Infosys falling down

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Infosys falling apart

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Infosys falling down

  1. 1. InfosysBusiness confidence plummets, employee morale suffering ! December 2011
  2. 2. Index• Analyst Predicts – Infy :Slowing down while others grow. All not well?• Employee moral : Employee moral to new lows akin its “iRace” crisis
  3. 3. Forrester predicts : Confidence plummetsfrom + 10%(2010) to -4 %(2011) 2011 2010 Forrsights Survey 2011 vs 2010 (Projections for Infosys) : Drastic reduction in projections for Infosys. Loss in terms of % highest among Indian IT companies.
  4. 4. Citi Bank CIO predicts the same ! Leading indicators to larger issues plaguing Infy1. IT vendors did a good job of maintaining or increasing wallet share in 3Q2. Infosys only Indian IT firm showing a downward trend Citi 3Q11 CIO Survey : Over 200 CIO’s interviews Infosys shows the largest decrease in share of wallet in Q3.
  5. 5. Were Q2 numbers a flash in the pan?http://timesofindia.indiatimes.com/city/mumbai/Infosys-will-be-hit-most-by-cut-in-client-budget-spend/articleshow/11065499.cms
  6. 6. Well the CEO agrees  ; no answer of thequestion what is amiss? http://articles.economictimes.indiatimes.com/2011-11- 23/news/30433363_1_shibulal-margins-refiners-and-other- companies
  7. 7. Deutche Bank: Answers why ?Infosys - best delivery but complacency and extreme risk aversion limit business opportunities• Infosys has arguably the best delivery quality among offshore vendors. Moreover, mostcustomers we interviewed consider Infosys’ delivery quality to be at par with its tier 1American and European counterparts.• Customers complain that Infosys is extremely difficult when negotiatingthe commercial terms of a contract. In addition, almost 22% of the customers weinterviewed noted that they have not sought Infosys’ service or have not beenapproached by the vendor in the past.• Infosys is faced with some significant challenges/drawbacksthat it needs to overcome in order to gain market share in continental Europe.Deutsche Bank Markets Research (Indian IT Services) : search
  8. 8. Lack of ideas? Infy Strategy 1: Flog theemployees to get back on trackhttp://economictimes.indiatimes.com/tech/ites/infosys-shortens-employees-two-weekends-to-meet-revenue-growth-target/articleshow/11087519.cms
  9. 9. Analyst’s React: where is the NRNleadership and Nandan’s charisma? Sudin Apte - Advisory firm Offshore Insights : The move may be intended to improve capacity utilisation in a tough environment. His organisation met nearly 300 clients of software services firms and came away with the impression that IT budgets in 2012-13 would shrink. Viju K George - J P Morgan Analyst : Infosys risks annoying employees by asking them to sacrifice some Saturdays. There is also the aspect of staff humor and mood that needs managing. Infosys quarterly annualised attrition should be a keenly-watched indicator in current and coming quarters,
  10. 10. Social Buzz: Employees don’t like it a bitNegative Reaction in Social Media on Infosys move tointroduce Extra Weekend Work
  11. 11. Should help increase attrition ? And youthought Infy was in people business Negative Reaction from Infosys employees and public opinion on Media Sites on Infosys move to introduce Extra Weekend Work
  12. 12. Thank You

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