46052638 final infosys
Post on 07-Apr-2018
215 Views
Preview:
TRANSCRIPT
-
8/3/2019 46052638 FINAL Infosys
1/24
November 30 , 2010th
-
8/3/2019 46052638 FINAL Infosys
2/24
Outline
Outline1. Facts andBackground2. Micro Analysis of the domestic & Foreignenvironment
Domestic Indian ITmarketMain ForeigncompetitorsAdvantages of off-shoring forInfosys3. PSPD
Model4. GDMModel5. SWOTAnalysisInfosys
TechnologiesInfosysConsultancy6. Market
Challenges7. Conclusion &Recommendations
-
8/3/2019 46052638 FINAL Infosys
3/24
Infosys Technologies: Facts Sheet
Infosys Technologies: Facts Sheet1981
Started in 1981 by 7 people with US $250
1999
Listed in NASDAQ (first Indian company)
2004
Set-up Infosys Consulting
Revenues reach US$ 1 billion
2004 2005
US $1.5+ Billion in Revenues & Market Cap of US $19 Billion
37000 Employees - 32 Development Centers and 32 Sales Offices
Total Number of Clients 440
-
8/3/2019 46052638 FINAL Infosys
4/24
Infosys Technologies: Facts Sheet
Infosys Technologies: Facts Sheet2006 - 2008
Infosys celebrates 25 yearsInc ease in Re enues
Infosys crosses revenues of US$ $4.18 billion 000
Annual net profits cross US$ 1 $ 4.8 B5000billion
Opens new subsidiary in Latin 4000
America000
2009
2000Infosys selected as a member of
$ 1 BThe Global Dow1000
Employee strength grows to over $100 M0100,000
1 2004 2008
-
8/3/2019 46052638 FINAL Infosys
5/24
Infosys Background
Infosys BackgroundMain Services:
Developer of software
programsSolution provider for business
problemsConsultin
gIT
ProgrammingGrew mostly through:
New business
contractsAcquisition of smaller IT service
providersAlliances with larger
companies.Pioneer of Global Delivery Model (GDM)
-
8/3/2019 46052638 FINAL Infosys
6/24
-
8/3/2019 46052638 FINAL Infosys
7/24
Domestic Indian IT Market
Domestic Indian IT MarketGreat Potential of growth and provide good opportuntiesforInfosys
Keep growing and increasing by 11% in2003
Main DomesticCompetitorsTC
SMOREMORE
Wiprottractive!!
ttractive!!Satyam
BUT Infosys believe that FOREIGN
MARKET
-
8/3/2019 46052638 FINAL Infosys
8/24
The India (off
The India (off-
shore)
Advantage:
shore)
Advantage:High qualitydeliverySignificant costs
benefitsStrong governmentsupportMatureindustryMan Power
Educationsystem24 x 7 working model
advantage
-
8/3/2019 46052638 FINAL Infosys
9/24
Competitive Landscape
Competitive LandscapeMain Competitors:
Accenture
IBMWipro
Key competitive
advantages:Extensive domain knowledge andexpertiseComprehensive
offeringsLong-term relationships with blue chipclientsProven Global DeliveryModelExecution excellence
Competent leadership and managementteam
-
8/3/2019 46052638 FINAL Infosys
10/24
PSPD Model
PSPD Model
The Infosys business model rests on four pillars:
Predictability,Sustainability,Profitability,andDe-risking.
Improve your odds withInfosys Predictability.
PSPD MODEL
-
8/3/2019 46052638 FINAL Infosys
11/24
PSPD MODEL
Quality People Transparency
SUSTAINABILIT
YPREDICTABILIT
YMaintenance Translating Clients to
partnersLong term
Relationship
Offshore
SoftwareDevelopment Center
Growth
Higher value Services Exposure limits for client
Exposure limit for dotcomIncrease revenue productivity
Offshore model - Global Exposure limit forDelivery opportunity business
( likeUpsell to existing clients Y2K)
GeographicalIterative model of development
diversification
PROFITABILIT
Y
DE-
RISKING
-
8/3/2019 46052638 FINAL Infosys
12/24
The Global Delivery Model (GDM)
The Global Delivery Model (GDM)Pioneers of the Global Delivery Model (GDM) for
development of customized IT solutions
GDM is based on dividing & carrying out each unit of
work in accordance with :
where it can be donebestwhere it makes the most economic sense, with theleastamount of acceptablerisk
-
8/3/2019 46052638 FINAL Infosys
13/24
Lower IT implementation
costWorld class
infrastructur
elower total cost
of engagemen
t
highl
yGlobal Delivery
ModelCustomer
skilledRelationshi
presources
Benefits
Quicker
timePredictability
& to
marketQuality of
deliverables Lower IT implementation
cost
-
8/3/2019 46052638 FINAL Infosys
14/24
Infosys Consulting
Infosys ConsultingStarted on April 8,2004Initial investment of
$20MLower costpropositionClients morecompetitiveTo add more value with betterresultsFocused on the Global Delivery Model
(GDM)Demonstrated operationalandFinancial
DisciplineCommitment to become strong globalpowerhouse.
CHALLENGE
How to reconcile high-end consulting with a low-cost GDM ?
-
8/3/2019 46052638 FINAL Infosys
15/24
SWOT Analysis
SWOT Analysis
STRENGTHS
STRENGTHSITTechnologies:Operational excellence to deliverGDMCapability to attract & keeptalentsStrongfinancialStrong relationship with LargeCorporations
Consultancy
:Unique blendedmodelAccess to InfosysclientsStrong inoperations
-
8/3/2019 46052638 FINAL Infosys
16/24
SWOT Analysis
SWOT Analysis
WEAKNESSES
WEAKNESSESITTechnologies:Over-reliance on USeconomyConsulting?
Consultancy
:Low brandequityInexperience with consultingrelationshipsChallenge attracting top consultingtalent
-
8/3/2019 46052638 FINAL Infosys
17/24
Infosys
Infosys SWOT Analysis
SWOT Analysis
OPPORTUNITIES?
OPPORTUNITIES?
IT
Technologies:More cost/speed consciouscustomersMarketgrowthGlobal brand
Consultancy
:More cost/speed consciouscustomersMarketgrowthOpen up new segment ofmarket
-
8/3/2019 46052638 FINAL Infosys
18/24
Infosys
Infosys SWOT Analysis
SWOT Analysis
THREATS?
THREATS?
IT
Technologies:Wage inflation due to competition ontalents Newer businessmodels
Consultancy
:Easy replicability ofmodelIncreasing IBM/ACN presence inIndiaCulture clash with InfosysTechnologies
-
8/3/2019 46052638 FINAL Infosys
19/24
Infosys Technologies
Infosys Technologies SWOT Analysis
SWOT Analysis
STRENGTHS
STRENGTHS WEAKNESSES
WEAKNESSE
SOperational excellence to Over-reliance on US economydeliver GDM Consulting?
Capability to attract & keep
talents
Strong financial
Strong relationship with
Large Corporations
OPPORTUNITIES
OPPORTUNITIES
THREATS
THREATS More cost/speed Wage inflation due toconscious customers competition on talents
Market growth Newer business models
Global brand
-
8/3/2019 46052638 FINAL Infosys
20/24
Infosys
Infosys Consultancy SWOT Analysis
SWOT Analysis
STRENGTHS
STRENGTHS WEAKNESSES
WEAKNESSE
SUnique blended model Operational excellence toAccess to Infosysclients
deliver GDM
Strong in operations Capability to attract & keep
talents
Strong financial
Strong relationship with
Large Corporations
OPPORTUNITIES
OPPORTUNITIES
THREATS
THREATS More cost/speed conscious Easy replicability of modelcustomers Increasing IBM/ACN
Market growth presence in India
Open up new segment of Culture clash with Infosys
market Technologies
-
8/3/2019 46052638 FINAL Infosys
21/24
Challenges
Challenges
Was the domestic market attractive?
Right do business at significantly lowerprofitmargin?
Make sense as strategic imperative for Infosys both for branding and revenuebuildingrationale?
dd i K M k t Ch ll
-
8/3/2019 46052638 FINAL Infosys
22/24
ddressing Key Market Challenges
ddressing Key Market Challenges
Competitive Strategy
Pricing Continue to penetrate
highvalue-addsegments
Onsite/offshoreeffort Leverage GDM
Investment insales
Leverage economies of scale
andmarketing
and brand
Economi
c
Increase recruitment
compatibilityWage inflation Move to variablesalary
US$/Rupee structure and role-basedexchange rate
compensation
i ti
-
8/3/2019 46052638 FINAL Infosys
23/24
reorganization
s
Forbes: Infosys is a role
Forbes: Infosys is a role1.
Applemodel for companies
model for companies
2. Google
3.
Samsung
everywhere in financial
everywhere in financial 4. Amazon.COM
transparency.
transparency.5. Yahoo!
6. Electronic Arts
Dream company to work
Dream company to work
7. Genentech
8. Toyotafor in India and amongst the
for in India and amongst the9.
9. Infosys
Infosys100 best places to work for
100 best places to work forTechnologies
TechnologiesInfoTech Top
100
in IT in the US
in IT in the US
10. eBay
Infosys is ranked 10th
11. SAP12. PixarWired rated Infosys among
Wired rated Infosys amongHighest ranked IT
13. Ciscoits top 40 companies that
its top 40 companies that
services firm14. IBM
have reshaped the global
have reshaped the global15. NetflixAccenture # 31 and
economy.
economy.
IBM # 44 16. Dell
-
8/3/2019 46052638 FINAL Infosys
24/24
top related