Infosys falling down

InfosysBusiness confidence plummets, employee morale suffering !

December 2011

Index

• Analyst Predicts – Infy :Slowing down while others grow. All not well?

• Employee moral : Employee moral to new lows akin its “iRace” crisis

Forrester predicts : Confidence plummets from + 10%(2010) to -4 %(2011)

Forrsights Survey 2011 vs 2010 (Projections for Infosys) : Drastic reduction in projections for Infosys. Loss in terms of % highest among Indian IT companies.

2011 2010

1. IT vendors did a good job of maintaining or increasing wallet share in 3Q

2. Infosys only Indian IT firm showing a downward trend

Citi 3Q11 CIO Survey : Over 200 CIO’s interviewsInfosys shows the largest decrease in share of wallet in Q3.

Citi Bank CIO predicts the same ! Leading indicators to larger issues plaguing Infy

http://timesofindia.indiatimes.com/city/mumbai/Infosys-will-be-hit-most-by-cut-in-client-budget-spend/articleshow/11065499.cms

Were Q2 numbers a flash in the pan?

Well the CEO agrees ; no answer of the question what is amiss?

http://articles.economictimes.indiatimes.com/2011-11-23/news/30433363_1_shibulal-margins-refiners-and-other-companies

Infosys - best delivery but complacency and extreme risk aversion limit business opportunities

• Infosys has arguably the best delivery quality among offshore vendors. Moreover, most

customers we interviewed consider Infosys’ delivery quality to be at par with its tier 1

American and European counterparts. • Customers complain that Infosys is extremely difficult when negotiating

the commercial terms of a contract. In addition, almost 22% of the customers we

interviewed noted that they have not sought Infosys’ service or have not been

approached by the vendor in the past.• Infosys is faced with some significant challenges/drawbacks

that it needs to overcome in order to gain market share in continental Europe.

Deutsche Bank Markets Research (Indian IT Services) : search

Deutche Bank: Answers why ?

http://economictimes.indiatimes.com/tech/ites/infosys-shortens-employees-two-weekends-to-meet-revenue-growth-target/articleshow/11087519.cms

Lack of ideas? Infy Strategy 1: Flog the employees to get back on track

Analyst’s React: where is the NRN leadership and Nandan’s charisma?

Sudin Apte - Advisory firm

Offshore Insights : The move may be intended to improve

capacity utilisation in a tough environment. His organisation met nearly 300 clients of

software services firms and came away with the impression that IT budgets in 2012-13

would shrink.

Viju K George - J P Morgan Analyst : Infosys risks annoying employees by asking them to sacrifice some Saturdays. There is also the aspect of staff humor and mood that needs

managing. Infosys' quarterly annualised attrition should be a keenly-watched indicator

in current and coming quarters,

Negative Reaction in Social Media on Infosys move to introduce Extra Weekend Work

Social Buzz: Employees don’t like it a bit

Negative Reaction from Infosys employees and public opinion on Media Sites on Infosys move to introduce Extra Weekend Work

Should help increase attrition ? And you thought Infy was in people business

Thank You