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INTRODUCTION

Infosys technologies limited

Type Public

Traded as BSE: 500209


NSE: INFY
NYSE: INFY
BSE SENSEX Constituent
CNX Nifty Constituent

Industry IT services, IT consulting

Founded 7 July 1981

Founder [[Nitin ]]

S. Gopalakrishnan

S. D. Shibulal

K. Dinesh

Ashok Arora
Headquarters Electronic City, Bengaluru, Karnataka, India
Area served Worldwide
Key people Vishal Sikka (CEO & MD)
Services IT, business consulting and outsourcing services

Revenue US$10.1 billion (2016)[1]


Operating income US$2.375 billion (2016)[1]
Profit US$2.052 billion (2016)[1]

Total assets US$11.378 billion (2016)[1]

Total equity US$9.324 billion (2016)[1]


Number of employees 199,829 (September 2016)[2]
Divisions Infosys BPO Limited
Lodestone Management Consultants
EdgeVerve Systems
Website www.infosys.com
COMPANY OVERVIEW

Infosys Technologies Limited (Infosys), incorporated on July 2, 1981, is a global technology


services firm that defines, designs and delivers information technology (IT)-enabled business
solutions to its clients. The Company provides end-to-end business solutions that leverage
technology for its clients, including consulting, design, development, software re-
engineering, maintenance, systems integration, package evaluation, and implementation and
infrastructure management services. Infosys also provides software products to the banking
industry. Infosys BPO (formerly Progeon Limited) is a majority owned subsidiary. Infosys
Australia, Infosys China and Infosys Consulting are the Company's wholly owned
subsidiaries. In June 2006, Infosys acquired the shares in Infosys BPO held by Citicorp
International Finance Corporation (CIFC). As a result, Infosys effectively holds 99.98% of
the equity share capital of Infosys BPO as of March 31, 2007.

The Company complements its service offerings with specialist support for clients using its
domain competency group that has expertise in areas, such as securities, insurance,
telecommunication, banking and cash management, supply chain management,
manufacturing, retail and distribution, energy and utilities, healthcare, and travel and tourism.
It also uses its software engineering group and technology lab to create customized solutions
for its clients. In addition, it continually evaluates and trains its professionals in new
technologies and methodologies.
HISTORY

Established in 1981, Infosys is a NASDAQ listed global consulting and IT services company
with more than 105,000 employees. From a capital of US$ 250, we have grown to become a
US$ 4 billion company with a market capitalization of approximately US$ 27 billion. In our
journey of over 28 years, we have catalyzed some of the major changes that have led to
India's emergence as the global destination for software services talent. We pioneered the
Global Delivery Model and became the first IT Company from India to be listed on
NASDAQ. Our employee stock options program created some of India's first salaried
millionaires.

Infosys Technologies Limited is a leader in software development and was co founded by


N.R. Narayana Murthy and a group of seven IT professionals in the year 1981 with an
investment of $1000. He emerged as the company's chairman and CEO and is regarded as a
great manager because of his numerical abilities and Western style of management. It has
created several firsts in Indian industry like being the first Indian company to be listed on
NASDAQ in 1999 and the first to provide employee stock options plan (ESOP).

The company opened its first international office in USA in 1987. It became a public limited
company in 1992 and offered its IPO in three of the nine Indian exchanges in 1993. It
received its ISO 2001 certification in 1993 and opened other development centers in India in
1995.

By 1995 the firm was worth $200 million, had 900 employees and annual revenue of $20
million. It opened its first European office in United Kingdom in 1996. Infosys established its
headquarters in Bangalore as there the workforces were not required to be unionized, benefits
to the workforce were relatively a minor cost, and there was a huge potential for profit.

The late 1990s was a time for exponential growth and the main reason for this was its
offshore software development model. By 2000 its market capitalization was more than $20
billion.
In 2003 it established subsidiaries in China and Australia. In 2004 it crossed $1 billion in
revenue. In 2006 its revenue crossed $2 billion and it completed 25 years.
CORE SERVICES

Custom Application Development

The Company provides customized software solutions for its clients. Infosys
creates new applications and enhances the functionality of its clients' existing
software applications. The Company's projects vary in size and duration.

The Company's application development services span the entire range of


mainframe, client server and Internet technologies. An increasing proportion of
Infosys' applications development engagements are related to emerging platforms,
such as Microsoft's .NET or open platforms, such as Java 2 Enterprise Edition
(J2EE) and Linux
Maintenance and Production Support

Infosys provides maintenance services for its clients' large software systems that cover a
range of technologies and businesses, and are typically critical to a client's business. The
Company focuses on long-term functionality, stability and preventive maintenance to avoid
problems that typically arise from incomplete or short-term solutions. While Infosys performs
most of the maintenance work at its global development centers using secure and redundant
communication links to its client's systems, it also maintain a team at the client's facility to
coordinate certain key interface and support functions

Software Re-engineering

The Company's software re-engineering services assist its clients in converting their existing
IT systems to newer technologies and platforms developed by third-party vendors. Infosys'
re-engineering services include Web-enabling its clients' existing legacy systems, database
migration, implementing product upgrades, and platform migrations, such as mainframe to
client-server and client-server to Internet platforms.

Package Evaluation and Implementation

Infosys assists its clients in the evaluation and implementation of software


packages developed by third-party vendors. It also provides training and support
services in the course of their implementation.

The Company specializes in enterprise resource planning packages developed by


vendors, including Oracle, PeopleSoft, Retek and SAP; supply chain management
packages developed by vendors, including i2, Manugistics and Oracle; customer
relationship management packages developed by vendors, including PeopleSoft
(Vantive) and Siebel; business intelligence packages developed by vendors, such
as Business Objects and Cognos, and enterprise application integration packages
developed by vendors, such as IBM and TIBCO.

Information Technology Consulting

The Company's IT consulting professionals assist its clients by providing technical


advice in developing and recommending appropriate IT architecture, hardware
and software specifications to deliver IT solutions designed to meet specific
business and computing objectives.

Infosys offers IT consulting in the areas of migration planning, institution-wide


implementation and overall project management involving multiple vendors under
a common architecture; IT infrastructure assessment, which includes assessing its
clients' IT capabilities against existing and future business requirements and
recommending appropriate technology infrastructure, and technology roadmap

Development, which allows clients to evaluate emerging technologies and develop


the standards and methodologies for applying those emerging technologies.
Other Solutions

Infosys' service offerings including testing services, engineering services, business


process management, systems integration, infrastructure management, and
operational and business process consulting. The Company offers end-to-end
validation solutions and services, including enterprise test management,
performance benchmarking, test automation and product certification.

For each particular client, Infosys focuses on developing a framework for ongoing
testing in order to seek continuous improvement in the predictability of its client's

internal systems. The Company's service professionals are trained in test


management tools from developers, such as Mercury Interactive, IBM-Rational
and Segue.
FINICAL

Finical, the universal banking solution from Infosys, helps banks by enabling
them to shift their strategic and operational priorities. It maximizes their
opportunities for growth ,while minimizing the risks that come with large-scale
business transformation

Finical currently powers 91 banks across 54 countries, helping them serve over
100 million customers, 150 million accounts, 80,000users and supporting over 36
million peak banking transactions per day spread across multiple installation
REVENUE SEGMENTS

Geography

2016 2015 2014 2013 2012

North America 63.3 64.8 65.2 71.2 73.0

Europe 26.4 24.5 22.3 19.2 17.7

India 1.6 1.7 1.9 1.4 2.1

Rest of the World 8.7 9.0 10.6 8.2 7.2

Total 100.0 100.0 100.0 100.0 100.0


Industry Segmentation

2016 2015 2014 2013 2012

Services 21.0 20.2 23.2 25.7 32.1

Development 29.3 30.2 29.9 30.1 28.2

Maintenance 17.5 16.2 15.2 14.5 11.0

Package implementation 6.9 5.9 5.8 5.3 3.4

Testing 2.1 4.7 6.2 6.0 5.5

Re-engineering 3.6 3.5 3.6 3.7 4.3

Consulting 4.7 4.0 2.7 1.6 0.5

Business process 1.6 1.8 2.0 2.2 2.6

management

Engineering services 9.4 9.7 8.4 8.1 7.8

Other services 96.1 96.2 97.0 97.2 95.4

Total services 3.9 3.8 3.0 2.8 4.6

Products 100.0 100.0 100.0 100.0 100.0

Total

Service Offering
2016 2015 2014 2013 2012

Manufacturing 13.5 13.9 14.4 14.8 16.4

Banking financial service 37.4 36.0 34.6 36.6 37.6

and insurance

Banking and financial 30.2 28.5 25.2 23.7 23.3

service

Telecom 7.2 7.5 9.4 12.9 14.3

Retail 19.3 16.5 18.5 16.6 15.2

Energy and utilities 10.0 10.1 9.8 11.6 11.4

Transportation 5.3 4.7 3.2 3.0 2.9

Others 2.4 5.1 7.6 7.1 6.8

Total 12.1 13.7 11.9 10.3 9.7

100.0 100.0 100.0 100.0 100.0

KEY PEOPLE
Nilekani, Nandan M. 52 1987 Co-Chairman of the Board Trade

Activity
Murthy, N. R. 60 1981 Non-Executive Chairman of the Trade

Narayana Board and Chief Mentor Activity


Gopalakrishnan, S. 52 1987 Chief Executive Officer and Trade

Managing Director Activity


Bal Krishnan, Vibin 42 1999 Chief Financial Officer Trade

Activity
Shibulal, S. D. 52 1997 Chief Operating Officer, Director Trade

Activity
Parvatheesam, K. -- 2006 Secretary, Compliance Officer Trade

Activity
Pai, T. V. Mohandas 48 1994 Director and Head - Trade

Administration, Education & Activity

Research and Human Resources,

Director
Krishnaswamy, Dinesh 52 1996 Head - Communication Design Trade

Group, Information Systems, Activity

Quality & Productivity, Director


Batni, Srinath 52 1996 Group Co Head - World-wide Trade

Customer Delivery, Director Activity


KEY COMPETITORS

Offshore Technology services firms such as Cognizant Technologies, Satyam

Computer Services, Tata Consultancy Services and Wipro

Consulting firms as Accenture , Cap Gemini

IT Outsourcing firms such as EDS ,CSC


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.
Company Strategy for future

Increase businesses from existing and new clients

Expand geographically

Continue to develop deep industry knowledge

Enhance brand visibility

Pursue alliance and strategic acquisitions

Continue to invest in infrastructure and employees


Infosys's hiring plans for the year (2016):

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, 2016)

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.
DATA ANALYSIS

balance sheet of Infosys

Balance Sheet of Infosys ------------------- in Rs. Cr. -------------------


Mar '16 Mar '15 Mar '14 Mar '13 Mar '12
12 mths 12 mths 12 mths 12 mths 12 mths
Sources Of Funds
Total Share Capital 1,148.00 574.00 286.00 287.00 287.00
Equity Share Capital 1,148.00 574.00 286.00 287.00 287.00
Reserves 56,009.00 47,494.00 41,806.00 35,772.00 29,470.00
Net worth 57,157.00 48,068.00 42,092.00 36,059.00 29,757.00
Total Liabilities 57,157.00 48,068.00 42,092.00 36,059.00 29,757.00
Mar '16 Mar '15 Mar '14 Mar '13 Mar '12
12 mths 12 mths 12 mths 12 mths 12 mths
Application Of Funds
Gross Block 14,709.00 12,827.00 10,374.00 8,029.00 4,061.00
Less: Accum.
6,461.00 5,480.00 4,642.00 3,576.00 0.00
Depreciation
Net Block 8,248.00 7,347.00 5,732.00 4,453.00 4,061.00
Capital Work in
934.00 769.00 954.00 1,135.00 588.00
Progress
Investments 11,113.00 6,857.00 6,717.00 4,344.00 1,409.00
Sundry Debtors 9,798.00 8,627.00 7,336.00 6,365.00 5,404.00
Cash and Bank
29,176.00 27,722.00 24,100.00 20,401.00 18,057.00
Balance
Total Current Assets 38,974.00 36,349.00 31,436.00 26,766.00 23,461.00
Loans and Advances 13,498.00 10,491.00 7,873.00 6,330.00 6,296.00
Total CA, Loans &
52,472.00 46,840.00 39,309.00 33,096.00 29,757.00
Advances
Current Liabilities 6,801.00 5,700.00 4,503.00 3,181.00 2,454.00
Provisions 8,809.00 8,045.00 6,117.00 3,788.00 3,604.00
Total CL & Provisions 15,610.00 13,745.00 10,620.00 6,969.00 6,058.00
Net Current Assets 36,862.00 33,095.00 28,689.00 26,127.00 23,699.00
Total Assets 57,157.00 48,068.00 42,092.00 36,059.00 29,757.00
Contingent Liabilities 1,512.00 1,461.00 1,020.00 1,693.00 1,024.00
Book Value (Rs) 248.84 418.54 736.64 627.95 518.21
Profit & Loss account of Infosys
Standalone Profit & Loss ------------------- in Rs. Cr. -------------------
account
Mar '16 Mar '15 Mar '14 Mar '13 Mar '12
12 mths 12 mths 12 mths 12 mths 12 mths
Income
53,983.0 47,300.0 44,341.0 36,765.0 31,254.0
Sales Turnover
0 0 0 0 0
53,983.0 47,300.0 44,341.0 36,765.0 31,254.0
Net Sales
0 0 0 0 0
Other Income 6,045.00 3,749.00 2,576.00 2,298.00 2,313.00
60,028.0 51,049.0 46,917.0 39,063.0 33,567.0
Total Income
0 0 0 0 0
Expenditure
Raw Materials 28.00 39.00 21.00 22.00 0.00
Power & Fuel Cost 179.00 185.00 181.00 180.00 0.00
28,206.0 25,115.0 24,350.0 19,932.0 15,481.0
Employee Cost
0 0 0 0 0
Other Manufacturing Expenses 6,029.00 4,284.00 3,990.00 2,969.00 3,947.00
Miscellaneous Expenses 3,778.00 3,715.00 3,272.00 2,647.00 1,765.00
38,220.0 33,338.0 31,814.0 25,750.0 21,193.0
Total Expenses
0 0 0 0 0
Mar '16 Mar '15 Mar '14 Mar '13 Mar '12
12 mths 12 mths 12 mths 12 mths 12 mths
15,763.0 13,962.0 12,527.0 11,015.0 10,061.0
Operating Profit
0 0 0 0 0
21,808.0 17,711.0 15,103.0 13,313.0 12,374.0
PBDIT
0 0 0 0 0
21,808.0 17,711.0 15,103.0 13,313.0 12,374.0
PBDT
0 0 0 0 0
Depreciation 1,115.00 913.00 1,101.00 956.00 794.00
20,693.0 16,798.0 14,002.0 12,357.0 11,580.0
Profit Before Tax
0 0 0 0 0
20,693.0 16,798.0 14,002.0 12,357.0 11,580.0
PBT (Post Extra-ord Items)
0 0 0 0 0
Tax 4,907.00 4,634.00 3,808.00 3,241.00 3,110.00
15,786.0 12,164.0 10,194.0
Reported Net Profit 9,116.00 8,470.00
0 0 0
38,192.0 33,299.0 31,793.0 25,728.0 21,193.0
Total Value Addition
0 0 0 0 0
Equity Dividend 5,570.00 5,111.00 3,618.00 2,412.00 2,699.00
Corporate Dividend Tax 1,134.00 1,034.00 615.00 403.00 438.00
Per share data (annualized)
22,969.4 11,484.7
Shares in issue (lakes) 5,714.03 5,742.36 5,742.30
5 2
Earnings Per Share (Rs) 68.73 105.91 178.40 158.75 147.50
Equity Dividend (%) 485.00 1,190.00 1,260.00 840.00 940.00
Book Value (Rs) 248.84 418.54 736.64 627.95 518.21

Total Liabilities

Mar '16 Mar '15 Mar '14 Mar '13 Mar '12

57,157.00 48,068.00 42,092.00 36,059.00 29,757.00

Total Liabilities
70,000.00
Mar '16
60,000.00
Mar '15
50,000.00
Mar '14
40,000.00
Mar '13
30,000.00
Mar '12
20,000.00
10,000.00
0.00
Total Liabilities

Interpretation:

This chart shows that deferred liabilities are continuously decreasing in all the five years as
comparative to the base year 2016 which is a good sign for a business as this is a liability
which may or may not be realized during any given year. Thus companys risk is reducing
every year by year. But it has slightly increased in year 2015 as comparative t year 2014 but
if we see it in comparison of base year it shows a huge decrease. Overall deferred tax liability
chart shows a improving condition of the company

Net Block

Mar '16 Mar '15 Mar '14 Mar '13 Mar '12

8,248.00 7,347.00 5,732.00 4,453.00 4,061.00

Net Block
9,000.00
8,000.00 Mar '16
7,000.00 Mar '15
6,000.00
Mar '14
5,000.00
4,000.00 Mar '13
3,000.00 Mar '12
2,000.00
1,000.00
0.00
Net Block

Interpretation:
Gross block is the sum total of all assets of the company valued at their cost of
acquisition. ... Net block is the gross block less accumulated depreciation on assets.Net
block is actually what the asset are worth to the company.
Investments

Mar '16 Mar '15 Mar '14 Mar '13 Mar '12

11,113.00 6,857.00 6,717.00 4,344.00 1,409.00

Investments
12,000.00
10,000.00 Mar '16
Mar '15
8,000.00
Mar '14
6,000.00 Mar '13
4,000.00 Mar '12
2,000.00
0.00
Investments

Interpretation:

The above chart shows that the investments of the company remain same in all the five years.
There is no change in the investments of the company.
Net Current Assets

Mar '16 Mar '15 Mar '14 Mar '13 Mar '12

36,862.00 33,095.00 28,689.00 26,127.00 23,699.00

Net Current Assets


40,000.00
35,000.00 Mar '16
30,000.00 Mar '15
25,000.00 Mar '14
20,000.00 Mar '13
15,000.00
Mar '12
10,000.00
5,000.00
0.00
Net Current Assets

Interpretation:

This chart shows that there is a continuous increase in the net current assets except year 2012
as in that year there is a huge decrease in net current assets of the company as comparative to
the base year 2013. The assets of a business that can be applied to its operation is called net
current assets. As the chart shows the increase in net current assets of the company it is good
for the company as company is having the money to carry its operations. But year 2012
shows huge decrease thus the position of company is not satisfactory in year 2012 as it
doesnt have the enough sources to run its operations.
Total Assets
Total Total Total Total Total
Assets Assets Assets Assets Assets
57,157.00 48,068.00 42,092.00 36,059.00 29,757.00

Total Assets
70,000.00
Mar '16
60,000.00
Mar '15
50,000.00
Mar '14
40,000.00
Mar '13
30,000.00
Mar '12
20,000.00
10,000.00
0.00
Total Assets

Interpretation:

This chart shows that there is a continuous increase in the total current assets, loans and
advances as comparative to the base year 2012. Current asset is an indication to an outside
creditor, whether the company has got the ability to meet its immediate payment obligation or
not. Thus increasing current asset indicates the corporate poor inventory management and
inability to recover its due
LATEST DEVELOPMENTS

NASDAQ-listed Infosys (INFY.O) will provide services like

application development, management and maintenance of railway

operations of Canadian Pacific, which operates a 13,500-mile (21,700-

kilometre) transcontinental railway, a company statement said

Infosys Technologies Ltd. (INFY.BO) signed a $250 million

outsourcing contract with Royal Philips Electronics (PHG.AS:

Quote, Profile, Research) on Wednesday and bought three of the

Dutch firm's back-office centers to extend its presence in Europe.


ANALYSIS

Key challenges faced by Infosys are:

Rise in Wage levels on Indian IT workers.

Infy can overcome this risk by growing up the value chain so that it can afford to

increase its billing rates and still add value to its customers .Second thing it can do

is to move their operations to second level cities in India that have low cost of

living and where wage pressure is less. One of the good steps Infy has taken to

this regard was by opening its Bhubaneswar center. Its cost of living is way less

than that of Bangalore. Another good example is Gandhinagar where a Patni

computer was one of the first big IT companies to open its office.

Change in exchange rates.

Infy should grow its client base in India and China where the impact of foreign

exchange is negligent. TCS is a good example with this regard. Its 2006 revenues

had 12.5% revenues generated from India. This is around $300 mn. With the

present Indian IT market valued at $5bn (obtained from TCS's 2006 annual report)

and expected to grow at 11%, Infy has scope of getting a good market share.
Rise in Infrastructure costs.

Infy's 2006 capital expenses was $246mn compared to that of $185mn in 2005. This

is an increase of over 30%. In order to continue this pace the company needs to invest

a large amount of capital in building new facilities. With recent surge in real estate

prices in India, Infy would face challenges in controlling its capital expenditures

towards expanding its facilities

Inability to acquire foreign companies.

The present Reserve Bank of India guidelines state that in ceratin cases Indian

companies have to take the central bank's permission to acquire a foreign company.

This increases the lead time required to acquire a company.

Backlash towards outsourcing in foreign countries

One way is to employ local talent. Another way can be employing virtual classroom

techniques by which a person sitting in India can get US experience that he would

otherwise get by being physically present in USA. Multinational companies like

Accenture are doing a great job in this front and are not so much dependent on wok

visas as the Indian companies like Infy.


Present Tax benefits are limited till 2016.

Most Indian IT companies are enjoying a tax holiday which exempts them from taxes

on exports performed from designated export promotion zones. This helps Indian IT

companies to reduce their tax rate .But this benefit is only applicable till fiscal 2009.

After that the Indian IT companies would be taxed the same way as other Indian

companies
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. Theyre 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 industrys 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 centers.
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 companys 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.
GOALS

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 checkups.


SOCIETY

Define and implement metrics for measurement.

Status- Achieved target by developing guidelines and dashboards.

FUTURE GOALS OF INFOSYS FOR THE YEAR 2015-2016

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.


REFERENCES

Websites:

Infosys.com

Google.com

Scribd.com

Bing.com

moneycontrol.com

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