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 Public sector IT Company
 Revenues of US$ 6.825
 Over 1,45,000 employees
 Global footprint with 64 offices and 68
  development centers in US, India, China,
  Australia, Japan, Middle East, UK, Germany,
  France, Switzerland, Netherlands, Poland,
  Canada and many other countries
 1st IT company to be listed on NASDAQ (INFY)
   Management Consulting
   Business IT services
   Business Application services
   BPO Services
   Engineering services
   Cloud+ services
   Mobility
11.47%
         2.29%



21.24%




                                                          65.00%



                   North America   Europe   India   ROW
   More than 90%        30                                                                         0.5

                                                                                                    0.45
    revenue of Infosys   25
                                                                                                    0.4

    comes from foreign   20
                                                                                                    0.35

                                                                                                    0.3
    markets              15                                                                         0.25

   Exports to the US    10
                                                                                                    0.2

    have grown                                                                                      0.15

                                                                                                    0.1
    substantially over    5
                                                                                                    0.05

    the years             0
                              2002   2003   2004   2005   2006   2007   2008   2009   2010   2011
                                                                                                    0


   Revenue growth                                   Revenue        Growth Rate
    rate has fallen
    considerably in
    2008 because of
    reduced business
    from the US
   Protectionism in major markets
   Immigration and Visa issues
   Financial risks-Currency exchange rate volatility
   Federal government contracts
 Denies tax breaks to US companies which move
  jobs overseas
 The Consumer Protection Act seeks to ban
  American call centers operating outside the
  United States from seeking federal grants and
  loans for five years.
 As per the bill, there will be a ban on
  government contractors from using American
  taxpayers' money to move jobs offshore.
   Introduction of several Bills to limit and regulate
    business visas
   Provisions for strengthening wage protections of
    US workers
   Reduced H-1B visa status from a maximum of
    six years to three
   Autonomy to the US labor department to
    investigate H-1B employers
   H-1B workers must not displace U.S.
    workers, either within their own company or
    those of a third-party employer
 “Every 1% movement in the rupee against the
  US dollar has an impact of approximately 50
  basis points on operating margins” – Infosys
  Annual Report
 High variation in USD-INR exchange rate
  during the 2008 recession
 Exchange rate volatility has impacted the
  revenue of IT Exports Expensive which depends on
     Rupee      companies,            Revenue loss to Infosys
   appreciates   Imports Cheaper
  the U.S. for more than 50% of its revenue.
      Rupee         Exports Cheaper       Increased revenues for
    depreciates    Imports Expensive             Infosys
 Infosys is facing difficulties in securing US
  Federal government contracts since it is not
  domiciled in US
 These contracts are highly profitable and run for
  a long period of time
 Its competitors have secured these contracts
  because of the pressure on the US government
  to award them to domestic organizations.
   Restrictive legislations that impede the free flow
    of talent in key markets could disrupt operations
    and hamper growth in those markets.
   An appreciating rupee can shrink revenues and
    squeeze earnings.
   Wage inflation and other cost escalations could
    reduce the Company’s margins.
   Social security tax and other taxes reduce the
    competitiveness of the firm
   Uncertain global economy can lead to erosion of
    revenue
•A global presence ensures an understanding of
the local language and culture, which is seen to
be an advantage when trying to understand
customer requirements.
•A global delivery model implies that
potentially, a firm can work round the clock for
its customer, handing off work from one location
to another at the end of the 'day shift' ('follow
the sun' model) - thus providing twice or even
three times the capacity they would have if they
worked in a single location/ time zone only.
•Global locations also provide some degree of
•Infosys is focusing largely on diversifying its
customer base to reduce dependence on USA
•To maintain low-cost advantage, they have opened
offices in Czech
Republic, Mauritius, Poland, Philippines, Thailand
and Mexico
•First Indian IT company to establish an office for
diversity and inclusivity
•It has employees from 83 countries
•Hedging of exchange rate fluctuation using
Forwards and Futures contracts
   Infosys is heavily dependent on US economy
    and its policies
   It should continue to explore new markets like
    China to reduce its dependence on US market
   Infosys is heavily dependent on BFSI sector. It
    should try to increase its revenue from other
    potential sectors like
    telecom, retail, manufacturing
   Infosys should continue to focus on its “Global
    Delivery Model” to enhance global engagement.
   Advance planning for Visas coupled with local

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Infosys- A Global Perspective

  • 1.
  • 2.  Public sector IT Company  Revenues of US$ 6.825  Over 1,45,000 employees  Global footprint with 64 offices and 68 development centers in US, India, China, Australia, Japan, Middle East, UK, Germany, France, Switzerland, Netherlands, Poland, Canada and many other countries  1st IT company to be listed on NASDAQ (INFY)
  • 3. Management Consulting  Business IT services  Business Application services  BPO Services  Engineering services  Cloud+ services  Mobility
  • 4. 11.47% 2.29% 21.24% 65.00% North America Europe India ROW
  • 5.
  • 6. More than 90% 30 0.5 0.45 revenue of Infosys 25 0.4 comes from foreign 20 0.35 0.3 markets 15 0.25  Exports to the US 10 0.2 have grown 0.15 0.1 substantially over 5 0.05 the years 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 0  Revenue growth Revenue Growth Rate rate has fallen considerably in 2008 because of reduced business from the US
  • 7. Protectionism in major markets  Immigration and Visa issues  Financial risks-Currency exchange rate volatility  Federal government contracts
  • 8.  Denies tax breaks to US companies which move jobs overseas  The Consumer Protection Act seeks to ban American call centers operating outside the United States from seeking federal grants and loans for five years.  As per the bill, there will be a ban on government contractors from using American taxpayers' money to move jobs offshore.
  • 9. Introduction of several Bills to limit and regulate business visas  Provisions for strengthening wage protections of US workers  Reduced H-1B visa status from a maximum of six years to three  Autonomy to the US labor department to investigate H-1B employers  H-1B workers must not displace U.S. workers, either within their own company or those of a third-party employer
  • 10.  “Every 1% movement in the rupee against the US dollar has an impact of approximately 50 basis points on operating margins” – Infosys Annual Report  High variation in USD-INR exchange rate during the 2008 recession  Exchange rate volatility has impacted the revenue of IT Exports Expensive which depends on Rupee companies, Revenue loss to Infosys appreciates Imports Cheaper the U.S. for more than 50% of its revenue. Rupee Exports Cheaper Increased revenues for depreciates Imports Expensive Infosys
  • 11.  Infosys is facing difficulties in securing US Federal government contracts since it is not domiciled in US  These contracts are highly profitable and run for a long period of time  Its competitors have secured these contracts because of the pressure on the US government to award them to domestic organizations.
  • 12. Restrictive legislations that impede the free flow of talent in key markets could disrupt operations and hamper growth in those markets.  An appreciating rupee can shrink revenues and squeeze earnings.  Wage inflation and other cost escalations could reduce the Company’s margins.  Social security tax and other taxes reduce the competitiveness of the firm  Uncertain global economy can lead to erosion of revenue
  • 13.
  • 14. •A global presence ensures an understanding of the local language and culture, which is seen to be an advantage when trying to understand customer requirements. •A global delivery model implies that potentially, a firm can work round the clock for its customer, handing off work from one location to another at the end of the 'day shift' ('follow the sun' model) - thus providing twice or even three times the capacity they would have if they worked in a single location/ time zone only. •Global locations also provide some degree of
  • 15. •Infosys is focusing largely on diversifying its customer base to reduce dependence on USA •To maintain low-cost advantage, they have opened offices in Czech Republic, Mauritius, Poland, Philippines, Thailand and Mexico •First Indian IT company to establish an office for diversity and inclusivity •It has employees from 83 countries •Hedging of exchange rate fluctuation using Forwards and Futures contracts
  • 16. Infosys is heavily dependent on US economy and its policies  It should continue to explore new markets like China to reduce its dependence on US market  Infosys is heavily dependent on BFSI sector. It should try to increase its revenue from other potential sectors like telecom, retail, manufacturing  Infosys should continue to focus on its “Global Delivery Model” to enhance global engagement.  Advance planning for Visas coupled with local