About the organization:

Infosys Technologies Limited (NASDAQ: INFY) defines, designs and delivers IT-enabled
business solutions that help Global 2000 companies win in a Flat World. These solutions focus
on providing strategic differentiation and operational superiority to clients. With Infosys, clients
are assured of a transparent business partner, world-class processes, speed of execution and the
power to stretch their IT budget by leveraging the Global Delivery Model that Infosys pioneered.
Infosys has over 105,000 employees in over 50 offices worldwide. Infosys is part of the
NASDAQ-100 Index and The Global Dow.

Background:

. Infosys has been a pioneer in offering innovative solutions to its clients. The
company offers a wide range of software services, namely application development and
maintenance, corporate performance management, independent validation services, infrastructure
services, packaged application services and product engineering and systems integration.

Organization structure and culture:

The company has adopted a free form organization devoid of hierarchies. Everyone is
known as associates irrespective of his position in the company. Software development is undertaken
through teams and the constitution of teams is based on the principle of flexibility. A member, who
might have been team leader in one project, may be replaced by another member of the same team for
another project. This system not only helps in creating the feeling of equality but also helps in
developing project leaders..

INFOSYS has a strong organizational culture coexisting with various subcultures that enables
the strategic management of the company into the central binding of force and prevents it’s from
becoming a conglomerate despite of its diversified situation. As part of the organizational culture
of the company, the management has initiated localization policies which are opened for most
senior positions within operating industries to nationals that enables the company to tap high-
quality employees from different parts of the world.  The managers of INFOSYS were also given
extensive development and training.

One of the known practices within the INFOSYS organizational culture is its high regard for
work-ethic endorsement. This practice involves the careful screening of employees with the
necessary skills and high potentials for improvement. Through this culture, the INFOSYS are
able to create an effective workforce that is determined to succeed and is highly committed to
work, family and to the company.

BUSINESS BACKGROUND:

Business model of Infosys was not complicated, yet it was very hard to copy because it
required from company flexibility and dynamic changes in business processes. Business concept
of Infosys was different from any other companies because they managed to identify problematic
areas of IT projects, they realized that IT projects needed more and more detailed, customized
business process mapping, which in a most cases was done by independent consultants without
relevant IT background, this was the reason why the projects implemented by Infosys
competitors had lower quality and where holding high risk of failure or contingency, on the other
hand IT project implementations where taking in average 1 year to implement, which also was a
big disadvantage for it projects.

Global vision:

Infosys is a market and visionary leader in network-based intelligent monitoring for wire line,
wireless, and Internet Service Providers. Comverse Infosys designs, develops, manufactures and
markets advanced telecommunications processing solutions for telecommunications carriers and
Law Enforcement Agencies. Solutions include the acquisition, storage, processing and analysis
of voice, data and video electronic communications. The open-ended, modular designs provide
the versatility to easily adapt new technologies and enhancements to meet future requirements,
such as 3G Cellular and packet data networks.

Comverse Infosys is committed to the on-going development of product updates that address
rapidly changing telecom standards, and to a full range of support services to ensure long term
relationships with our customers.

Strategic cooperation with switch vendors confirms our commitment to future proofing and
making conversion to legal standards easy and efficient for operators and carriers.

Business alliance:

Infosys' services and business solutions are strengthened by alliances with leading technology partners.
Our network of alliance and teaming relationships creates business value, reduces implementation risk
and accelerates speed-to-market.

We work with our partners to boost their revenue growth, expand market and geographic reach, facilitate
sales process, and enhance product and service offerings.

Infosys and alliance partners jointly deliver business solutions that address our clients' business and
technology problems. We address specific client needs and develop tools and methods to accelerate the
successful deployment of solutions while reducing risk.

Business process

Infosys' services and business solutions are strengthened by alliances with leading technology
partners. Our network of alliance and teaming relationships creates business value, reduces
implementation risk and accelerates speed-to-market.

We work with our partners to boost their revenue growth, expand market and geographic reach,
facilitate sales process, and enhance product and service offerings.
Infosys and alliance partners jointly deliver business solutions that address our clients' business
and technology problems. We address specific client needs and develop tools and methods to
accelerate the successful deployment of solutions while reducing risk.

Market analysis of Infosys:

Swot analysis:
STRENGTHS

· Excellent project and services execution 

· Excellent internal processes

WEAKNESSES

* Reliance on less experienced talent pool for lower costs and therefore better financial
results. This precludes certain types of work
* Over reliance on India as delivery geography, has not diversified delivery capability to
other offshore locations 

OPPORTUNITY

* Extend delivery and process strengths to other global locations apart from India
* Massive demand for additional work in all areas of services spectrum with many existing
contracts now coming up for renewal - approx $100 billion in next few years. Infosys can
get a chunk of this if they are willing to take on additional delivery risk and become a
true global player

THREATS

* Extremely high expectations from their investor community for growth and
profitability. Will be difficult to manage this as competition begins to undercut their pricing
* MNCs have come of age in India and other offshore destinations. They can and do
compete with Infosys from a level playing field.

PESTLE ANALYSIS:

Political:
1. Political stability: Indian political structure is considered stable enough expect the fact
that there is a fear of „hung parliament‟ (no clear majority).
2. U.S. government has declared that U.S companies that outsource IT work to other
locations other than U.S. will not get tax benefit.
3. Government owned companies and PSUs have decided to give more IT projects to
Indian IT companies.
4. Terrorist attack or war.
ECONOMICAL:

1. Global IT spending (demand)

2. Domestic IT Spending (Demand):Doemestic market to grow by 20% and reach approx
USD 20 billion in 2008-09 - NASSCOM
3. Currency Fluctuation
4. Real Estate Prices: Decline in real estate prices has resulted reducing the rental
expenditures.
5. Attrition: Due to recession, the layoffs and job-cuts have resulted in low attrition rate.
6. ECOMONIC ATTRACTIVENESS due to cost advantage and other factors.

SOCIAL:

1. Language spoken: English is widely spoken language in India, English medium being
the most accepted medium of education. Thus, India boasts of large English speaking
population.
2. Education: A number of technical institutes and universities over the country offer IT
education.
3. Working age population.

TECHNOLOGICAL:

Telephony:
a. India has the world‟s lowest call rates (1-2 US cents).
b. Expected to have total subscriber base of about 500 million by 2010.
c. ARPU for GSM is USD 6.6 per month.
d. India has the second largest telephone network after china.
e. Teledensity – 19.86 %
f. Enterprise telephone services, 3G, Wi-max and VPN are poised to grow.
2. Internet Backbone: Due to IT revolution of „90s, Indian cities and India is well
connected with undersea optical cables.
3. New IT technologies: Technologies like SOA, Web 2.0, High-definition content, grid
computing, etc and innovation in low cost technologies is presenting new challenges and
opportunities for Indian IT industry

LEGAL:

IT SEZ requirement: IT companies can set up SEZ with minimum area of 10 hectares and
enjoy a host of tax benefits and fiscal benefits.
3. Contract / Bond requirements: Huge debates surrounding the bonds under which the
employees are required to work, which is not legally required.
4. IT Act: Indian government is strengthening the IT act, 2000 to provide a sound legal
environment for companies to operate esp. related to security of data in transmission and
storage, etc.
5. Companies operating in Software Technology Park (STPI) scheme will continue to
get tax-benefit till 2010.

ENVIRONMENTAL:

Energy Efficient processes and equipments: Companies are focusing on reducing the
carbon footprints, energy utilization, water consumption, etc.

PORTER’S FIVE FORCES MODEL

1. Threat of Substitutes: 1. Other offshore locations such as Eastern

Europe, the Philippines and China, are emerging and are posing threat to
Indian IT industry because of their cost-advantage. However, this should
have an impact only in the medium to long term.
2. Price quoted for projects is a major differentiator, the quality of products
being same.
2. Bargaining power of supplier: 1. Due to slowdown, the job-cuts, the
layoffs and bleak IT outlook
2. Demand and supply of IT professionals is no longer that favorable to
employees.
3. Availability of vast talent pool – fresher’s and experienced.
3. Bargaining Power of Customers: 1. large number of IT companies
vying for IT projects – resulting in high competition for projects.
2. Huge decline in IT expenditure: Indian IT sector is dependent on USA
and BFSI in particular for majority of its revenues, and with the recent
financial crisis, the new spending from these has reduced tremendously.
3. However, for the existing products and services, the clients continue the
old companies
4. Barriers to Entry 1. Low capital requirements
2. Large value chain, space for small enterprises
3. MNCs are ramping up capacity and employee strength.
5. RIVALRY AMONG FIRMS: High 1. Commoditized offerings
2. 'low-cost, little-differentiation' positioning
3. High industry growth
4. Strong competitors – few numbers of large companies.
Infosys Mobility Solution

Infosys Mobility Service Offerings:

The Infosys Enterprise Mobility solution offers an advanced, scalable and cost-effective
approach to implementing mobile applications. It spans the solution life-cycle and covers
assessment, conceptualization and implementation. Offerings include:
 Mobile strategy formulation and technology migration
 Mobile application development and validation
 Mobility service enablement
 Mobile device management

Infosys Mobility Solution Features

Key features include:
 Device awareness
 Seamless, non-intrusive integration
 Optimizations for device, connectivity and user preferences
 End-to-end security
 Low cost-of-concept to deployment

Infosys Allied Services:

Infosys provides a complete set of enterprise solutions and services to enhance your AMI
journey including technology consulting, application development, application integration, and
infrastructure management.

Technology Consulting:
We work with you to develop implementable architecture solutions that help you leverage
technology to enable business strategy. Our solution helps you achieve a balance between IT
Effectiveness and business innovation.

Application Development:
Helps you develop turnkey solutions with a faster time to market and a lower Total Cost of
Ownership (TOC). The service ranges from building a business case to assessing portfolio to
designing solutions to building and implementing the solution.

Application Integration:
Make the whole of your IT applications much greater than the sum of its parts. See immediate
and dramatic productivity growth. Infosys leverages the Global Delivery Model (GDM) for you
like no one else can.

Infrastructure Management:
Our range of services is geared to keep your operations running smoothly and to reduce costs.
Services include infrastructure planning, auditing, data center and application management and
helpdesk services.
 SOCIAL MEDIA:

infosys iEngage social media marketing platform, an integral part of Infosys iEngage digital
consumer platform, is delivered through the Enterprise SaaS model. It empowers businesses to
harness the power of social media to improve branding, deepen engagement, monetize
information, and foster innovation.

The platform is built on industry-leading Jive Social Business Software (SBS) and enables
enterprises to:
Listen to and engage with consumers
Build communities
Aggregate and distribute content across the social web
Integrate with e-commerce and customer care to provide comprehensive digital consumer
experience
Infosys iEngage™ social media marketing platform can be leveraged for marketing
initiatives including new product launches, brand monitoring, early adopter feedback, and loyalty
programs.

A comprehensive business and technology platform

The Infosys iEngage™ social media marketing platform brings together the key functionalities
needed to manage a social engagement with customers. The platform is built on the industry-
leading Jive Social Business Software (SBS) - a robust, flexible, scalable social business
software with proven implementations.

Pervasive presence

Our platform retrieves social content from online conversations for use in a relevant context in
other off-domain communities and sites.

Powerful analytics

Robust analytics capabilities are built into the platform to derive maximum business value from
the available information.

Enterprise-class quality
Our cloud computing infrastructure enables delivery of enterprise-class uptime, scalability,
security, and 24/7 performance through stringent Service Level Agreements.

Reduces TCO

Our platform reduces your total cost of ownership with Infosys’ SaaS model. You need not
invest in any hardware, software or infrastructure as we provide all ongoing operational support
and maintenance.

Bring competitive advantage through cloud computing:

The cloud computing model has been widely perceived as a threat to the growth of
the software outsourcing industry. a significant shift that the research firm predicts will be
caused by cloud computing. For Indian IT service providers – this is a massive shift as the
traditional sources of revenues – application development, application maintenance and
implementation will be massively impacted.

Infosys pioneered the Global Delivery Model (GDM), which emerged as a disruptive
force in the industry leading to the rise of offshore outsourcing. The GDM is based on the
principle of taking work to the location where the best talent is available, where it makes the best
economic sense, with the least amount of acceptable risk.

Global Delivery model, which is the foundation for Global IT services organizations, has over
time become main stream. GDM demands efficiency in interaction and collaboration.
Competitive advantage is centered on the agility and the overall experience of the employees and
the customers in delivering IT projects. Basically this revolves around knowledge and response
time.

Infosys wanted to bring in further efficiencies in this model, by leveraging the cloud.
Accordingly, the Computers and Communication Division (CCD), the Global IT team of
Infosys, started looking at methods, processes and techniques that could help it accelerate
delivery and bring further cost efficiencies. This was a challenging task as the Infosys internal
network spans globally with 100,000 plus nodes, which supports thousands of IT projects spread
across diverse industries, internal and external hosting needs and multitude of computing
platforms. In addition to catering to the business demands, the IT infrastructure deployed has to
be agile and adapt to the rapid changes in technology and market while aligning IT with business

Cloud rains benefits

With the cloud deployment, the allocation time for project infrastructure has been reduced from
two days to eight hours. OS-build time has reduced from the manual installation time of three
hours to less than 30 minutes. A previous machine snapshot can be restored within five minutes
in case of a disaster. The deployment has also resulted in major cost savings for Infosys with
more than 50 percent reduction in the effort cost of leveraging the Global Delivery Model.

Virtualizing and consolidating its infrastructure has helped the company achieve a 22 percent
reduction in costs and power consumption for additional desktops and project-specific servers
have reduced by 80 percent.

For Infosys, the cloud model has given it additional ease of implementation and control over
projects. For example, in the case of outcome based SLAs, if the application utilization is not
successful, the vendor loses the customer revenue opportunity. The cloud gives it more granular
control and insulates it against such risks.

Infosys’ clients too have gained from a low cost of entry. Clients also benefit from lower total
cost of ownership due to elimination of capital expenditures and dramatic reduction in IT
salaries. Due to lesser time in provisioning, projects can start quickly.

Highlights

 Due to the cloud infrastructure, Infosys could build twin Cloud Centers in a record period
of 5.5 months with 30 plus IT services and 2 clients going live
 More than 50 percent reduction in the effort cost leveraging GDM
 Consolidation and virtualization leading to over 22 percent cost reduction
 Around 80 percent reduction in the power demand by additional desktops and  project
specific servers
 Reduction in OS build time to less than 30 minutes from 2-3 hours of manual installation
time
 Restoration to previous snapshot within 5 minutes.