Infosys case study by Harvard for Infosys consulting
COMPANY DETAILS. CORPORATE
SWOT MCKINSEY’S 7 S
PORTER 5 FORCES. RED OCEAN
• Infosys provides software development, maintenance and
independent validation services to companies in finance,
insurances, manufacturing and other domains.
• Key products & services
• 1. NIA – Next Generation Integrated AI Platform (formerly
known as Mana)
• 2.Infosys Consulting – a global management consulting
• 3.Infosys Information Platform (IIP) – Analytics platform
• 4.EdgeVerve Systems which includes Finacle, a global
• 5.Panaya Cloud Suite.
What Infosys does?
This work covers a wide range of engineering, marketing, management and some other sectors that
I am not quite familiar with. Infosys has a plethora of clients and the work it does for them varies.
Starting from something as simple as writing a small code for turning an alarm on it can range to:
1. Designing/testing a device to be used in treating a raging disease
2. Designing/analyzing/simulating mechanical components of airplanes, engines etc.
3. Providing methods to increase the revenue for some companies and cut their costs
4. Advise companies on their production/marketing strategies
5. Designing/creating tools to increase the productivity of their clients
6. R&D in some software fields
“To be a globally respected corporation that
provides best-of-breed business solutions,
leveraging technology, delivered by best-in-class
"To achieve our objectives in an environment of
fairness, honesty, and courtesy towards our
clients, employees, vendors and society"
Infosys is set up by N.R.
Narayana Murthy and six
other engineers in Pune with
an initial capital of $250.
The company relocates its
corporate headquarters to
Bangalore, one of the first
software companies to set
up operations Bangalore.
Infosys lists on the Indian
exchanges and is among the
first in India to introduce
employee stock-option plan,
a move to attract and retain
It becomes the first Indian
company to list on the
Nasdaq, raising the profile of
the Indian outsourcing
industry in the United States.
Started Infosys consulting.
Reaches annual revenue of 1
Mr. Murthy steps down as
chairman after 25 years at
the helm of the firm after
reaching the company's
retirement age of 60,
continues as non-executive
chairman and mentor.
Annual net profits of 1
Infosys acquires Zurich-
based Lodestone for 30
million Swiss francs or $350
million (over Rs.1,900 crore).
Touches revenue of 10
2004 Management consulting
practice created within Infosys
Zurich, Switzerland based
Lodestone acquired by IC to
expand global offerings
2014 Global practices rebranded as
Houston, Texas based Noah
consulting acquired to
strengthen data management
Infosys consulting Gmbh- Rs.690cr.
Revenue with loss of Rs10cr.
Infosys consulting ag- 460 Cr.
Revenue with profit of 52 cr.
Infosys consulting sp. Z.o.o- 115 Cr.
Revenue with profit of 8 cr.
Infosys consulting Sanghai- 105 Cr.
Revenue with loss of 57 cr.
To be a globally respected and
Help top organizations stay
competitive, win new markets and
increase shareholder value by
leveraging the full potential of the
latest disruptive technologies.
Scale Agile Digital- Invest in digital capabilities & priority services
Energize the Core -Infuse AI and automation,
Expand Skilling -leveraging NIA Re-skill talent at scale for us and our
Drive Localization -Hire locally in markets, local delivery & training
Global Delivery Model :Producing where it is most cost effective
and selling where it is most profitable.
Moving UP the value chain: Getting involved in a software
development project at the earliest stage of the life cycle.
PSPD Model: Predictability of Revenues, sustainability of revenues,
Profitability, De-Risking for Risk Management.
1. Expansion into low cost countries like
Mauritius, Philippines, Thailand, Mexico etc.
2. Emphasis on delivering high value services
3. Currency hedging for predictability of
4. Investing heavily in training centers and
research and development.
Information Technology in India is an industry consisting of two
major components: IT services and business process
The sector has increased its contribution to India's GDP from 1.2%
in 1998 to 7.7% in 2017.
According to NASSCOM, The sector aggregated revenues of US$160
billion in 2017:
•Export revenue standing at US$99 billion
•Domestic revenue at US$48 billion, growing by over 13%.
There is no dearth of IT job opportunities in India. In fact, India is
expected to overtake the US to have the largest number of
software developers in 2018 (52 lakh developers in India against
America’s 42 lakhs).
Experienced and successful leadership team
• IC management team has been a success over last decade by
successfully predicting trends in the industry.
Streamlined processes and efficient operation management
• IC is one of the most efficient firms in its segment.
Strong relationship with existing suppliers
• IC has strong relationship with its suppliers and other members of the
supply chain. According to the case, the organization can increase
products and services by leveraging the skills of its suppliers and supply
Successful Go To Market Track Record
• IC has a highly successful track record of both launching new products in
the domestic market but also catering to the various market based on
the insights from local consumers.
IC business model can be easily replicated by competitors
• According to authors of the case, the business model of Ic Infosys can be
easily replicated by players in the industry.
• Based on the details provided in the Infosys Consulting in 2011 case
study, we can conclude that Ic Infosys is not efficiently managing the
inventory and cash cycle. According to Robert A. Burgelman, Debra
Schifrin , there is huge scope of improvement in inventory management.
• It seems that organization culture of Ic Infosys is still dominated by turf
wars within various divisions, leading to managers keeping information
close to their chests
Lucrative Opportunities in International
• Globalization has led to opportunities in the
international market. Ic Infosys is in prime position to tap
on those opportunities and grow the market share.
E-Commerce and Social Media Oriented
• E-commerce business model can help Ic Infosys to tie up
with local suppliers and logistics provider in international
market. Social media growth can help Ic Infosys to
reduce the cost of entering new market and reaching to
customers at a significantly lower marketing budget.
• Culture of sticky prices in the industry
• Ic Infosys operates in an industry where there is
a culture of sticky prices
• Growing Protectionism
• Ic Infosys should hedge the risk against growing
protectionism ranging from – storing data into
international market to diversifying risk by
operating into countries at different economic
• Growing dominance of digital players
• Amazon, Google, Microsoft etc. can reduce the
maneuvering space for IC Infosys and put
upward pressure on marketing budget.
1. Service Design-
• 1+1+3 System
• Value Realization Model
2. Knowledge Management
3. Delivery System- Global Delivery System
used to deliver offsite technology solutions.
4. Moment of Truth-
• Understanding the business logic for a
client’s requirement of a new technology.
5. Customer service-
• Delivering value by providing measurable
improvement in the process metric.
• Providing technological solutions keeping in
mind the competitive benchmarking and
meeting client expectations.
• Human Resource Management-
• Consultants with “Cultural Intelligence”, tested for quality through part
of recruitment structure called Global Impact.
• Opportunity for employees to fast-track their careers based on their
• Upward feedback system along with flat organisation structure.
• Process Information- The support team helps customers develop high
performing and reliable solutions.
• Physical Aspect- Building infrastructure services and Cost-effective data
• Reliability- Dedicated team to ensure services are delivered on time without
Style - LEADERSHIP
• Infosys Leadership Institute”
• open door policy,
• continuous sharing of information,
• takes inputs from employees in decision making,
• builds personal rapport with employees
Staff – HUMAN RESOURCES
• “Knowledge Based Industry” (90% are engineers)
• Emphasis on academic records
• Technical skills
• Ability to learn
• 2.65 per cent of its revenues on up gradation
of employees skills
• Client focused strategy (custom built soft wares)
• Quality driven model
• Strong Engagements with existing clients
• Value added services to new clients
• Geographical Expansion
• Free Form
• Flexible Team Structure
• Equality among employees
• Domain specific Certifications
• Competency Building»
• Infosys has been
• CMM-Level 5 certified for its process capabilities
• Customer Delight
• Leadership by Example Integrity and
• Pursuit of Excellence
Rivalry among competing sellers
• More number of competitors of equal size and competitive
• Competitors are relatively new to global delivery model
• Relatively Differentiated product
• Relatively easy to imitate the offerings
• High Industry growth
Threat of new entrants
• Low capital requirement
• High industry growth
• Less government regulations in selected countries
• Existing industry members are looking to expand into other
Threat from substitutes
•Good substitutes are not readily available
Bargaining power of suppliers
•The increasing number of engineers in the market
•More opportunities with higher industry growth rate
•Lack of skilled personnel
Bargaining power of buyers
•Brand loyalty and networks
•Lesser number of experienced players
•Less differentiated offerings
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.
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
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.
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
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
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
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
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.
Developments and dissemination of mobile technology has transformed
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.
Waste management especially for units close to the urban cities has taken
increasing importance for Infosys Consulting. Government are fast coming up
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.
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.
Infosys lies in the red ocean.
1. High competition in both
consulting as well as
Software technology solution
2. Both domestic and
international companies are
functioning in the Indian
Hinweis der Redaktion
Lodestone increased the Infosys Consulting client base by nearly 200 companies across different industry segments, and at the time of acquisition, Infosys’ consulting and systems-integration business contributed to 31% of total revenue. In 2015, Infosys acquired Noah Consulting LLC for $70m USD. Noah Consulting is based out of Houston, TX and primarily serves customers in the oil and gas industry, providing information and technology services. As of September 2017, it was unclear whether the brand would be a subsidiary or merged into the larger Infosys Consulting
ITL had been in the industry for 30 years in providing IT services. The offerings include global delivery (1 IC+1 ITC + 3 others) and VRM
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