On Indian IT Sector, INFOSYS Ltd.

By, Indranil Ganguly USN-12MB4708 MBA-PGPM Student, IBMR-IBS, 2012-14

Information technology (IT) is the application of computers and

telecommunications equipment to store, retrieve, transmit and

manipulate data,often in the context of a business or other enterprise.

The term is commonly used as a synonym for computers and computer

networks, but it also encompasses other information distribution

technologies such as television and telephones. Several industries are associated with information technology, such as computer hardware,

software, electronics, semiconductors, internet, telecom equipment, ecommerce and computer services.

The Information technology industry in India has gained a brand identity as a knowledge economy due to its IT and ITES sector.

The ITITES industry has two major components: IT Services

and business process outsourcing (BPO). The growth in the service sector in India has been led by the ITITES sector, contributing substantially to increase in GDP, employment, and exports. The sector has increased its contribution to India's

GDP from 1.2% in FY1998 to 7.5% in FY2012.

RAN K 1

CITIES

DETAILS

Bangalore

Popularly known as the Silicon Valley of India and leading software exporter from India. Bangalore is considered to be a global technology hub of India. Hyderabad is a major it hub in India which is also known as Cyberabad which consists of many Multinational corporation companies such as Google,Facebook, Inc.,Microsoft,Amazon.com,EA Mobile Chennai is a major destination of India and is the BPO hub of India. Chennai has the largest operations centers of TCS, and CTS

Hyderaba d

3
4

Chennai
Mumbai

The Financial capital of India, but recently many IT companies have established offices. The National Capital Region comprising Delhi, Gurgaon and Noida are clusters of software development.

Delhi

Pune

Major Indian and International Firms present in Pune. Pune is also C-DAC Head-Quarter.

Kolkata

One of the largest cities in India, Kolkata contributes significantly to IT exports.

Firm

Revenues

Employees

Fiscal Year

Headquarters

TCS

$10.17 billion 254,076

2012

Mumbai

Wipro

$7.30 billion

140,569

2012

Bangalore

Infosys

$7.00 billion

153,761

2012

Bangalore

HCL Technologies

$4.3 billion

85,335

2012

Noida

IT- Software

ITeS Business process outsourcing (BPO)

ITHardware and peripherals

ITEducation

Low operating costs and tax advantage.

Favourable government policies.

Technically qualified personnel easily available in the country.

Rapid adoption of IT technologies in major sectors as Telecom, Manufacturing and BFSI.

Strong growth in export demand from new verticals and non-traditional sectors as public sector, media and utilities.

The Indian IT & ITES Sector has grown considerably over the last decade to contribute over 6% of the countrys GDP
The IT and IT enabled services industry in India has recorded a growth rate of 22.4% in the last fiscal year. The IT sector in India has played a major role in drawing foreign

funds into the domestic market.

According to The Economic Times, The domestic IT market has grown 16.7 per cent to Rs 91,800 crore in 2011-12 from Rs 78,600 crore in the previous fiscal

The information technology sector has been growing at compounded annual growth rate (CAGR) of 17 per cent during the last five years (2007-12)

The contribution by the IT sector in India's GDP has increased from 6.4 per cent in 2008 to 7.5 per cent in 2012.

The sector has provided direct employment to 2.8 million people and indirect employment to 8.9 million people.

Type : Public

Traded as BSE :500209

NSE:INFY NYSE:INFY

BSE SENSEX CONSTITUENT

Industry :IT services & IT consulting Founded : 1981 Headquarters : Electronics City, Bangalore, Karnataka, India Area served Worldwide

Infosys was co-founded in 1981 by N. R. Narayana Murthy, Nandan Nilekani, N. S. Raghavan, S. Gopalakrishnan, S. D. Shibulal, K. Dinesh and Ashok Arora after they resigned from Patni Computer Systems.

Services :IT, business consulting and outsourcing services Revenue : US$ 7.00 billion (2012) Operating income :US$ 2.01 billion (2012) Profit :US$ 1.71 billion (2012) Total assets : US$ 7.53 billion (2012)

Total equity US$ 6.57 billion (2012)

Employees : 155,629 (2012) Divisions :Infosys BPO

Website www.infosys.com

N. R. Narayana Murthy Chairman Emeritus

S. D. Shibulal Co-Founder Chief Executive Officer and Managing Director

S. Gopalakrishnan Co-Founder Executive Co-Chairman

Executive leadership

Board of Directors
V. Balakrishnan Member of the Board Head, Infosys BPO, Finacle and India Business Unit Srinath Batni Member of the Board Head of Delivery Excellence B. G. Srinivas Member of the Board Head of Europe and Global Head of Financial Services & Insurance Ashok Vemuri Member of the Board Head of Americas and Global Head of Manufacturing, and Engineering Services K. V. Kamath Chairman of the Board Ravi Venkatesan, R Seshasayee, Deepak M. Satwalekar, Jeffrey Sean Lehman, Dr. Omkar Goswami , Ann M. Fudge, David L. Boyles Independent Director, Infosys

Client Value

Excellence

Leadership

by Example

CLIFE
Integrity and
Transparency

Fairness

CLIFE Client Value: To surpass client expectations consistently Leadership by Example: To set standards in our business and transactions and be an exemplar for the industry and ourselves Integrity and Transparency: To be ethical, sincere and open in all our transactions Fairness: To be objective and transaction-oriented, and thereby earn trust and respect Excellence: To strive relentlessly, constantly improve ourselves, our teams, our services and products to become the best

transform

optimize

innovate

Infosys helps companies derive the measurable business value that they have always been looking for from business and IT investments.

We deliver 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 efficiency and 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 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.

Infosys is the third-largest India-based IT services company by 2012 revenues. Infosys has a global footprint with 67 offices and 69 development centers in US, India, China, Australia, Japan, Middle East, UK, Germany, France, Switzerland, Netherlands, Poland, Canada and many other countries. Infosys and its subsidiaries have 155,629 employees as on Dec 31, 2012 Infosys takes pride in building strategic long-term client relationships. 97.5% of our revenues come from existing customers (Q3 FY 13).Infosys gives back to the community through the Infosys Foundation that funds learning and education.

1. Bangalore Stock Exchange Ltd. 2. Calcutta Stock Exchange Association Ltd. 3. Cochin Stock Exchange Ltd. 4. Delhi Stock Exchange Assoc. Ltd. 5. Hyderabad Stock Exchange Ltd

6. Inter-connected Stock Exchange of India

7. Ludhiana Stock Exchange Assoc. Ltd. 8. Madras Stock Exchange Ltd., 9. MCX Stock Exchange 10. National Stock Exchange of India Ltd. 11. Over The Counter Exchange Of India Ltd. 12. The Stock Exchange, Mumbai

13. Uttar Pradesh Exchange Assoc Ltd.

 Infosys BPO Limited, Infosys Technologies (Australia) Pty. Limited, Infosys Technologies (China) Co. Limited, Infosys Consulting India Limited, Infosys Technologies S. de R. L. de C. V, Infosys Technologies (Sweden) AB, Infosys Technologia do Brasil Ltda, Infosys Public Services Inc., and Infosys Technologies (Shanghai)Co. Limited.

Subsidiaries

(9+4)

4 step down subsidiaries :Infosys BPO s.r.o.,Infosys BPO (Poland) Sp.Z.o.o, McCamish Systems LLC, and Portland

Group Pty. Limited

Microsoft Oracle SAP

Global Alliance Partners :

Aerospace & Defense Airlines Automotive Communication Services Consumer Packaged Goods Education Energy Financial Services Healthcare

High-Tech Hospitality and Leisure Industrial Manufacturing Insurance Logistics and Distribution Media & Entertainment Medical Devices Pharmaceutical and Biotech Public Sector Publishing Resources Industries Retail

Brand Name
Category Sector Tagline/Slogans USP Segment Target Group Positioning

Infosys IT Services IT and Technology Building Tomorrow's Enterprise Business transformation through IT STP Enterprises seeking IT solutions Large Enterprises who have IT budget and needs Not only IT solution but transformation of business for better SWOT 1) Pioneers of global delivery model(GDM) 2) High Cash Reserve 3) Corporate Governance 1) Doesn't tap the Indian domestic market 1) Focus on emerging markets 2) Finnacle and other products 3) Shifting to business transformation services

Strength Weakness

Opportunity

Threats

1) Attrition and Employee loyalty 2) Bigger MNC's entering India and competing for global clients 3) Focussing on organic growth Competition
1) TCS 2) Wipro 3) Cognizant

Competitors

1. Finacle 2. Flypp 3. Infosys Customer Self-Service Energy Manager 4. Infosys Health Benefit Exchange

5. Infosys iTran form - ICD-10 Migration Suite

6. Infosys mConnect - Multi-Channel Mobile Middleware 7. Infosys Omni-Channel Personalization Engine 8. Infosys Real-Time Expertise Manager 9. Infosys Supply Chain Performance Management Suite 10. Infosys Trading Platform 11. Infosys Transaction Reconciliation Platform

Management Consulting Services

Business Application Services

Business IT Services

Engineering Services

BPO Services

Cloud

Mobility

Sustainability

1.Infosys Foundation
Education Culture Destitute care

'Bahujana hithaya, bahujana sukhaya' - for the benefit of many, for the happiness of many.

Rural Development

Healthcare

2. The Infosys Science Foundation

Green Innovation Resource Intensity

3. Infosys Leadership Institute:

Supporting NGOS

MARKET PENETRATION STRATEGY: Current Markets: USA and Europe Current Products: ADM, BPO, KPO etc. MARKET DEVELOPMENT STRATEGY: Diversification New Market: India, Middle-east and Australia PRODUCT DEVELOPMENT STRATEGY: Current Market: USA and Europe New Product: Consultancy and package implementation services in relatively growing sectors esp. healthcare, life sciences etc. Organization Strategy Infosys has adopted a client-focused strategy to achieve growth Focuses on limited number of large organizations throughout world Infosys commands premium margins Company has a image of quality driven model rather than cost-differentiating model Increase business from existing and new clients. Expand geographically Enhance solution set It has added new service offerings, such as consulting, business process management, systems integration and infrastructure management, which are major contributors to its growth.

Concentrarion 90% of Infosys revenues from American and European nations. VERTICAL INTEGRATION:

Generic Strategies 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, and timely-delivery.

Infosys recently bid to acquire a European major Axon consultancy.

Innovation The Software Engineering and Technology Labs (SET Labs) at Infosys- centre for technology research in software engineering & enterprise technology Infosys promotes a favourable work environment that encourages innovation and meritocracy.

Forbes has ranked Infosys 19 among the world's most innovative companies. Infosys has been identified as one of the top 25 performers in Caring for Climate Initiative by UN Global Compact and UN Environment Program. We are the only global consulting and technology giant in the list. Infosys has been ranked No.1 among the best managed companies in Asia Pacific in the annual Euromoney Best Managed Companies in Asia survey, 2013. Infosys was voted India's most admired company in The Wall Street Journal Asia 200 every year since 2000. We were recognized as a top performing global partner by Procter & Gamble (P&G). Our Software Development Block 1 at Pocharam campus in Hyderabad, India was awarded the highest LEED rating. This is the fourth Infosys building that has won a Platinum rating, taking the total Platinumcertified building area at Infosys to over 1 million sq. ft. At Oracle OpenWorld 2012, Infosys won the Oracle Excellence Award for Specialized Partner of the Year North America in both Financial Management and Human Capital Management categories. Oracle also recognized Ricoh, our partner, for an Oracle Excellence Award: Eco-Enterprise Innovation.