Professional Documents
Culture Documents
driver. Company also tied up with Microsoft to co-create and architect cloud environments for
large companies in seven geographies US, UK, Australia, France, Germany, Middle East and
India. It has also partnered with over 30 cloud providers and is looking to work with clients as
an end-to-end cloud ecosystem integrator, provide professional services and business platforms
in the cloud. Infosys have data centers in Europe, the US, India and in Australia and presently
offering private cloud from their own data centers or working with other clients. Infosys has
more than 2000 resources working on the cloud computing and it also started offering Indian
cooperative banks a cloud version of its core banking product Finacle, tapping into a Rs 2,000
crore market. Infosys is also offering its Infosys Edge cloud based platform offerings and other
platforms on the outcome based pricing model and plans to get over 30% of its total revenue
from such higher-end services.
Infosys has invested millions in branding products, platforms and solutions and Finacle is the
core product offering and lot of banding activity is centered on it. Infosys is also branding all
its products and is looking to create a unique awareness and proposition. Branding helps in
creating a relationship with clients and also increases their understanding of the product
functionalities, uniqueness, differentiation and its positioning. Infosys had launched
'InfosysEdge', a family of platforms that enable customers to buy software on a pay-as-you-go
model and it presently has 12 platforms and couple with its Building Tomorrows Enterprise
branding strategy intends to create awareness for clients and position its platform and products
accordingly. In 2011 the brand positioning statement has been changed from 'Win in the flat
world' to 'Building tomorrow's enterprise' as part of the new Infosys 3.0 strategy. Infosys is
branding its products, platforms and solutions as part of its non linear revenue growth strategy
and it is looking to charge clients higher prices based on usage or license as these are
intellectual property based offerings.
Infosys had been criticized for not being active in M&A game and as a matter of fact in 2011
it had acquired two companies. First in June, it acquired Gen-i the software solutions division
of Wellington- headquartered Telecom Corporation of New Zealand (TCNZ) to strengthen its
outsourcing services foray in Australia and New Zealand. In December, it has acquired
Australia-based sourcing and category management services firm Portland Group which
enhances service offerings and takes sourcing and procurement functions to a higher level as
Portland Group has over 100 procurement specialists with domain expertise. In 2009, it
acquired the US-based McCamish Systems to expand its presence in the insurance and financial
services sector and it is known for platform based offering where standardized offerings for
multiple clients. In 2007, company signed a $250-million deal with Royal Philips Electronics
of the Netherlands and acquired three shared service centers located in India, Poland and
Thailand. All these acquisitions helped Infosys to increase its capability, entry into new
geographies, enhance its service offerings and acquire new clients. Infosys is looking at
acquisitions for the non linear revenue growth and its sits on billions of dollars of cash and
looking to acquire particularly in Europe to reduce dependency on the North America Market.
Infosys is aiming for 33% of its revenues to come from non-linear business by 2020 and it has
invested significant amount of resources both monetary and human for increasing its non linear
revenues. To further increase its non linear revenues Infosys adopted a strategy of developing
of products platforms and solutions involving internal research and development teams; cocreation with clients; partnering with a start-ups or a large software vendor such as SAP AG or
Oracle Corp. Infosys has set up a separate unit for non linear initiatives and embedded units
for this purpose in its key vertical businesses like BFSI, Manufacturing, Retail, etc. Infosys is
also looking to recruit more domain specialists that help in creating the products, platforms and
solutions based on the clients needs. The company is also looking to delink the revenue growth
from employee headcounts and this effort has been successful in the Infosys BPO. There has
been volatile economic environment in North America and Europe which are the major markets
for Infosys and clients are demanding innovative offerings that will improve the return on their
investments. With this scenario Infosys is forced to look at non linear revenue growth models
for sustaining revenue growth and profitability.
Discussion Points: