H.R.

COLLEGE OF COMMERCE AND ECONOMICS

INFOSYS
POWERED BY INTELLECT DRIVEN BY VALUES Strategic Management
AAKASH SHAH ROLL NO. 115 DIVISION- M M.COM-1

TABLE OF CONTENTS

Chapter 1: Introduction................................................................................................................................ 1 Founders .................................................................................................................................................. 1 History .................................................................................................................................................. 1 Chapter 2: Product offerings ........................................................................................................................ 4 Chapter 3:Mission and objectives ............................................................................................................... 7 Chapter 4: SWOT Analysis ............................................................................................................................ 8 Chapter 5: Corporate Strategy............................................................................................................10 Chapter 6: Acquisitions.......................................................................................................................12 Chapter 7: Future of Infosys................................................................................................................13 Chapter 8: Bibliography......................................................................................................................14

CHAPTER 1: INTRODUCTION

Infosys (BSE: 500209, NASDAQ: INFY) is an information technology services company headquartered in Bangalore, India. Infosys is one of the largest IT companies in India with 114,822 employees (including subsidiaries) as of 2010. It has offices in 30 countries and development centres in India, China, Australia, UK, Canada and Japan. FOUNDERS: Infosys was founded on 2 July 1981 by seven entrepreneurs,N R Narayana Murthy, Nandan Nilekani, Kris Gopalakrishnan, S. D. Shibulal, K Dinesh and with N. S. Raghavan officially being the first employee of the company. Founders started the company with an initial investment of INR 10,000. The company was incorporated as "Infosys Consultants Pvt Ltd." in Model Colony, Pune as the registered office. Infosys headquarters in Bangalore, India HISTORY How Infosys was born1 The idea of Infosys was born on a morning in January 1981. That fateful day, N R Narayana Murthy and six software engineers sat in his apartment debating how they could create a company to write software codes.Six months later, Infosys was registered as a private limited company on July 2, 1981. Infosys co-founder N S Raghavan's house in Matunga, northcentral Mumbai, was its registered office. It was then known as Infosys Consultants Pvt Ltd. US $250. Murthy borrowed $250 from his wife Sudha to start the company. The front room of Murthy's home was Infosys' first office, although the registered office was Raghavan's home. Nandan Nilekani, N S Raghavan, S Gopalakrishnan, S D Shibulal, K Dinesh and Ashok Arora. were Murthy's six friends who joined hands to launch Infosys. K. V. Kamath is the Chairman, S. Gopalakrishnan the Co-Chairman whereas S.D. Shibulal the CEO & MD. Murthy is currently chief mentor. Raghavan retired as joint managing director in 2000. He is currently the chairman of the advisory council of the N S Raghavan Centre for Entrepreneurial Learning at the Indian Institute of Management, Bangalore. Ashok Arora worked for the company till 1988 and left after selling his shares in the then unlisted company back to the other promoters. He moved to the United States where he now works as a consultant.
1

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A huge struggle, day in and day out2 When they began moving ahead with Infosys, the founders -- Murthy, Nilekani, Shibulal and the others -- took a firm decision -- that their wives would not be involved in the running of the company. So after Murthy, it was Nilekani and his wife Rohini who moved to Bangalore. But they had no house to stay. So the Nilekanis stayed with the Murthys at their Jayanagar home in Bangalore. Rohini took care of Murthy's son as Sudha helped write software programmes for Infosys. There was no luxury, only struggle, day and night. They had no car, no phone. Murthy later recalled that it was not the luxuries of life, but the passion to create something new and innovative that made them keep going on and on and on. Despite the struggles, the Murthys, the Nilekanis and the other partners took time out for picnics in Bangalore. The crisis, and how Infosys began to grow3 The first years of Infosys were not smooth. Most of the founders -- Murthy, Nilekani, Dinesh, Shibulal and Gopalkrishnan -- were into writing codes. And they wanted to make an impact in the American market. So Infosys got its first joint venture partners in Kurt Salmon Associates. Gopalakrishnan, who had spent time working in the United States, was the public face of the KSA-Infosys venture in America. But the joint venture collapsed in 1989, leaving Infosys in the lurch. Gopalakrishnan relives the memories of those days. "We had nothing after eight years of trying to bring up a company. Those who studied with us had cars and houses," he says. The collapse of the KSA joint venture led Infosys to its first crisis. The company was on the verge of collapse. One of the founder-partners -- Ashok Arora -- was dejected with the way the company was going, and decided to quit. The others did not know what to do. But Murthy had the courage of conviction. 'If you all want to leave, you can. But I am going to stick (with it) and make it,' Murthy told them. The other partners -- Nilekani, Gopalakrishnan, Shibulal, Dinesh and Raghavan -- decided to stay.And thus began to germinate the seeds of Infosys' enormous growth.

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The Nasdaq listing4 It is said that Infosys began getting big breakthroughs from the US market. The initial foray of Infosys into the US market was through a company called Data Basics Corp as a 'body-shop' or on-site developer of software for US customers. Later, Infosys formed a joint venture with Kurt Salmon Associates to handle marketing in the United States. Even today, Infosys derives about two-thirds of its revenue from the United States, serving corporate clients like Reebok, Visa, Boeing, Cisco Systems, Nordstrom and New York Life.It was the first Indian company to list on the Nasdaq stock exchange in 1999. Now, it's a global IT giant!5 Today, Infosys provides consulting and IT services to clients globally.It uses a low-risk, global delivery model to accelerate schedules with a high degree of time and cost predictability. The company has over 53,000 employees worldwide.The Infosys corporate headquarters is located in Bangalore. Its US headquarters is in Fremont, California. Infosys has office across the globe: Atlanta, Bangalore, Beijing, Bellevue, Bridgewater, Bhubaneswar, Brussels, Charlotte, Chennai, Detroit, Frankfurt, Fremont, Hong Kong, Hyderabad, Lake Forest, Lisle, London, Mangalore, Mauritius, Melbourne, Milano, Mohali, Mumbai, Mysore, New Delhi, Paris, Phoenix, Plano, Pune, Quincy, Reston, Shanghai, Sharjah, Stockholm, Stuttgart, Sydney, Thiruvananthapuram, Tokyo, Toronto, Utrecht, Zurich.

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CHAPTER 2: PRODUCT OFFERINGS

OFFERINGS:6
Infosys offers a range of solutions to its global customers. It offers solutions to wide array of industries. It provides various services like IT services, Engineering services, BPO services and consulting services etc. Industries: Infosys Technologies offers services to the following industries:

Aerospace and Defense Airlines Automotive Banking and Capital Markets Communication Services Consumer Packaged Goods Discrete Manufacturing Education Energy Healthcare High Technology Hospitality and Gaming Insurance Life Sciences Logistics and Distribution Manufacturing Publishing Resources Retail Studios and Networks Utilities

IT-Services The IT Services offered by Infosys include the following:

Application Services

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Architecture Services Enterprise Quality Services Independent Validation Services Information Management Services Infrastructure Services Knowledge Services Packaged Application Services SOA Services Systems Integration Services

Engineering Services: Infosys offers concept-to-market R&D and engineering services, which help its clients to improve their product operations. The services focus on the complete engineering value chain of different industries. Following engineering services are offered:

Lifecycle Management Manufacturing Process and Plant Solutions Product Engineering

Consulting Services: The consulting services offered by Infosys are meant to make its clients stronger and more competitive and also make them capable to manage global business more efficiently. Following consulting services are offered:

Core Process Excellence Information & Technology Strategies Learning & Complex Change Next Generation Commerce Product Innovation

BPO Services: Infosys Technologies Ltd. has a strong BPO division that delivers world-class process outsourcing.

Offerings by Industry Aerospace and Automotive Banking and Capital Markets Communication Service Providers Energy and Utilities Healthcare Insurance Life Sciences

Manufacturing Media and Entertainment Retail and Consumer Packaged Goods Services Transportation and Services Offerings by Function Business Platforms Customer Service Outsourcing Finance and Accounting Human Resource Outsourcing Knowledge Services Legal Services Order Management Sourcing and Procurement Outsourcing

Products: Infosys has got the following products and platforms that offer holistic and integrated transformation approach.

Collaborative Analytics Infosys ActiveDesk Infosys iProwe Infosys mConnect Infosys Unified Communications and Collaboration (UC)

Financial Solutions: Financial solutions are meant for the banking industry. Following are the solutions provide:

Core Banking e-Banking Mobile Banking Treasury Finanz Tools CRM Alerts Wealth Management

CHAPTER 3: MISSION AND OBJECTIVES

MISSION: "To achieve our objectives in an environment of fairness, honesty, and courtesy towards our clients, employees, vendors and society at large." VISION: "To be a globally respected corporation that provides best-of-breed business solutions, leveraging technology, delivered by best-in-class people." VALUES: We believe that the softest pillow is a clear conscience. The values that drive us underscore our commitment to:

Customer Delight: To surpass customer expectations consistently Leadership by Example: To set standards in our business and transactions and be an exemplar for the industry and ourselves Integrity and Transparency: To be ethical, sincere and open in all our transactions Fairness: To be objective and transaction-oriented, and thereby earn trust and respect Pursuit of Excellence: To strive relentlessly, constantly improve ourselves, our teams, our services and products to become the best

CHAPTER 4: SWOT ANALYSIS

STRENGTHS

Since the company is based in India its competitive advantage is enhanced. The Indian economy, despite weak economic indicators such as relatively high rates of inflation, has low labor costs. The workforce has relatively high skills levels in Information Technology. Couple these two elements together and you have an operational basis that offers low-cost based, highly skilled competitive advantage. Trained Indian personnel often speak very good English and are sensitive to Western culture, underpinned by India's colonial past. Infosys is in a strong financial position. The business turned over more than $4 billion in 2008. This means that it has the capital to expand, and also the basis to leverage potential investors. The company has bases in 44 global development centres, most of which are located in India, although the company has offices in many developed and developing nations. This means not only that Infosys is becoming a global brand but also that it has the capability to support the global operations of multinational clients. First Indian Company to be listed on the NASDAQ WEAKNESSES

Infosys on occasion struggles in the US markets, and has particular problems in securing United States Federal Government contracts in North America. Since these contracts are highly profitable and tend to run for long periods of time, Infosys is missing out on lucrative business. Added to this is the fact that its competitors do well in terms of securing the same Federal business (and one should also take into account that many of its competitors are domiciled in the US and there could be political pressure on the US Government to award contracts to domestic organizations). Despite being a huge IT company in relation to its Indian competitors, Infosys is much smaller than its global competitors. As discussed above, Infosys generated $4 billion in 2008, which is relatively low in comparison with large global competitors such as Hewlett-Packard ($91 billion), IBM ($91 billion), EDS ($21 billion) and Accenture ($18 billion). It is sometimes argued that Infosys is weaker when it comes to high-end management consultancy, since it tends to work at the level of operational value creation. Competitors such as IBM and Accenture tend to dominate this space. Also in the IT sector the attrition rates are very high as employees keep switching from one company to another in search of a job with a higher remuneration. It becomes difficult to hold back the employees

OPPORTUNITIES Brazil, Russia, India and China (BRIC) nations together are the emerging markets for Infosys to grow and expand as these countries are going through a new era of industrial revolution. Strategic alliance between Infosys and Schlumberger gives the IT company access to lucrative business in the field of gas and oil. Trend in the recent years for European and North American companies to base some or all of their operations in India. This is called offshore service. Thus cater to such companies. THREATS India is not the only country going industrial expansion. Competitors may come from countries such as China and Korea where there are large pools of low labour cost and developing educational infrastructure such as universities and technology colleges India lacks skilled labour. Also n rates are very high resulting in even more problems for the company. The investor community is always on the look-out for returns and so they have high expectations Loss due to foreign exchange is another threat for this company

CHAPTER 5: CORPORATE STRATEGY

Market Development Strategy 1. Globalization Strategy

Infosys views Globalization as one of the forces changing business landscape causing a flattening effect the others are changing demographics, technology ubiquity and increased regulations. Infosys goal is to be among the top globally respected companies in the world and to be a trusted transformation partner for its clients. Infosys globalization strategy is to expand its client base world wide, to increase market share and reduce its dependency on large clients. Infosys measures the success of its globalization strategy by the success of its customers, most of which are outside India. Analysis The above mentioned strategy is one the most important one as it sets the theme of the company. There are two facets or effects of this strategy. The first being a positive one, where the company performs its services not only in the US and India but also Europe, Africa and other middle-east countries. The negative effect refers to the fact that tough it is an Indian based company it does not focus much on India. India being a developing country, needs companies like Infosys to pay more attention to it so as to bring about development and major technology promotion.

2. Flat World Theme:

Infosys believe in The Flat World Metaphor where traditional barriers to trade are breaking down, hierarchies both organizational and customer are being flattened, information and knowledge asymmetries across competition, customers and within the enterprise are being eliminated. The competitive playing field is being leveled. Analysis This comes under globalization where the organizations in the world are becoming flatter. The fact that Infosys assumes the above mentioned theme, it is at an advantage because it considers all equal. It assumes that there is no information asymmetry and that strives to provide services honestly and equitably.

3. In sourcing:
Infosys has a unique offshore outsourcing strategy, which relies increasingly on in sourcing of local talent to address customer-facing needs. The company is also investing heavily on training its global talent pool, bringing university graduates from all around the world to its new Global Education Centre in India for hands on training and exposure to global best practices. Analysis This strategy compliments the globalization strategy as it clearly shows that Infosys performs both outsourcing and in sourcing, that is, to promote outsourcing it needs the strong

base of in sourcing. Thus, it does not depend purely on domestic labour or processes but also ones from other countries.

Body shopping:
The companys initial strategy was to transfer some Indian talent abroad to the client site to do basic software coding and development work. They exploited the wage differentials between Indian IT workers and their counterparts in the United States. Infosys hired IT workers in India and then sent them to the U.S. client site for particular projects. However, Infosys later abandoned body shopping a and instead moved up the value chain, positioning itself as a strategic partner, sharing risks, and codeveloping innovative products and services with its key clients.

CHAPTER 6: MERGERS & ACQUISITIONS

Infosys BPO buys Australia-based Portland Group for AUD 37 mn7

Infosys BPO, the back office subsidiary of Infosys, has acquired Australia-based sourcing and category management services firm Portland Group. The A$37-million all-cash deal was completed by January 2012.According to Infosys, which has often been criticized by analysts and industry watchers for not being aggressive on acquisitions despite sitting on almost $4 billion of cash, the deal will help it establish presence in the Australian market with more offerings in the value-added segment. "The deal will essentially enable us to have a reach into the Australian market. It will enhance our sourcing and procurement capabilities. Infosys' focus has always been on value-added services and this will add to it," Swamithan D, CEO and MD of Infosys BPO Portland Group has over 100 employees with a reported revenue of approximately A$31.3 million for the fiscal year ended June 30, 2011. "Portland Group has over 100 procurement specialists with domain expertise and some 40-odd clients. The deal will certainly help us intensify our service offerings and take sourcing and procurement functions to a higher level," he added.The acquisition is expected to start contributing to Infosys revenue . The country's secondlargest IT services firm is seeing a greater role for its BPO business as it transforms itself from an IT services firm to a business solutions firm. According to the company's executive cochairman, S Gopalakrishnan, BPO is now leading the sales in many of its new wins where earlier it would have been bundled along with IT services. Infosys' BPO business hit the $500-million-mark in revenue the year 2011-2012. "For Infosys, only 7% of business comes from BPO services. But now BPO is leading the sale and everything else gets pooled to BPO," Gopalakrishnan . As per Nandan Nilekani of Infosys Technologies, our view is that our competitive strength, our raison detre, our values come from our business model. One thing is clear doing a large acquisition will contaminate our business model does not make sense. However small acquisitions, investments which take us further on our strategy to combine the best of our existing execution model with the best of business solutions we look at8

7 Infosys BPO buys Australia-based Portland Group for AUD 37 mn ET Bureau Dec 21, 2011
8

Buy small, grow big Infosys new mantra-18.3.2004, ET, asha rai

CHAPTER 7: FUTURE OF INFOSYS

The commoditization of technology has reached its pinnacle with the advent of the recent paradigm of Cloud Computing. Infosys Cloud Computing blog is a platform to exchange thoughts, ideas and opinions with Infosys experts on Cloud Computing Organizational Drivers for Cloud Computing- The Big Picture9 One of the biggest indicators of gauging how unaware the world is about a particular technology and the scope of its adaption is to look for the number and types of definitions available for it, over the web. More the number of definitions and higher the heterogeneity of definitions, hotter is the technology. For example try looking for arcane words like web 2.0, Service Oriented Architecture, Cloud Computing etc Cloud Computing, though more or less has been defined uniformly over the years, has still a lot to be dwelled onto and explored into. It is by far, in my opinion, the strongest contender for an IT revolution. Possibilities are galore and go beyond imaginations. It is because "cloud" is a whole new world altogether and you can do absolutely anything in the cloud, that you wish to. Cloud computing, under its umbrella, covers broadly three layers - Software, Platform and Infrastructure, all offered as shared or exclusive services over the net. Type of IT service Impacted:
o o

IT Services within the organization used by/for employee Business Services offered to the end customer/user

Type of Impact / Reason for Outsourcing: Cost Optimization Focus on core competency Differentiation based on better customer experience Banking and Financial Corporations: Faster, better and Innovative Value added services through a professionally managed IT Infrastructure for a better customer experience and differentiation based on same. Real time-anytime.

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 Cost optimization by reducing costs of managing huge data centers that store employee and customer databases and servers. Operational efficiency through standardized, homogenous and integrated service architecture that would host all the applications developed over time (over the lifetime of the organization) onto one system. Telecommunications: (in addition to above) : Serving efficiency for TEMs (Telecom equipment manufacturers) through shared NOCs by concentrating on quality of service delivered than on how the service is delivered. Cost optimizations for mid-small size service providers by using shared Network Operation Centers. Retail: Supply chain efficiency by using private or public cloud data/network centers so that to be able to concentrate more on supply chain innovations Focus on core competency by not worrying about hosting and running of CRM and ERP applications Aviation: Operational efficiency by using professionally managed public or private clouds for routine operations to ensure smooth information exchange, reduce downtime, and guarantee 24/7 availability Cost reduction on managing own data centers and passing the benefit to customers Boosting business continuity by reducing the vulnerability to breakdown through a professionally managed infrastructure. IT/ITES: For product companies such as Microsoft, Apple to focus on core competency by outsourcing the Infrastructure management and maintenance to cloud vendors.

More or less all these factors are applicable to these and other industries as well. With business becoming more and more competitive and rapid cloud innovations, Infrastructure as a service concept is here to stay and transform the way businesses are done.

Types of services provided by Cloud Infrastructure a) b) c) SaaS (Software as a Service) PaaS ( Platform as a Service) IaaS (Infrastructure as a Service)

In simple words, Cloud computing is the use of computing resources (hardware and software) that are delivered as a service over a network (typically the Internet). The name comes from the use of a cloud-shaped symbol as an abstraction for the complex infrastructure it contains in system diagrams. Cloud computing entrusts remote services with a user's data, software and computation.

CHAPTER 8: BIBLIOGRAPHY
http://www.rediff.com/money/2006/jul/11sld8.htm http://www.rediff.com/money/2006/jul/11sld7.htm Wiki - Infosys Infosys's own official site Business Today - The Best Companies to Work for in India Business Today - 20 companies to watch in 2008 Infosys ups revenue guidance for this fiscal 13 Jul 2010, http://economictimes.indiatimes.com/news/news-by-company/earnings/earnings-news/Infosysups-revenue-guidance-for-this-fiscal/articleshow/6161872.cms http://economictimes.indiatimes.com/news/news-by-company/earnings/earnings-news/Infosysups-revenue-guidance-for-this-fiscal/articleshow/6161872.cms http://www.icmrindia.org/casestudies/catalogue/Human%20Resource%20and%20Organization %20Behavior/Human%20Resource%20Management-Infosys%20TechnologiesCase%20Study.htm http://www.rediff.com/money/2006/jul/11sld2.htm and http://www.rediff.com/money/2006/jul/11sld4.htm and http://www.rediff.com/money/2006/jul/11sld5.htm http://www.rediff.com/money/2006/jul/11sld6.htm Indias global powerhouses chapter 3 http://www.rediff.com/money/2006/jul/11sld8.htm and http://www.rediff.com/money/2006/jul/11sld9.htm https://docs.google.com/viewer?a=v&pid=gmail&attid=0.1&thid=12a1998700a92ded&mt=appli cationpdf&url=https://mail.google.com/mail/?ui%3D2%26ik%3D5733236bd1%26view%3Datt %26th%3D12a1998700a92ded%26attid%3D0.1%26disp%3Dattd%26zw&sig=AHIEtbTUd3nd CJv9WlSFKC4SDmhhmZrYTg http://www.infosys.com/about/alliances/Pages/index.aspx http://www.indiadaily.com/editorial/10-11a-04.asp http://www.blonnet.com/2010/06/17/stories/2010061752460700.htm

9 Things troubling Infosys- TOI Tech & Agencies http://timesofindia.indiatimes.com/tech/itslideshow

Offshoring will increase, despite budget cuts: CEO K Giriprakash The Hindu Business Line, Wednesday, July 14th http://www.blonnet.com/2010/07/14/stories/2010071452680700.htm

Infosys steps up hiring to tackle rising attrition Anjali Prayag Bangalore, July 13, The Hindu Business Line http://www.blonnet.com/2010/07/14/stories/2010071452670700.htm

Infosys looks to build technical talent pool Anjali Prayag, K. Giriprakash Bangalore, June 18, The Hindu Business Line http://www.blonnet.com/2010/06/19/stories/2010061953450400.htm Infosys opens green channel' to woo former staff Anjali Prayag K Giriprakash Bangalore, June 16, The Hindu Business Line http://www.blonnet.com/2010/06/17/stories/2010061752460700.htm