INTERNAL ANALYSIS

RESOURCES
TANGIBLES:
LIQUIDIY: Infosys id debt free and have 30,000 Crores in Liquid Assets which is
sufficient to meet strategic objectives. Liquidity enables them to make rapid shift in
direction, should the market so demand. The internal cash flows have adequately
covered working capital, capital expenditure, investment in subsidiaries etc.
PHYSICAL: The physical infrastructure space is 368.06 lakh sq. ft. which is more than
all the competitors except TCS. The number of marketing offices is 73, whereas TCS
has 81.
INTANGIBLES:
TECHNOLOGICAL: Infosys has several patents on its cross platform frameworks and
integrated user interface systems. Infosys is a major player in Banking IT services
(BITS) with its product Finnacle which has a market share of more than 60%. They
are also leading players in Encryption & Securitization of banking data and other
information with their advance python rail platforms and frameworks.
REPUTATIONAL: Infosys has a strong reputation globally being a leading player in IT
Services. Its major customer base is in North America but has projects all over the
world.
ORGANIZATIONAL: It has a two president organizational structure and the existing
business structure has been realigned accordingly to have effective administration.
They have been awarded best corporate governance.
HUMAN: Infosys provides best industry training for IT fresher and producing team
leaders.

CAPABILITIES:
BANKING: Finnacle is the industry leading banking software working on COBOL
framework and has a 60% market share. They also utilize global delivery model to
optimize they work. They are also leading players in Encryption & Securitization of
banking data and other information.

RELATIVE STRENGTH

Banking IT services
Encryption and Securitization
activities
Platform and framework
developments
R & D capabilities
Client handling capabilities
Global reach for IT solutions.
Complete banking integration
Attrition and employee loyalty.
Depth into Indian market

STRATEGIC IMPORTANCE
Since the company is based in India its competitive advantage is enhanced. The
Indian economy, despite weak economic indicators such as relatively high rates of
inflation, has low labor costs. The workforce has relatively high skills levels in
Information Technology. Couple these two elements together and you have an
operational basis that offers low-cost based, highly skilled competitive advantage.
Trained Indian personnel often speak very good English and are sensitive to Western
culture, underpinned by Indias colonial past. Infosys is in a strong financial position.
The business turned over more than $4 billion in 2008. This means that it has the
capital to expand, and also the basis to leverage potential investors. The company
has bases in 44 global development centers, most of which are located in India,
although the company has offices in many developed and developing nations. This
means not only that Infosys is becoming a global brand but also that it has the
capability to support the global operations of multinational clients. Infosys on
occasion struggles in the US markets, and has particular problems in securing
United States Federal Government contracts in North America. Since these
contracts are highly profitable and tend to run for long periods of time, Infosys is
missing out on lucrative business. Added to this is the fact that its competitors do
well in terms of securing the same Federal business (and one should also take into
account that many of its competitors are domiciled in the US and there could be

political pressure on the US Government to award contracts to domestic

organizations).
CORE COMPETENCY: BITS Finnacle is the most widely used banking IT software. Its
works on COBOL framework and most banks are still running COBOL system being
light and fast. There are other platforms and framework as well into which Finnacle
can integrate. Currently the industry does not have efficient Banking Systems on
COBOL framework which can integrate into other frameworks. It also has patented
UI meeting industry requirements. This gives Finnacle sustainable advantage.
GAPS: Infosys has only tapped American market and has less efficient in being
global. It can search for IT experts in Australia, Europe and Emerging Asian
Companies for long term relationship and at lower cost. It should also penetrate
more into Indian market as other giant players are coming in.
The attrition and employee loyalty is low which is a serious concern and employee
retention program must be implemented by HR departments. Infosys should forward
integrate into banking IT for example introducing next generation smart cards.