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PESTEL Analysis

Governance System – The present governance system in the


industry is facing challenges and thus Infosys has to keep a close
eye on the change in policies.

Changing policies with new government –that there can be a


transition of government in near future in most prominent
market. Infosys has to prepare for this eventuality as it can lead
to change of priorities for the sector.

Political
Factors Regulatory Practices – Infosys has to manage diverse regulations
in the various markets it is present in. Over the last few years
Technology & Operations has witnessed an increasing
regulatory scrutiny.

Political stability in the existing markets – Infosys operates in


numerous countries so it has to make policies in each country
based on the Technology & Operations in the country and
industry specific requirements. Given the recent rise in
populism across the world I believe that Infosys can see similar
trends and may lead to greater instability in its existing markets.
Increasing liberalization of trade policy can help Infosys Consulting to
invest further into the regions which are so far offlimits to the firm.

Government intervention in the Technology & Operations sector can


impact the fortunes of the Infosys Consulting.

Economic Downward pressure on consumer spending – Even though the


consumer disposable income has remain stable, the growing inequality
in the society would negatively impact consumer sentiment and thus
Factors impact consumer spending behavior.

Efficiency of financial markets – Infosys Consulting can access vibrant


financial markets and easy availability of liquidity in the equity market
to expand further globally.

Economic Cycles – The performance of Infosys Consulting in Technology


& Operations is closely correlated to the economic performance of the
country.
Leisure interests – The customers that Infosys Consulting targets give a
very high preference to experiential products and services. The firm
needs to spend more energy to meet the preferences and expectations.

Attitude towards health and safety – With increasing liberalization the


attitude towards health and safety are getting lax. Infosys Consulting
needs to stay away from these attitudes as the cost of failure is too
high.

Social Factors Demographics – For the Technology & Operations sector, Infosys
Consulting has demographics on its side.

Societal norms and hierarchy – The society as portrayed in the case


study is different from the home market of Infosys Consulting. It should
strive to build a local team that understands the societal norms and
attitudes better to serve the customers

Access to essential services – According to the case study - In the last


decade and half the wider population in getting access to essential
services. This has been a result of increasing investment in public
services.
Research and development investment at both macro level and micro level
in Technology & Operations is increasing. It can lead to industrywide
disruption through innovation of new products & services.

Lowering cost of production – The latest technology is fast lowering


production and servicing cost in the Technology & Operations sector. Infosys
Consulting has to restructure its supply chain to bring in more flexibility to
meet both customer needs and cost structures.
Technological Developments and dissemination of mobile technology has transformed

Factors customer expectations in the Technology & Operations sector. Infosys


Consulting has to not only meet and manage these expectations but also
have to innovate to stay ahead of the competition.

Technological innovation is fast disrupting the supply chain model of Infosys


Consulting as it is providing greater access to information to channel
partners, leading to higher profit sharing.

Maturity of technology – The technology in the sector is still at nascent


stage and most players are vying for new innovations that can enable them
to garner higher market share.
Customer activism – Greater awareness among customers have also put
environmental factors at the center of Infosys Consulting strategy. Customers
expects Infosys Consulting to adhere to not only legal standards but also to
exceed them to become responsible stakeholder in the community.

Renewable technology is also another interesting area for Infosys Consulting. It


can leverage the trends in this sector. Many governments are providing subsidies
to invest in the renewable sector.

Environmental Waste management especially for units close to the urban cities has taken
increasing importance for Infosys Consulting. Government are fast coming up
Factors with strict norms for waste management in the urban areas.

Recycling is fast emerging as a norm rather than a -good thing to do in many


economies. Infosys Consulting has to make plans to adhere to regulations and
meet consumer expectations in the Technology & Operations sector.

Environmental norms are also altering the priorities of product innovation. In


many cases products are designed based on environmental standards and
expectations rather than catering to traditional value propositions.
Time take for business cases in court – some countries even though follow
international norms but the time for resolution often run in years. Infosys
Consulting has to carefully consider average time of specific cases before
entering an international market.

Legal protection of intellectual property, patents, copyrights, and other IPR


rights in various countries. How Infosys Consulting will be impacted if there
is not enough protection.

Legal Factors Business Laws – The business laws procedure that government follows. Are
these norms consistent with international institutions such as World Trading
Organization, European Union etc.

Data protection laws – Over the last decade data protection has emerged as
critical part of not only privacy issues but also intellectual property rights.
Infosys Consulting has to consider whether the country have a robust legal
and technological mechanism to protect against data breaches or not.

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