship of and

participation in targeted industry conferences, trade shows, recruiting efforts,

community outreach programs and investor relations. Pursue alliances and strategic

acquisitions: Infosys is known for its organic growth (risk averse) strategy though it

has strategic alliance with leading technology providers take advantage of emerging

technologies in a mutually beneficial and cost-competitive manner.

SHARED VALUES :

Values are important part of Infosys’s organizational culture. In fact its tagline

depicts how much emphasis it lays on core values. The core values are:

A commitment to surpass customer expectations.

Leadership by Example: A commitment to set standards in business and

transactions and be an exemplar for the industry and teams.

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Integrity and Transparency: A commitment to be ethical, sincere and open in

our dealings.

Fairness: A commitment to be objective and transaction-oriented, thereby

earning trust and respect.

Pursuit of Excellence: A commitment to strive relentlessly, to constantly

improve ourselves, our teams, our services and products so as to become the

best. Organizational Structure: The Company has adopted a free form

organization devoid of hierarchies. Everyone is known as associates

irrespective of his position in the company.

SKILLS:

From last year, Infosys has made it mandatory for every employee to clear a

predefined certifications, domain as well as technical, in order to be eligible for

appraisal.

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CORPORATE STRATEGIESGlobal 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.

GENERIC STRATEGIES:

Low cost

Global delivery

24/7 Model

Little differentiation in low-end services of value chain

High differentiation in high end services of value chain like software products and

package solutions.

Focus on quality, customer relationship management, timely-delivery.

CONCENTRATION:

90% of Infosys revenues come from American and European nations.

VERTICAL INTEGRATION :

Infosys made a bid to acquire a European major – Axon consultancy to improve its

business in European markets, but finally called off the deal due to high valuation.

Otherwise, Infosys has always believed in organic growth.

INNOVATION :

The Software Engineering and Technology Labs (SETLabs) at Infosys is the centre

for applied technology research in software engineering and enterprise technology.

SETLabs conducted 24 Innovation Workshops with customers from the US and

Australia, to identify research collaboration possibilities. Infosys promotes a

favourable work environment that encourages innovation and meritocracy.

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INFLUENCE OF EXTERNAL FACTORS1. Political stability: Indian political structure is considered stable enough except the

fact that there is a fear of hung parliament (no clear majority).

2. U.S. government has declared that U.S companies that outsource IT work to other

locations other than U.S. will not get tax benefit.

3. Government owned companies and PSUs have decided to give more IT projects

to Indian IT companies.

4. Terrorist attack or war.

ECONOMIC

1. Global IT spending (demand)

2. Domestic IT Spending (Demand): Domestic market to grow by 20% and reach

approx USD 20 billion in 2010-11 - NASSCOM

3. Currency Fluctuation

4. Real Estate Prices: Decline in real estate prices has resulted reducing the rental

expenditures.

5. Attrition: Due to recession, the layoffs and job-cuts have resulted in low attrition

rate.

6. ECOMONIC ATTRACTIVENESS due to cost advantage and other factors

TECHNOLOGICAL

Telephony:

a. India has the world’s lowest call rates (1-2 US cents).

b. Expected to have total subscriber base of about 500 million by 2010.

c. ARPU for GSM is USD 6.6 per month.

d. India has the second largest telephone network after china.

e. Teledensity – 19.86 %

f. Enterprise telephone services, 3G, Wi-max and VPN are poised to grow.

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INTERNET BACKBONE: Due to IT revolution of the 90s, Indian cities and India

is well connected with undersea optical cables.

NEW IT TECHNOLOGIES: Technologies like SOA, Web 2.0, High-definition

content, grid computing, etc and innovation in low cost technologies is presenting

new challenges and opportunities for Indian IT industry.

LEGAL

IT SEZ requirement: IT companies can set up SEZ with minimum area of 10

hectares and enjoy a host of tax benefits and fiscal benefits.

Contract / Bond requirements: Huge debates surrounding the bonds under which

the employees are required to work, which is not legally required.

IT Act: Indian government is strengthening the IT act, 2000 to provide a sound legal

environment for companies to operate esp. related to security of data in transmission

and storage, etc.

Companies operating in Software Technology Park (STPI) scheme will continue to

get tax-benefit till 2010

ENVIRONMENTAL

Energy Efficient processes and equipments: Companies are focusing on reducing

the carbon footprints, energy utilization, water consumption, etc.

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WORK FORCE DIVERSITY

A global company's employee base should reflect the diversity of the world it serves.

Infosys thus strives to employ people representing the widest possible variety of

nationalities, cultures, genders and gender identities, employment histories, and levels

of levels of physical ability. In doing so, the company is able to recruit new

employees from all available global talent pools and provide paths to employment to

all members of world societies, including talented individuals from groups who may

have in the past been underrepresented within the IT industry. Within such a diverse

company, people bring to the workplace contrasting opinions and worldviews. As

these people interact, they develop new ideas, methods, and perspectives. Infosys

recognizes and promotes this power of diversity to drive innovation.

Infosys actively fosters inclusivity across all of its business units and in every one of

its company offices. It encourages all employees to focus on the commonalities they

share and leverage their differences towards productive teamwork. Inclusivity

ultimately makes for a more informed and sensitive employee base that is better able

to serve clients.

Infosys was the first Indian IT company to establish a company office to manage and

drive all company initiatives dealing with diversity and inclusion. Today we have

employees from over 70 countries. Women constitute more than 32% of our

workforce.

Infosys Women Inclusivity Network (IWIN) promotes a gender-sensitive work

environment. IWIN recognizes the unique aspirations and needs of women. It

provides avenues for vocational, personal and psychological counsel to enable

professional and personal development. Our new Family Matters Network provides

support to employees on parenting matters. On International Women’s Day 2010,

Infosys honoured women employees who have been catalysts of social change.

Infosys also launched Spark Guru, an initiative to awareness among school teachers

in rural areas about social issues.

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Infosys actively seeks to hire and train persons with disabilities. In 2006 and 2007,

Infosys BPO received the Helen Keller award for the best employer from the

National Centre for Promotion of Employment for Disabled People (NCPEDP).

BENEFITS OF WORKPLACE DIVERSITY

An organization’s success and competitiveness depends upon its ability to embrace

diversity and realize the benefits. When organizations actively assess their handling

of workplace diversity issues, develop and implement diversity plans, multiple

benefits are reported such as:

INCREASED ADAPTABILITY – Organizations employing a diverse workforce

can supply a greater variety of solutions to problems in service, sourcing, and

allocation of resources. Employees from diverse backgrounds bring individual talents

and experiences in suggesting ideas that are flexible in adapting to fluctuating

markets and customer demands.

BROADER SERVICE RANGE - A diverse collection of skills and experiences

(e.g. languages, cultural understanding) allows a company to provide service to

customers on a global basis.

VARIETY OF VIEWPOINTS - A diverse workforce that feels comfortable

communicating varying points of view provides a larger pool of ideas and

experiences. The organization can draw from that pool to meet business strategy

needs and the needs of customers more effectively.

MORE EFFECTIVE EXECUTION – Companies that encourage diversity in the

workplace inspire all of their employees to perform to their highest ability. Company-

wide strategies can then are executed; resulting in higher productivity, profit, and

return on investment.

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CHALLENGES OF DIVERSITY IN THE

WORKPLACE

Taking full advantage of the benefits of diversity in the workplace is not without its

challenges. Some of those challenges are:

COMMUNICATION - Perceptual, cultural and language barriers need to be

overcome for diversity programs to succeed. Ineffective communication of key

objectives results in confusion, lack of teamwork, and low morale.

RESISTANCE TO CHANGE - There are always employees who will refuse to

accept the fact that the social and cultural makeup of their workplace is changing.

The “we’ve always done it this way” mentality silences new ideas and inhibits

progress.

Implementation of diversity in the workplace policies - This can be the overriding

challenge to all diversity advocates. Armed with the results of employee assessments

and research data, they must build and implement a customized strategy to maximize

the effects of diversity in the workplace for their particular organization.

SUCCESSFUL MANAGEMENT OF DIVERSITY IN THE WORKPLACE -

Diversity training alone is not sufficient for your organization’s diversity

management plan. A strategy must be created and implemented to create a culture of

diversity that permeates every department and function of the organization.

Diversity also increases errors and misunderstandings - Group members may assume

they interpret things similarly when in fact they do not, or they may disagree because

of their different frames of references.

MISTRUST AND TENSION - People prefer to associate with others who are like

themselves. This tendency often leads to mistrust and misunderstanding of those who

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are different because of lack of contact and low familiarity. it also causes stress and

tension ,and reaching agreement on problems can be difficult.

STEREOTYPING - We learn to see the world in a certain way based on our

backgrounds and experiences. Our interests, values and cultures act as filters and

distort, block and select what we see and hear. We see and hear what we expect to see

and hear. Group members often inappropriately stereotype their “different”

colleagues rather than accurately perceiving and evaluating those individual’s

contributions, capabilities aspirations and motivations. Such stereotypes in turn affect

how people employee stereotyped as unmotivated or emotional will be given less -

stress – provoking jobs than their co-workers. Those job assignments will create

frustrated employees, perhaps resulting in low commitment, higher turnover, and

underused skills.

It is seen that at Infosys the work force diversity is well maintained and a lot of mix

of culture is also seen here. It is due to the various factors that have led to the

unprecedented growth and success of Infosys.

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WORK FORCE CULTURE

“Creation of diverse workforce would be the greatest challenge for corporations in a

globalized world”, says Infosys Technologies’ chairman and chief mentor N.R.

Narayana Murthy according to Silicon India article “Creating diverse workforce

greatest challenge for global firms”.

In a bid to address this daunting challenge, Infosys has built a global base to grow in

the future, with over 91,000 employees from 70 nationalities working across 90

countries. Recounting the initiatives taken during the year under review, the chairman

said by adopting a policy of ‘follow the sun’, the company had ensured to build

delivery capability in India, China, southeast Asia, Japan, Australia, the US, Canada,

Mexico, Britain, eastern Europe and Mauritius.

As a global firm with a multi-cultural, multi-ethnic workforce and delivery centers,

Murthy says the IT bellwether had taken several measures to create a high-level of

diversity in its workforce by enhancing its recruiting efforts in different countries.

Infosys is doing a great job turning itself into a global company by hiring diverse

workforce. But underneath these efforts to build diverse work force, Infosys or any

other company vying to be Global Company primarily need to pay attention to their

corporate culture. Most of the corporations have what we call “ethno-centric”

corporate culture. Initially when Infosys was small, it had all its clients and

employees in India. All its executives were and still are of Indian ethnicity (although

there is some diversity in its board with 3 board members is not Indians). Therefore

its corporate culture is mainly influenced by Indian culture (both ethnic and country).

When they began to open development centres in other countries, Indian corporate

culture unknowingly percolates and influences the local culture. If those two cultures

are diametrically opposite, creating a diverse work force may in fact hinder with

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employee productivity. So, ethno-centric corporate culture may curtail the ambition

of any company to becoming global.

The only way to overcome ethno-centric corporate culture is to have multi-ethnic and

multi-national top executives. Infosys needs to create diversity at the top executive

level first. That will have a long term affect of neutralizing ethno-centric corporate

culture and building a truly global organization. That is the only way for Infosys or

any other company to achieve globalization strategy.

Couple of example to show that this approach is winning globalization strategy:

EXAMPLE 1: Sony Corp of Japan is a global company but its culture is strongly

influenced by Japanese culture and that has lately affected Sony’s Brand negatively.

To overcome stagnating sales, Sony in 2005 promoted Howard Stringer as its first

non Japanese CEO. Born in Wales with extensive work experience in US, Stringer

has been very active in trying to neutralize negative aspect of Japanese ethno centric

influence on Sony (check out NY Times article). Diversity has been implanted

successfully at the top executive’s level at Sony (Look at the bio of Sony’s top

executive here)

EXAMPLE 2: Lenovo, a Chinese based PC hardware company bought lucrative

assets from IBM couple of years back and has been on a path to transform itself into a

globalized company. Again check out the diversity of top management team at

Lenovo here.

Management teams within Infosys are all Indians (Check out the profile of the

management team here). Bottom line is simple. Internationally well known brand will

not make a company Global. Global manufacturing/development centre will not

make a company global. Multinational, multiethnic employee by themselves may not

enable the company to become global. It’s the “ethnic neutral” corporate culture that

will unleash any company to become truly global. That cultural change can be

brought about by the diversity at the executive and the top management level. We

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think Infosys should get busy hiring multinational top executives along with hiring

multinational employees.

SWOT ANALYSIS

STRENGTHS

Leadership in sophisticated solutions that enable clients to optimize the

efficiency of their business :

The company bring together expertise in consulting, IT services and business process

outsourcing to create solutions that allow clients to increase their customer loyalty

through faster innovation, restructure their cost base, and help them achieve greater

success through shifting business cycles. Expertise helps their clients improve their

own efficiencies, create better value for their end customers and become more

competitive. They’re able to capture a greater share of our clients’ technology

budgets.

Proven global delivery model:

Highly evolved Global Delivery Model represents a key competitive advantage. Over

the past decade, they have developed our onsite and offshore execution capabilities to

deliver high quality and scalable services. In doing so, Infosys have made substantial

investments in processes, infrastructure and systems, and have refined our Global

Delivery Model to effectively integrate onsite and offshore technology services. The

Global Delivery Model provides clients with seamless, high quality solutions in

reduced time frames enabling them to achieve operating efficiencies.

Commitment to superior quality and process execution:

Infosys have developed a sophisticated project management methodology to ensure

timely, consistent and accurate delivery of superior quality solutions to maintain a

high level of client satisfaction.

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Strong Brand and Long-Standing Client Relationships:

They have long-standing relationships with large multinational corporations built on

successful prior engagements with them.

Status as an employer of choice:

Infosys has among the best talent in the Indian technology services industry and are

committed to remaining among the industry’s leading employers. We have a presence

in 13 cities in India, allowing us to recruit technology professionals with specific

geographic preferences. We have a diverse workforce which includes employees

from 70 nationalities.

Ability to scale:

Infosys have successfully managed their growth by investing in infrastructure and by

rapidly recruiting, training and deploying new professionals. We currently have 52

global development centres.

Innovation and leadership:

A pioneer in the technology services industry. We are one of the first Indian

companies to achieve a number of significant milestones, which has enhanced our

reputation in the marketplace.

WEAKNESSES

Revenues and expenses are difficult to predict and can vary significantly from

period to period, which could cause share price to decline. Thus,it may not be able to

sustain their previous profit margins or levels of profitability.

The economic environment, pricing pressure and rising wages in India and

overseas could negatively impact revenues and operating results.

Revenues are highly dependent on clients primarily located in the United States and

Europe, as well as on clients concentrated in certain industries. Economic slowdowns

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or factors that affect the economic health of the United States, Europe or these

industries may affect our business.

Any inability to manage growth could disrupt their business and reduce their

profitability.

May face difficulties in providing end-to-end business solutions for its clients,

which could lead to clients discontinuing their work

Revenues are highly dependent upon a small number of clients, and the loss of any

one of its major clients could significantly impact the business.

Failure to complete fixed-price, fixed-time frame contracts within budget and on

time may negatively affect the profitability.Client contracts can typically be

terminated without cause and with little or no notice or penalty, which could

negatively impact our revenues and profitability.The engagements with customers are

singular in nature and do not necessarily provide for subsequent engagements

OPPORTUNITIES

Huge untapped potential in the global market as IT will become the need of almost

every industry.

The IT industry can be the reason for India being a global leader of tomorrow

THREATS

Legislation in some of the countries, in which Infosys operates, including the

United States and the United Kingdom, may restrict companies in those countries

from outsourcing work overseas.

Intense competition in the market for technology services could affect cost

advantages, which could reduce the share of business from clients and decrease the

company’s revenues.

The client contracts are often conditioned upon our performance, which, if

unsatisfactory, could result in less revenue than previously anticipated. Some of the

long-term client contracts contain benchmarking provisions which, if triggered, could

result in lower future revenues and profitability under the contract.

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CONCLUSION

FUTURE STEPS

1. More keen on large deals. The margin dilution from large deals has been a point of

concern in the past at Infosys. However, while the initial margin profile can be

extremely wavy, it is possible to improve margins later in the life of the contract

through reduced G&A overheads. Infosys, in its recent analyst meet, mentioned that a

dedicated team was now working on large deals. They expect greater focus ahead in

this area.

2. Increased focus on solution based offerings in both IT services and BPO. Infosys

has developed 50 solution based offerings in the IT services space and believes that

some of these can help break the linearity between revenue and manpower growth in

the business. In BPO as well, its first platform based BPO offering is likely to be

launched soon.

3. Willingness to explore new deal structures. The market was surprised when

Infosys paid an upfront $28m for the $250m/7-year Phillips BPO deal. While TCS

had made such a payment in the case of Pearl BPO earlier, Infosys’ willingness to do

so was certainly a shift from the past.

INFOSYS'S HIRING PLANS FOR THE YEAR (2013):

Most of the companies rapidly cutting their losses by employing massive

retrenchment drive, firing thousands of employees or offering them early separation

schemes. However, despite the massive economic turmoil across the globe, there are

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still some companies that are looking to hire skilled candidates. One of these

companies is Infosys. The company intends to stick to its plan of hiring 25,000

people this fiscal year.

INFOSYS PLANS ACQUISITIONS IN BRAZIL AND MEXICO

Infosys is trying to acquire a few companies in Mexico and Brazil to expand its

delivery capabilities. The company's first centre will be operational in Brazil in next

three to four months. Infosys has currently employed about 250 people in Mexico and

hence feels the need to have local facility to attract local business. "We are looking

for some very targeted acquisition with specific criteria," said Dheeshjith V G, Head,

New Markets and services, INFOSYS

Infosys had started focusing on Mexican market in last six to seven months.

According to Dheeshjith there has been increase in the business from local clients and

some companies are looking to outsource large deals. Around 20-25 percent of the

total business in Infosys' Mexico subsidiary comes from multinational companies that

have operations in Mexico while the rest of the business comes from clients in North

America. That is the reason why Infosys is stressing on local deals to attract local

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customers.

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BIBLIOGRAPHY

PRINCIPLES OF ORGANISATIONAL BEHAVIOUR –

EDWIN A. LOCKI

WEBLIOGRAPHY

www.google.com

www.wikipedia.org

www.infosys.com

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