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
achiee the ision of a !young and resilient" India#
$hile 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 iability of India%s fundamental alue proposition#
&onse'uently, India has retained its leadership position in the global sourcing mar(et#
The Indian IT-BPO industry is estimated to achiee reenues of )*D +,#+ billion in
-./001, with the IT software and serices industry accounting for )*D 20 billion of
reenues# During this period, direct employment is expected to reach nearly /#/3
million, an addition of //2,000 employees, while indirect 4ob creation is estimated to
touch 5 million#
INFOSYS PROFILE

Infosys Technologies was started in ,15, by seen professionals with )* 6/70# The
company designs and deliers technology enabled business solutions#
Their offerings span business and technology consulting, application serices, system
integration, product engineering, custom software deelopment, BPO etc#
The company has ,08570 employees and a large global presence in India, &hina,
9ustralia, Poland, ):, &anada and ;apan#
Vision
<To be a globally respected corporation that proides best-of-breed business
solutions, leeraging technology, deliered by best-in-class people#<
Mission
<To achiee our ob4ecties in an enironment of fairness, honesty, and courtesy
towards our clients, employees, endors and society at large"#
ORGANIZATION STRUCTURE
ACHIEVEMENTS
,# -irst Indian company to be listed on a )* stoc( exchange and the first
company to do a Public offering without listing
/# =an(ed number ,8 among the most respected companies in the world
3# >isted on the -orbes 9sian -abulous 70 for the fourth consecutie year#
8# -ie time ?Global @9:A $inner%#
7# &hampioned &orporate Goernance in India#
VALUE SYSTEM
The alue systems that underscores their commitment to these achieements are-
&ustomer Delight
It mainly deals with giing the customer the perfect solution to his
problem# -urthermore, the company tries its leel best to (eep hold of that customer
which has now become one of the most important things in running a business or a
company#
>eadership by example
Infosys as accompany, from its earliest stages hae always been leading
in its own area of excellence# The company had a humble beginning and then grew
due to its core alues, ision and its mission#
Integrity and transparency
The company has always integrity within itself and also with the
goernment helping the company and India as a whole in carrying them forward in to
the global mar(et#
-airness
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 belieed in excellence in whateer it
proides# This extraordinary belief has ta(en 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 deliery model# &onceptually, they tried to leerage globaliBation for
customiBed software deelopment - producing where it is most cost-effectie, and
selling where it is most profitable, all without being constrained by national
boundaries# Infosys belieed that the (ey to success is to ensure that it executes our
engagements well eery time# $e hae based our whole operation on a foundation of
strong alue systems# $e were careful neer to compromise on that despite many
challenges#
PRESENT GOALS OF INFOSYS
9=A9 O- GOCA=D9D&A
To define and implement a training module and create awareness about sustainability#
*tatus-It was achieed by proiding sustainability training for seniors
P=OD)&T =A*POD*IBI>IT.
*ustain customer satisfaction in the annual customer surey
*tatus- It was achieedE the oerall customer satisfaction was at 5, F
ADA=G.
@onitor energy consumption to become energy efficient#
*tatus- This was achieed by implementing new monitor mechanisms
=educe per capita energy consumption by 7 F#
*tatus- This was partially achieed by reducing the per capita electricity consumption
to ,0F#
ADCI=OD@ADT
Plant a tree for eery new employee
*tatus- Below the target G planted ,2,000 trees in @angalore.
H)@9D =IGHT*

&reate a framewor( for employees, suppliers and endors to be educated on human
rights#
*tatus- Below target- deeloped a basic training module on human rights which will
be implemented in /0,0#
A@P>O.AA ADG9GA@ADT
Trac( impact of employee health related actiities#
*tatus- Target achieed by receiing feedbac(s after health chec( ups.
*O&IAT.
Define and implement metrics for measurement#
*tatus- 9chieed target by deeloping guidelines and dashboards.
FUTURE GOALS OF INFOSYS FOR THE YEAR 2009-2010
*T=9TAGI& >ACA>
,# $e will deelop processes to integrate business and sustainability goals#
/# Improe accountability in the business units through i*OP framewor(#
3# *trie to meet stringent short term goals#
OPA=9TIOD9> >ACA>
,# 7F reduction in energy, water and carbon foot print#
/# To educate endors on our green procurement policies#
3# To create >arge, global deals
8# &ontinued linear relationship between reenue-manpower
To im!"m"#$ E#$"%%i&" &'(!" So!)$io# D"&i*# (#+ I#$"*%($io# (& ,"- .o')&
(%"(& i# $/" $"!"'om &"'$o%&.
Key industries


IInfosys @edia &entre in Bangalore#J
Infosys seres arious industries through its Industrial Business )nits IIB)J, such asK
Ban(ing L &apital @ar(ets IB&@J
&ommunications, @edia and Antertainment I&@AJ
Anergy, )tilities and *erices IA)*J
Insurance, Healthcare and >ife *ciences IIH>J
@anufacturing I@-GJ
=etail, &onsumer Product Goods and >ogistics I=AT>J
Dew @ar(ets and *erices ID@*J K Don )* and Don Auropean mar(ets,
*aa*, >earning *erices
-inance K &ore Ban(ing Product
Im!"m"#$($io# o. !(# 0R"'"#$ o#"1
RFID Architecture Strategy
Executive Summary
Aarly 9dopters of =-ID are beginning to loo( beyond proof of concept pilots and
field trials# Anterprise scale *olution Design and Integration are emerging as (ey
focus areas# :ey to success in both of them is the architecture for integrating data
from the =-ID hardware layer with a multitude of Anterprise *ystems# 9 >arge
Anterprise piloting =-ID in multiple global sites is recogniBing the limitations of a
traditional Anterprise scale 9pplication *erer in performing =-ID @iddleware
functions# 9 Auropean *pecialty =etailer see(ing to adopt =-ID is grappling with the
cost of ownership implications of Point *olutions for =-ID integration# Both of these
Anterprises are recogniBing the need for a =-ID 9rchitecture *trategy#
Implementation of this plan presents Infosys iews on a optimal =-ID 9rchitecture
*trategy 9pproach for Anterprises based on lessons learnt from Aarly 9dopters and
Infosys experience in proiding =eal Time &ontrol and Data 9c'uisition *olutions in
the Telecom and Process &ontrol Industries#
Pitfalls and Lessons Learnt from Early Adopter Pilots
9 common refrain across Aarly 9dopter Pilots is that =-ID 9pplications are 'uite
unli(e I#T# applications that hae been traditionally implemented within Anterprises#
The contact-less communication between the tags and readers and its sensitiity to the
physical enironment together adds a new dimension# Anterprises are eoling
implementation strategies mindful of the many challenges posed by =-ID across
layers#
Business Process Transformation
Aarly 9dopters are recogniBing that the alue of =-ID lies in operational efficiencies
resulting from changes in business processes# These Anterprises continue to be
challenged howeer in determining how processes can be improed in a =-ID
enabled enterprise#
=-ID characteristics for business includeK
M =eadability
M =ate
M 9ccuracy
M Duplicates
M Interference
M Programmability
M @emory
Data Collection
Aarly 9dopters especially those with Global Deployments are grappling with the
'uestion of which TechnologyNCendor to bet on# They are recogniBing that choosing
of =-ID Tags and =eaders is dependent on multiple ariables# These Anterprises
recogniBe the strategic nature of the technology and design decisions to be made in
this layer and are eoling endor selection strategies balancing the below
considerationsK
M Geographic spectrum and power regulations
M @ultiplicity of air interface protocols
M *tandards based Interoperability across endors
M 3rd party certifications for standards compliance
M @aturity and failure rates of endor specific products
M Protocol performance benchmar(s for endor specific products
M Pac(aging material modification challenges and costs
M *ecurity and Priacy Policies and &ommitments
M -inancial iability of endors
Aarly 9dopters are also recogniBing that endor selection needs to factor how
business processes will be changed to leerage the technology
Te need for a !"#D Arcitecture Strate$y
=-ID is clearly a disruptie technology# But to ensure that enterprises realiBe its
potential optimally, it is important that they understand the multi-dimensional impact
that such disruptie technologies hae on the enterprise# 9 critical element of this is to
hae an =-ID 9rchitecture strategy#
Different layers within the Anterprise are li(ely to be impacted differently# It is
important for all parts of the Anterprise to deelop a common understanding of what
this impact is and what it means to existing inestments# It is also important to help
identify what new inestments will be re'uired to be made within the Anterprise# 9
(ey area of concern for Anterprises adopting disruptie technologies is the Total &ost
of Ownership# By clearly understanding the impact on existing inestments and by
eoling a holistic iew of new inestments, Anterprises will be able to better manage
the T&O by future proofing inestments and putting in place the right architecture for
new inestments#
#nfosys Vie%s on !"#D Arcitecture Strate$y
Infosys beliees that current approaches to =-ID Integration generally suffer from
many deficiencies, ranging from a point solution approach to confusing =-ID with
A9I# 9dopting traditional enterprise architecture design approaches to =-ID run the
ris( of failure on account of not recogniBing the true nature of =-ID Integration#
=-ID Integration is about =eal Time 9synchronous Aent Handling and =eal Time
*tate-based decision ma(ing# =-ID Integration calls for an architecture design
paradigm that reflects this#
The =-ID 9rchitecture *trategy should enable Anterprises to ta(e a holistic iew of
the impact of the =-ID Business Cision on their Anterprise# The =-ID 9rchitecture
*trategy should enable Anterprises to create a platform that will help realiBe the =-ID
Business Cision through Calue &reating =-ID 9pplications deployed in a >ow Total
&ost of Ownership Anironment that is flexible, extensible and future proof#
To assess the complexity of implementing =-ID and the impact on existing systems
and infrastructure Infosys has eoled a + >ayer =eference @odel for =-ID that can
be the basis for Business and IT to share a common understanding and ision of a
=-ID enabled Anterprise# This model proides a layered iew of the technology,
infrastructure and process elements that constitute a =-ID implementation within an
enterprise# Drawing upon its experience in deeloping =eal Time 9synchronous *tate
Aent Handling *olutions in the Telecom and Detwor(ing world, Infosys has eoled
a robust -unctional @odel and =eference 9rchitecture for designing and integrating
Anterprise scale =-ID 9pplications#
The + >ayer =eference @odel, together with the -unctional @odel and the =eference
9rchitecture proide a robust foundation for any =-ID 9rchitecture *trategy byK
M Deconstructing the complexity of =-ID by proiding a layered iew
M Identifying the impact of =-ID on existing layers within the Anterprise
M Identifying new layers to be implemented by the Anterprise
M Proiding a framewor( to analyBe =-ID Business =e'uirements to articulate =-ID
9pplication =e'uirements#
M Proiding a framewor( to design =-ID 9pplication *cenarios within the Aent
management >ayer
M Proiding a =eference 9rchitecture to demonstrate how =-ID Aents of Business
*ignificance are integrated with Anterprise *ystems
ORGANIZATION 2EHAVIOUR AND PRACTICES
L"(+"%&/i S$-!"3 Infosys beliees that leadership is one of the most essential
ingredients of organiBational success which is proided by its &hairman, D =
Darayanmurthy# >eadership is based on high business ision and predominantly
supportie styles# There is emphasis on deeloping leadership 'ualities among
employees# -or this purpose, it has established !Infosys >eadership Institute"# Top
management emphasiBes on open door policy, continuous sharing of information,
ta(es inputs from employees in decision ma(ing, and builds personal rapport with
employees# 9s we hae seen oer last few years, we hae seen smooth transition from
D = Darayanmurthy to Dandan Dila(eni and from Dandan Dila(eni to :ris
Gopal(rishnan without any aderse effects on the company outloo( and each one has
proed to be an able leader ta(ing company forward#
S$(.. 0H)m(# R"&o)%'"&1K
*ince Infosys is in (nowledge-based industry, it focuses on the 'uality of the human
resources# Out of total personnel, about 10 per cent are engineers# 9t the entry leel, it
emphasiBes on selecting candidates who find the company%s meritocratic culture
satisfying, superior academic records, technical s(ills, and high leel of learn ability#
The company emphasiBes on training and deelopment of its employees on
continuous basis and spends about /#27 per cent of its reenues on up gradation of
employees s(ills, and around 70F as employee costs# In spite of thousands of people
4oining eery month, Infosys has been able to maintain its training standard mostly
due to its highly matured processes capabilities and inestment in infrastructure#
S$%($"*-3
Infosys has adopted a client-focused strategy to achiee growth# =ather than focusing
on numerous small organiBations, it focuses on limited number of large organiBations
throughout world# In order to cater its clients, the company emphasiBes on custom-
built software%s# 9nother differentiating factor for Infosys is that it commands
premium margins# &ompany does not negotiate oer margins beyond a certain limit
and some time prefers to wal(-out rather than compromise on 'uality for low-cost
contracts# This has helped in building an image for 'uality drien model rather than
cost-differentiating model# Increase business from existing and new clientsK Infosys
has focused on expanding the nature and scope of engagements for the existing clients
by increasing the siBe and number of pro4ects and extending the breadth of its serice
offerings# -or new clients, it proides alue added solutions by leeraging its in-depth
industry expertise#
D"4"!o +"" i#+)&$%- ,#o5!"+*"K
Infosys has specialiBed industry expertise in the financial serices, manufacturing,
telecommunications, retail, transportation and logistics industries# Anhance brand
isibilityK Infosys inests in the deelopment of its premium brand identity in the
mar(etplace by participating in media and industry analyst eents, sponsorship of and
participation in targeted industry conferences, trade shows, recruiting efforts,
community outreach programs and inestor relations# Pursue alliances and strategic
ac'uisitionsK Infosys is (nown for its organic growth Iris( aerseJ strategy though it
has strategic alliance with leading technology proiders ta(e adantage of emerging
technologies in a mutually beneficial and cost-competitie manner#
S/(%"+ V(!)"&K
Calues are important part of Infosys%s organiBational culture# In fact its tagline depicts
how much emphasis it lays on core alues# The core alues areK
9 commitment to surpass customer expectations#
>eadership by AxampleK 9 commitment to set standards in business and
transactions and be an exemplar for the industry and teams#
Integrity and TransparencyK 9 commitment to be ethical, sincere and open in
our dealings#
-airnessK 9 commitment to be ob4ectie and transaction-oriented, thereby
earning trust and respect#
Pursuit of AxcellenceK 9 commitment to strie relentlessly, to constantly
improe ourseles, our teams, our serices and products so as to become the
best# OrganiBational *tructureK The &ompany has adopted a free form
organiBation deoid of hierarchies# Aeryone is (nown as associates
irrespectie of his position in the company#
S,i!!&
-rom last year, Infosys has made it mandatory for eery employee to clear a
predefined certifications, domain as well as technical, in order to be eligible for
appraisal#
CORPORATE STRATEGIES
Global Deliery @odel G Producing where it is most cost effectie to produce L
selling where it is most profitable to sell# @oing up the Calue &hain G Getting
inoled in a software deelopment pro4ect at the earliest stage of its life cycle# P*PD
@odel G !Predictability of =eenues, *ustainability of =eenues, Profitability, De-
ris(ing" for ris( management#
GENERIC STRATEGIES3
>ow cost Global deliery /8N+ @odel# >ittle differentiation in low-end serices of
alue chainE high differentiation in high end serices of alue chain li(e software
products and pac(age solutions# -ocus on 'uality, customer relationship management,
timely-deliery#
CONCENTRATION3 10F of Infosys reenues from 9merican and Auropean
nations#
VERTICAL INTEGRATIONK Infosys recently made a bid to ac'uire a Auropean
ma4or G 9xon consultancy to improe its business in Auropean mar(ets, but finally
called off the deal due to high aluation# Otherwise, Infosys has always belieed in
organic growth#
INNOVATIONK The *oftware Angineering and Technology >abs I*AT>absJ at
Infosys is the centre for applied technology research in software engineering and
enterprise technology# *AT>abs conducted /8 Innoation $or(shops with customers
from the )* and 9ustralia, to identify research collaboration possibilities# Infosys
promotes a faourable wor( enironment that encourages innoation and meritocracy#
INFLUENCE OF E6TERNAL FACTORS
,# Political stability3 Indian political structure is considered stable enough expect the
fact that there is a fear of Ohung parliament Ino clear ma4orityJ#
/# )#*# goernment has declared that )#* companies that outsource IT wor( to other
locations other than U.S. will not get $(7 benefit#
8. Goernment owned companies and P*)s hae decided to gie mo%" IT %o9"'$& $o
I#+i(# IT 'om(#i"&.
:. T"%%o%i&$ ($$(', o% 5(%.
ECONOMIC
1. G!o;(! IT &"#+i#* 0+"m(#+1
/# Dom"&$i' IT S"#+i#* IDemandJK Domestic mar(et to grow by /0F and reach
approx )*D /0 billion in /005-01 - D9**&O@
8. C)%%"#'- F!)'$)($io#
8# R"(! E&$($" P%i'"&K Decline in real estate prices has resulted reducing the rental
expenditures#
7# A$$%i$io#3 Due to recession, the layoffs and 4ob-cuts hae resulted in low attrition
rate#
2# ECOMONIC ATTRACTIVENESS due to cost adantage and other factors
TECHNOLOGICAL
TelephonyK
a# India has the world%s lowest call rates I,-/ )* centsJ#
b# Axpected to hae total subscriber base of about 700 million by /0,0#
c# 9=P) for G*@ is )*D 2#2 per month#
d# India has the second largest telephone networ( after china#
e# Teledensity G ,1#52 F
f# Anterprise telephone serices, 3G, $i-max and CPD are poised to grow#
I#$"%#"$ 2(',;o#"3 Due to IT reolution of O10s, Indian cities and India is well
connected with undersea optical cables#
N"5 IT $"'/#o!o*i"&3 Technologies li(e *O9, $eb /#0, High-definition content, grid
computing, etc and innoation in low cost technologies is presenting new challenges
and opportunities for Indian IT industry#
LEGAL
IT SEZ %"<)i%"m"#$K IT companies can set up *AP with minimum area of ,0
hectares and en4oy a host of tax benefits and fiscal benefits#
Co#$%('$ = 2o#+ %"<)i%"m"#$&3 Huge debates surrounding the bonds under which
the employees are re'uired to wor(, which is not legally re'uired#
IT A'$3 Indian goernment is strengthening the IT act, /000 to proide a sound legal
enironment for companies to operate esp# related to security of data in transmission
and storage, etc#
&ompanies operating in So.$5(%" T"'/#o!o*- P(%, 0STPI1 &'/"m" will continue to
get tax-benefit till /0,0
ENVIRONMENTAL
Anergy Afficient processes and e'uipmentsK &ompanies are focusing on reducing the
carbon footprints, energy utiliBation, water consumption, etc
>OR? FORCE DIVERSITY
9 global companyQs employee base should reflect the diersity of the world it seres#
Infosys thus stries to employ people representing the widest possible ariety of
nationalities, cultures, genders and gender identities, employment histories, and leels
of leels of physical ability# In doing so, the company is able to recruit new
employees from all aailable global talent pools and proide paths to employment to
all members of world societies, including talented indiiduals from groups who may
hae in the past been underrepresented within the IT industry# $ithin such a dierse
company, people bring to the wor(place contrasting opinions and worldiews# 9s
these people interact, they deelop new ideas, methods, and perspecties# Infosys
recogniBes and promotes this power of diersity to drie innoation#
Infosys actiely fosters inclusiity across all of its business units and in eery one of
its company offices# It encourages all employees to focus on the commonalities they
share and leerage their differences towards productie teamwor(# Inclusiity
ultimately ma(es for a more informed and sensitie employee base that is better able
to sere clients#
Infosys was the first Indian IT company to establish a company office to manage and
drie all company initiaties dealing with diersity and inclusion# Today we hae
employees from oer +0 countries# $omen constitute more than 3/F of our
wor(force#
Infosys $omen Inclusiity Detwor( II$IDJ promotes a gender-sensitie wor(
enironment# I$ID recogniBes the uni'ue aspirations and needs of women# It
proides aenues for ocational, personal and psychological counsel to enable
professional and personal deelopment# Our new -amily @atters Detwor( proides
support to employees on parenting matters# On International $omen%s Day /001,
Infosys honoured women employees who hae been catalysts of social change#
Infosys also launched *par( Guru, an initiatie to awareness among school teachers in
rural areas about social issues#
Infosys actiely see(s to hire and train persons with disabilities# In /002 and /00+,
Infosys BPO receied the Helen :eller award for the best employer from the Dational
&entre for Promotion of Amployment for Disabled People ID&PADPJ#
2"#".i$& o. >o%,!('" Di4"%&i$-
9n organiBation%s success and competitieness depends upon its ability to embrace
diersity and realiBe the benefits# $hen organiBations actiely assess their handling of
wor(place diersity issues, deelop and implement diersity plans, multiple benefits
are reported such asK
Increased adaptability G OrganiBations employing a dierse wor(force can supply a
greater ariety of solutions to problems in serice, sourcing, and allocation of
resources# Amployees from dierse bac(grounds bring indiidual talents and
experiences in suggesting ideas that are flexible in adapting to fluctuating mar(ets and
customer demands#
Broader serice range - 9 dierse collection of s(ills and experiences Ie#g# languages,
cultural understandingJ allows a company to proide serice to customers on a global
basis#
Cariety of iewpoints - 9 dierse wor(force that feels comfortable communicating
arying points of iew proides a larger pool of ideas and experiences# The
organiBation can draw from that pool to meet business strategy needs and the needs of
customers more effectiely#
@ore effectie execution G &ompanies that encourage diersity in the wor(place
inspire all of their employees to perform to their highest ability# &ompany-wide
strategies can then are executedE resulting in higher productiity, profit, and return on
inestment#
C/(!!"#*"& o. Di4"%&i$- i# $/" >o%,!('"
Ta(ing full adantage of the benefits of diersity in the wor(place is not without its
challenges# *ome of those challenges areK
&ommunication - Perceptual, cultural and language barriers need to be oercome for
diersity programs to succeed# Ineffectie communication of (ey ob4ecties results in
confusion, lac( of teamwor(, and low morale#
=esistance to change - There are always employees who will refuse to accept the fact
that the social and cultural ma(eup of their wor(place is changing# The !we%e always
done it this way" mentality silences new ideas and inhibits progress#
Implementation of diersity in the wor(place policies - This can be the oerriding
challenge to all diersity adocates# 9rmed with the results of employee assessments
and research data, they must build and implement a customiBed strategy to maximiBe
the effects of diersity in the wor(place for their particular organiBation#
*uccessful @anagement of Diersity in the $or(place - Diersity training alone is
not sufficient for your organiBation%s diersity management plan# 9 strategy must be
created and implemented to create a culture of diersity that permeates eery
department and function of the organiBation#
Diersity 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#
@istrust and tension - People prefer to associate with others who are li(e themseles#
This tendency often leads to mistrust and misunderstanding of those who are different
because of lac( of contact and low familiarity# it also causes stress and tension ,and
reaching agreement on problems can be difficult#
*tereotyping - $e learn to see the world in a certain way based on our bac(grounds
and experiences# Our interests, alues and cultures act as filters and distort, bloc( and
select what we see and hear# $e see and hear what we expect to see and hear# Group
members often inappropriately stereotype their !different" colleagues rather than
accurately perceiing and ealuating those indiidual%s contributions, capabilities
aspirations and motiations# *uch stereotypes inurn affect how people employee
stereotyped as unmotiated or emotional will be gien less -stress G proo(ing 4obs
than their co-wor(ers# Those 4ob assignments will create frustrated employees,
perhaps resulting in low commitment, higher turnoer, and underused s(ills#
It is seen that at Infosys the wor( force diersity is well maintained and a lot of mix of
culture is also seen here# It is due to the arious factors that hae led to the
unprecedented growth and success of Infosys
>OR? FORCE CULTURE
&reation of dierse wor(force would be the greatest challenge for corporations in a
globaliBed world, says Infosys Technologies% chairman and chief mentor D#=#
Darayana @urthy according to *ilicon India article !&reating dierse wor(force
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 oer 1,,000 employees from +0 nationalities wor(ing across 10
countries# =ecounting the initiaties ta(en during the year under reiew, the chairman
said by adopting a policy of ?follow the sun%, the company had ensured to build
deliery capability in India, &hina, southeast 9sia, ;apan, 9ustralia, the )*, &anada,
@exico, Britain, eastern Aurope and @auritius#
9s a global firm with a multi-cultural, multi-ethnic wor(force and deliery centers,
@urthy says the IT bellwether had ta(en seeral measures to create a high-leel of
diersity in its wor(force by enhancing its recruiting efforts in different countries#
$e thin( Infosys is doing a great 4ob turning itself into a global company by hiring
dierse wor(force# But underneath these efforts to build dierse wor( force, Infosys
or any other company ying to be Global &ompany primarily need to pay attention to
their corporate culture# @ost of the corporations hae what we call !ethno-centric"
corporate culture# Initially when Infosys was small, it had all its clients and employees
in India# 9ll its executies were and still are of Indian ethnicity Ialthough there is
some diersity in its board with 3 board members is not IndiansJ# Therefore its
corporate culture is mainly influenced by Indian culture Iboth ethnic and countryJ#
$hen they begin to open deelopment centres in other countries, Indian corporate
culture un(nowingly percolates and influences the local culture# If those two cultures
are diametrically opposite, creating a dierse wor( force may in fact hinder with
employee productiity# *o, ethno-centric corporate culture may curtail the ambition of
any company to becoming global#
In our opinion, the only way to oercome ethno-centric corporate culture is to hae
multi-ethnic and multi-national top executies# Infosys needs to create diersity at the
top executie leel first# That will hae a long term affect of neutraliBing ethno-
centric corporate culture and building a truly global organiBation# That is the only way
for Infosys or any other company to achiee globaliBation strategy#
$e hae couple of example to show that this approach is winning globaliBation
strategyK
Axample ,K *ony &orp of ;apan is a global company but its culture is strongly
influenced by ;apanese culture and that has lately affected *ony%s Brand negatiely#
To oercome stagnating sales, *ony in /007 promoted Howard *tringer as its first non
;apanese &AO# Born in $ales with extensie wor( experience in )*, *tringer has
been ery actie in trying to neutraliBe negatie aspect of ;apanese ethno centric
influence on *ony Ichec( out D. Times articleJ# Diersity has been implanted
successfully at the top executie%s leel at *ony I>oo( at the bio of *ony%s top
executie hereJ
Axample /K >enoo, a &hinese based P& hardware company bought lucratie assets
from IB@ couple of years bac( and has been on a path to transform itself into a
globaliBed company# 9gain chec( out the diersity of top management team at
>enoo here#
@anagement teams within Infosys are all Indians I&hec( out the profile of the
management team hereJ# Bottom line is simple# Internationally well (nown brand will
not ma(e a company Global# Global manufacturingNdeelopment centre will not ma(e
a company global# @ultinational, multiethnic employee by themseles 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 diersity at the executie and the top management leel# $e thin(
Infosys should get busy hiring multinational top executies along with hiring
multinational employees#
S>OT ANALYSIS
STRENGTHS
>eadership in sophisticated solutions that enable clients to optimiBe the efficiency of
their businessK
The company bring together expertise in consulting, IT serices and business process
outsourcing to create solutions that allow clients to increase their customer loyalty
through faster innoation, restructure their cost base, and help them achiee greater
success through shifting business cycles# Axpertise helps our clients improe their
own efficiencies, create better alue for their end customers and become more
competitie# They%re able to capture a greater share of our clients% technology
budgets#
Proen global deliery modelK
Highly eoled Global Deliery @odel represents a (ey competitie adantage# Oer
the past decade, they hae deeloped our onsite and offshore execution capabilities to
delier high 'uality and scalable serices# In doing so, Infosys hae made substantial
inestments in processes, infrastructure and systems, and hae refined our Global
Deliery @odel to effectiely integrate onsite and offshore technology serices# The
Global Deliery @odel proides clients with seamless, high 'uality solutions in
reduced time frames enabling them to achiee operating efficiencies#
&ommitment to superior 'uality and process executionK
Infosys hae deeloped a sophisticated pro4ect management methodology to ensure
timely, consistent and accurate deliery of superior 'uality solutions to maintain a
high leel of client satisfaction#
*trong Brand and >ong-*tanding &lient =elationshipsK
They hae long-standing relationships with large multinational corporations built on
successful prior engagements with them#
*tatus as an employer of choiceK
Infosys has among the best talent in the Indian technology serices industry and are
committed to remaining among the industry%s leading employers# $e hae a presence
in ,3 cities in India, allowing us to recruit technology professionals with specific
geographic preferences# $e hae a dierse wor(force which includes employees from
+0 nationalities#
9bility to scaleK
Infosys hae successfully managed their growth by inesting in infrastructure and by
rapidly recruiting, training and deploying new professionals# $e currently hae 7/
global deelopment centres#
Innoation and leadershipK 9 pioneer in the technology serices industry# $e are one
of the first Indian companies to achiee a number of significant milestones, which has
enhanced our reputation in the mar(etplace#
WEAKNESSES
=eenues and expenses are difficult to predict and can ary significantly from period
to period, which could cause share Price to decline
/2
@ay not be able to sustain our preious profit margins or leels of profitability
The economic enironment, pricing pressure and rising wages in India and oerseas
could negatiely impact reenues and operating results
=eenues are highly dependent on clients primarily located in the )nited *tates and
Aurope, as well as on clients concentrated in certain industries# Aconomic slowdowns
or factors that affect the economic health of the )nited *tates, Aurope or these
industries may affect our business#
9ny inability to manage growth could disrupt our business and reduce our
profitability
@ay face difficulties in proiding end-to-end business solutions for our clients, which
could lead to clients discontinuing their wor(
=eenues are highly dependent upon a small number of clients, and the loss of any
one of our ma4or clients could significantly impact the business
-ailure to complete fixed-price, fixed-time frame contracts within budget and on time
may negatiely affect our profitability
&lient contracts can typically be terminated without cause and with little or no notice
or penalty, which could negatiely impact our reenues and profitability
The engagements with customers are singular in nature and do not necessarily proide
for subse'uent engagements
OPPORTUNITIES
Huge untapped potential for in the global mar(et as IT will become the need of almost
eery industry
The IT industry can be the reason for India being a global leader of tomorrow
THREATS
>egislation in certain of the countries, in which Infosys operates, including the )nited
*tates and the )nited :ingdom, may restrict companies in those countries from
outsourcing wor( oerseas
Intense competition in the mar(et for technology serices could affect cost
adantages, which could reduce the share of business from clients and decrease the
company%s reenues
Our client contracts are often conditioned upon our performance, which, if
unsatisfactory, could result in less reenue than preiously anticipated
*ome of our long-term client contracts contain benchmar(ing proisions which, if
triggered, could result in lower future reenues and profitability under the contract#
FUTURE STEPS
,# @ore (een on large deals# The margin dilution from large deals has been a point of
concern in the past at Infosys# Howeer, while the initial margin profile can be
extremely way, it is possible to improe margins later in the life of the contract
through reduced GL9 oerheads# Infosys, in its recent analyst meet, mentioned that a
dedicated team was now wor(ing on large deals# $e expect greater focus ahead in this
area#
/# Increased focus on solution based offerings in both IT serices and BPO# Infosys
has deeloped R70 solution based offerings in the IT serices space and beliees that
some of these can help brea( the linearity between reenue and manpower growth in
the business# In BPO as well, its first platform based BPO offering is li(ely to be
launched soon#
3# $illingness to explore new deal structures# The mar(et was surprised when Infosys
paid an upfront 6/5m for the 6/70mN+-year Phillips BPO deal# $hile T&* had made
such a payment in the case of Pearl BPO earlier, Infosys% willingness to do so was
certainly a shift from the past#
I#.o&-&@& /i%i#* !(#& .o% $/" -"(% 0200913
@ost of the companies rapidly cutting their losses by employing massie
retrenchment drie, firing thousands of employees or offering them early separation
schemes# Howeer, despite the massie economic turmoil across the globe, there are
still some companies that are loo(ing to hire s(illed candidates# One of these
companies is Infosys# The company intends to stic( to its plan of hiring /7,000 people
this fiscal year#
I#.o&-& !(#& ('<)i&i$io#& i# 2%(Ai! (#+ M"7i'o 0BUNE 1CD 20091
Infosys is trying to ac'uire a few companies in @exico and BraBil to expand its
deliery capabilities# The companyQs first centre will be operational in BraBil in next
three to four months# Infosys has currently employed about /70 people in @exico and
hence feels the need to hae local facility to attract local business# <$e are loo(ing for
some ery targeted ac'uisition with specific criteria,< said Dheesh4ith C G, Head,
Dew @ar(ets and serices, ID-O*.*
Infosys had started focusing on @exican mar(et in last six to seen months#
9ccording to Dheesh4ith there has been increase in the business from local clients and
some companies are loo(ing to outsource large deals# 9round /0-/7 percent of the
total business in InfosysQ @exico subsidiary comes from multinational companies that
hae operations in @exico while the rest of the business comes from clients in Dorth
9merica# That is the reason why Infosys is stressing on local deals to attract local
customers#