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Company review Session

On
Infosys
Presented By:- Durgadatta Dash.
Roll No:22073
Section :TPS- B

Infosys Address
Head Quarter

Register office

No. 44, Hosur Road,

Karvy Computershare Private Ltd. Plot

Electronics City,

No.17-24,

Bangalore

Vittalrao Nagar,

Karnataka

Madhapur Hyderabad - 500081

560100

Andhra Pradesh

Global presence
Branch
offices(India)
New Delhi
Mumbai
Pune
Bhubaneswar
Hyderabad
Mysore
Chandigarh
Chennai
Kerela

Overseas Office
California
USA
Germany
Canada
France
Hong Kong
Sweden
Singapore
Switzerland
Japan
New York
Ontario
Finland
Airland
UK
UAE
Marititious
Norway
Rusia
Spain

The Headquarters of Infosys is located in Bengaluru

Pune Campus

Thiruvananthapuram Campus

Nature of Business And Business Segment

Type:- Public
Industry:- IT services & consulting
Year of Incorporation :- 1981

The Idea

The idea was born On July 2, 1981, Infosys Consultants Pvt. Ltd. The starting
capital was $250 which was borrowed from Mrs. Murthy.

Founders
N. R. Narayana Murthy
Nandan Nilekani
N. S. Raghavan
S Gopalakrishnan
S D Shibulal
K Dinesh
Ashok Arora

History of Infosys

1981
Infosys is established by N. R. Narayana Murthy and six engineers in Pune, India, with
an initial capital of US$ 250
Signs up its first client, Data Basics Corporation, in New York
1983
Relocates corporate headquarters to Bangalore
1987
Opens first international office in Boston, US
1993
Introduces Employee Stock Options (ESOP) program
Acquires ISO 9001/Tick IT certification
Goes public
1996
The Infosys Foundation is established
1998
Starts Enterprise Solutions (packaged applications) practice

Contd.
1999

Touches revenues of US$ 100 million. Listed on NASDAQ

Infosys becomes the 21st company in the world to achieve a CMM Level 5 certification

2006

Infosys celebrates 25 years. Revenues cross US$ 2 billion. Employees grow to 50,000+

N. R. Narayana Murthy retires from the services of the company on turning 60. The Board
of Directors appoints him as an Additional Director. He continues as Chairman and Chief
Mentor of Infosys
2009

Infosys selected as a member of The Global Dow

Employee strength grows to over 100,000


2011

N. R. Narayana Murthy hands over chairmanship to K.V. Kamath

Infosys crosses US$ 6 billion revenue mark, employee strength grows to over 130,000

Contd.
2012
Listed on the NYSE market
Infosys acquires Lodestone Holding AG, a leading management consultancy
based in Switzerland
Forbes ranks Infosys among the world's most innovative companies
Infosys among top 25 performers in Caring for Climate Initiative
Infosys crosses the US$ 7 billion revenue mark
2013
Infosys Board appoints N. R. Narayana Murthy as Executive Chairman of the
Board
Infosys begins trading on NYSE Euronext London and Paris markets
Infosys Edge wins the NASSCOM Business Innovation Award for 2013
Infosys presented with 2013 Environmental Tracking Carbon Ranking
Leader award

Vision and Mission


Vision
"To be a globally respected corporation that provides best-of-breed business
solutions, leveraging technology, delivered by best-in-class people.
Mission

"To achieve our objectives in an environment of fairness, honesty, and


courtesy towards our clients, employees, vendors and society at large."

Key People

N. R. Narayana Murthy
(Executive Chairman)

S. Gopalakrishnan
(Executive Vice Chairman,
former Co-Chairman)

S. D. Shibulal
(CEO& MD)

Stock exchange listing details of Infosys

Infosys is listed in BSE , NSE and NYSE


BSE : 500209

NSE : INFY

NYSE : INFY

Share Price Information

BSE : Rs. 3245.60 (59.15 increase)

NSE : Rs. 3244.30 (58.50 increase )

FACE VALUE : Rs. 5.00

CURRENT MARKET CAPITAL : Rs.209,343.54 (in cr.)

Shareholding Pattern
NRI s/Trusts;
OCB s;0.73
1.17
others; 12.21

Individuals / Hindu Undivided Families; 18.9

Bodies Corporate ; 0.57

Mutual Funds / UTI; 6.52


Financial Institutions / Banks; 0.04

Insurance Companies; 11.65

Foreign Institutional Investors; 48.21

Services that Infosys Provide


Application Development and maintenance
Corporate performance management
Enterprise quality services
Infrastructure services
Packaged application services
Product engineering
Systems Integration

Industries Infosys Serve


Aerospace & defense

Insurance

Automotive

Life Sciences

Banking

Media &Entertainment

Communication

Resources

Consumer goods

Retail

Manufacturing

Transportation

Energy

Utilities

Healthcare

High technology
Hospitality

FINACLE : The Only Product


About FINACLE
Infosys Finacle partners with banks to simplify banking and arms them
with accelerated innovation to build tomorrows bank, today. Today
FINACLE is the choice of 183 clients across 84 countries and serves 14
percent of the worlds banked population. The solutions address the core
banking, e-banking, mobile banking , CRM, payments, treasury,
origination, liquidity management, wealth management, requirements
of retail, corporate and universal banks worldwide. The solutions
componentized structure and enterprise-class capabilities help banks
enhance the quickness and efficiency of their operations significantly as
well as improve customer experience across channels

Features of FINACLE
Universal banking solution from Infosys.
Empowers banks to transform their business .
Architected out of years of experience with global banks and
offers several powerful and differentiating features .
One of the most comprehensive, flexible and scalable
solutions in its class .

FINACLE Advantage
1. Business Quickness
2. CRM and Alert Enabled
3. Global Deployment Capability
Multiple currency, time zones and languages
4. Proven solution minimized risk
100% success, rapid, smooth successful arrangements
5. Integrated multi-channel framework
Banks can offer their solutions through multiple channels

GLOBAL DELIVERY MODEL : THE CORNER STONE OF MARKETING STRATEGY

Infosys pioneered the Global Delivery Model (GDM) to ensure the distribution of application and
business process lifecycle activities and resources, while ensuring their integration. The key
drivers of our Global Delivery Model are:
Process
The strong process-orientation allows us to deliver solutions from multiple locations.
Quality
We deliver world-class solutions by maintaining quality across processes, interfaces
and outputs, in management, core and support processes.
Tools
We monitor large and complex projects through a combination of indigenous tools.
Knowledge management
Our Knowledge Management Services help you assess your needs, evaluate
technologies and recommend solutions.
Program Management
Our project management processes address key aspects across the project life cycle.

Brief About GDM


Introduced in 1980s
Most important strategic initiative
To accelerate schedule
High time and cost predictability
Led to rise of offshore global outsourcing
It refers to philosophy of breaking work into logical components and assigning it geolocationally so as to create maximum value.
Cost reduction is the most important gain of GDM

Advantages to Clients
Assurance of the best product quality, which cuts down costs
of fixing defects, maintenance and hence, the TCO (Total
Cost Ownership)
Advantages coming out of the continuous improvements,
which keep improving all the key parameters.

Eras of Strategy
Strategy Pre 1992 Era
Onsite focus , Few Large Customers, Indirect Sales

Strategy past 1992 till 1999


Global benchmarking
Global delivery model
Employee retention
Investment in sales and marketing
Becoming a company of choice for investors, customers and employees

Eras of Strategy Contd.


Strategy Since 1999
1. Accessible business
2. Value added services
3. Business solution services
4. End-to-end capabilities
.
Consulting
.
IT services
.
Business Process management
5. Modular Global Sourcing
6. Large development centers (India, China)

Building The Brand


Aggressive marketing and branding strategy
Coherent campaigns using multiple channels, including
events, PR activities and direct marketing .
Creating positive perceptions with clients, industry
associations, media and policymakers .
Well-recognized brand .

Coherent Market Strategy


Range of investment in infrastructure, HR ,technology and networking
Increase in client penetration rate
Helped in attracting best talent

Investing in
Expertise

Business innovation in GDM coupled with technology and industry


expertise in various fields .
Disruptive model has enabled Infosys to offer distinctly superior services .
Facilitated acquiring new clients .

Delivering local Business Value


Customizing services and solutions to suit client needs
Understanding client-specific needs and value proposition
Example: Creation of specific services around regulatory
compliance

Subsidiaries

1.
2.
3.
4.
5.
6.

Infosys Technologies (Australia) Pty. Limited


Infosys BPO Limited
Infosys Tecnologia do Brasil Ltda
Infosys Technologies (China) Co. Limited
Infosys Technologies (Shanghai) Co. Limited
Infosys Public Services Inc. (US Based)

Financial Statements of Infosys


Asset Liability details
40000
36059 36059
35000
29757 29757

30000
24501 24501

25000

22036 22036

20000

17809 17809

15000

13490 13490
11162 11162

10000
5000 3253.433253.43
0

2004

5241.735241.73

2005

6897 6897

2006

2007

2008
Assets (in cr.)

2009
Liabilities (in cr.)

2010

2011

2012

2013

Net income , expense and profits (in Cr.)


Income Expenses and profit Details
45000
40000
35000
30000
25000
20000
15000
10000
5000
0

2004

2005

2006

2007
Income (in cr.)

2008

2009

Expenses (in Cr.)

2010
Profit (in Cr)

2011

2012

2013

SWOT Analysis

Strength:
1. A well established leader among Indian IT companies. Infosys has built a solid image by
delivering quality services and innovation.
2. Well defined service portfolio: In last one decade it was able to build solid capability
including matured processes and team in all the key vertical including Retail, Oil and Gas
etc.
3. Scale: It has 1, 56,688 full time employees, strong presence in India and number of delivery
center across globe.
4. Focus on Innovation: Infosys has dedicated about $100M to support innovative ideas
coming from Mobility, cloud and Big data.
5. Less Risky: Good cash in hand, over $4B and absolutely no debt. It will help make further
strategic acquisition in Europe and elsewhere.
6. Strong Relationship with Clients: Almost 98% of its business comes from existing
customers. It has total 798 active clients and out of which 12 are $100M+.

Weakness:
1. Leadership: So far D. Shibulal is not able to meet investors expectations. He became CEO
of Infosys on 3pth April 2011 and since then margin and growth has suffered. Other India
offshore players such as TCS, HCL continue to do well.
2. Declining Growth and Margin: Gross margin (FY13) has declined to 37% from
41%.Company recently has withdrawn EPS guidance and expect to grow about 6% to10%.
Below then Industry growth published by Nasscom.
3. Pricing Pressure: In order to generate growth, Infosys has indicated that it may go down in
pricing that may not a good sign as it will further impact margin. On an annual basis pricing
is down by 3%.
4. Lower utilization: In services business, a lower utilization is big threat and causes a good
amount of pressure on business development team. Infosys has delivered a lower utilization
and it appears that management is comfortable about it.

Opportunity :
1. Emerging Technology: Emerging Technology such as Cloud, Big data are going to get
bigger and Infosys has taken concrete steps to take advantage of that.
2. Significant opportunity in Product and platform segment: Total booking is about
$685MN, and grew by 12.4%
3. Strategic Acquisition: Infosys will continue to acquire firms which can add to its top
line. Growth from Innovation: Infosys is betting high on Innovation, already committed
$100M to further support this initiative.

Threat :
1. Global economy: Although US economy looks like going to recover soon, however Europe is
still not able to catch up.
2. Vendor Consolidation and High Competition: Now most of the big clients want to
consolidate its number of vendors and competitors such as Cognizant, Accenture are
able to offers/showcase well differentiated offering and strategies to clients and that
may result in reduced project budget for Infosys.

Political

Political stability

PEST AnalysisEconomic

Global IT spending (demand)


Domestic IT Spending
(Demand)
Currency Fluctuation
Real Estate Prices

Government owned companies and PSUs


have decided to give more IT projects to
Indian IT companies.
Terrorist attack or war.

Social

PEST
Analysis

Technological

Language spoken: English

Telephony

Education: A number of technical


institutes and universities over the
country offer IT education.

Working age population

Internet Backbone

New IT Technologies like SOA,


Web 2.0, High-definition content,
grid computing, etc

INFOSYS BCG MATRIX - USA

INFOSYS BCG MATRIX - INDIA

Value System C - Life


1.Customer Delight:
A commitment to surpassing customer expectations.
2. Leadership by Example:
A commitment to set standards in business and transactions and be an exemplar for the
industry and teams.
3. Integrity and Transparency:
A commitment to be ethical, sincere and open in all dealings.
4. Fairness:
A commitment to be objective and transaction-oriented, thereby earning trust and respect.
5. Pursuit of Excellence:
A commitment to strive relentlessly, to constantly improve themselves, their teams, their
services and products so as to become the best.

Major competitors

WIPRO
TATA Consultancy Services
TCS is the grandfather
Unlisted till 2004, cared little about publicity and concentrated on
customers
Grabbed customers and created relationships
Big in size and low on prices
Now it has become choosy and fussy
Stable and trustworthy
Great expertise, lot to offer and low price.

Wipro
Originally into hardware and then into software
From 1999, PR, analyst relations and website became important
Less focus on branding and more on sales
In 2001, the need for brand was realized
Applying Thought
Driven by technological evolution and R&D

Infosys
New

kid on the block Mr. Murthy

Need to be different to compete with MNC


Hiring smart people to sell in EU and US markets
Listing on NASDAQ partially to instill confidence in customers
Partnerships with educational institutes like Wharton
Focus more on PR and communication for visibility

The Future

Global Sourcing
Global sourcing strategy is aligned with business strategy
Enhancing operational efficiency and delivering value added services
Structuring processes and services into modules thus leading to enhanced flexibility and
productivity .

Enterprise Solutions
Aggressive focus on ERP solutions like SAP and Oracle
Planning to increase focus on Service Oriented Architecture (SOA)
This is expected to bolster its business in enterprise solutions market

Strategies for future


Focus on emerging business trends and pervasive technologies
Leverage existing client base to increase demand
Promote US-India success when pursuing new clients
Strengthen presence in North America and EU while gaining foothold in
China
Broaden strategic alliances with best-in-class providers with complementary
skill sets
Expand into high-end consulting

HR Policies
A shared Responsibility
responsibility in dealing with
peer.

: Each employee has a distinct


people be it as a leader of a team or as a

Dealing with People


Overtime compensation
Performance evaluations and salary increases
Equal Employment Opportunity policies

Awards
Infosys has been identified as one of the Top 25 performers in Caring for Climate
initiative by UN Global Compact and UN Environment Program.
Infosys is ranked No.1 among the best managed companies in Asia Pacific in the annual
Euromoney Best Managed Companies in Asia survey 2013.
Infosys has been voted Indias Most Admired Company in The Wall Street Journal Asia 200
survey every year since 2000.
Infosys has been recognized as a top performing global partner by consumer goods company
Procter & Gamble (P&G).
Infosys has received the Oracle Excellence Award for Specialized Partner of the Year
North America in both Financial Management and Human Capital Management
categories at Oracle OpenWorld 2012.
Infosys Engineering Services team has been declared the winner in the area of engineering
design at the 2013 Simulating Reality Contest organized by MSC Software, a worldwide
leader in multidiscipline simulation.

And many more ..

Corporate Social Responsibility


At Infosys, the distribution of wealth is as important as its legal and ethical
creation. A strong sense of social responsibility is therefore an integral part of its
value system.

Infosys Foundation
Infosys is committed to contribute the society and established
the Infosys Foundation in 1996 as a not-for-profit trust to support our
social initiatives.
The Foundation supports programs and organizations devoted to the
cause of the destitute, the rural poor, the mentally challenged, and the
economically disadvantaged sections of the society.
The Foundation also helps preserve certain cultural forms and dying
arts of India.

CSR Activities Contd.


Community service:
Through our Computers @ Classrooms initiative launched in January 1999, we
donated 2,567 computers to various institutions across India. Additionally, we have
applied to the relevant authorities for permission to donate computers to
educational institutions on an ongoing basis in the future. Microsoft Corporation
continues to participate in this initiative by donating relevant software. We would
like to place on record our appreciation for their continued support.

Social commitment in education:


Infosys' Education & Research group has the pride of anchoring the Infosys
Extension Program (IEP), which consists of the Infosys Fellowship Program, Rural
Reach program, Catch Them Young and Train the Trainer.