Infosys Case Analysis
Case A-3
Infosys Technologies Ltd.
Question 1
Infosys should consider expanding its operation into other foreign markets and industries. As indicated in the article, Infosys gets over 70% of its revenue from the United States and the majority of its big clients (such as Goldman Sachs, Visa or JC Penny) come from various industries but all of them are very sensitive to changes in the US economy. In order for Infosys to not only maintain but also increase their sales growth in spite of the referenced economic downturn, Infosys has to expand its global account management system along with restructuring its strategic account management. First and foremost Infosys should build a reliable network of foreign intermediaries in Asia and Europe where management plans to expand its operation. These independent organizations already operating in these countries are familiar with their culture, way of doing business and arising needs. Research should also be conducted to determine what other industries can be targeted. For instance, in the United States cyclical businesses such as finance and retail could be offset by countercyclical industries like the medical industry. Hospitals and pharmacies are much less likely to experience a rapid sales decline due to recession therefore their vendor’s sales would not be affected as much as in a declining economy either. In addition to that the company should try to introduce a hybrid between its strategic business units that were organized primarily based on its functions such as marketing or delivery services and its current practice organized by geography. I believe that the company’s sales would increase significantly if the company still kept it’s practices responsible for operations in different areas of the globe but also created subdivisions that would be responsible for selling specific line of products to a specific industry. For instance there should be a practice unit responsible for sales in Germany that could be
Infosys Technologies Ltd.
Question 1
Infosys should consider expanding its operation into other foreign markets and industries. As indicated in the article, Infosys gets over 70% of its revenue from the United States and the majority of its big clients (such as Goldman Sachs, Visa or JC Penny) come from various industries but all of them are very sensitive to changes in the US economy. In order for Infosys to not only maintain but also increase their sales growth in spite of the referenced economic downturn, Infosys has to expand its global account management system along with restructuring its strategic account management. First and foremost Infosys should build a reliable network of foreign intermediaries in Asia and Europe where management plans to expand its operation. These independent organizations already operating in these countries are familiar with their culture, way of doing business and arising needs. Research should also be conducted to determine what other industries can be targeted. For instance, in the United States cyclical businesses such as finance and retail could be offset by countercyclical industries like the medical industry. Hospitals and pharmacies are much less likely to experience a rapid sales decline due to recession therefore their vendor’s sales would not be affected as much as in a declining economy either. In addition to that the company should try to introduce a hybrid between its strategic business units that were organized primarily based on its functions such as marketing or delivery services and its current practice organized by geography. I believe that the company’s sales would increase significantly if the company still kept it’s practices responsible for operations in different areas of the globe but also created subdivisions that would be responsible for selling specific line of products to a specific industry. For instance there should be a practice unit responsible for sales in Germany that could be