Pioneer institute of professional studies
Presentation on SWOT Analysis of Infosis
Submitted to :-
Prof.Rini Agrawal
Submitted by :-
Prof. Rashmi Chaudhari Vishnu Tiwari
INTRODUCTION
Infosys Technologies Ltd. (NASDAQ: INFY) was started in 1981 by seven people with US$
250. Today, we are a global leader in the"next generation" of IT and consulting with
revenues of over US$ 4billion.
Infosys defines, designs and delivers technology-enabled business solutions that help
Global 2000 companies win in a Flat World. Infosys also provides a complete range of
services by leverage ignore domain and business expertise and strategic alliances with
leading technology providers.
Infosys' offerings span business and technology consulting, application services, systems
integration, product engineering, custom software development, maintenance, re-
engineering,independent testing and validation services, IT infrastructure services and
business process outsourcing
Infosys pioneered the Global Delivery Model (GDM), which emerged as a disruptive force
in the industry leading to the rise of off shore 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.
Infosys has a global footprint with over 50 offices and development
centers in India, China, Australia, the Czech Republic, Poland, the UK, Canada and
Japan. Infosys and its subsidiaries have 103,905 employees as on June 30, 2009.
What is SWOT analysis?
A scan of the internal and external environment is an
important part of the strategic planning process.
Environmental factors internal to the firm usually can be
classified as strengths (S) or weaknesses (W), and those
external to the firm can be classified as opportunities
(O) or threats (T). Such an analysis of the strategic
environment is referred to as a SWOT analysis.
The SWOT analysis provides information that is helpful
in matching the firm's resources and capabilities to the
competitive environment in which it operates. As such,
it is instrumental in strategy formulation and selection.
Infosys:
Infosys is one of the largest businesses in India with a
turnover in excess of $4 billion in 2008. The company
specializes in Information Technology (IT) and
consulting. N.R. Narayana Murthy and six others
started the company in 1981, and it is now the largest
IT company in India with its headquarters in
Bangalore (although it was started in Pune). It employs
more than 90,000 IT professionals and was famously
rated 'Best Employer in India.' It operates in a number
of business sectors from banking to retail, and its
services tend to encompass end-to-end IT solutions
which includes a whole bundle of added-value
solutions from infrastructure to software engineering.
.
Strengths:
•Since the company is based in India its competitive advantage is enhanced.
The Indian economy, despite weak economic indicators such as relatively
high rates of inflation, has low labor costs. The workforce has relatively high
skills levels in Information Technology. Couple these two elementstogether
and you have an operational basis that offers low-cost based, highly skilled
competitive advantage. Trained Indian personnel often speak very good
English and are sensitive to Western culture, underpinned by India's
colonial past.
•Infosys is in a strong financial position. The business turned over more
than $4 billion in 2008. This means that it has the capital to expand, and
also the basis to leverage potential investors.
Weaknesses:
•Infosys on occasion struggles in the US markets, and has particular problems in
securing United States Federal Government contracts in North America. Since these
contracts are highly profitable and tend to run for long periods of time, Infosys is
missing out on lucrative business. Added to this is the fact that its competitors do well
in terms of securing the same Federal business (and one should also take into account
that many of its competitors are domiciled in the US and there could be political
pressure on the US Government to award contracts to domestic organizations).
•Despite being a huge IT company in relation to its Indian competitors, Infosys is much
smaller than its global competitors. As discussed above, Infosys generated $4 billion in
2008, which is relatively low in comparison with large global competitors such as
Hewlett-Packard ($91 billion), IBM ($91 billion), EDS ($21 billion) and Accenture ($18
billion)
Opportunities:
•At a time of recession in the global economy, it may appear that some companies
will reduce take up of services that Infosys offers. However, in tough times clients
tend to focus upon cost reduction and outsourcing - with are strategies that Infosys
offers. So hard times could be profitable for Infosys.
•There is a new and emerging market in China as the country undergoes a huge
industrial revolution.
•The strategic alliance between Infosys and Schlumberger gives the IT company
access to lucrative business in the gas and oil industries.
Threats:
•India is not the only country that is undergoing rapid industrial expansion. Competitors
may come from countries such as China or Korea where there are large pools of low-
cost labor, and developing educational infrastructures such as universities and
technology colleges.
•Customers may switch to other offshore service companies in other countries such as
China or Korea.
•Other global players have realised that India has the benefit of low-cost, highly-skilled
labor that often speaks English and is culturally sensitive to Western practices. As with
all global IT players, Infosys has to compete for skilled labor and this may have the
effect of driving up wage levels, and making it more difficult to recruit and retain staff.
Vision and mission statements of
infosys:
Infosys' Vision is to be a globally respected corporation that provides best-of-
breed business solutions, leveraging technology, delivered by best-in-class
people.
Infosys Technologies (China) Company Ltd. will be the best-in-class provider
of business solutions to Global 2000 companies and large North Asian
corporations by leveraging the technology and talent base of China.
Infosys' Mission Statement is to achieve their objectives in an environment
of fairness, honesty, and courtesy towards their clients, employees, vendors
and society at large
We strive to be a source of pride to our employees and a partner of choice for
our clients.
Empowering Providers with Mission Critical information at the Point of
Decision through the delivery of integrated healthcare solutions based on the
latest Microsoft technologies.
Aims and objectives of infosys:
Infosys technologies ltd. defines ,designs and
delivers IT-enabled business solutions which aims at
providing strategic differentiation and operational
security to clients. With Infosys, clients are assured of
world class processes and the power to stretch their IT
budget by leveraging the global delivery model that
Infosys pioneered.
Thank You
