Infosys

Topics: Infosys, Bangalore, Revenue Pages: 5 (1296 words) Published: June 25, 2013
Essay - 4
Choose from one of the following two topics, writing no more than 1000 words. Either "In your opinion, what are the key issues facing your organisation over the next five years?" OR "Identify the major strengths and weaknesses of an organisation of your choice. If you were the CEO, what three things would you change? Please limit your response to 1000 words. Identify the major strengths and weaknesses of an organisation of your choice. If you were the CEO, what three things would you change?

Infosys Technologies Limited is a company that specializes in Information Technology (IT) and is headquartered in Bangalore, India. It was founded in the early eighties and by year 2000 it was one the leading IT companies in India with a wide span global footprint. Currently, it has 68 offices and 70 development centers in US, India, China, Australia, Japan, Middle East, UK, Germany, France, Switzerland, Netherlands, Poland, Canada and many other countries with employee strength of 151,151 together with its subsidiaries. Infosys is a global leader in technology, outsourcing and consulting with annual revenue in excess of US$ 7 billion. Many of the world’s top organizations rely on Infosys to deliver measurable business value. I have always been in awe of Infosys primarily because of the underlying values the organisation is pillared on. The vision, integrity, transparency in its dealings along with focus, respect and sensitivity towards employees, environment, society and consumers is unparalleled. Its recent efforts and stress on green innovations like initiatives towards rain water harvesting and energy efficient zero-discharge campus are worth supporting and applauding. Also, a great connect of the leaders & workers have helped the organisation immensely. Over the years, Infosys has developed a global brand value with an international presence, thereby giving it a strong capability to support large enterprises in any geography. Furthermore, the comprehensive portfolio of solutions makes it a one stop shop for IT needs of any big enterprise. It has most of its centres in India which has a vast pool of Information Technology savvy workforce. This coupled with the relatively lower labour costs in India, enhances the competitive advantage for Infosys vis-a-vis its global counterparts. The below figures gives an overview of the revenue growth over the years and the Industry coverage of Infosys:

Industry Segments
Banking & financial services Insurance Manufacturing Retail & CPG Transport & Logistics Life Sciences Healthcare Energy & Utilities Telecom Others

% Revenue

28% 7% 22% 17% 2% 4% 1% 5% 10% 5%

Figure 1: Revenue Progression of Infosys Q1 2007 – Q1 2013 (up by 18%) extracted from the Investor report June 2012.

Figure 2: Revenue by Industry

Recently, Infosys announced its $349mn acquisition of a Swiss Management Consultancy firm, in line with its strategy to expand their consulting and system integration capabilities to tread into newer markets with upscale products. More so, the announcement to deploy $3.7bn towards acquisitions, gives good evidence about its healthy cash reserves. Nonetheless, to maintain the leading edge, apart from vision and resources, competitive intelligence and pipeline focus is a must. Infosys needs some catching up to do as compared to its global competitors like IBM, Accenture, EDS or HP in terms of its revenue, market penetration and certain services. Infosys is relatively Page 1 of 3

Essay - 4
weaker when it comes to high-end management consultancy, since it tends to dwell at level of operational value creation. Competitors such as IBM and Accenture tend to dominate the consulting space. Furthermore, it’s over dependence on the Americas and Europe markets make it vulnerable to financial volatility of these developed markets, a classic manifestation being the recent economic recession. Below is the service offering distribution of Infosys and the client distribution...
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