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Infosys Project Report
Infosys Project Report
On
(Infosys)
Submitted in Partial Fulfillment of the Requirements of Bachelor of Business Administration Of Guru Govind Singh Indraprastha University
Submitted by: Name -Akshay Suresh Enrollment No.-12214201709 Semester-III-B(M) Jagannath International Management School Vasant Kunj, New Delhi 70 _____________________________________________________________
CERTIFICATE
This is to certify that Mr. Akshay Suresh student of BBA, JIMS , New Delhi, has carried out project work on the topic of INFOSYS under my guidance . He has put in a lot of effort and hard work.
He has done good work with us I wish him all the best for bright future.
Project Guide
ACKNOWLEDGEMENT
The completion of project report on INFOSYS has given me immense pleasure and knowledge. Obligations were heavy during my project work and it is a great pleasure to acknowledge deep sense of gratitude to my guide Ms. Neelam Dasgupta for her valuable guidance, advice, positive criticism, suggestion and constant encouragement throughout the project. I would also like to thank sincerely to my cousins and friends for their help and guidance during this task. Last but not least we are thankful to all of them who directly or indirectly helped us in computing this report successful
AKSHAY SURESH
List of contents
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Introduction Company overview History Core Services Revenue Segments Key People Key competitors Key Clients Future Steps Financial Reports Latest Developments Analysis Goals References
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9) 10) 11) 12) 13) 14)
TYPE
Public
BSE
500209
NASDAQ
Infy
FOUNDED
July 2, 1981
HEAD QUARTERS -
Bangalore, India
KEY PEOPLE
INDUSTRY
Software services
PRODUCTS
IT service
SERVICES
REVENUE
NET INCOME
EMPLOYEES
1,03,905 (2009)
WEBSITE
Infosys.com
Company Overview
Infosys Technologies Limited (Infosys), incorporated on July 2, 1981, is a global technology services firm that defines, designs and delivers information technology (IT)-enabled business solutions to its clients. The Company provides end-to-end business solutions that leverage technology for its clients, including consulting, design, development, software re-engineering, maintenance, systems integration, package evaluation, and implementation and infrastructure management services. Infosys also provides software products to the banking industry. Infosys BPO (formerly Progeon Limited) is a majority owned subsidiary. Infosys Australia, Infosys China and Infosys Consulting are the Company's wholly owned subsidiaries. In June 2006, Infosys acquired the shares in Infosys BPO held by Citicorp International Finance Corporation (CIFC). As a result, Infosys effectively holds 99.98% of the equity share capital of Infosys BPO as of March 31, 2007. The Company complements its service offerings with specialist support for clients using its domain competency group that has expertise in areas, such as securities, insurance, telecommunication, banking and cash management, supply chain management, manufacturing, retail and distribution, energy and utilities, healthcare, and travel and tourism. It also uses its software engineering group and
technology lab to create customized solutions for its clients. In addition, it continually evaluates and trains its professionals in new technologies and methodologies.
HISTORY
Established in 1981, Infosys is a NASDAQ listed global consulting and IT services company with more than 105,000 employees. From a capital of US$ 250, we have grown to become a US$ 4 billion company with a market capitalization of approximately US$ 27 billion. In our journey of over 28 years, we have catalyzed some of the major changes that have led to India's emergence as the global destination for software services talent. We pioneered the Global Delivery Model and became the first IT Company from India to be listed on NASDAQ. Our employee stock options program created some of India's first salaried millionaires. Infosys Technologies Limited is a leader in software development and was co founded by N.R. Narayana Murthy and a group of seven IT professionals in the year 1981 with an investment of $1000. He emerged as the company's chairman and CEO and is regarded as a great manager because of his numerical abilities and Western style of management. It has created several firsts in Indian industry like being the first Indian company to be listed on NASDAQ in 1999 and the first to provide employee stock options plan (ESOP).
The company opened its first international office in USA in 1987. It became a public limited company in 1992 and offered its IPO in three of the nine Indian exchanges in 1993. It received its ISO 2001 certification in 1993 and opened other development centers in India in 1995.
By 1995 the firm was worth $200 million, had 900 employees and annual revenue of $20 million. It opened its first European office in United Kingdom in 1996. Infosys established its headquarters in Bangalore as there the workforces were not required to be unionized, benefits to the workforce were relatively a minor cost, and there was a huge potential for profit. The late 1990s was a time for exponential growth and the main reason for this was its offshore software development model. By 2000 its market capitalization was more than $20 billion. In 2003 it established subsidiaries in China and Australia. In 2004 it crossed $1 billion in revenue. In 2006 its revenue crossed $2 billion and it completed 25 years.
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Core Services
Custom Application Development The Company provides customized software solutions for its clients. Infosys creates new applications and enhances the functionality of its clients' existing software applications. The Company's projects vary in size and duration. The Company's application development services span the entire range of mainframe, client server and Internet technologies. An increasing proportion of Infosys' applications development engagements are related to emerging platforms, such as Microsoft's .NET or open platforms, such as Java 2 Enterprise Edition (J2EE) and Linux
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Software Re-engineering The Company's software re-engineering services assist its clients in converting their existing IT systems to newer technologies and platforms developed by third-party vendors. Infosys' re-engineering services include Web-enabling its clients' existing legacy systems, database migration, implementing product upgrades, and platform migrations, such as mainframe to client-server and client-server to Internet platforms.
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The Company specializes in enterprise resource planning packages developed by vendors, including Oracle, PeopleSoft, Retek and SAP; supply chain management packages developed by vendors, including i2, Manugistics and Oracle; customer relationship management packages developed by vendors, including PeopleSoft (Vantive) and Siebel; business intelligence packages developed by vendors, such as Business Objects and Cognos, and enterprise application integration packages developed by vendors, such as IBM and TIBCO.
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infrastructure assessment, which includes assessing its clients' IT capabilities against existing and future business requirements and recommending appropriate technology infrastructure, and technology roadmap development, which allows clients to evaluate emerging technologies and develop the standards and methodologies for applying those emerging technologies.
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Other Solutions
Infosys' service offerings including testing services,
engineering services, business process management, systems integration, infrastructure management, and operational and business process consulting. The Company offers end-to-end validation solutions and services, including enterprise test management, performance benchmarking, test automation and product certification. For each particular client, Infosys focuses on developing a framework for ongoing testing in order to seek continuous improvement in the predictability of its client's internal systems. The Company's service professionals are trained in test management tools from developers, such as Mercury
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Finacle
banks by enabling them to shift their strategic and operational priorities. It maximizes their opportunities for growth ,while minimizing the risks that come with large-scale business transformation
helping them serve over 100 million customers, 150 million accounts, 80,000users and supporting over 36 million peak banking transactions per day spread across multiple installations
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Original author(s)
Infosys
Developer(s)
infosys
Initial release
1999
Stable release
Development status
Active
Written in
Java
Operating system
Cross-platform
Type
License
Q Public License
Website
http://www.infosys.com/finacle/
Key industries
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Infosys serves various industries through its vertical business units, such as:
Aerospace and Automobile (ANA) Banking & Capital Markets (BCM) Communication Service Providers (CSP) Resources, Energy & Utilities (REU) Hi Tech & Discrete Manufacturing (HTDM) Insurance, Healthcare & Life Sciences (IHL) Media and Entertainment Product Lifecycle and Engineering Solutions (PLES) Retail, Distribution & CPG (RETL) Transportation & Services (TNS) Independent Validation Solutions (IVS) - provides
Real Estate
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Life science
In addition to these, there are business units aligned to clients' geographies, such as EMEA (Europe, Middle East & Africa), APAC (Asia-Pacific) and CAND (Canada). There are also horizontal business units such as ES (Enterprise Solutions), which specializes in ERP and package implementation and works with clients across industries and geographies and SI (Systems Integration), which provides integration services to clients
Revenue Segments
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Geography
2007 North Europe India Rest of the World Total America 63.3 26.4 1.6 8.7 100.0 2006 64.8 24.5 1.7 9.0 100.0 2005 65.2 22.3 1.9 10.6 100.0 2004 71.2 19.2 1.4 8.2 100.0 2003 73.0 17.7 2.1 7.2 100.0
Industry Segmentation
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2007
2006
2005
2004
2003
Services 21.0 20.2 23.2 25.7 32.1 Development 29.3 30.2 29.9 30.1 28.2 Maintenance 17.5 16.2 15.2 14.5 11.0 Package implementation 6.9 5.9 5.8 5.3 3.4 2007 2.1 2006 4.7 2005 6.2 2004 6.0 2003 Testing 5.5 Manufacturing 13.5 13.9 14.4 14.8 16.4 Re-engineering 3.6 3.5 3.6 3.7 4.3 Banking financial service 37.4 36.0 34.6 36.6 37.6 Consulting 4.7 4.0 2.7 1.6 0.5 Business process 1.6 1.8 2.0 2.2 2.6 and insurance Banking financial 30.2 28.5 25.2 23.7 23.3 managementand Engineering services service Other services Telecom Total services Retail Products Energy and utilities Total Transportation Others Total 9.4 96.1 7.2 3.9 19.3 100.0 10.0 5.3 2.4 12.1 100.0 9.7 96.2 7.5 3.8 16.5 100.0 10.1 4.7 5.1 13.7 100.0 8.4 97.0 9.4 3.0 18.5 100.0 9.8 3.2 7.6 11.9 100.0 8.1 97.2 12.9 2.8 16.6 100.0 11.6 3.0 7.1 10.3 100.0 7.8 95.4 14.3 4.6 15.2 100.0 11.4 2.9 6.8 9.7 100.0
Service Offering
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Key People
Nilekani, Nandan M. Murthy, N. R. Narayana Gopalakrishnan, S. Bal Krishnan, Vibin Shibulal, S. D. Parvatheesam, K. Pai, T. V. Mohandas 52 60 52 42 52 -48 1987 Co-Chairman of the Board 1981 Non-Executive Chairman of the Board and Chief Mentor 1987 Chief Executive Officer and Managing Director 1999 Chief Financial Officer 1997 Chief Operating Officer, Director 2006 Secretary, Compliance Officer 1994 Director and Head - Administration, Education & Research and Human Krishnaswamy, Dinesh Batni, Srinath 52 52 Resources, Director 1996 Head - Communication Design Group, Information Systems, Quality & Productivity, Director 1996 Group Co Head - World-wide Customer Delivery, Director Trade Activity Trade Activity Trade Activity Trade Activity Trade Activity Trade Activity Trade Activity Trade Activity Trade Activity
Key Competitors
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Offshore Technology services firms such as Cognizant Technologies, Satyam Computer Services, Tata Consultancy Services and Wipro Consulting firms as Accenture , Cap Gemini IT Outsourcing firms such as EDS ,CSC
Key Clients
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ABN AMRO
AIRBUS
AETNA INC
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GOLDMAN SACHS During fiscal 2007, 95.3% of revenues came as repeat business and during 2006, 95.0% revenues came from repeat business from existing clients
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FUTURE STEPS
1. More keen on large deals. The margin dilution from large deals has been a point of concern in the past at Infosys. However, while the initial margin profile can be extremely wavy, it is possible to improve margins later in the life of the contract through reduced G&A overheads. Infosys, in its recent analyst meet, mentioned that a dedicated team was now working on large deals. We expect greater focus ahead in this area.
2. Increased focus on solution based offerings in both IT services and BPO. Infosys has developed ~50 solution based offerings in the IT services space and believes that some of these can help break the linearity between revenue and manpower growth in the business. In BPO as well, its first platform based BPO offering is likely to be launched soon.
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3. Willingness to explore new deal structures. The market was surprised when Infosys paid an upfront $28m for the $250m/7-year Phillips BPO deal. While TCS had made such a payment in the case of Pearl BPO earlier, Infosys willingness to do so was certainly a shift from the past.
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multinational companies that have operations in Mexico while the rest of the business comes from clients in North America. That is the reason why Infosys is stressing on local deals to attract local customers.
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Financial Report
Key Numbers
2007 Sales (mil.) 1-Year Sales Growth 2007 Net Income (mil.) 1-Year Net Income Growth 2007 Employees 1-Year Employee Growth
FINANCIAL HIGHLIGHTS Fiscal Year Fiscal Year Ends: Most Recent Quarter (mrq):
31-Mar 30-Jun-07
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Profitability Profit Margin (ttm): Operating Margin (ttm): Management Effectiveness Return on Assets (ttm): Return on Equity (ttm): Income Statement Revenue (ttm): Revenue Per Share (ttm): Qtrly Revenue Growth (yoy): Gross Profit (ttm): EBITDA (ttm): Net Income Avl to Common (ttm): Diluted EPS (ttm): Qtrly Earnings Growth (yoy):
27.96% 27.13%
21.37% 39.37%
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Balance Sheet Total Cash (mrq): Total Cash Per Share (mrq): Total Debt (mrq): Total Debt/Equity (mrq): Current Ratio (mrq): Book Value Per Share (mrq): Cash Flow Statement Operating Cash Flow (ttm): Levered Free Cash Flow (ttm):
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Latest Developments
application development, management and maintenance of railway operations of Canadian Pacific, which operates a 13,500-mile (21,700kilometre) transcontinental railway, a company statement said
outsourcing contract with Royal Philips Electronics (PHG.AS: Quote, Profile , Research) on Wednesday and bought three of the Dutch firm's back-office centres to extend its presence in Europe.
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Analysis
Key challenges faced by Infosys are :
Infy can overcome this risk by growing up the value chain so that it can afford to increase its billing rates and still add value to its customers .Second thing it can do is to move their operations to second level cities in India that have low cost of living and where wage pressure is less. One of the good steps Infy has taken to this regard was by opening its Bhubaneswar center. Its cost of living is way less than that of Bangalore. Another good example is Gandhinagar where a Patni computer was one of the first big IT companies to open its office.
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Infy should grow its client base in India and China where the impact of foreign exchange is negligent. TCS is a good example with this regard. Its 2006 revenues had 12.5% revenues generated from India. This is around $300 mn. With the present Indian IT market valued at $5bn (obtained from TCS's 2006 annual report) and expected to grow at 11%, Infy has scope of getting a good market share.
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Proven global delivery model: Highly evolved Global Delivery Model represents a key competitive advantage. Over the past decade, they have developed our onsite and
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offshore execution capabilities to deliver high quality and scalable services. In doing so, Infosys have made substantial investments in processes, infrastructure and systems, and have refined our Global Delivery Model to effectively integrate onsite and offshore technology services. The Global Delivery Model provides clients with seamless, high quality solutions in reduced time frames enabling them to achieve operating efficiencies.
Commitment to superior quality and process execution: Infosys have developed a sophisticated project management
methodology to ensure timely, consistent and accurate delivery of superior quality solutions to maintain a high level of client satisfaction.
Strong Brand and Long-Standing Client Relationships: They have long-standing relationships with large multinational corporations built on successful prior engagements with them.
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Status as an employer of choice: Infosys has among the best talent in the Indian technology services industry and are committed to remaining among the industrys leading employers. We have a presence in 13 cities in India, allowing us to recruit technology professionals with specific geographic preferences. We have a diverse workforce which includes employees from 70 nationalities.
Ability to scale: Infosys have successfully managed their growth by investing in infrastructure and by rapidly recruiting, training and deploying new professionals. We currently have 52 global development centers.
Innovation and leadership: A pioneer in the technology services industry. We are one of the first Indian companies to achieve a number of significant milestones, which has enhanced our reputation in the marketplace.
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WEAKNESSES
Revenues and expenses are difficult to predict and can vary significantly from period to period, which could cause share Price to decline 26 May not be able to sustain our previous profit margins or levels of profitability. The economic environment, pricing pressure and rising wages in India and overseas could negatively impact revenues and operating results. Revenues are highly dependent on clients primarily located in the United States and Europe, as well as on clients concentrated in certain industries. Economic slowdowns or factors that affect the economic health of the United States, Europe or these industries may affect our business. Any inability to manage growth could disrupt our business and reduce our profitability may face difficulties in providing end-to-end business solutions for our clients, which could lead to clients discontinuing their work. Revenues are highly dependent upon a small number of clients, and the loss of any one of our major clients could significantly impact the business
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Failure to complete fixed-price, fixed-time frame contracts within budget and on time may negatively affect our profitability client contracts can typically be terminated without cause and with little or no notice or penalty, which could negatively impact our revenues and profitability The engagements with customers are singular in nature and do not necessarily provide for subsequent engagements
OPPORTUNITIES Huge untapped potential for in the global market as IT will become the need of almost every industry The IT industry can be the reason for India being a global leader of tomorrow
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THREATS Legislation in certain of the countries, in which Infosys operates, including the United States and the United Kingdom, may restrict companies in those countries from outsourcing work overseas Intense competition in the market for technology services could affect cost advantages, which could reduce the share of business from clients and decrease the companys revenues Our client contracts are often conditioned upon our performance, which, if unsatisfactory, could result in less revenue than previously anticipated Some of our long-term client contracts contain benchmarking provisions which, if triggered, could result in lower future revenues and profitability under the contract.
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Goals
INITIAL GOALS
They started off with one client and right from the beginning understood the concept of an offshore delivery model. Conceptually, they tried to leverage globalization for customized software development - producing where it is most cost-effective, and selling where it is most profitable, all without being constrained by national boundaries. Infosys believed that the key to success is to ensure that it executes our engagements well every time. We have based our whole operation on a foundation of strong value systems. We were careful never to compromise on that despite many challenges.
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PRODUCT RESPONSIBILITY
Sustain customer satisfaction in the annual customer survey Status- It was achieved; the overall customer satisfaction was at 81 %
ENERGY
Monitor energy consumption to become energy efficient. Status- This was achieved by implementing new monitor mechanisms Reduce per capita energy consumption by 5 %.
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Status- This was partially achieved by reducing the per capita electricity consumption to 10%.
ENVIRONMENT
Plant a tree for every new employee Status- Below the target planted 16,000 trees in Mangalore.
HUMAN RIGHTS
Create a framework for employees, suppliers and vendors to be educated on human rights. Status- Below target- developed a basic training module on human rights which will be implemented in 2010.
EMPLOYEE ENGAGEMENT
Track impact of employee health related activities.
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SOCIETY Define and implement metrics for measurement. StatusAchieved target by developing guidelines and
dashboards.
STRATEGIC LEVEL
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1. We will develop processes to integrate business and sustainability goals. 2. Improve accountability in the business units through iSOP framework. 3. Strive to meet stringent short term goals.
OPERATIONAL LEVEL
1. 5% reduction in energy, water and carbon foot print. 2. To educate vendors on our green procurement policies.
3.
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To implement Enterprise scale Solution Design and Integration as key focus areas in the telecom sectors.
References
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Scribd.com
Bing.com
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