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9/6/2010
Macquarie Graduate School of Management
By JACOB VARKEY (41841328)

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mear Mam, Sir

The winning formula of the Global melivery Model which has brought success to Infosys for so many
years is under threat. Our analysis has shown that the economic landscape we operate in could
change within an instance and thereby, affect the entire industry. As industry leaders we have to be
ready for any circumstance. We must prepare ourselves with contingency plans which can be
executed within a moment͛s notice to ensure that when the storm is over we are still in the race.

On January 27, 2010 President Obama made his famous State of the Union speech. In his speech
Obama clearly discouraged American companies from offshore outsourcing and promised action to
ensure outsourced jobs were brought back to the US. Many Indian companies including Infosys were
unfazed by Obama͛s anti-outsourcing call at that moment.

Obama stuck to his policy and the US government recently signed a bill which saw a visa fee hike for
all H1B and L1 visas. The direct impact of this visa fee hike on our balance sheets is probably around
US $10 million. It is rumoured that Obama will continue to work towards his proposed goals by
signing bills which will remove all tax benefits from companies in the US which outsource. If such an
event does occur, we are not ready for it.

Increasing competition from Eastern Europe and China will also be a force to reckon with in the
future. Although Infosys has already set up hubs in China and Europe to nullify these threats, our
competitors are doing the same. If Infosys is going to provide share holder value it must become
more adventurous and must be willing to diversify. Our recent strategic move to take up outsourced
R&m projects is a step in the right direction but our capability platform enables us to do much more.
If Infosys has to survive in tomorrow͛s market it must learn to innovate.

Like the rest of the world we keep our reserve cash in dollars; this is a good strategy in the current
economic situation. However you must be aware that our company profits have also been greatly
impacted by the fluctuating value of the dollar. Our research has also showed us that many top
leaders around the world are looking to set up a new economic order where the dollar would no
longer be the reserve currency of the world. There are strong rumours which have indicated the
proposal of new currency called AMERO, which will replace the dollar in case of a renewed economic
collapse. It is in our best interest to study this issue closely.

This report derives the three major issues discussed above and attempts to provide solutions or
contingency plans for each of them. Mr Murthy had always envisioned strategy to be a course of
action which differentiated us from our competitors. Infosys must thus, continue its successful
journey by not only ensuring to ͚win in a flat world͛ but in a changing one.

Regards,

Jacob Varkey (Independent Consultant )


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The strategic planning process................................ ................................ ................................ ........... 4
STAGE 1 ................................ ................................ ................................ ................................ ......... 5
mata Collection & Assessment................................ ................................ ................................ ........ 5
External environment ʹ PESTEL ................................ ................................ ................................ .. 6
Industry Analysis: Porter͛s Five Forces................................ ................................ ........................ 9
Infosys & McKinsey͛s 7 S Model ................................ ................................ ............................... 11
STAGE 2 ................................ ................................ ................................ ................................ ....... 15
Strategic Scenario mevelopment & Selection................................ ................................ ................ 15
STAGE 3 ................................ ................................ ................................ ................................ ....... 18
Recommendations & Strategy Implementation................................ ................................ ............ 18
SCENARIO 1: ................................ ................................ ................................ ............................ 19
SCENARIO 2: ................................ ................................ ................................ ............................ 20
SCENARIO 3: ................................ ................................ ................................ ............................ 20
Bibliography ................................ ................................ ................................ ................................ .... 22

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The competitive intelligence group derived their issues & recommendations for the company based
on a strategic planning process. The diagram below gives an overview of the planning process which
was used.

mata Collection & Strategic Scenario Recommendations &


Assessment Stage mevelopment & Strategy
Selection Implementation

Performance
Evaluation

As seen above the process was dissected into four various stages: mata Collection & Assessment
Stage, Strategic Scenario mevelopment & Selection Stage, Recommendations & Strategy
Implementation Stage and Performance Evaluation Stage.

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In this stage the data is collected and analysis is conducted to understand the internal and external
environment in which Infosys operates. Various tools like PESTEL and porter͛s 5 forces are used to
derive insight which can help predict the future scenarios within the industry.

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This phase of the project used the inputs from the assessment stage to develop various possible
scenarios that Infosys could find itself in the future. The top three scenarios are deduced from the
list of issues based on assessing the probability of their occurrences and impact on the business.

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Recommendations and contingency plans are developed as part of this stage. The recommendations
are then presented to the CEO and board for approval.

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In order to ensure that the implemented strategies are producing the desired results, management
must evaluate it on an ongoing basis. metails of this evaluation process is not covered in the report
but will be developed after the approval of the proposed strategies.

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mata Collection & Strategic Scenario Recommendations &


Assessment mevelopment & Strategy
Selection Implementation

Performance
Evaluation
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The objective of the data search was to be able to deduce key intelligence issues which Infosys
would provide solutions for. To achieve this, data was collected using primary sources and secondary
sources.

A logical methodology was necessary to collect the information. Thus, the CI team dissected the
environment that Infosys operates into three layers.

1.c The first layer analysed all external issues that Infosys and the IT industry operated in. A
PESTEL analysis was used in this section.
2.c The second layer takes into consideration the IT industry and the various issues it faces.
Porters Five Forces was used here to better understand growing concerns within the
Industry.
3.c The last layer analysed the organisation from within by using the McKinsey͛s 7 S tool to
better understand how changes in the future will affect the company.

EXTERNAL ISSUES PESTEL ANALYSIS

INmUSTRY ISSUES PORTER͛S 5 FORCES

McKinsey͛s 7 S
INTERNAL ISSUES

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The recent move by US government to hike visa fees for foreign skilled workers could adversely
affect the Indian software industry. The total cost incurred by Infosys could go up as much as $ US
10million due the visa fee hike (Economic Times, 2010). Similar decisions in Australia could
potentially put the Infosys Global melivery Model (GmM) under risk. It is also in the opinion of other
industry leader like NASSCOM President that the entire industry needs a new model if it has to
survive in the future.

SOURCE:http://timesofindia.indiatimes.com/tech/news/software-services/IT-cos-need-new-biz-models-
Nasscom/articleshow/6437275.cms

VImEO CNBC SOURCE: http://www.youtube.com/watch?v=XsU2Yfof7nU


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It will also be important to keep an eye on the Australia elections where neither runner has stated
their opinion or policy on outsourcing in the IT industry. Many Australians are passionate to keep
Australian jobs in Australia and politicians might support this group to gain more popularity.

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Right up until the start of 2010 the global IT spending was on a decline due the global financial crisis.
Spending now though is projected to hit $US1.51 trillion in 2010 and analysts have indicated that the
industry seems to have recovered from the financial crisis. Some large companies though as still
hesitant to make large investments in fear of a renewed economic downturn which is predicted to
happen in late September, 2010 (Robertson, 2010).

A study by Microsoft Australia found that the Australian IT industry will generate $21 billion for GmP
by the end of 2013 but this potential growth could be reduced due to shortage of skilled labour
(Stafford, 2009). Infosys enjoys the benefit of a growing demand for IT in Australia and also in the
Indian market where NASSCOM have estimated growth to be about 20% this year.

The return of growth in the Indian IT industry has also meant that issues like high attrition rates have
come back to haunt the industry. In the first quarter of 2010 alone there was attrition as high as 16%
in the Indian IT industry.

SOURCE: http://economictimes.indiatimes.com/articleshow/6161902.cms

Another concern for the IT industry is the fluctuating value of the dollar. ͞With the fluctuating value
of the US dollar, Infosys Technologies has forecast a 7.4-9 per cent drop in Earnings Per Share (EPS)
Guidance for Q1 of the year 2010-11͟ (Andhra Business Bureau, 2010).cInfosys and other large IT
companies have used hedging to strategies in order over the problem; this adds risk to the Infosys
business model. To complicate matters, the Americans have also a proposed new currency called the
AMERO which could change the very face of business. A report on this proposed new currency is
available on CNBC in the following video link:

VImEO CNBC SOURCE: http://www.youtube.com/watch?v=6hiPrsc9g98

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Every year around 500,000 engineers
graduate in India as compared to 6000
engineers from Australian Universities
(Victoria University, 2010). Infosys thus,
always has a large pool of talent from which it
can sustain its business model. Employees are
transferred from India to Australia whenever
the company cannot find the talent in
Australia. English being the primary language
of education allows Indian engineers to easily
adapt to the business environments in
Australia.
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As per the Australian Bureau of Statistics, ͞Children are projected to make up a smaller proportion of
Australia͛s population over the coming decades, while the population aged 65 years and over is
projected to increase.͟ (ABS, 2004)This trend will continue to put strain on the lack of man power
required in the IT industry. NASSCOM has projected that India is one of the few countries to have an
increasing share of working population. Infosys can take advantage of this trend and use its Global
melivery Model to ͞Win in the flat world͟.

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Australian companies missed the KPO wave just as they missed the BPO and IT outsourcing wave.
The KPO industry is worth around $21 billion today and analysts have indicated that Australian
financial institutions were too conservative to embark on such endeavours and also that the
governments never encouraged this form of entrepreneurship within the industry. Infosys has
become a key market player in this space (Jones, 2005).

SOURC:http://www.swamyandassociates.com.au/AFR-Australia%20risks%20missing%20KPO%20boat.pdf

Communication technologies like enterprise telephone services, 3G, Wi-max and VPN are rapidly
bringing down the barriers to do business from distant locations. IT projects can be carried out in
different location without comprising on quality or speed of deployment. This has helped Infosys
Australia develop live projects by having multiple teams at various locations; giving them a cost
advantage over other local competitors. The proposed National Broadband Network in Australia will
only improve the internet speeds and help companies like Infosys.

 
In India several tax benefits and fiscal benefits are handed out to companies which operate Software
Technology Parks or set up SEZ with minimum 10 hectares. The IT Act issued by the government also
provides companies a sound legal environment for companies to operate in.

Recent news from the US though has indicated that there could be anti off shoring laws put in place.
This was galvanized by President Barack Obama in his State of the Union address earlier this year.
Rumours are growing strong that in the future there could be tax breaks for companies which create
local jobs as compared to companies that outsource jobs to companies like Infosys. The Australian
government is open to the idea of allowing private companies outsource projects but it could be
encouraged to do the same as the US, if they set up any anti off shoring tax system.

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In light of global warming and other rising concerns with respect to the environment, Infosys has
developed teams to ensure proper water, energy and waste management. The Health, Safety and
Environmental Management System (HSEMS) is functioning at Infosys under an initiative called the
͞Ozone Initiative͟. The company ensures it conforms to all ISO 14001 standards and OHSAS 18001
requirements.
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In order to understand the industry in which Infosys operates Porter͛s Five Forces tool was used.

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As stated by Porter, ͞If someone is always attacking your position, it makes the industry less
attractive and less profitable͟ (Porter, 1991, p. 90). Thus, competition among existing competitors
within the industry is indicative of the profitability within it. At the moment the players in the
market all have an aggressive strategy where each player uses pricing in order to win contracts. The
level of quality of service is very hard to differentiate between these competitors as most companies
are CMM level 5 and ISO 9000 certified. Large players in the industry like Oracle, Accenture and TCS
have all set up bases in low cost regions in order to compete; all of them have a billing rate which is
lesser than that of Infosys͛s billing rates. The following table shows us the current standing of some
of the important players in the Indian market:

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Considering the large number of vendors who provide similar services, customers often push the
Infosys to reduce billing rates or add more services. Australian clients like other global clients have
strong bargaining power in a globalized economy where potential vendors can be sourced from any
continent. At the current moment the industry is in a position where the demand for IT services is
slightly lower than the supply; this has a direct impact on pricing where customers can trigger price
wars for a project between biding companies.

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The suppliers in this industry are represented by the engineers in the market with the unique skill
sets. High attrition rates and the economy restarting itself have meant that IT companies like Infosys
are forced to increase pay packages. The challenge for Infosys and other Indian companies is to keep
the wages down and to be able to continually provide low cost IT services. In Australia the shortage
in the IT talent pool is also increasing bargaining power of the employees. Infosys continues to keep
a low cost structure by bringing engineers from other base locations to Australia to work on projects
or send back work to India (Shields, 2009)
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Low capital requirements allow large companies to enter the space and compete. For example,
companies like ANZ from Australia have already set up a development centre in India to develop
software for the bank. This strategy has forced companies like Westpac to consider the same
(Sharma, 2009).

SOURCE: http://www.news.com.au/westpac-backflip-on-india-jobs-shift/story-0-1225713106281

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The growing number of cheaper offshore locations like Eastern Europe, China and Philippines are
emerging and could potentially destroy the advantage that Infosys has. The following graph on the
left shows us the number of IT students in the past 10 years in a small country like Latvia. This
growing trend can be seen in all of Eastern Europe where large numbers of trained professionals are
graduating. The next graph shows us the unit labour costs in some European countries which is
much lesser than Western European states. Thus, Eastern Europe provides fertile grounds for
companies to set up low cost IT services.

Source: (Kristovska, 2010)

The graph below summarizes the findings made through Porter͛s Five Forces analysis:

Inter-firm rivalry
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4
3
Threat of 2
substitutes 1
0

Barriers to Entry
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This indicates that the growing competition in the industry is making it not a very attractive industry
to be in. As the competition increases Infosys must now find ways to further differentiate
themselves from competitors or find new markets to enter. The following graph shows the market
share of Infosys compared to its competitors in India. This indicates that the competition is high:

Infosys Australia now includes clients such as Telstra, Suncorp, ANZ Bank and National Australia
Bank. Even in the Australian market the competition is very high and there is very little difference
between the players.

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The following analysis will use McKinsey͛s 7 S Model to understand the internal issues of the firm
and also to see how well the company will cope with changes in the future.

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Key Intelligence question:

Who will define the vision and goals for the organisation in the coming decade?

The leadership at Infosys is a well structured and closely knit group. The Chairman, N R
Narayanmurthy, was a key factor which brought about the success of the firm. The current culture at
Infosys hubs across the globe is to develop leaders from within the organisation. Employees are
trained in the company͛s very own ͞Infosys Leadership Institute͟ in hope to develop leaders for the
future.

In Australia, the appointment of Jackie Korhonen as the Mm and CEO has indicated the company͛s
attempt to paint a picture of an Australian company. Jackie͛s past experience with competitor IBM
will surely give Infosys Australia a greater chance to do well in the future. The appointment of strong
leaders in various subsidiaries has given them some freedom to redraw the company culture for the
better.
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Key intelligence question:

Are the employees equipped and satisfied enough to drive the strategy implemented by the
leadership?

There are around 1200 employees in Australia and over 100,000 employees around the globe. About
90% of the employees in Infosys are engineers. Infosys is committed to spending large amounts of
cash in training its employees. It has built one of the world͛s largest corporate training centres where
thousands of trainees are equipped. A large portion of the costs that Infosys procures is primarily
from the Mysore training centre. This shows the companies commitment towards constantly
training its employees.

Recently though, attrition rates have gone up as high as 15% in India. Rumours have emerged that
employees are very unsatisfied with the promotion and remuneration structure in place. Infosys has
reacted to this trend by restructuring their HR policies in India. There is no evidence of high attrition
rate in Infosys Australia and employee satisfaction is at a high.

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Key intelligence question:

Is the current strategy versatile?

The strategy at Infosys Australia is currently directed towards investing cash and effort to set up a
strong brand name in the Australian market. Infosys differentiates from other competitors by being
able to demand a higher margin based on its brand name. Infosys chooses to differentiate itself from
its competitors by highlighting its strong risk free financial structure. The company strives towards
building a strategy which is not based on cost but rather quality. Infosys bids for bigger clients and
stays away from the smaller ones. After acquiring projects with large players in diverse industries,
Infosys then looks to capitalize by increases its business portfolio with the client by providing other
services like software re-engineering, maintenance, infrastructure management and business
process management services. Overview of strategy:

uc Expanding geographically
uc Enhance solution set: Example, Infosys BPO in Australia, Consulting services in Australia
uc Strong Branding
uc Investment in the energy sector and health sector

Initially the company had indicated to its share holders that it was not willing to be part of the R&m
outsourcing for product development. The strategy has now changed and Infosys is poised to make
large investments in this space. There must be a stronger push into this space as reports have
indicated that Accenture and Cognizant have made similar strategic plans (Apte, 2010).
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Key intelligence questions:

Are the company values still being upheld in the numerous teams that span across the globe?

The Infosys culture revolves around the core values its leaders have so strongly stood by. The core
values of the firm are:

uc Customer melight.
uc Leadership by Example
uc Integrity and Transparency
uc Fairness
uc Pursuit of Excellence

As the size of the firm grows ever so rapidly it becomes critical for Infosys to ensure that the right
culture is instilled within each team in the company. The training program for each inductee does
not include topics like ethics but the company does provide a vast array of other soft skill training.

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Key intelligence questions:

Is the current structure at Infosys flexible enough?

The company is structured as seen in the diagram below:

There are various business domains like Banking, Retail and telecom which are the verticals within
the company. The horizontals include departments like consulting solutions and enterprise solutions.
Supporting these departments are departments like HR, Education & Research and ILI. The
horizontal and vertical teams interact with each other in large projects.
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The decision making is a centralised process where only necessary information is passed down to the
entire team. Although there is a hierarchy system in place, Infosys is trying to develop a culture
where everyone is treated equally irrespective of their position.

The company structure is very much aligned with the business strategy and the company has revised
the structure several times in the future. The transition was successful each time in the past and
thus, there indicates that there is enough knowledge with management to do so again in the future.

The current structure of Infosys to have multiple subsidiaries at various locations also allows Infosys
to slowly gain a local foothold. This strategy also allows subsidiaries to hire locals and operate like a
separate company in case of future laws don͛t allow outsourcing.

° °

Key intelligence questions:

moes the company have enough skills to drive strategy?

Infosys Australia is CMM level 5 certified. On a yearly basis employees put through internal technical
and domain certifications in order to ensure quality of the service is of its top level. Large
investments in departments like Infosys Leadership Institute and training centres shows the
leadership͛s commitment towards equipping its employees with the right skills.

Over the years Infosys consulting has strived hard to create a brand name in the market. So far, the
consulting wing of the company has not managed to do very well globally. This has not stopped the
company to launch its consulting business in the Australian market in 2009. Clients like ING Australia
have been very pleased with the work the consulting arm of Infosys has provided (CRN, 2009).

Infosys͛s investment in R&m product development shows the company has a strong capability
platform from which it can leverage.

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mata Collection & Strategic Scenario Recommendations &


Assessment mevelopment & Strategy
Selection Implementation

Performance
Evaluation
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n the previous sections data collection and assessment was carried out. This section will now derive
the top þ c
 
ccbased on the analysis in the previous sections.

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Summarize the all key issues discovered as part of the analysis. The issues are presented below along
with three attributes:

1.c Probability of occurrence.


2.c Impact of the issue on Infosys and Infosys Australia.
3.c The probable timeframe in which the issue could burgeon.

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(c Growing unpopularity of globalization among Medium to High Near future
Australian citizens could sway political leaders to high
create systems to ensure higher cost of operation for
companies like Infosys. For example, US decision to
increase visa fees has added cost of around USm
$10million.
Rumours are afloat that the US is working on an anti
off shoring law. Such a law could encourage other
countries like Australia to adopt the same. The GmM
model of business would no longer effective.
*c Renewed fears of a double dip and another global Medium High Near future
financial crisis (GFC) could reduce IT spending.
+c Infosys has large amounts of cash is in US mollars Medium Very Near future
which it needs to manage. A renewed GFC could crash High
the dollar and its value. This could inadvertently affect
the value of the Australian dollar too.
,c Aging Australian population will bring about a High Low Far future
shortage of skilled labour.
-c A large number of foreign IT service providers are High Medium Near future
setting up bases in India and providing the same
services that Infosys does. Even clients like ANZ bank
Australia are vertically integrating and setting up IT
hubs in India. Infosys could lose several accounts as it
becomes easier to set up hubs in India.
.c High attrition rates due to ever growing demand for High Medium Near future
promotions and better remuneration.
/c Competition from China and Eastern European High Low Near future
countries.
0c Infosys has only one product (Finacle) and High Medium Near future
concentrates in providing IT services. It has not really to high
managed to capitalise on these large cash assets it has
stockpiled.
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The next step was to determine which of these issues stated in the table above are the most critical.
The graphical scale seen below was developed to rank all the discovered issues.The diagram ranks
each issue with respect their probability of occurrence vs. their impact on the Infosys business. The
arrows beside some of the boxes indicate how each issue will likely evolve in the near future.

HIGH Issue 7 Issue 6

Issue 4 Issue 5 Issue 8

Issue 1

Issue 2
Probability

Issue 3

LOW

LOW Impact HIGH

 

As seen above all issues in the top right quadrant i.e. Issue 1, 2 and 8 need to be considered
as they pose an immediate threat with the highest impact tothe business. In the following
section scenarios were then developed based on these issues. Then recommendations to
tackle these scenarios are addressed.
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mata Collection & Strategic Scenario Recommendations &


Assessment mevelopment & Strategy
Selection Implementation

Performance Evaluation
& Communication
Strategy
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"his section will focus on:


uc Providing recommendations for the top three possible critical scenarios that Infosys might
face in the near future.
uc meveloping an implementation strategy for the recommendations.

°
,+ c% merived from Issue 1, Stage 2cc

In the recent State of the Union speech, President Obama made it clear that he did not favour the
idea of outsourcing. In the next 12 months it is probable that the President will sign a new bill which
removes all tax benefits from companies who have outsourced projects. It is also likely that the US
government will decide to continue to charge large visa fees for IT professionals. This scenario
predicts that the Australian government will follow suit and imposes similar laws in Australia to keep
jobs within the country. Even though local Infosys subsidiaries can start hiring locally to counter this
threat, the costs of operation would go and there would be no
differentiation between local competitors.

A study of the following graph indicates that almost 67% of the


revenues that Indian IT firms generate are directly attributed
to US projects. If the US government imposes these anti
outsourcing laws, companies like Infosys would have to redraw
a new strategy to stay in business.

   

A two stage approach can be adopted to tackle this problem.

STAGE 1:

uc Step 1: Create a small team under the leadership of the Chief Risk Officer (CRO) to find ways
to re-engineer the GmM model. The team should also put together a report which describes
the possible threat to the entire IT industry and the Indian economy if such a bill is passed.
uc Step 2: After approval from the Board, present the report to the Indian government to speak
to their American counterpart in the White House to highlight factors like how IT
outsourcing has helped US companies cut costs and stay competitive with rest of the world.
uc Step 3: Continue to find means to cut costs so that visa costs or tax benefits under the new
bill is negligible for private firms.
uc Step 4: Slowly start to hire more employees at subsidiary locations thereby avoiding the
need to transfer employees and use latest technology to enable 3d conferencing which
would eliminate the need for employees to travel to client locations.
uc Step 5: Build strong relationships with corporate American and Australia, WTO, NASSCOM to
ensure support in times of crisis.
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STAGE 2:

uc If this approach does not work, Infosys should pressurise the government to approach
the WTO to tackle the issue.

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,+ c)%cmerived from Issue 2 & 3, Stage 2c

Within the next three months another stock market crash triggers a global financial meltdown.
Leaders of the world are pressurised to fix the problem by restructuring the capitalist financial
system. As part of the reformation process, the dollar currency is dissolved and replaced by the
much talked about AMERO currency, which is a planned common currency for a proposed North
American Union. Since, large amounts of Infosys reserves are in dollars this scenario could pose a
serious threat. (Video Source: http://www.youtube.com/watch?v=SedqBABOGTE)

   
uc Get the CRO and team to prepare a report for the Corporate Planning Group which
highlights this issue and recommends alternative investment strategies where a renewed
GFC or dollar collapse would not have a great impact. The company could move into the
energy sector and buy out large gas resources in Australia or Latin America. The goal is to
invest surplus cash into assets which are risk free.c
uc The team should also study in deep the impact of the new proposed AMERO currency with
respect to the dollar and present its finding along with a contingency plan to the board
within a 1 month. c
c

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,+ c*%cmerived from Issue 5 & 8, Stage 2c

Many large Infosys clients set up IT hubs in India and other cost affective locations to avoid having to
outsource. Eventually due to the intense competition in the industry, Infosys is forced to reduce
margins and thereby, compromise on profitability. High inter firm rivalry drives the industry into a
maturity stage where it is no longer profitable to be in. A study of how much cash Infosys spends in
R&m with respect to its competitors indicates that the company is not geared to manoeuvre itself to
an adjacent Industry if necessary. Management must realize this problem and ensure contingency
plans to ensure the company has positioned itself in a fashion where it can easily move into another
adjacent industry.
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uc Allocate this task to the R&m head and his team to prepare a feasibility study to determine
whether Infosys can release a new IT product which can differentiate it from rest of the
market competitors. Although R&m investment for Infosys is not at par with industry
standards, the Mckinsey͛s 7s analysis revealed that Infosys has a very strong capability
platform. Infosys should use its strong capability platform to devise a new software product
which it can the sell to its clients. The report is to be presented within 6months to the Board.
uc The feasibility report must also include what Infosys must do to align the entire organisation
to bring about success of this new venture. For example, the culture at Infosys needs to be
morphed in order to encourage innovation and creativity where KPIs are directly linked to
amount of innovation an employee contributes. Also, the Infosys Leadership Institute must
also be aligned to identify and train potential employees in the product development space.

The following diagram represents the summary of the recommendations made above:

Team 1 Team 2 Team 3

PROACTIVE: REACTIVE: PROACTIVE: PROACTIVE: PROACTIVE:

Re-engineer Prepare report Find new Study impact of Prepare Report


GmM MOmEL for Government business the proposed for Board to
and find new to use political opportunities AMERO highlight needs
ways to cut influence to sort like energy and currency to to diversify into
costs. out the problem. health care to develop IT product
invest surplus contingency space.
cash. plan.

Build Seek support of Report should


relationships WTO in case include
with WTO, government bid alignments
NASSCOM to fails. strategy for the
ensure support firm must carry
in future out

After the implementation of these teams, management must also consider an evaluation strategy
which checks the progress of the teams on a weekly basis.

The ultimate goal of this CI process is to equip the organisation to face any issue that might arise.
Like a chess player who plans his future moves by predicting his opponent͛s strategy, Infosys must
plan one step ahead and thereby, use its foreknowledge to ͚win in the flat world͛.
22c
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ï- c
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Shields, B. (2009, April 21). 


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