A

Industrial Report
On

Infosys Technologies
Submitted to
Matrix Business School-Sinhgad
By
Mitesh Chauhan
PGDM (marketing)
2009-2011
Roll no 52
Contents

Contents..................................................................................................................... 2

A Magnet for the Best Global Talent.....................................................................3

Quality Focus........................................................................................................3

Innovation, Speed and Excellence in Execution...................................................3

Industry Leadership..............................................................................................4

Alliances..................................................................................................................4

Information and Technology Strategies................................................................5

Product Innovation...............................................................................................5

Next Generation Commerce.................................................................................5

Core Process Excellence.......................................................................................5

Learning & Complex Change................................................................................5

Current Position in the market.............................................................................8

Infosys among Top Ten Technology Companies: BCG Report..............................8

SWOT Analysis Infosys................................................................................................9

Strengths................................................................................................................. 9

Weaknesses.............................................................................................................9

Opportunities.........................................................................................................10

Threats.................................................................................................................. 10

Competitors...........................................................................................................11

Bibliography.............................................................................................................14
About Company:

Vision

"We will be a globally respected corporation."

Mission

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

Values

We believe that the softest pillow is a clear conscience. The values that drive us underscore our
commitment to:

• 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

A Magnet for the Best Global Talent

Fortune magazine identified Infosys among the top companies that "inspire, nurture and
empower a new generation of global leaders." We are committed to remain among the industry's
leading employers.

Quality Focus

'In God we trust, everyone else must come with data' is an oft-heard phrase at Infosys. We
constantly benchmark our services and processes against globally recognized quality standards.
Our certifications include SEI-CMMI Level 5, CMM Level 5, PCMM Level 5, TL 9000 and ISO
9001-2000. In February 2007, Infosys BPO was certified for eSCM level 4.0, the eSourcing
Capability Model for Service Providers developed by a consortium led by Carnegie Mellon
University's Information Technology Services Qualification Centre.

Innovation, Speed and Excellence in Execution

We were one of the first companies to develop and deploy a global delivery model and attain
SEI-CMMI Level 5 certification our offshore and onsite operations. We manage growth by
investing in infrastructure and by rapidly recruiting, training and deploying new professionals.
We have 63 global development centers, the majority of which are located in India. We also have
development centers in Australia, Canada, China, Japan, Mauritius, and at multiple locations in
the United States and Europe.

Industry Leadership

Our history is marked by a series of firsts. We were the first Indian company to list on a US
stock exchange and the first Indian company to do a POWL in Japan. In December 2006, we
became the first Indian company to be added to the NASDAQ-100 index and became the only
Indian company to be part of any of the major global indices. We were recently listed on The
Global Dow. Infosys was also ranked No. 14 among the most respected companies in the world
by Reputation Institute's Global Pulse 2008. We were also listed on Forbes' Asian Fabulous 50
for the fourth consecutive year. Infosys is also a five-time Global MAKE Winner and one of
only two Indian companies amongst global leaders to have won the award in 2008.

Alliances

Infosys' services and business solutions are strengthened by alliances with leading technology
partners. Our network of alliance and teaming relationships creates business value, reduces
implementation risk and accelerates speed-to-market.

We work with our partners to boost their revenue growth, expand market and geographic reach,
facilitate sales process, and enhance product and service offerings.

Infosys and alliance partners jointly deliver business solutions that address our clients' business
and technology problems. We address specific client needs and develop tools and methods to
accelerate the successful deployment of solutions while reducing risk.

In accordance with Infosys' corporate governance model and strategy of transparency, we do not
solicit or accept influence or marketing assistance fees from any of our partners. Instead, our
relationship focuses on joint investment in solutions, tools, and training.

Global Alliance Partners

The partnership focuses on developing solutions that incorporate Infosys IP and the alliance
partners' technology and services. We jointly deliver and market Infosys' solutions to clients
across multiple industries and geographies.

• Microsoft
• Oracle
• SAP
Services

Information and Technology Strategies

o IT Diagnostic and Assessment

o IT Strategy
o IT Cost Reduction
o IT Transformation (applications, infrastructure, solution delivery)
o Merger Integration
o IT Organizational Development

Product Innovation

o Co-Creation and Innovation Networks

1. Ideation Accelerators
2. Concept Labs
3. Launch Centers
o Product Effectiveness Analysis
o PLM-enabled Transformation

Next Generation Commerce

o Multi-Channel Customer Experience Analysis

o Customer Data Collection and Use
o Sales and Marketing Process Redesign

Core Process Excellence

• Finance, SCM and QTC Package Enabled Transformation (SAP and Oracle)
• ERP Programs
• Supply Chain/Procurement Transformation
• Enterprise Content/Asset Management
• CFO Services: Finance Transformation and Corporate Performance Management
• Quote-to-Cash Transformation

Learning & Complex Change

• Customized Organizational Change Management

• Change Management Integration (communication, culture change, organizational design,
leadership development)
• Training Program Design, Development and Delivery
• Human Resources Transformation
• Human Resources Value Enhancement (blending process and technology improvements
with global delivery)
Organisational Structure:

Headquarters &Branches
Its corporate headquarter is situated inBangalore

Branches in India
Bhubaneshwar Chennai Jaipur Mysore
Chandigarh Mangalore Hyderabad
Mumbai Thiruvananthapuram New Delhi
Gurgaon Pune

Branches in abroad
America
Australia
Europe
Middle East Africa

Overall number of employees

Infosys and its subsidiaries have 103,905 employees as on June 30, 2009.

Turnover
Infosys with a turnover of $753 million in the last financial year has a market cap of $12.13
billion.

Listing in stock exchange

The Stock Exchange, Mumbai
NASDAQ Stock Market, New York City

Infosys Members of the Board

Srinath Batni
Director and Head,
Delivery Excellence

K.Dinesh
Director and Head,
Communication
Design Group,
Information Systems
and Quality and
Productivity

T.V. Mohandas Pai

Director and Head,
Finacle, Admin, Human Resources,
Infosys Leadership Institute and Education and
Research
S.D. Shibulal
Chief Operating
Officer and Member of the Board

S.Gopalakrishnan
Chief Executive
Officer and Managing Director

N.R.Narayana
Murthy
Chairman of the Board and Chief Mentor
Current Position in the market

Infosys among Top Ten Technology Companies: BCG Report

Infosys ranks among the top ten global technology companies in the 2010 Value Creators Report
of The Boston Consulting Group (BCG). The rankings are based on the weighted average annual
Total Shareholder Return (TSR) for five years, from 2005 to 2009.

Infosys is featured among value creators in the technology and telecommunications category.
The companies were shortlisted from 72 global companies with a market capitalization in excess
of US$ 12 billion. They are listed on a world stock exchange and publicly trade at least 25% of
their shares.

The report 'Threading the Needle: Value Creation in a Low-growth Economy,' identifies
strategies that created value despite a low-growth environment. It cites investing in innovation,
developing an innovative business model, capitalizing on 'megatrends', pursuing breakout growth
by focusing on the core business, and a robust pricing model as factors for sustainable growth.
SWOT Analysis Infosys

Infosys is one of the largest businesses in India with a turnover in excess of $4 billion in 2008.
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 IT
professionals and was famously rated 'Best Employer in India.'

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 elementstogether 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 centres, 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 on
lucrative 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.
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 centres 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 realised 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.
Competitors

• Wipro (WIT): Wipro is a major competitor for Infosys. Wipro typically earns
less revenue per project than Infosys.

• Mahindra Satyam Computer Services (SAY): Satyam is a global IT solutions

provider.

• Cognizant Technology Solutions (CTSH): Cognizant provides custom IT

consulting and technology services.

Playing down the emerging competition from American software services firms like Accenture
and EDS, Infosys Technologies managing director Nandan Nilekani said that his competitors
were facing an ‘anti-incumbency’ factor in the US market.

He also said that Infosys was much better-placed to become a complete (from consulting to
back-end) service provider as compared to its global competitors.

“There is an anti-incumbency factor working in the market because the customer companies are
looking at better value of their investments,” Mr Nilekani said. “We are much better placed as
we have to go up the value chain to complete the service portfolio. They (US-based competitors)
will have to go down the chain, which is quite difficult looking at issues like realigning corporate
culture and costs,” he added.

Infosys, however, has decided to hike the salaries of its employees by an average of 17 per cent
for this fiscal to retain talent in the face of increasing competition for skilled workers.
Marketing Strategies

Strategy– Pre-1992 Era

• Onsite focus
• Few Large Customers
• Indirect Sales

Strategy since 1999

• Scalable business
• Value added services
• Business solution services
• End-to-end capabilities
1. Consulting
2. IT services
3. Business Process management
• Modular Global Sourcing
• Large development centers

Change in Environment
Outsourcing and offshoring to India has become mainstream
• Great quality, great people and great value for money
Increasing price pressures
• Clients seeking cost reduction
• Short-term measures by competitors

Our Focus Areas

• Client Relationships
• End-to-end Services
• Trusted Brand
• Global footprint
• Operational Effectiveness
• Best-in-class people
• World-class Infrastructure
• Robust financial management
The Future

Global Sourcing
• Global sourcing strategy is aligned with business strategy
• Enhancing operational efficiency and delivering value added services
• Structuring processes and services into modules thus leading to enhanced flexibility and
productivity

Enterprise Solutions
• Aggressive focus on ERP solutions like SAP and Oracle
• Planning to increase focus on Service Oriented Architecture (SOA)
• This is expected to bolster its business in enterprise solutions market

Moving beyond application development

• Offers range of services already
• Plans to move beyond application development, including BPO, infrastructure
maintenance, software service etc
• Strong foothold in infrastructure and F&A segments

Strategies for future

• Focus on emerging business trends and pervasive technologies
• Leverage existing client base to increase demand
• Promote US-India success when pursuing new clients
• Strengthen presence in North America and EU while gaining foothold in China
• Broaden strategic alliances with best-in-class providers with complementary skill sets
expand into high-end consulting.
Bibliography

www.infosys.com
www.moneycontrol.com
www.rediff.com