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