Infosys Technologies
What is Infosys Technologies’ strategic position in the IT industry in 2006, and what are its distinctive competencies? Where does it fit in the industry value chain? (20 pts)
Infosys Technologies was founded in 1981 to design, develop, and maintain software for US Corporate clients in banking, manufacturing and telecommunications (Lok 2005). In 2006, the market for IT services was large and growing (Hill and Jones). Forrester Research forecasted in 2003 that IT consulting would grow at 5 percent compounded annually for the next five years. There were many other companies vying for a share in the industry. These companies include big names such as IBM and Accenture. Infosys Technologies was in this list of top companies.
Infosys Technologies had to have a strategic position to be competitive. Strategic position, by definition, is the positioning of an organization in the future, while taking into account the changing business environment plus the systematic realization of that positioning. At Infosys, theirs is to, “further strengthen our position as a leading global technology services company by successfully differentiating our service offerings and increasing the scale of our operations.” (Infosys Annual Report 2005-2006). They are doing this in several ways. Some of these include increasing business from new and existing clients which are mostly large companies, expanding geographically (Infosys China and Australia are examples), investing in its infrastructure and employees. Out of over 1.43 million job applications in 2006, only 12, 650 job offers were made. (Infosys 2005-2006). Another aspect of its strategic positioning is enhancing its solution set. This has led to the creation of Infosys Consulting. Infosys is also always developing its knowledge of the industry, promoting its brand (an example is the Wharton Infosys Business Transformation
Infosys Technologies was founded in 1981 to design, develop, and maintain software for US Corporate clients in banking, manufacturing and telecommunications (Lok 2005). In 2006, the market for IT services was large and growing (Hill and Jones). Forrester Research forecasted in 2003 that IT consulting would grow at 5 percent compounded annually for the next five years. There were many other companies vying for a share in the industry. These companies include big names such as IBM and Accenture. Infosys Technologies was in this list of top companies.
Infosys Technologies had to have a strategic position to be competitive. Strategic position, by definition, is the positioning of an organization in the future, while taking into account the changing business environment plus the systematic realization of that positioning. At Infosys, theirs is to, “further strengthen our position as a leading global technology services company by successfully differentiating our service offerings and increasing the scale of our operations.” (Infosys Annual Report 2005-2006). They are doing this in several ways. Some of these include increasing business from new and existing clients which are mostly large companies, expanding geographically (Infosys China and Australia are examples), investing in its infrastructure and employees. Out of over 1.43 million job applications in 2006, only 12, 650 job offers were made. (Infosys 2005-2006). Another aspect of its strategic positioning is enhancing its solution set. This has led to the creation of Infosys Consulting. Infosys is also always developing its knowledge of the industry, promoting its brand (an example is the Wharton Infosys Business Transformation
References: Infosys Annual Report 2005-2006. Retrieved February 13, 2010 from http://www.domain-b.com/financials/companies/I/Infosys/2005-06a200742414121878.pdf Infosys’s Murthy: Sharing a simple yet powerful vision. (2001). Retrieved February 12, 2010 from http://knowledge.wharton.upenn.edu/article.cfm?articleid=364 Frauhenheim, Ed. (2004). CNET. Infosys launches consulting unit in the US. Retrieved February 13, 2010 from http://news.cnet.com/Infosys-launches-consulting-unit-in-U.S./2110-1011_3-5188009.html Mendoza, Morice. (Sep 2006). Infosys reaches its milestone. Retrieved February 13, 2010 from http://www.managementtoday.co.uk/news/593449/infosys-reaches-its-milestone/ Hill, Charles W.L; Jones, Gareth R. (8th Edition, 2008). Strategic Management. An integrated approach. Houghton Mifflin Company. Chapter 5. Lok, Corie. Technology Review, 2005. Two sides of outsourcing. Retrieved February 11, 2010 from http://web.ebscohost.com.ezproxy.metrostate.edu/ehost/detail?vid=4&hid=9&sid=3150cb2d-5c18-476f-97a8-5115b35acf17%40sessionmgr4&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=aph&AN=16017759#db=aph&AN=16017759 Velamuri, Ramakrishna S. (2005) SSRN. Infosys Technologies. Powered by intellect, driven by values. Retieved February 13, 2010 from http://papers.ssrn.com/sol3/papers.cfm?abstract_id=761946