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Infosys Going Global
- 1. Infosys: Winning inthe flat worldGroup Members:-KhageshAgarwal (05) Daman Walia (13)KoustubhaBhutra (25)KapilAhuja (51)
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- 4. Cost advantageCost ofan engineer is about 20 –40 per cent of the comparable cost in European Union (EU)
- 5. Selling, general andadministrative costs approximately 80 per cent of comparable cost in EU
- 6. Average offshore billingrate at US$ 20 to 35 per hour; about 50 to 70 per cent lower than EUADVANTAGEINDIAEase of scalability 6,75,000 technical graduates per annum, of which 4,00,000 are engineers
- 7. Over50,000 MBAs graduating per annum
- 8. IndianIT industry is expected to add 40,000 employees in 2009-10.MILESTONESIn 1987 Infosys got its first foreign client.In 1993, Infosys became a public limited company and received ISO 9001 certification.In 1999, Infosys crossed $100 Million and was listed on NASDAQ. In 2006, Infosys completed 25 years of its existence and its revenues crossed $ 2 billion.Today Infosys has more than 1,03,078 employees and has presence in more than 20 countries across the world. Its corporate headquarters is in Bangalore.
- 9. AWARDS AND ACHIEVEMENTSInfosysmoved up to No. 14 on FinTech 100.Infosys was awarded the ‘India’s best company to work for’ in 2009.Infosys entered the Balanced Scorecard Hall of Fame for Executing Strategy on the strength of its innovative strategy planning and execution capabilities. Infosys was honored with the Sharpening Brand and Competitive Differentiation Marketing Excellence Award from the Information Technology Services Marketing Association (ITSMA) A leader in SAP implementation services.
- 10. VISION AND MISSIONVision:“To be a globally respected corporation that provides best-of-breed business solutions, leveraging technology, delivered by best-in-class people."
- 11. Mission: "To achieveour objectives in an environment of fairness, honesty, and courtesy towards our clients, employees, vendors and society at large." VALUES Infosys’ value system is best articulated by the acronym C-Life – Customer Delight, Leadership by Example, Integrity & Transparency, Fairness and Pursuit of Excellence.
- 12. The major objective of the company is to become India’s most respected company.
- 13. Infosys deliberately defocusedon revenue and profits. Their goal was to do everything by the book. INFOSYS - BUSINESS LINES Revenue Break up as per Services offered in 2009Source: Infosys Annual Report 2009
- 14. GEOGRAPHICAL PRESENCE (REVENUE)Infosyshas presence in over 31 Countries.
- 15. Infosys has expandedin low cost service centers like China, Philippines etc.Revenue Segmentation 2009Source: Infosys Annual Report 2009
- 16. FINANCIAL GROWTHIn RsCroreSource: Infosys Annual Report 2009
- 17. Porters Five ForcesModelThreat of Substitutes:Other offshore locations – Low Cost Locations like Eastern Europe, Philippines and China.Price quoted is the biggest Differentiator.Bargaining Power of Customers:Large Number of IT Companies vying for projects – High CompetitionHuge Decline in IT ExpenditureRivalry among Firms:Low CostCommoditized offeringHigh Industry growthBargaining Power of Suppliers:Due to Slow Down, Job Cuts, layoff & bleak IT outlookDemand Supply is not favorable to employeesAvailability of vast pool of talent.Barriers to Entry:Low Capital RequirementsLarge value chain for small enterprisesMNCs are ramping up capacity and employee strength
- 18. MCKINSEY’S 7 SMODEL Style - LEADERSHIP“Infosys Leadership Institute”open door policy,
- 19. continuous sharing ofinformation,
- 20. takes inputs fromemployees in decision making,
- 21. builds personal rapportwith employeesStaff – HUMAN RESOURCES“Knowledge Based Industry” (90% are engineers)Emphasis on academic records
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- 24. 2.65 per centof its revenues on up gradation of employees‟ skills
- 25. High training standardsStrategyClient focused strategy (custom built soft wares)
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- 27. Strong Engagements withexisting clients
- 28. Value added servicesto new clients
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Editor's Notes
- #9 Seeking respect was behind the reason for founding Infosys. They realized that if they did the right thing, revenue and profit would automatically come.
- #14 Style:Chairman, N R Narayanmurthy. Leadership is based on high business vision and predominantly supportive styles. There is emphasis on developing leadership qualities among employees. For this purpose, it has established “Infosys Leadership Institute”. Top management emphasizes on open door policy, continuous sharing of information, takes inputs from employees in decision making, and builds personal rapport with employees. As we have seen over last few years, we have seen smooth transition from N R Narayanmurthy to NandanNilakeni and from NandanNilakeni to Kris Gopalkrishnan without any adverse effects on the company outlook and each one has proved to be an able leader taking company forward. Staff - Infosys is in knowledge-based industry, it focuses on the quality of the human resources. Out of total personnel, about 90 per cent are engineers. At the entry level, it emphasizes on selecting candidates who find the company‟s meritocratic culture satisfying, superior academic records, technical skills, and high level of learn ability. The company emphasizes on training and development of its employees on continuous basis and spends about 2.65 per cent of its revenues on up gradation of employees‟ skills, and around 50% as employee costs. In spite of thousands of people joining every month, Infosys has been able to maintain its training standard mostly due to its highly matured processes capabilities and investment in infrastructure.
- #16 Shared Values: Values are important part of Infosys‟s organizational culture. In fact its tagline depicts how much emphasis it lays on core values. The core values are: • Customer Delight: A commitment to surpassing customer expectations. • Leadership by Example: A commitment to set standards in business and transactions and be an exemplar for the industry and teams. • Integrity and Transparency: A commitment to be ethical, sincere and open in our dealings. • Fairness: A commitment to be objective and transaction-oriented, thereby earning trust and respect. • Pursuit of Excellence: A commitment to strive relentlessly, to constantly improve ourselves, our teams, our services and products so as to become the best.