The document discusses the growth of the information technology industry globally and in India. Some key points: - The IT industry has become very robust, driven by increased demand for IT services and products over the years. - India's IT industry has grown rapidly from $150 million in 1991-92 to $5.7 billion in 1999-2000, and annual revenues in 2008 were $87 billion. - Major Indian IT companies like Infosys, TCS, and Wipro have experienced significant revenue growth and now compete globally. Infosys in particular has expanded from 7 people in 1981 to over 133,000 employees today.

1. Case Analysis

2.  The information technology (IT) industry has
become one of the most robust industries in the
world.
 The InformationTechnology Association of
America (ITAA) explains 'information
technology' as encompassing all possible
aspects of information systems based on
computers.
 Owing to its easy accessibility and the wide
range of IT products available, the demand for IT
services has increased substantially over the
years.

3.  Economies of scale for the information
technology industry are high.The marginal cost
of each unit of additional software or hardware
is insignificant compared to the value addition
that results from it.
 Unlike other common industries, the IT industry
is knowledge-based.
 Efficient utilization of skilled labor forces in the
IT sector can help an economy achieve a rapid
pace of economic growth.
 The IT industry helps many other sectors in the
growth process of the economy including the
services and manufacturing sectors.

4.  Systems architecture
 Database design and development
 Networking
 Application development
 Testing
 Documentation
 Maintenance and hosting
 Operational support
 Security services

5. Serial No IT Service
Company
Services
Revenue
mln US$
Services
Revenue
growth
Total
Revenues
mln US$
Services
Revenue
share
1 IBM 39,264 9% 103,630 38%
2 HP 27,745 45% 117,837 24%
3 Fujitsu 27,102 20% 53,313 51%
4 CSC 16,680 -1% 16,680 100%
5 Accenture 15,985 9% 22,784 70%

6.  The Indian software industry has grown from a mere
US $ 150 million in 1991-92 to a staggering US $ 5.7
billion (including over $4 billion worth of software
exports) in 1999-2000.
 India's IT Services industry was born in Mumbai in
1967 with the establishment ofTata Group in
partnership with Burroughs.
 According to a NASSCOM-McKinsey report, annual
revenue for India’s IT industry in 2008 are US $ 87
billion and market openings are emerging across four
broad sectors, IT services, software products, IT
enabled services, and e-businesses thus creating a
number of opportunities for Indian companies.

7. 1995-96 1996-97 1997-98 1998-99 1999-2000 2000-01
Domestic
software
Market 490 670 920 1250 1700 2450
Software
Exports 734 1085 1750 2650 4000 6300
Indian
Software
Industry 1224 1755 2670 3900 5700 8750

8. Particulars FY 2004 FY 2005 FY 2006 FY 2007 FY 2008
IT Services 10.4 13.5 17.8 23.5 31.0
- Exports 7.3 10.0 13.13 18.0 23.1
- Domestic 3.1 3.5 4.5 5.5 7.9
ITES-BPO 3.4 5.2 7.2 9.5 12.5
- Exports 3.1 4.6 6.3 8.4 10.9
- Domestic 0.3 0.6 0.9 1.1 1.6
Engineering
services, R&D and
Software products
2.9 3.9 5.3 6.5 8.6
- Exports 2.5 3.1 4.0 4.9 6.4
- Domestic 0.4 0.7 1.3 1.6 2.4
Hardware 5.0 5.9 7.0 8.5 12.0
- Exports 0.5 0.5 0.6 0.5 0.5
- Domestic 4.4 5.1 6.5 8.0 11.5
Total IT industry
(including hardware)
21.6 28.4 37.4 48.0 64.

9.  TATA Consultancy Services
 Infosys
 Wipro
 HCLTech.
 Tech Mahindra.

10.  Infosys Limited, formerly
InfosysTechnologies
Limited, is a global
technology services
company headquartered in
Bangalore (Bengaluru),
India.
 Is the second largest IT
company in India with
133,560 employees
(including subsidiaries) as
of March 2011.
 Is ranked 28th globally in
the list of IT services
providing firms.

11.  Infosys was founded on 2 July 1981 by seven
entrepreneurs: N. R. Narayana Murthy, Nandan
Nilekani, Kris Gopalakrishnan, S. D. Shibulal, K
Dinesh, Ashok Arora, and with N. S. Raghavan
officially being the first employee of the
company.
 The founders started the company with an initial
investment of INR 10,000.
 The company was incorporated as "Infosys
Consultants Pvt Ltd." in Model Colony, Pune as
the registered office.

12. • Consulting Services
• Systems Integration Services
• Architecture Services
• PackagedApplication Services
Consulting and
Systems Integration.
• Application Services
• IndependentValidation andTesting Services
• Infrastructure Management Services
IT Services.
• Infosys engineers provide clients with engineering &
technology services to support their entire offering lifecycle to
BuildTomorrow’s Engineering Enterprise
Engineering Services
• Infosys BPO enables flexible business process management services
through global delivery centers.
• A key aspect of the service is the transition of business processes from
client’s locations to delivery center(s).
BPO Services
• Comprehensive Professional Services for theCloud
• Industry-leadingServices in the Cloud (Business Platforms):
• An Ecosystem of Partnerships
Cloud Services

14. Finacle
Finacle solutions address the core banking, wealth management,
CRM, Islamic banking and treasury requirements of retail,
corporate and universal banks worldwide.
Flypp
Flypp is a white-labeled application marketplace that enables
operators, original equipment manufacturers and consumer
brands to actively engage their consumers, across digital
channels
Infosys
HIMI
Infosys HIMI is an Advanced Analytics platform, which provides
leading edge technologies to harden the soft data sources such as
text, interactions and networks.
Infosys
iEngage
The Infosys iEngage Digital Consumer Platform provides a
comprehensive way to engage with consumers across the
marketing, sales and service lifecycle.

15.  The Strategist
 A true Manager
 Visionary
 Optimist

16.  Focus in everything he does.
 Penchant for excellence.
 Love for the people.
 Visionary.

17.  Infosys grew in 1981 with $250,7 people, a dream
 Achievement-in 2004 1st Indian IT firm who crossed $1
billion revenue
 Increased the company by concentric growth strategy
 Used PSPD model to generate customer satisfaction and
achieving growth rates
 GDM model, best quality work with minimum cost and
risk.Time difference between India and us made it work
24 hours.
 Earning in dollars and spending in rupees was a strategy
that proved to be strength in global competition.
 Low cost-high quality scalability model
 High service and quality levels by implementing SEI-CMM,
ISO and SIX SIGMA.

18.  In December 2003 Aditi Mishra was appointed
the head of brand and communications for
Infosys.
 She was asked to increase the brand visibility of
Infosys in order to compete with global players
such as IBM and Accenture and also with
domestic players suchWipro.
 She had to structure her plan, taking into
account that there were four corporate
strategies that could define Infosys’s future
identity.

19.  Operating challenge: Expanding High-End
Consulting Across Business Units.
 Branding Challenge -Developing a brand
without advertising.
 Resources challenge -Scaling Up for
Excellence.
 Direct competition

20.  It adopted Global Delivery Model to bring down
the total cost of development and delivery for
the customer.
 The company decided to develop solutions for
vertical markets such as banks.
 Infosys started the Campus Connect program to
attract the talent pool from various engineering
colleges in the country.
 It invested in strategic acquisitions and hired
seasoned international consultants to augment
its consulting team

21. Strength
Strong Brand Recognition.
Comprehensive portfolio of solutions.
Strong base in India.
Excellent project and services execution.
Excellent internal processes.
Weaknesses
Dependence on financial services market.
Reliance on less experienced talent pool for
lower costs.This precludes certain types of
work.
Opportunities
Steady growth in IT outsourcing.
Positive outlook of Indian BPO market.
New international markets.
Threats
Economic slowdown.
Intense competition.
Immigration restrictions.
Global majors are becoming quite big.
SWOT

22. Last Price Market Cap (Rs.cr.) SalesTurnover Net Profit Total
Assets
TCS 1,019.60 199,558.25 29,275.41 7,569.99 19,620.61
Infosys 2,296.25 131,847.85 25,385.00 6,443.00 24,501.00
Wipro 328.90 80,725.52 26,340.70 4,843.70 26,065.00
HCL Tech 390.45 26,916.73 6,794.48 1,198.28 6,333.25
Oracle
Financ
1,796.60 15,080.01 2,360.51 967.98 5,150.34
Tech
Mahindra
635.70 8,072.61 4,965.49 696.72 5,190.40
Mahindra
Satyam
65.45 7,701.70 4,776.10 -127.60 3,423.10

23. 22
23
24
25
26
27
28
29
Mar '07 Mar
'08
Mar
'09
Mar '10 Mar '11
Net Profit Margin(%)
Net Profit Margin(%)
0
1
2
3
4
5
6
Mar '07 Mar '08 Mar '09 Mar '10 Mar '11
Current Ratio
Current Ratio

24. 3.1
3.2
3.3
3.4
3.5
3.6
3.7
Mar '07 Mar '08 Mar '09 Mar '10 Mar '11
AssetTurnover Ratio
Asset Turnover Ratio
0.00
20.00
40.00
60.00
80.00
100.00
120.00
Mar '07 Mar '08 Mar '09 Mar '10 Mar '11
Earning per share
Earning per share

25.  Over the years Infosys has been performing
quite well and has grown to be one of the top
IT company in India.
 Its decision to jump into global consulting
business is justified.