1. INFOSYS

2. IT Service Industry Overview

3. PEST ANALYSIS Political Economic Political stability
Government owned companies and PSUs have decided to give more IT projects to Indian IT companies.
Terrorist attack or war.
Global IT spending (demand)
Domestic IT Spending (Demand)
Currency Fluctuation
Real Estate Prices
Attrition

4. PEST Analysis Social Technological Language spoken: English
Education: A number of technical institutes and universities over the country offer IT education.
Working age population
Telephony
Internet Backbone
New IT technologies Technologies like SOA, Web 2.0, High-definition content, grid computing, etc

5. Porter’s Five Forces Model
Threat of Substitutes: Medium
Other offshore locations such as Eastern Europe, the Philippines and China
Price
Bargaining power of supplier: High to Low
Due to slowdown, the job-cuts, the layoffs and bleak IT outlook.
No longer Demand and supply of IT professionals
Vast talent pool – fresher's and experienced.

6. Porter’s Five Forces Model
Barriers to Entry : Low
Low capital requirements.
Large value chain, space for small enterprises.
Bargaining Power of Customers: Very High
1. Large number of IT companies
2. Huge decline in IT expenditure
Rivalry Among Firms: High
'low-cost, little-differentiation' positioning.
Strong competitors – few numbers of large companies.

7. Infosys Profile Founded on 2nd July 1981 with a capital of Rs.10,000
Went Public in 1993
1st Indian Company to be listed on Nasdaq on 11th March 1999
Global footprint : Over 50 offices and development centers
Employees: 103,905 (As on 30th June 2009)
Certified at SEI- CMM Level 5.
Major Clients: British Telecom, BanAmerica, Citigroup, Walmart

8. Infosys Resources Tangible People Intangible Brand Equity Capital
Global Reach
Intangible
Brand Equity
Trust & Goodwill
Corporate Culture

9. Infosys Capabilities Global Delivery Model Training Capabilities
Operational Efficiency
Management/Leadership
High Quality Standards

10. VIRU Analysis IBM - Brand Equity - Global Reach - R & D focus
- Bouquet of Services
Infosys
- Brand Image, Culture
- Operational Efficiency
- Marketing Strategy
Mastek
- No growth strategies
- High operational costs, Limited reach
- Expertise in Insurance Sector
L & T Infotech
- Weak Brand Image
- No cost efficiency, No reach
- No special service or industry capability

11. Sustainable Competitive Advantage
Valuable
Inimitable
Rare
Unsubstituable
Competitive Consequences
Performance Implication
IBM
Yes
Sust. comp adv
Above avg
Infosys No
Temp comp adv.
Avg to Above avg
Mastek
Comp parity
Avg
L & T Infotech
Comp disadv.
Below avg

12. VALUE CHAIN ANALYSIS Primary Activities Inbound Logistic Operation
Outbound Logistic
Marketing And Sales
Post Sales Service

13. CONTD…… Secondary Activities Human Resource Management
Technology Management
Infrastructure

14. McKINSEY’S 7 S MODEL Staff (Human Resources): Leadership Style:
Strategy:
Client-focused strategy to achieve growth
Focuses on limited number of large organizations throughout world
Caters clients through custom-built softwares
Commands premium margins
Does not compromise on quality for low-cost contracts
Quality driven model rather than cost-differentiating model.
Increase business from existing and new clients
Expand geographically
Enhance solution set
Develop deep industry knowledge
Enhance brand visibility
Pursue alliances and strategic acquisitions
Staff (Human Resources):
Knowledge-based industry - Focuses on the quality of the human resources
90% Engineers
At the entry level
Find the company’s meritocratic culture satisfying
Superior academic records
Technical skills
High level of learn ability.
Emphasizes on T&D on continuous basis
Spends about 2.65 % of revenue on up gradation of employees’ skills
High training standard
High matured processes capabilities
Investment in infrastructure.
Shared Values:
Customer Delight-A commitment to surpassing 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
Leadership Style:
Essential for organizational success.
Based on high business vision and supportive styles.
Emphasis on developing leadership qualities among employees.
“Infosys Leadership Institute”
Open door policy
Continuous sharing of information
Employee input for decision making
Building personal rapport with employees
Skills:
Mandatory for every employee to clear 7 predefined certifications (domain as well as technical) in order to be eligible for appraisal.
This is just one of the initiatives taken by Infosys which signifies the efforts taken for building competencies. Apart from internal initiatives like
Knowledge management
Infosys has been CMM-Level 5 certified for its process capabilities
Organizational Structure:
Free form organization devoid of hierarchies
Everyone is known as associates irrespective of his position in the company Software development is undertaken through teams
Constitution of teams is based on the principle of flexibility

15. INFOSYS BCG MATRIX - USA

16. INFOSYS BCG MATRIX - INDIA

17. CORPORATE LEVEL STRATEGIES
Core Strategies:
Firm believer in “Organic growth” and acquire only those companies in line with strategic goals
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.

18. CORPORATE LEVEL STRATEGIES
Actions Taken:
1. To maintain low-cost advantage they have opened offices in Czech Republic, Mauritius, Poland, Philippines, Thailand and Mexico
2. Invested in developing training centers
3. Improved quality capabilities – CMM level 5i company
4. Infosys Consultancy established to provide high end services in value chain
5. Has hedged currency for more predictability of revenues (risk management)

19. 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

20. SWOT Analysis STRENGTHS WEAKNESSES Trusted Brand & Client Relations
Proven GDM
Wide spectrum of Services
Leadership & Management
Quality Standards
WEAKNESSES
Dependence on BFSI Segment for revenues
Dependence on North America for revenues
Weak Player in domestic Mkt
Rising Operating Expenditure
Low R & D focus

21. SWOT Analysis THREATS OPPORTUNITIES Intense Competition
Untapped Domestic Market
New Geographies
Acquisitions
High End Consulting
Intense Competition
High dependency on small no. of clients
Currency Fluctuations

22. Recommendations
Reduce Dependency on BFSI, North America, Explore new markets
R & D Focus
Hunt for Acquisitions
Focus on cost reduction
Tap Domestic Market