Infosys Strategy 2003
Infosys Strategy 2003
Infosys Strategy 2003
Infosys
Group Members:-
Kaushik Adhikari (24)
Kuntal Datta (25)
IMI XPGDM, Mamohau Paulina Shale (26)
2009-10 Manish K Agrawal (27)
Manish Kumar (28)
IT Industry Overview
CAGR :27%
Industry Life Cycle
IT sector is globally recording
a 30% growth. The sector
is in the growth stage with
IT companies trying to
maintain or increase their
revenue by maintaining
there existing market share
and trying to penetrate into
un-tapped market. Also
there is a trend of Mergers
and Acquisitions
Infosys serves the client globally and is one of the pioneers in strategic
offshore outsourcing of software services
In 1993, Infosys became a public limited company and received ISO 9001/Tick-
IT certification.
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.
Awards and Achievements
Infosys was awarded the ‘India’s best company to work for’ in 2009.
Infosys entered the Balanced Scorecard Hall of Fame for Executing Strategy on
the strength of its innovative strategy planning and execution capabilities.
Infosys was honored with the Sharpening Brand and Competitive Differentiation
Marketing Excellence Award from the Information Technology Services
Marketing Association (ITSMA)
Source : www.moneycontrol.com
Financial Performance
Service Offering
2009 2008 2007 2006
Services
Application 42.4 45.4 48 51.5
Development and
Maintenance
Business Process 6 5.7 4.7 4
Management
Consulting services 24.9 23.8 21.1 19.7
and packages
» Strengths:-
» Cost advantage – Presence of Infosys in India is key to its
success
» Breadth of service offering – end to end solutions including high
end services like IT consultancy and KPO
» Quality and maturity of process – Infosys has quality standards
such as CMM Level 5i to differentiate from other competitors
» Global and 24/7 delivery capability – excellent internet
backbone and telecommunications facilities enabling companies
to develop 24/7 delivery capabilities from India itself
S.W.O.T. Analysis
» Weaknesses:-
» Excessive dependence on USA for revenues – US
Companies are cutting down IT budget hence revenues to
be hit hard for Infosys
» Excessive dependence on BFSI sector for revenues –
Banking sector is facing a crisis globally and is going to
spend less on IT
» High rates of attrition – Although slowdown in global
economy has lowered attrition rate but the industry still faces
high attrition rates as compared to other sectors
» Decreasing competitive advantage – rising salary expenses
is taking away the cost advantage enjoyed by Indian
companies (including Infosys).
S.W.O.T. Analysis
» Opportunities:-
» Greater scope for product innovation
» Increased focus on high end work like consulting and KPO
» Domestic demand for IT services is to grow at 20 %
» Greater scope to service domains other than BFSI such as
Transportation, Infrastructure, etc.
» Satyam fiasco – Likely to have positive impact on business
considering corporate governance, possibility of shifting of
business, getting higher incremental business from
overlapped clients, and winning new business from new
clients
S.W.O.T. Analysis
» Threats :-
» Global economic slowdown may continue for several years
– hence low IT spending globally
» US Govt. against outsourcing
» Shrinking margins due to rising wage inflation
» Rupee-dollar movement affects revenue and hence margins
» Increased competition from foreign firms like Accenture, IBM
etc.
» Increased competition from low-wage countries like China,
Indonesia etc.
Porters Five Forces Model
Threat of Substitutes:
1.Other offshore locations – Low Cost
Locations like Eastern Europe,
Philippines and China.
2.Price quoted is the biggest
Differentiator.
Barriers to Entry:
1.Low Capital Requirements
2.Large value chain for small
enterprises
3.MNCs are ramping up capacity and
employee strength
BCG Matrix – Infosys (USA)
Consulting, KPO
BPO
Package Implementation
Busines
s
Growth
Rate
Maintenance Application &
development, Software NONE
Products
HIGH LOW
Maintenance
Software Products
Package Implementation
Business
Growth
Rate
HIGH LOW
Personnel Management
Infrastructure
Other Success Factors