INFOSYS

INTRODUCTION TO IT SECTOR

IT-BPO industry in India has today become a growth engine for the economy,
contributing substantially to increases in the GDP, urban employment and exports, to
achieve the vision of a “young and resilient” India.

While the effects of the economic crisis are expected to linger in the near term future,
the Indian IT-BPO industry has displayed resilience in countering the unpredictable
conditions and reiterating the viability of India’s fundamental value proposition.
Consequently, India has retained its leadership position in the global sourcing market.

The Indian IT-BPO industry is estimated to achieve revenues of USD 71.7 billion in
FY2009, with the IT software and services industry accounting for USD 60 billion of
revenues. During this period, direct employment is expected to reach nearly 2.23
million, an addition of 226,000 employees, while indirect job creation is estimated to
touch 8 million.
INFOSYS – PROFILE

Infosys Technologies was started in 1981 by seven professionals with US $250. The
company designs and delivers technology enabled business solutions.

Their offerings span business and technology consulting, application services, system
integration, product engineering, custom software development, BPO etc.

The company has 104850 employees and a large global presence in India, China,
Australia, Poland, UK, Canada and Japan.

Vision

"To be a globally respected corporation that provides best-of-breed business

solutions, leveraging technology, delivered by best-in-class people."

Mission

"To achieve our objectives in an environment of fairness, honesty, and courtesy

towards our clients, employees, vendors and society at large”.
ORGANIZATION STRUCTURE
ACHIEVEMENTS

1. First Indian company to be listed on a US stock exchange and the first

company to do a Public offering without listing
2. Ranked number 14 among the most respected companies in the world
3. Listed on the Forbes Asian Fabulous 50 for the fourth consecutive year.
4. Five time ‘Global MAKE Winner’.
5. Championed Corporate Governance in India.

VALUE SYSTEM

The value systems that underscores their commitment to these achievements are-

Customer Delight
It mainly deals with giving the customer the perfect solution to his
problem. Furthermore, the company tries its level best to keep hold of that customer
which has now become one of the most important things in running a business or a
company.

Leadership by example
Infosys as accompany, from its earliest stages have always been leading
in its own area of excellence. The company had a humble beginning and then grew
due to its core values, vision and its mission.

Integrity and transparency

The company has always integrity within itself and also with the
government helping the company and India as a whole in carrying them forward in to
the global market.

Fairness
The company always has maintained a standard in maintaining fairness in all
regards of its operation and towards its customer and the nation.
Pursuit of excellence
Infosys as a company has always believed in excellence in whatever it
provides. This extraordinary belief has taken to the heights at which they are present
now.

INITIAL GOALS

They started off with one client and right from the beginning understood the concept
of an offshore delivery model. Conceptually, they tried to leverage globalization for
customized software development - producing where it is most cost-effective, and
selling where it is most profitable, all without being constrained by national
boundaries. Infosys believed that the key to success is to ensure that it executes our
engagements well every time. We have based our whole operation on a foundation of
strong value systems. We were careful never to compromise on that despite many
challenges.

PRESENT GOALS OF INFOSYS

AREA OF GOVERNANCE

To define and implement a training module and create awareness about sustainability.
Status-It was achieved by providing sustainability training for seniors

PRODUCT RESPONSIBILITY

Sustain customer satisfaction in the annual customer survey

Status- It was achieved; the overall customer satisfaction was at 81 %

ENERGY

Monitor energy consumption to become energy efficient.

Status- This was achieved by implementing new monitor mechanisms

Reduce per capita energy consumption by 5 %.

Status- This was partially achieved by reducing the per capita electricity consumption
to 10%.

ENVIRONMENT

Plant a tree for every new employee

Status- Below the target – planted 16,000 trees in Mangalore.

HUMAN RIGHTS

Create a framework for employees, suppliers and vendors to be educated on human

rights.

Status- Below target- developed a basic training module on human rights which will
be implemented in 2010.

EMPLOYEE ENGAGEMENT

Track impact of employee health related activities.

Status- Target achieved by receiving feedbacks after health check ups.

SOCIETY

Define and implement metrics for measurement.

Status- Achieved target by developing guidelines and dashboards.

FUTURE GOALS OF INFOSYS FOR THE YEAR 2009-2010

STRATEGIC LEVEL

1. We will develop processes to integrate business and sustainability goals.

2. Improve accountability in the business units through iSOP framework.
3. Strive to meet stringent short term goals.

OPERATIONAL LEVEL

1. 5% reduction in energy, water and carbon foot print.

2. To educate vendors on our green procurement policies.
3. To create Large, global deals
4. Continued linear relationship between revenue-manpower

To implement Enterprise scale Solution Design and Integration as key focus

areas in the telecom sectors.

Key industries

(Infosys Media Centre in Bangalore.)

Infosys serves various industries through its Industrial Business Units (IBU), such as:

• Banking & Capital Markets (BCM)

• Communications, Media and Entertainment (CME)

• Energy, Utilities and Services (EUS)

• Insurance, Healthcare and Life Sciences (IHL)

• Manufacturing (MFG)

• Retail, Consumer Product Goods and Logistics (RETL)

• New Markets and Services (NMS) : Non US and Non European markets,
SaaS, Learning Services

• Finance : Core Banking Product

Implementation of plan (Recent one)

RFID Architecture Strategy

Executive Summary
Early Adopters of RFID are beginning to look beyond proof of concept pilots and
field trials. Enterprise scale Solution Design and Integration are emerging as key
focus areas. Key to success in both of them is the architecture for integrating data
from the RFID hardware layer with a multitude of Enterprise Systems. A Large
Enterprise piloting RFID in multiple global sites is recognizing the limitations of a
traditional Enterprise scale Application Server in performing RFID Middleware
functions. A European Specialty Retailer seeking to adopt RFID is grappling with the
cost of ownership implications of Point Solutions for RFID integration. Both of these
Enterprises are recognizing the need for a RFID Architecture Strategy.
Implementation of this plan presents Infosys views on a optimal RFID Architecture
Strategy Approach for Enterprises based on lessons learnt from Early Adopters and
Infosys experience in providing Real Time Control and Data Acquisition Solutions in
the Telecom and Process Control Industries.
Pitfalls and Lessons Learnt from Early Adopter Pilots
A common refrain across Early Adopter Pilots is that RFID Applications are quite
unlike I.T. applications that have been traditionally implemented within Enterprises.
The contact-less communication between the tags and readers and its sensitivity to the
physical environment together adds a new dimension. Enterprises are evolving
implementation strategies mindful of the many challenges posed by RFID across
layers.

Business Process Transformation

Early Adopters are recognizing that the value of RFID lies in operational efficiencies
resulting from changes in business processes. These Enterprises continue to be
challenged however in determining how processes can be improved in a RFID
enabled enterprise.
RFID characteristics for business include:
• Readability
• Rate
• Accuracy
• Duplicates
• Interference
• Programmability
• Memory

Data Collection
Early Adopters especially those with Global Deployments are grappling with the
question of which Technology/Vendor to bet on. They are recognizing that choosing
of RFID Tags and Readers is dependent on multiple variables. These Enterprises
recognize the strategic nature of the technology and design decisions to be made in
this layer and are evolving vendor selection strategies balancing the below
considerations:
• Geographic spectrum and power regulations
• Multiplicity of air interface protocols
• Standards based Interoperability across vendors
• 3rd party certifications for standards compliance
• Maturity and failure rates of vendor specific products
• Protocol performance benchmarks for vendor specific products
• Packaging material modification challenges and costs
• Security and Privacy Policies and Commitments
• Financial viability of vendors
Early Adopters are also recognizing that vendor selection needs to factor how
business processes will be changed to leverage the technology

The need for a RFID Architecture Strategy

RFID is clearly a disruptive technology. But to ensure that enterprises realize its
potential optimally, it is important that they understand the multi-dimensional impact
that such disruptive technologies have on the enterprise. A critical element of this is to
have an RFID Architecture strategy.

Different layers within the Enterprise are likely to be impacted differently. It is

important for all parts of the Enterprise to develop a common understanding of what
this impact is and what it means to existing investments. It is also important to help
identify what new investments will be required to be made within the Enterprise. A
key area of concern for Enterprises adopting disruptive technologies is the Total Cost
of Ownership. By clearly understanding the impact on existing investments and by
evolving a holistic view of new investments, Enterprises will be able to better manage
the TCO by future proofing investments and putting in place the right architecture for
new investments.

Infosys Views on RFID Architecture Strategy

Infosys believes that current approaches to RFID Integration generally suffer from
many deficiencies, ranging from a point solution approach to confusing RFID with
EAI. Adopting traditional enterprise architecture design approaches to RFID run the
risk of failure on account of not recognizing the true nature of RFID Integration.
RFID Integration is about Real Time Asynchronous Event Handling and Real Time
State-based decision making. RFID Integration calls for an architecture design
paradigm that reflects this.
The RFID Architecture Strategy should enable Enterprises to take a holistic view of
the impact of the RFID Business Vision on their Enterprise. The RFID Architecture
Strategy should enable Enterprises to create a platform that will help realize the RFID
Business Vision through Value Creating RFID Applications deployed in a Low Total
Cost of Ownership Environment that is flexible, extensible and future proof.
To assess the complexity of implementing RFID and the impact on existing systems
and infrastructure Infosys has evolved a 7 Layer Reference Model for RFID that can
be the basis for Business and IT to share a common understanding and vision of a
RFID enabled Enterprise. This model provides a layered view of the technology,
infrastructure and process elements that constitute a RFID implementation within an
enterprise. Drawing upon its experience in developing Real Time Asynchronous State
Event Handling Solutions in the Telecom and Networking world, Infosys has evolved
a robust Functional Model and Reference Architecture for designing and integrating
Enterprise scale RFID Applications.
The 7 Layer Reference Model, together with the Functional Model and the Reference
Architecture provide a robust foundation for any RFID Architecture Strategy by:
• Deconstructing the complexity of RFID by providing a layered view
• Identifying the impact of RFID on existing layers within the Enterprise
• Identifying new layers to be implemented by the Enterprise
• Providing a framework to analyze RFID Business Requirements to articulate RFID
Application Requirements.
• Providing a framework to design RFID Application Scenarios within the Event
management Layer
• Providing a Reference Architecture to demonstrate how RFID Events of Business
Significance are integrated with Enterprise Systems
ORGANIZATION BEHAVIOUR AND PRACTICES

Leadership Style: Infosys believes that leadership is one of the most essential
ingredients of organizational success which is provided by its Chairman, N R
Narayanmurthy. Leadership is based on high business vision and predominantly
supportive styles. There is emphasis on developing leadership qualities among
employees. For this purpose, it has established “Infosys Leadership Institute”. Top
management emphasizes on open door policy, continuous sharing of information,
takes inputs from employees in decision making, and builds personal rapport with
employees. As we have seen over last few years, we have seen smooth transition from
N R Narayanmurthy to Nandan Nilakeni and from Nandan Nilakeni to Kris
Gopalkrishnan without any adverse effects on the company outlook and each one has
proved to be an able leader taking company forward.

Staff (Human Resources):

Since Infosys is in knowledge-based industry, it focuses on the quality of the human
resources. Out of total personnel, about 90 per cent are engineers. At the entry level, it
emphasizes on selecting candidates who find the company’s meritocratic culture
satisfying, superior academic records, technical skills, and high level of learn ability.
The company emphasizes on training and development of its employees on
continuous basis and spends about 2.65 per cent of its revenues on up gradation of
employees‟ skills, and around 50% as employee costs. In spite of thousands of people
joining every month, Infosys has been able to maintain its training standard mostly
due to its highly matured processes capabilities and investment in infrastructure.

Strategy:
Infosys has adopted a client-focused strategy to achieve growth. Rather than focusing
on numerous small organizations, it focuses on limited number of large organizations
throughout world. In order to cater its clients, the company emphasizes on custom-
built software’s. Another differentiating factor for Infosys is that it commands
premium margins. Company does not negotiate over margins beyond a certain limit
and some time prefers to walk-out rather than compromise on quality for low-cost
contracts. This has helped in building an image for quality driven model rather than
cost-differentiating model. Increase business from existing and new clients: Infosys
has focused on expanding the nature and scope of engagements for the existing clients
by increasing the size and number of projects and extending the breadth of its service
offerings. For new clients, it provides value added solutions by leveraging its in-depth
industry expertise.

Develop deep industry knowledge:

Infosys has specialized industry expertise in the financial services, manufacturing,
telecommunications, retail, transportation and logistics industries. Enhance brand
visibility: Infosys invests in the development of its premium brand identity in the
marketplace by participating in media and industry analyst events, sponsorship of and
participation in targeted industry conferences, trade shows, recruiting efforts,
community outreach programs and investor relations. Pursue alliances and strategic
acquisitions: Infosys is known for its organic growth (risk averse) strategy though it
has strategic alliance with leading technology providers take advantage of emerging
technologies in a mutually beneficial and cost-competitive manner.

Shared Values:
Values are important part of Infosys’s organizational culture. In fact its tagline depicts
how much emphasis it lays on core values. The core values are:

• A commitment to surpass customer expectations.

• Leadership by Example: A commitment to set standards in business and
transactions and be an exemplar for the industry and teams.
• Integrity and Transparency: A commitment to be ethical, sincere and open in
our dealings.
• Fairness: A commitment to be objective and transaction-oriented, thereby
earning trust and respect.
• Pursuit of Excellence: A commitment to strive relentlessly, to constantly
improve ourselves, our teams, our services and products so as to become the
best. Organizational Structure: The Company has adopted a free form
organization devoid of hierarchies. Everyone is known as associates
irrespective of his position in the company.

Skills
From last year, Infosys has made it mandatory for every employee to clear a
predefined certifications, domain as well as technical, in order to be eligible for
appraisal.

CORPORATE STRATEGIES
Global Delivery Model – Producing where it is most cost effective to produce &
selling where it is most profitable to sell. Moving up the Value Chain – Getting
involved in a software development project at the earliest stage of its life cycle. PSPD
Model – “Predictability of Revenues, Sustainability of Revenues, Profitability, De-
risking” for risk management.

GENERIC STRATEGIES:
Low cost Global delivery 24/7 Model. Little differentiation in low-end services of
value chain; high differentiation in high end services of value chain like software
products and package solutions. Focus on quality, customer relationship management,
timely-delivery.

CONCENTRATION: 90% of Infosys revenues from American and European

nations.

VERTICAL INTEGRATION: Infosys recently made a bid to acquire a European

major – Axon consultancy to improve its business in European markets, but finally
called off the deal due to high valuation. Otherwise, Infosys has always believed in
organic growth.

INNOVATION: The Software Engineering and Technology Labs (SETLabs) at

Infosys is the centre for applied technology research in software engineering and
enterprise technology. SETLabs conducted 24 Innovation Workshops with customers
from the US and Australia, to identify research collaboration possibilities. Infosys
promotes a favourable work environment that encourages innovation and meritocracy.

INFLUENCE OF EXTERNAL FACTORS

1. Political stability: Indian political structure is considered stable enough expect the
fact that there is a fear of „hung parliament‟ (no clear majority).
2. U.S. government has declared that U.S companies that outsource IT work to other
locations other than U.S. will not get tax benefit.
3. Government owned companies and PSUs have decided to give more IT projects to
Indian IT companies.
4. Terrorist attack or war.

ECONOMIC
1. Global IT spending (demand)
2. Domestic IT Spending (Demand): Domestic market to grow by 20% and reach
approx USD 20 billion in 2008-09 - NASSCOM
3. Currency Fluctuation
4. Real Estate Prices: Decline in real estate prices has resulted reducing the rental
expenditures.
5. Attrition: Due to recession, the layoffs and job-cuts have resulted in low attrition
rate.
6. ECOMONIC ATTRACTIVENESS due to cost advantage and other factors

TECHNOLOGICAL
Telephony:
a. India has the world’s lowest call rates (1-2 US cents).
b. Expected to have total subscriber base of about 500 million by 2010.
c. ARPU for GSM is USD 6.6 per month.
d. India has the second largest telephone network after china.
e. Teledensity – 19.86 %
f. Enterprise telephone services, 3G, Wi-max and VPN are poised to grow.
Internet Backbone: Due to IT revolution of „90s, Indian cities and India is well
connected with undersea optical cables.
New IT technologies: Technologies like SOA, Web 2.0, High-definition content, grid
computing, etc and innovation in low cost technologies is presenting new challenges
and opportunities for Indian IT industry.
LEGAL
IT SEZ requirement: IT companies can set up SEZ with minimum area of 10
hectares and enjoy a host of tax benefits and fiscal benefits.
Contract / Bond requirements: Huge debates surrounding the bonds under which
the employees are required to work, which is not legally required.
IT Act: Indian government is strengthening the IT act, 2000 to provide a sound legal
environment for companies to operate esp. related to security of data in transmission
and storage, etc.
Companies operating in Software Technology Park (STPI) scheme will continue to
get tax-benefit till 2010

ENVIRONMENTAL
Energy Efficient processes and equipments: Companies are focusing on reducing the
carbon footprints, energy utilization, water consumption, etc

WORK FORCE DIVERSITY

A global company's employee base should reflect the diversity of the world it serves.
Infosys thus strives to employ people representing the widest possible variety of
nationalities, cultures, genders and gender identities, employment histories, and levels
of levels of physical ability. In doing so, the company is able to recruit new
employees from all available global talent pools and provide paths to employment to
all members of world societies, including talented individuals from groups who may
have in the past been underrepresented within the IT industry. Within such a diverse
company, people bring to the workplace contrasting opinions and worldviews. As
these people interact, they develop new ideas, methods, and perspectives. Infosys
recognizes and promotes this power of diversity to drive innovation.
Infosys actively fosters inclusivity across all of its business units and in every one of
its company offices. It encourages all employees to focus on the commonalities they
share and leverage their differences towards productive teamwork. Inclusivity
ultimately makes for a more informed and sensitive employee base that is better able
to serve clients.
Infosys was the first Indian IT company to establish a company office to manage and
drive all company initiatives dealing with diversity and inclusion. Today we have
employees from over 70 countries. Women constitute more than 32% of our
workforce.

Infosys Women Inclusivity Network (IWIN) promotes a gender-sensitive work

environment. IWIN recognizes the unique aspirations and needs of women. It
provides avenues for vocational, personal and psychological counsel to enable
professional and personal development. Our new Family Matters Network provides
support to employees on parenting matters. On International Women’s Day 2009,
Infosys honoured women employees who have been catalysts of social change.
Infosys also launched Spark Guru, an initiative to awareness among school teachers in
rural areas about social issues.

Infosys actively seeks to hire and train persons with disabilities. In 2006 and 2007,
Infosys BPO received the Helen Keller award for the best employer from the National
Centre for Promotion of Employment for Disabled People (NCPEDP).

Benefits of Workplace Diversity

An organization’s success and competitiveness depends upon its ability to embrace

diversity and realize the benefits. When organizations actively assess their handling of
workplace diversity issues, develop and implement diversity plans, multiple benefits
are reported such as:

Increased adaptability – Organizations employing a diverse workforce can supply a

greater variety of solutions to problems in service, sourcing, and allocation of
resources. Employees from diverse backgrounds bring individual talents and
experiences in suggesting ideas that are flexible in adapting to fluctuating markets and
customer demands.
Broader service range - A diverse collection of skills and experiences (e.g. languages,
cultural understanding) allows a company to provide service to customers on a global
basis.

Variety of viewpoints - A diverse workforce that feels comfortable communicating

varying points of view provides a larger pool of ideas and experiences. The
organization can draw from that pool to meet business strategy needs and the needs of
customers more effectively.

More effective execution – Companies that encourage diversity in the workplace

inspire all of their employees to perform to their highest ability. Company-wide
strategies can then are executed; resulting in higher productivity, profit, and return on
investment.

Challenges of Diversity in the Workplace

Taking full advantage of the benefits of diversity in the workplace is not without its
challenges. Some of those challenges are:

Communication - Perceptual, cultural and language barriers need to be overcome for

diversity programs to succeed. Ineffective communication of key objectives results in
confusion, lack of teamwork, and low morale.

Resistance to change - There are always employees who will refuse to accept the fact
that the social and cultural makeup of their workplace is changing. The “we’ve always
done it this way” mentality silences new ideas and inhibits progress.
Implementation of diversity in the workplace policies - This can be the overriding
challenge to all diversity advocates. Armed with the results of employee assessments
and research data, they must build and implement a customized strategy to maximize
the effects of diversity in the workplace for their particular organization.

Successful Management of Diversity in the Workplace - Diversity training alone is

not sufficient for your organization’s diversity management plan. A strategy must be
created and implemented to create a culture of diversity that permeates every
department and function of the organization.
Diversity also increases errors and misunderstandings - Group members may assume
they interpret things similarly when in fact they do not, or they may disagree because
of their different frames of references.

Mistrust and tension - People prefer to associate with others who are like themselves.
This tendency often leads to mistrust and misunderstanding of those who are different
because of lack of contact and low familiarity. it also causes stress and tension ,and
reaching agreement on problems can be difficult.

Stereotyping - We learn to see the world in a certain way based on our backgrounds
and experiences. Our interests, values and cultures act as filters and distort, block and
select what we see and hear. We see and hear what we expect to see and hear. Group
members often inappropriately stereotype their “different” colleagues rather than
accurately perceiving and evaluating those individual’s contributions, capabilities
aspirations and motivations. Such stereotypes inurn affect how people employee
stereotyped as unmotivated or emotional will be given less -stress – provoking jobs
than their co-workers. Those job assignments will create frustrated employees,
perhaps resulting in low commitment, higher turnover, and underused skills.

It is seen that at Infosys the work force diversity is well maintained and a lot of mix of
culture is also seen here. It is due to the various factors that have led to the
unprecedented growth and success of Infosys

WORK FORCE CULTURE

Creation of diverse workforce would be the greatest challenge for corporations in a

globalized world, says Infosys Technologies’ chairman and chief mentor N.R.
Narayana Murthy according to Silicon India article “Creating diverse workforce
greatest challenge for global firms”.

In a bid to address this daunting challenge, Infosys has built a global base to grow in
the future, with over 91,000 employees from 70 nationalities working across 90
countries. Recounting the initiatives taken during the year under review, the chairman
said by adopting a policy of ‘follow the sun’, the company had ensured to build
delivery capability in India, China, southeast Asia, Japan, Australia, the US, Canada,
Mexico, Britain, eastern Europe and Mauritius.

As a global firm with a multi-cultural, multi-ethnic workforce and delivery centers,

Murthy says the IT bellwether had taken several measures to create a high-level of
diversity in its workforce by enhancing its recruiting efforts in different countries.

We think Infosys is doing a great job turning itself into a global company by hiring
diverse workforce. But underneath these efforts to build diverse work force, Infosys
or any other company vying to be Global Company primarily need to pay attention to
their corporate culture. Most of the corporations have what we call “ethno-centric”
corporate culture. Initially when Infosys was small, it had all its clients and employees
in India. All its executives were and still are of Indian ethnicity (although there is
some diversity in its board with 3 board members is not Indians). Therefore its
corporate culture is mainly influenced by Indian culture (both ethnic and country).
When they begin to open development centres in other countries, Indian corporate
culture unknowingly percolates and influences the local culture. If those two cultures
are diametrically opposite, creating a diverse work force may in fact hinder with
employee productivity. So, ethno-centric corporate culture may curtail the ambition of
any company to becoming global.

In our opinion, the only way to overcome ethno-centric corporate culture is to have
multi-ethnic and multi-national top executives. Infosys needs to create diversity at the
top executive level first. That will have a long term affect of neutralizing ethno-
centric corporate culture and building a truly global organization. That is the only way
for Infosys or any other company to achieve globalization strategy.

We have couple of example to show that this approach is winning globalization

strategy:

Example 1: Sony Corp of Japan is a global company but its culture is strongly
influenced by Japanese culture and that has lately affected Sony’s Brand negatively.
To overcome stagnating sales, Sony in 2005 promoted Howard Stringer as its first non
Japanese CEO. Born in Wales with extensive work experience in US, Stringer has
been very active in trying to neutralize negative aspect of Japanese ethno centric
influence on Sony (check out NY Times article). Diversity has been implanted
successfully at the top executive’s level at Sony (Look at the bio of Sony’s top
executive here)

Example 2: Lenovo, a Chinese based PC hardware company bought lucrative assets

from IBM couple of years back and has been on a path to transform itself into a
globalized company. Again check out the diversity of top management team at
Lenovo here.

Management teams within Infosys are all Indians (Check out the profile of the
management team here). Bottom line is simple. Internationally well known brand will
not make a company Global. Global manufacturing/development centre will not make
a company global. Multinational, multiethnic employee by themselves may not enable
the company to become global. It’s the “ethnic neutral” corporate culture that will
unleash any company to become truly global. That cultural change can be brought
about by the diversity at the executive and the top management level. We think
Infosys should get busy hiring multinational top executives along with hiring
multinational employees.

SWOT ANALYSIS

STRENGTHS
Leadership in sophisticated solutions that enable clients to optimize the efficiency of
their business:
The company bring together expertise in consulting, IT services and business process
outsourcing to create solutions that allow clients to increase their customer loyalty
through faster innovation, restructure their cost base, and help them achieve greater
success through shifting business cycles. Expertise helps our clients improve their
own efficiencies, create better value for their end customers and become more
competitive. They’re able to capture a greater share of our clients’ technology
budgets.

Proven global delivery model:

Highly evolved Global Delivery Model represents a key competitive advantage. Over
the past decade, they have developed our onsite and offshore execution capabilities to
deliver high quality and scalable services. In doing so, Infosys have made substantial
investments in processes, infrastructure and systems, and have refined our Global
Delivery Model to effectively integrate onsite and offshore technology services. The
Global Delivery Model provides clients with seamless, high quality solutions in
reduced time frames enabling them to achieve operating efficiencies.

Commitment to superior quality and process execution:

Infosys have developed a sophisticated project management methodology to ensure
timely, consistent and accurate delivery of superior quality solutions to maintain a
high level of client satisfaction.

Strong Brand and Long-Standing Client Relationships:

They have long-standing relationships with large multinational corporations built on
successful prior engagements with them.

Status as an employer of choice:

Infosys has among the best talent in the Indian technology services industry and are
committed to remaining among the industry’s leading employers. We have a presence
in 13 cities in India, allowing us to recruit technology professionals with specific
geographic preferences. We have a diverse workforce which includes employees from
70 nationalities.
Ability to scale:
Infosys have successfully managed their growth by investing in infrastructure and by
rapidly recruiting, training and deploying new professionals. We currently have 52
global development centres.

Innovation and leadership: A pioneer in the technology services industry. We are one
of the first Indian companies to achieve a number of significant milestones, which has
enhanced our reputation in the marketplace.

WEAKNESSES

Revenues and expenses are difficult to predict and can vary significantly from period
to period, which could cause share Price to decline
26
May not be able to sustain our previous profit margins or levels of profitability
The economic environment, pricing pressure and rising wages in India and overseas
could negatively impact revenues and operating results
Revenues are highly dependent on clients primarily located in the United States and
Europe, as well as on clients concentrated in certain industries. Economic slowdowns
or factors that affect the economic health of the United States, Europe or these
industries may affect our business.
Any inability to manage growth could disrupt our business and reduce our
profitability
May face difficulties in providing end-to-end business solutions for our clients, which
could lead to clients discontinuing their work
Revenues are highly dependent upon a small number of clients, and the loss of any
one of our major clients could significantly impact the business
Failure to complete fixed-price, fixed-time frame contracts within budget and on time
may negatively affect our profitability
Client contracts can typically be terminated without cause and with little or no notice
or penalty, which could negatively impact our revenues and profitability
The engagements with customers are singular in nature and do not necessarily provide
for subsequent engagements
OPPORTUNITIES

Huge untapped potential for in the global market as IT will become the need of almost
every industry
The IT industry can be the reason for India being a global leader of tomorrow

THREATS

Legislation in certain of the countries, in which Infosys operates, including the United
States and the United Kingdom, may restrict companies in those countries from
outsourcing work overseas
Intense competition in the market for technology services could affect cost
advantages, which could reduce the share of business from clients and decrease the
company’s revenues
Our client contracts are often conditioned upon our performance, which, if
unsatisfactory, could result in less revenue than previously anticipated
Some of our long-term client contracts contain benchmarking provisions which, if
triggered, could result in lower future revenues and profitability under the contract.

FUTURE STEPS

1. More keen on large deals. The margin dilution from large deals has been a point of
concern in the past at Infosys. However, while the initial margin profile can be
extremely wavy, it is possible to improve margins later in the life of the contract
through reduced G&A overheads. Infosys, in its recent analyst meet, mentioned that a
dedicated team was now working on large deals. We expect greater focus ahead in this
area.

2. Increased focus on solution based offerings in both IT services and BPO. Infosys
has developed ~50 solution based offerings in the IT services space and believes that
some of these can help break the linearity between revenue and manpower growth in
the business. In BPO as well, its first platform based BPO offering is likely to be
launched soon.

3. Willingness to explore new deal structures. The market was surprised when Infosys
paid an upfront $28m for the $250m/7-year Phillips BPO deal. While TCS had made
such a payment in the case of Pearl BPO earlier, Infosys’ willingness to do so was
certainly a shift from the past.

Infosys's hiring plans for the year (2009):

Most of the companies rapidly cutting their losses by employing massive
retrenchment drive, firing thousands of employees or offering them early separation
schemes. However, despite the massive economic turmoil across the globe, there are
still some companies that are looking to hire skilled candidates. One of these
companies is Infosys. The company intends to stick to its plan of hiring 25,000 people
this fiscal year.

Infosys plans acquisitions in Brazil and Mexico (JUNE 16, 2009)

Infosys is trying to acquire a few companies in Mexico and Brazil to expand its
delivery capabilities. The company's first centre will be operational in Brazil in next
three to four months. Infosys has currently employed about 250 people in Mexico and
hence feels the need to have local facility to attract local business. "We are looking for
some very targeted acquisition with specific criteria," said Dheeshjith V G, Head,
New Markets and services, INFOSYS
Infosys had started focusing on Mexican market in last six to seven months.
According to Dheeshjith there has been increase in the business from local clients and
some companies are looking to outsource large deals. Around 20-25 percent of the
total business in Infosys' Mexico subsidiary comes from multinational companies that
have operations in Mexico while the rest of the business comes from clients in North
America. That is the reason why Infosys is stressing on local deals to attract local
customers.