STRATEGIC ANALYSIS OF INFOSYS

Submitted to: GROUP 3

Dr Mahua Guha Nishi Gogia PGP09215
Dr. Rojers P Joseph Pranay Banga PGP09218
Rajat Bhatia PGP09223
Shivam Gaur PGP09234
Tanu PGP09242
 AGENDA

About Infosys Challenges

1 4

External Analysis Future of Infosys

2 5

Internal Analysis Recommendations

3 6
 About Infosys
Vision
We aim to be a globally respected and sustainable company

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

Why did we choose Infosys

Infosys is a global leader in next-generation

digital services and consulting

From a capital of US$250, we have grown to

become a US$11.54 billion

They pioneered the Global Delivery Model and

became the first IT Company from India to be
listed on NASDAQ
 Infosys Business model

Early Business Translating

Geographical Unique
Clients To Products and
Years Partners Diversification Services

Infosys pioneered The key products and

the global delivery By developing a services of Infosys
long-term With the major are: Infosys
model (GDM). In relationship, presence in India,
1990s. it focused Consulting – a global
Infosys has United States, management
on BFSI and devised a Australia, China,
manufacturing, sustainability tactic
consulting service,
Japan, Middle NIA – Next
and soon became by translating its East and Europe,
a pioneer in a few clients into Generation Integrated
partners. With Infosys had 132 AI Platform (formerly
areas of IT development known as Mana),
services- package innovation,
operational centers and 82 EdgeVerve Systems
implementation, readiness, and sales and which includes
application execution, Infosys marketing offices Finacle, a global
development and assists its clients across the world, banking platform,
maintenance in their transition to as in 2018. Infosys Information
(ADM in industry new business Platform (IIP)-
parlance) and models. Analytics platform
testing
 Value Chain-Services
Digital advancements and focus on customer centric business models is creating new opportunities
for enterprises. Infosys’s digital architecture drives outcomes for enterprises across five areas –
Experience, Insight, Innovate, Accelerate and Assure.

Experience Assure
•Digital Marketing •Cyber Security
Insight •Testing
•AI & Automation Application Development and
•Data Analytics Maintenance
Innovate •Application Development
•Blockchain •Application Maintenance and Support
•Engineering Services •Domain Consulting
•Internet of Things (IoT) •Technology Consulting
Accelerate Consulting Services
•Agile & DevOps •Supply Chain & Operations
•Salesforce •Enterprise Products
•Oracle •AI & Automation
•Cloud •Digital
•Microsoft Dynamics Reimagining Business Process
•SAP Management
•Business Process Management
 P E S T E L
 After the change in  The pricing  The negative media  Companies assessed  Infosys has leveraged  Both domestic and
government and the pressures on coverage on its had already invested the digital foreign laws and
demand of trump IT services, policies and practices in deep-learning technologies over the policies can affect the
administration to curb changes in the in recent years has artificial intelligence years to address the business operations at
the non-immigrant currency adverse impact on algorithms(+) energy, water, a higher extent(+/-)
visas, the major IT exchange the business  Companies are emissions and  The offshore
companies of India like rates, high reputation(-) investing in a wide biodiversity outsourcing is getting
Infosys had to take an wage  Demographics – For range of offerings — challenges(+) major attention by the
action(-) pressures and the Technology retail in augmented  Renewable government of
 Infosys operates in sudden products, Infosys has reality, automotive in technology is also countries like US(-)
numerous countries so increase in demographics on its connected cars and another interesting  Even the wage laws for
it has to make policies taxes can side. India is a young utilities looking at area for Infosys. It can Visa holders have
each country based. affect the country and growing. tech for omni- leverage the trends in changed, thus
Given the recent rise in profitability to Infosys can use this channel customer this sector. India is affecting the company
populism across the a large trend to cater to experience(+) providing subsidies to to do business in those
world, India can see extent(+) various segments of  New tech centers and invest in the areas(-)
similar trends and may  Slowdown in the population(+) innovation hubs(+) renewable sector(+)
lead to greater US economy(-)  Many educational
instability(-) and technical **The Infosys report surveyed 1,000
senior IT and business decision-makers
institutes provide IT in companies across seven countries.
training(+)
 Competitor analysis
Infosys TCS Accenture Wipro
Product Software consultancy, Application development, Accenture consulting, Product engineering, digital
business consultancy, BPO Enterprise software, Accenture Digital, Accenture services, business processes,
software management, BPO technology IT services

Price Competitive pricing Negotiable pricing and focus Premium pricing n Competitive pricing
is on volume comparison to others

Place HQ - Bangalore HQ – Mumbai, India HQ – Dublin, Ireland HQ – Bengaluru, India

Culture The company has
maintained the flexible work
culture and environment for
its workforce of 2.04 lakh
employees. Infosys has an
attrition rate of 23%, the
firm announced a company-
wide salary hike for nearly
85% of its employee in July
last year.
Attrition rate 23%
Revenue $1131 cr.
India’s most valued IT services
firm drives most of its revenue
from North American clients. As
far as internet reviews are
concerned, employees think
highly of the firm. TCS employees
enjoy the flexible environment,
on-site opportunities, and career
growth.
10.9%
$1908 cr.
Emphasizes team-based
activities.
Addresses new generations of
workers who have different
workplace expectations and
requirements.
Leverages new technologies to
support the increasingly mobile
and distributed nature of our
work.
18%
$4160 cr.
Wipro has a major share in
carving out an identity in the
outsourcing sector. Majority of
the company’s business is driven
through business processing
services (BPS). Wipro employees
speak highly of the work-life
balance, worldwide explore,
work environment and learning
opportunities that the company
offers
17.7%
$840 cr.

Closing stock price as on 723.30 2015 -- 269

7/3/19(NSE)
  Government policies within the industry require strict licensing and
legal requirements
 Product differentiation is strong within the industry
 Digital disruption is increasing the power of new entrants
High
 Capital requirement has decreased, online models are flourishing

Threat of New
Entrants
 Products are fairly standardised, less
differentiated and have low switching
 Hardware Products Bargaining
costs
 Enterprise products are facing Complementary Power of

transition issues(movement to cloud)

Products Suppliers
 On the other hands there are some
Mid
suppliers with high bargaining power
Mid Porter’s and they can lower Industry’s profit
margins
Forces
 IT industry model has increasingly
been rendered obsolete over the Threat of
Substitutes
Rivalry Among
Existing Firms
 Commoditized offerings, low-cost,
past few years by the emergence little-differentiation positioning, high
of new technologies industry growth and strong
 New offshore locations like competitors like few numbers of large
Bargaining
Philippines and Vietnam Power of Buyers companies

High
Mid to High
 The position of buyers has steadily
increased over the years , they want
High
more efficient and cost effective services.
 Infosys SWOT analysis
STRENGTHS (+) WEAKNESSES (–)
• Strong end to end business • High attrition rate
INTERNAL
FACTORS

solutions • Dependent on limited market

• Cost advantage due to presence in • Not covering growing markets
India • Excessive dependence on USA for
• Pioneers of global delivery model revenues

OPPORTUNITIES (+) THREATS (–)

• Invest in young technology • Rising wage inflation in India
EXTERNAL
FACTORS

companies • Us political scenario

• Increasing demand for cloud • Increased competition from
based solutions foreign firms like Accenture, IBM
• Focus on emerging markets etc.
 Internal Analysis
Core Competency Client Relationship
Area Infosys has always focused on achieving
Competency deeper relationship with its clients. By
Service Offering One stop capability developing a long-term relationship, Infosys
People Ability to attract best talent has devised a sustainability tactic by
translating its clients into partners
Process Delivery Excellence
Infosys Technologies has won two of the
What sets Infosys Apart Outsourcing industry's top customer-focused
awards for the company's best practices in
1. Insistence on doing business in a fair and ethical manner client management of large outsourcing
2. Its mindset to treat shareholders as owners and the relationships; "Best Partnership“ with BT and
management as trustees of shareholders’ money; “Best in show award” for its ability to manage
3. Its practice of using disclosures and financial reporting as large complex relationships
a competitive advantage
4. Its trendsetting adoption of global practices like quarterly
reporting, voluntary adoption of global governance
standards
5. Its innovative ESOP scheme, which made many
millionaires
6. Its insistence on values before profits.
 Size as compared to competitors

Weak high end management consultancy

Challenges for
Infosys
High Attrition rate

Implementation of Digitization(IoT, AI, Big data)

 Future of Infosys
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Infosys, as an organization is
engaged in developing AI and
automation capabilities, wanted to
understand more deeply about
what today’s business leaders
thought of the challenges posed
by AI.

4 5

wealth
 Recommendations
Infosys should increase the size of its global internship
programme, as it seeks to build a culturally diverse
workforce in the face of the backlash against Indian Tackling high attrition levels by implementing timely wage
outsourcing companies witnessed in the West. revisions, more promotions and better employee engagement

Infosys can leverage Nia, the next-generation Artificial Intelligence

Platform, to help clients solve a wide variety of business problems

Acquisition of other high tech firm from

across the globe can help improve high
end management consultancy

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Thank you