ENTERPRISE ANALYSIS

AND
DESK RESEARCH
A
DETAILED REPORT
ON

SUBMITTED BY
Akanksha Vitthal Pawar

MBA
1st
YEAR
2022-2023
 Company Profile

 Name - COGNIZANT

 Founded Details - Cognizant is an American

multinational information technology
services and consulting company
founded in 1994.

 Logo -

 Industrial Served - Worldwide

Geographical Area - The company has 318,400

employees globally, of which
over 200,000 are in India across
10 locations with a plurality in
Chennai.

 Current CEO - Ravi Kumar S

 Main Competitor - INFOSYS

 COMPANY HISTORY
Cognizant was established in 1994 in Chennai, India, as Dun & Bradstreet Satyam
Software (DBSS), a 76:24 joint venture between Dun & Bradstreet and Satyam
Computer Services, with Srini Raju as the founding CEO and MD. It began with
50 employees in Chennai as Dun & Bradstreet's in-house technology unit focused
on implementing large-scale IT projects for Dun & Bradstreet businesses. In 1996,
the company started pursuing customers beyond Dun & Bradstreet.
. In 1996, Dun & Bradstreet spun off several of its subsidiaries including Erisco,
IMS International, Nielsen Media Research, Pilot Software, Strategic Technologies
and DBSS, to form a new company called Cognizant Corporation, headquartered
in Chennai, India. Three months later, in 1997, DBSS renamed itself to Cognizant
Technology Solutions. In July 1997, Dun & Bradstreet bought Satyam's 24% stake
in DBSS for $3.4 million. Headquarters were moved to the United States, and in
March 1998, Kumar Mahadeva was named CEO. Operating as a division of the
Cognizant Corporation, the company focused on Y2K-related projects and web
development.
In 1998, the parent company, Cognizant Corporation, split into two companies:
IMS Health and Nielsen Media Research. After this restructuring, Cognizant
Technology Solutions became a public subsidiary of IMS Health. In June 1998,
IMS Health partially spun off the company, conducting an initial public offering of
the Cognizant stock. The company raised $34 million, less than what the IMS
Health underwriters had hoped. They earmarked the money for debt payments and
upgrading company offices. Kumar Mahadeva decided to reduce the company's
dependence on Y2K projects: by Q1 1999, 26% of company's revenues came from
Y2K projects, compared with 49% in early 1998. Believing that the $16.6 billion
enterprise resource planning software market was saturated, Kumar Mahadeva
decided to refrain from large-scale ERP implementation projects. Instead, he
focused on applications management, which accounted for 37% of
Cognizant's revenue in Q1 1999. Cognizant's revenues in 2002 were $229 million,
and the company had zero debt with $100 million in the bank. During the dotcom
bust, the company grew by taking on the maintenance projects that larger IT
services companies did not want. In 2003, IMS Health sold its entire 56% stake in
Cognizant, which instituted a poison pill provision to prevent hostile takeover
attempts. Kumar Mahadeva resigned as the CEO in 2003, and was replaced by
Lakshmi Narayanan.[19] Gradually, the company's services portfolio expanded
across the IT services landscape and into business process outsourcing (BPO) and
business consulting. Lakshmi Narayanan was succeeded by Francisco D'Souza in
2006. Cognizant experienced a period of fast growth during the 2000s, as reflected
by its appearance in Fortune magazine's "100 Fastest-Growing Companies" list for
ten consecutive years from 2003 to 2012.
In September 2014, Cognizant struck its biggest deal, acquiring healthcare IT
services provider TriZetto Corp for $2.7 billion.[22] Cognizant Shares, rose nearly
3 percent in pre-market trading. On 24 June 2015, the company signed a
multimillion-dollar agreement with Escorts Group in India to help Escorts'
businesses in digital transformation and modernizing its operations across all
business segments.
On 30 June 2015, it partnered with Singapore-based supermarket retailer NTUC
FairPrice to perform digital transformation in NTUC's business to improve
personalized and consistent customer service across multiple channels. In January
2022, Cognizant sold its acquisition Oy Samlink to Kyndryl and Mustache to DJE
Holdings.
 vision and mission-core value
Vision:-
Cognizant's single-minded mission is to dedicate our business process and
technology innovation know-how, deep industry expertise and worldwide resources
to working together with clients to make their businesses stronger.

Mission:-
Our mission is to revolutionize the transportation industry so that public
transit is a viable option for all, regardless of assistance needs.

Values:-
Transparency,Trust,Collaboration,Integrity,Passion,Empowerment,Customer
Focus are the founding pillars of our business.

Our Company's core values, fundamental beliefs and principles, are;

 Honesty -Being truthful and genuine to others, as well as, oneself.
 Accountability - Taking responsibility for our actions, being respectful to
others, and utilizing solid business practices.
 Respect - We respect our customer's views and their time as much as our own.
For we believe that time is one of our most valuable resource
 Code of Ethics and Standards of Practice - Keeping our Customers, Clients,
and the Community's best interests is our first and foremost goal.
 Family Culture - Giving our colleague and staff unconditional respect for the
benefit of all in a positive, caring environment.
 Leading Edge Service - Committing the resources, support, and training to
implement technological advances in a continually dynamic environment.
 Growth through innovation - Believe in constant growth through innovative
thought and deed.
 Marketing Analysis and Financial Analysis
Marketing Analysis-
Marketing Strategy of Cognizant analyses the brand with the marketing mix
framework which covers the 4Ps (Product, Price, Place, Promotion). There are
several marketing strategies like product innovation, pricing approach, promotion
planning etc. These business strategies, based on Cognizant marketing mix, help
the brand succeed in the market.
Cognizant marketing strategy helps the brand/company to position itself
competitively in the market and achieve its business goals & objectives.
Let us start the Cognizant Marketing Strategy & Mix to understand its product,
pricing, advertising & distribution strategies: In this article:

• Product Strategy
• Pricing Strategy
• Place and Distribution Strategy
• Promotional and Advertising Strategy
• Service Strategy

Financial Analysis -
Cognizant Technology Solutions Corporation reported earnings results for the
fourth quarter and full year ended December 31, 2022. For the fourth quarter, the
company reported sales was USD 4,839 million compared to USD 4,777 million a
year ago. Net income was USD 521 million compared to USD 576 million a year
ago.
Basic earnings per share from continuing operations was USD 1.02 compared
to USD 1.1 a year ago. Diluted earnings per share from continuing operations was
USD 1.02 compared to USD 1.1 a year ago.For the full year, the company reported
sales was USD 19,428 million compared to USD 18,507 million a year ago.
Net income was USD 2,290 million compared to USD 2,137 million a year
ago. Basic earnings per share from continuing operations was USD 4.42 compared
to USD 4.06 a year ago. Diluted earnings per share from continuing operations was
USD 4.41 compared to USD 4.05 a year ago.
Current and historical gross margin, operating margin and net profit margin
for Cognizant Technology Solutions (CTSH) over the last 10 years. Profit margin
can be defined as the percentage of revenue that a company retains as income after
the deduction of expenses. Cognizant Technology Solutions net profit margin as of
December 31, 2022 is 11.79%.
Cognizant Technology Solutions annual/quarterly net income history and growth
rate from 2010 to 2022. Net income can be defined as company's net profit or loss
after all revenues, income items, and expenses have been accounted for.
Cognizant Technology Solutions net income for the quarter ending December 31,
2022 was $0.521B, a 9.55% decline year-over-year.
Cognizant Technology Solutions net income for the twelve months ending
December 31, 2022 was $2.290B, a 7.16% increase year-over-year.
Cognizant Technology Solutions annual net income for 2022 was $2.29B, a 7.16%
increase from 2021.
Cognizant Technology Solutions annual net income for 2021 was $2.137B, a
53.52% increase from 2020.
Cognizant Technology Solutions annual net income for 2020 was $1.392B, a
24.43% decline from 2019.

No. of Mths Year Ending

12 Mar-21 12 Mar-22 % Change

Net Sales Rs m 1,527,197 1,603,198 14.8%

Other income Rs m 31,340 40,270 25.5%

Total Revenues Rs m 1,527,197 1,603,198 14.0%

Gross profit Rs m 575,989 569,635 16.0%

Depreciation Rs m 30,650 36,040 13.7%

Interest Rs m 6,370 7,840 21.2%

Profit before tax Rs m 248,880 233,284 18.1%

Tax Rs m 60,239 57,186 18.2%

Profit after tax Rs m 188,640 176,076 18.1%

Gross profit margin % 36.49 36.95

Effective tax rate % 22.54 23.32

Net profit margin % 10.23 11.79

Features of Organizational Structure -

 Division of labor : dividing up the many tasks of the organization into
specialized jobs
 Hierarchy of authority : Who manages whom.
 Span of control : Who manages whom.
 Line vs staff positions  Decentralization

Heirarchy of Authority :
• Tall vs flat hierarchies
• Autonomy and control
• Communication
• Size

Span of Control :
 • A wide span of control: a large number of employees reporting,
• A narrow span of control: a small number employees reporting
• The appropriate span of control depends on the experience, knowledge and
skills of the employees and the nature of the task.

Line vs Staff Position :

• Line positions are those in which people are involved in producing the main
goods or service or make decisions relating to the production of the main
business.
• Staff positions These are positions in which people make recommendations
to others but are not directly involved in the production of the good or
service

Decentralization :
• The extent to which decision making is concentrated in a few people or
dispersed through out the organization

• Advantage: benefits associated with greater participation and moving the

decision closest towards implementation.

• Disadvantage: Lack of perspective and information, lack of consensus

CSR (Corporate Social Responsibility) Activities :

Cognizant Technology Solutions (Cognizant) is a U. S. - based multinational
provider of business, technology and consulting services headquartered in Teaneck,
New Jersey, United States. Cognizant has been named to the 2010 Fortune 100
Fastest-Growing Companies List for the eighth consecutive year. (2) Cognizant has
also been named to the Fortune 1000 and Forbes Global 2000 lists. It has
consistently ranked among the fastest growing companies including the 2010
Business Week 50 list of the top - performing U. S. companies, the Business Week
Hottest Tech Companies 2010 and the Forbes Fast Tech 2010 list of 25 Fastest
Growing Technology Companies In America.

Registered in March 2005 as a "Charitable Company" under the Indian Companies

Act, the Cognizant Foundation helps underprivileged members of Indian society
gain access to quality education & healthcare by :

 Providing financial and technical support

 Designing and implementing educational and healthcare improvement
programs
 Partnering with Non-Government Organizations (NGOs), educational
institutions, healthcare institutions, government agencies and corporations to
raise the quality of life for people across India
 Outreach was launched in the year 2007 when Cognizant crossed the second
billion dollar revenue mark and decided to celebrate this achievement by giving
back to the society. This programme is focused on using a combination of
voluntary efforts from Cognizant associates and funding from Cognizant to
promote the cause of education. As part of this programme, Cognizant adopts
orphanages and educational institutions catering to underprivileged children
and helps them raise the required infrastructure and meet their training needs
"Cognizant's CSR activities help encourage social involvement of our
employees and bond them as a team and with the organisation," said Kalyan
Mohan, senior vice president and head, Bengaluru operations, Cognizant. "This
is the source of immense pride and fulfilment both for the organisation and the
employees. With a young workforce increasingly keen to contribute to the
cause of creating a better society, grassroots voluntarism has acquired a new
dimension. We firmly believe that corporate actions play a very important role
in creating a climate of positive opinion."
What began as a small step, is today one of the most important CSR efforts by
Cognizant! Over a year ago, a team of Cognizant associates under the banner of
Outreach, Cognizant's volunteer CSR group that aims to make a difference to the
education of underprivileged children, started raising funds to donate notebooks to
underprivileged students in a government school in Chennai. Today, this 'spirit of
giving' has spread to over 44 schools across India.

Cognizant Pune:-
1. Cognizant Foundation, the corporate social responsibility arm of Cognizant
Technology Solutions, has extended financial aid to five Maharashtra-based
nonGovernment organisations. The aid is to the tune of Rs 40 lakh.
2. The NGOs, which have received the fund, include Manavya, Saraswati
Pratishtan Dadhichina Pranam, Centre for Youth Development and Activities,
Social Action for Manpower Creation and Swatantryaveer Sawarkar Educational
Trust. The Thalassaemia Treatment centre at Sassoon Hospital in Pune and the
Baba Amte Maharogi Seva Samiti in Anandvan have been the beneficiaries in the
past.
3. Talking to presspersons, Mr. N. R. Krishnan, an independent director of
Cognizant Foundation, said the foundation, which has been created a couple of
years ago, has so far funded more than 60 projects. Of this, about 39 fell in the
education segment, 21 in the health sector and about a couple of projects each in
rural development and individual assistance.
4. Foundation has a participatory approach and all the CSR proposals that have
been brought up had come in from the Cognizant associates. The funding for all
these projects comes from the parent organisation as also from individual donors.
5. It was looking at instituting scholarships for the school and college going
students and noted that the feasibility study was under progress.
6. Giving details about the funding that has been handed out today, Manavya,
started in 1997 in Bhugaon village, Pune, runs a shelter home for HIV positive
orphans. It currently provides food, clothing, medical support, shelter and
educational support, free of cost to 55 HIV positive children. The fund would be
utilised for financial aid and computers.
7. Saraswati Pratishtan, which began in 1983, runs a school up to class 10 with
over 350 students from seven villages. For the past three years, it has been
providing free accommodation and food to the poor and needy students and a total
of 21 students are availing of this facility.
8. The Centre for Youth Development and Activities, started in 1999, focuses
on setting up a youth resource centre for addressing the issues and challenges of
adolescence and adulthood. It provides personality development and opportunities
for civic participation.
9. About 2,500 volunteers are already in its fold across the country with about
750 volunteers in Pune. Social Action for Manpower creation, established in 1990,
is active in the areas of education and rehabilitation, focussing on poor, destitute
and needy women, orphans and children of sex workers. It is also carrying out
vocational training, women's empowerment, childcare, agriculture and community
development. It is planning to reach out to 750 youths within five to seven years in
the areas of counselling, guiding and training of youth.
10. The Swatantryaveer Sawarkar Educational Trust, registered in 1993, focuses
on providing educational assistance and empowering the poor by way of its
vastishaalas (schools) for tribal children.

Cognizant Chennai:-

The response has been truly overwhelming. In 2008, Outreach distributed 50,000
notebooks to over 5000 students in seven schools around Chennai. Buoyed by last
year's success, Outreach decided to give the initiative a pan-India footprint and has
accrued funds from 7,000 associates of Cognizant. Till date, around 15,000
students have received over 100,000 notebooks made from eco-friendly materials.

Employees involvement:-

At Cognizant, almost 8,000 employees, or 10% of its workforce, are active

volunteers for the Outreach programme. The main focus of the effort is education
and today it partners more than 90 schools where employees teach English and
computers. All the 80 Class XII board students in a government school at
Thoraipakkam, near Chennai, scored full marks in their recent final computer
practical exam, thanks to the regular classes which the Cognizant volunteers
conducted. Around 200 LG India employees, along with their families, recently
participated in an initiative, 'Meri Dilli, Meri Yamuna', where they cleaned the
Yamuna river in New Delhi and staged a street play to sensitise the public about
water pollution.
 SWOT Analysis -

SWOT Analysis of Cognizant focuses on Strengths, weaknesses, opportunities,

and threats. Strength and Weakness are the internal factors and Opportunities and
Threats are the external factors that influence the SWOT Analysis of Cognizant.

Cognizant Strengths :
As one of the most popular and leading companies, Cognizant has got many
strengths & abilities that stabilize the company to thrive in the global market.
Following are some of the strengths of Cognizant:
 Strong cash flow – Cognizant has a strong free cash flow that helps the
company to never hesitate to invest in resources, new technology, cost of
experiments, and research. So the company can always grow and expand its
business broader.
Great brand portfolio – As of now, Cognizant has made a very pragmatic and
achievable brand portfolio. That brand portfolio can be extremely used to widen the
organization’s point of view into new products and categories.
High level of customer satisfaction – Cognizant is a well-known and
sufficiently successful company but it always pays attention to consumer
satisfaction. The company has managed to keep a dedicated customer relationship
and always tries to achieve good responses from customers. Cognizant always
takes care of potential customers.
Excellent performance in new markets – Cognizant is an expert at entering
new markets and getting success over there. The company now has become large
enough to build up new projects and diversify branches in the market. Cognizant
never steps behind to take risks and achieve excellent results in new areas that are
good for the company.
Automation – With technological development, the company has developed
quality to automate almost all the activities. This has enabled the company to rise
efficiently and ignore human errors. This strength makes it more reliable and
trustworthy to work with.
Wide networking – Cognizant has successfully built the network in such a
way that it reaches out everywhere at any time effectively. Due to huge networking,
the company’s success ratio remains high.

Cognizant Weaknesses:
Behind everything, there are always its pros and cons. As a company
Cognizant is also having some weaknesses or areas where it is laying back. It can
make improvements and correct the lacking areas to make the company more
perfect in the future. Following are some of the weaknesses of Cognizant:
1) The concentration of business
2) Gaps in the Product range
3) Less Integration with different cultures

Cognizant Opportunities:
 Cognizant is quite an Opportunities seeker business, it adopts a futuristic
approach in the market. Following are some of the opportunities for
Cognizant:
1) Taxation policy
2) New Environmental policy 3) New trends in consumers
4) Opening of new markets

Cognizant Threats:
There are some minor threats before Cognizant that can harm the company in
one or another way. So it becomes essential for the company to consider the
challenges and try to remove them. Following are some of the Threats to
Cognizant:
Switch to online business – Like all industries are switching to online
business and marketing, there is a serious threat to the company’s physical
infrastructure and supply chain of the products.

Intense competition – There is immense competition in this field so

there is a threat to the business’ profitability and stability.
Environment regulations – New environment regulations under the
Paris agreement (2016) can be a threat to Cognizant for some product
categories.

No continuous supply of innovative products – Over the years the

company has developed many new products but sometimes there is not
maintained a regular supply of those products that become a barrier for
consumers to develop trust.
Currency fluctuations – As Cognizant is operating in many countries,
it is exposed to currency fluctuations in the political and economical market
across the nations.
 Executive summary
When the COVID-19 pandemic first struck, companies
faced an unprecedented series of shocks. Customer needs and behaviors morphed
overnight as towns and cities emptied, and workplaces shut down.

Technology, business and operating models all struggled as the disruption

intensified. Leaders scrambled to scrutinize everything, from how and where
employees worked, to how they engaged with customers, to which products and
services were viable.
As the pandemic progressed, digital touchpoints with customers, employees
and suppliers were essential survival tools. Businesses armed with deft, data-driven
capabilities won a head start for their survival: Food wholesalers pivoted from
restaurant supply to home delivery; sportswear manufacturers produced personal
protection equipment for healthcare workers with the help of 3-D printers;
electronics companies rapidly repurposed supply chains to produce ventilators with
technical designs co-shared across disparate value chains; banks adapted to the rise
of a cashless society as people shunned hard currency and digital wallets gained
traction; and remote learning supplanted physical classrooms in schools and
colleges.
It was crystal clear that those organizations with data mastery at their core were
best able to pivot, adapt and reinvent themselves on-the-fly.The future-forward
script for businesses everywhere has crystallized: Flexible, data-intensive and
digitally oriented ways of working will be indispensable for weathering what’s
expected to be a global mega-recession. When the virus recedes, its lasting impacts
will be plain to see as businesses scrap traditional ways of working, reset their
workforce and double down on their technology investments.
Well before COVID-19 struck, we had been studying the long-term business
implications of our expanding digital world. Our findings coalesced in our 2016
“The Work Ahead” report, based on a global study of 2,000 senior leaders. Earlier
this year, we worked with Oxford Economics to re-launch the study, with 4,000
Csuite respondents across 15 key industries, throughout the Americas, EMEA and
APAC (see methodology, page 11). As the pandemic took hold, we urgently
extended our research to assess how the crisis impacted the strategic calculus of
leaders at organizations worldwide. Our interim findings (based on 2,000 survey
responses) reveal an executive class grappling with an unprecedented series of
shocks, undulating across functional areas and spaces – both virtual and physical.
The challenge for leaders is multidimensional and acute. When the virus struck,
nearly all businesses (84%) took action of some sort to ameliorate its impact,
according to our study. Of those businesses, 9% took significant measures
enterprise-wide, while 32% made changes in targeted areas of the business, for a
total of 41% (see Figure 1). Some businesses went into survival mode, with plans
designed to stave off the most severe impacts of the virus, such as disrupted supply
chains or cash/liquidity pressure. Now, decision makers need to assess which
imperatives are temporary, and which will persist even after the prolonged
pandemic is a distant memory.

The “Work Ahead” research series, due later this year, will interpret the
findings both globally and across individual geographies, industry sectors and
technology vectors.
In this preview, we’ve analyzed our interim findings to define five key takeaways
for how to best prepare for the aftermath of the COVID-19 crisis.
 Company Profile
Name - INFOSYS

Founded details - In 1981, Narayana Murthy
 founded Infosys Technologies
  Logo -

Industrial served - Worldwide



 Geographical Area - The company is spread

Across 247 Location in
more than 54 countries.

Headquarter - Bengaluru


 Current CEO - Salil Parekh

Main competitor - Cognizant


COMPANY HISTORY
Established in 1981, Infosys is a NYSE listed global consulting and IT services
company with more than 346k employees. From a capital of US$250, we have
grown to become a US$ 17.94 billion (LTM FY23 revenues) company with a
market capitalization of approximately US$ 75.39 billion.
In our journey of over 40 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 Limited is a global technology services firm that defines designs
and delivers information technology (IT)-enabled business solutions to their
clients. The Company has presence in 247 locations across 54 countries as on 31
March 2022. The Company is a leading provider of consulting technology
outsourcing and next-generation digital services to enable clients to create and
execute strategies for their digital transformation. It also provide end-to-end
business solutions that leverage technology for their clients including technical
consulting design development product engineering maintenance systems
integration package-enabled consulting and implementation and infrastructure
management services. It also provides software products to the banking industry.
Infosys' strategy is to be a navigator for our clients as they ideate plan and execute
on their journey to a digital future. The Company has developed Finacle a
universal banking solution to large and medium size banks across India and
overseas. Infosys BPO is a majority owned subsidiary. Through Infosys BPO the
company provides business process management services such as offsite customer
relationship management finance and accounting and administration and sales
order processing. Presently it is having marketing and technical alliance with File
Net IBM Intel Microsoft Oracle and System Application Products. Infosys
Limited was incorporated as a Public Company in 1981 as Infosys Consultants
Pvt. Ltd. The Company is India's second largest software exporter company led by
Mr. N. R. Narayana Murthy at Karnataka. The Company was started by 7 people
with the investment of USD 250. The Company became a Public Limited
Company in the year 1992. The Company was the first Indian company to be
listed on the NASDAQ in the year 1999.

Infosys also forms a part of the NASDAQ-100 index. In April 2002 Infosys BPO
Ltd was incorporated in India to address opportunities in business process
management. In the year 2004 the company acquired 100% equity in Expert
Information Services Pty Ltd Australia for USD 24.3 million. The acquired
company was renamed as Infosys Technologies (Australia) Pty Ltd.
 vision and mission-core value
VISION AND MISSION

INFOSYS’ VISION
“To be a globally respected corporation that provides best-of-breed business
solutions, leveraging technology, delivered by best-in-class people.”

Infosys does not just want to be a corporation which just focuses on increasing its
business and revenue, rather its vision is to be a corporation which provides best
business solution by indulging best talented people and eventually to become a
reputed and respected corporation.

INFOSYS’ MISSION
“To achieve our objectives in an environment of fairness, honesty, and courtesy
towards our clients, employees, vendors and society at large.”

Infosys focuses on maintaining fairness, honesty and courtesy towards their clients,
employees, vendors and society in their path of achieving their objective. They
believe that these three key aspects were the main factors in achieving their vision.

GLOBAL FOOTPRINT AND OFFERED SERVICES

Infosys has made his footprint globally with offices and development centers
across the world. It has expanded its business globally by operating in 28 countries
which covers Europe, America, Middle East, Africa, and APAC (Asia – Pacific
and China).

Infosys offers various services to sustain in the competitive environment and to

enhance their growth.

Services offered:
Business and Technology consulting

Application services
Systems integration services

Product engineering services

Custom software development services

Maintenance services

Re-engineering services

Independent testing and validation services

IT infrastructure services

Business Process Outsourcing services

Infosys follows a blended offering of onsite high quality business consulting

and offsite impeccable technology implementation. This eventually reduces the
cost of taking the entire team of business consultants to a client site. In the
application services, they offer application development, maintenance and
modernization. They focus on delivering high quality, flexible applications that are
easy to maintain. To deliver a world class process outsourcing, Infosys’ BPO
services combine technology, process skills and domain expertise.
 Marketing Analysis and Financial Analysis
Marketing Mix of Infosys
The service marketing mix is a combination of the different elements that
companies use to communicate their organizational and brand message to
customers. The mix consists of the Seven Ps i.e. Product, Pricing, Place,
Promotion, People, Physical Evidence and Process. It is the key foundation on
which most modern marketing strategies and business activities are based. We
shall now decode the Marketing Mix of Infosys.

Product Strategy
The product strategy of Infosys is to provide business and consulting
solutions to various industries like pharmacy, insurance, mass media, transport
services, retail, manufacturing, banking, defence, energy, etc. Also, it exercises
data for these companies and cultivates software that is based on the needs of the
business.
Infosys provides corporate governance data as well, analytics like sentiment
analysis of different companies to see how consumers are reacting to their
products.
 Pricing Strategy


Infosys has diverse service and solutions offerings and the pricing is
dependent on factors like client, geography, industry, forex and the solutions
sought by the companies.
Infosys enjoys the benefit of lower labor costs in India with a high skill set. The
company capitalised on the increasing volume of engineers in the 2000s and
hired cheap, high-skilled labour.
The main aim of Infosys is to enter into more and more diverse industries.
Therefore, it follows a penetration pricing strategy, which means that it offers
services at a low price while ensuring the precision and quality of services .

Place & Distribution Strategy

Infosys has a presence in over 50 countries and has more than 1000+ strong
global clients. It is the largest IT company in India and is present in the United
States and Europe as well. Besides that, the company has offices in China,
Germany, Sweden, Australia and Belgium. Infosys also has training and
development centres in many other locations. Their scale of operations is
worldwide. In fact, it is the biggest employer of H-1B visa holders in the USA.
 Promotion Strategy
Infosys regularly organises and conducts promotional activities that build
interest and maintain goodwill at the same time. The company has undertaken
various academic initiatives which provide opportunities for employees to manage
working and learning together by company-sponsored trips, case studies, speaker
sessions, etc. An initiative called Infosys Foundation which caters to the green
aspect of the company has been underway leading to Infosys becoming the one of
top twenty green companies. Infosys also hands out an accolade called the Infosys
Prize to a scientist, engineer, researcher, etc. from India, a corpus of rupees sixtyfive
lacs, a certification and a golden medallion. Infosys has brand awareness in the field
of software, BPO, KPO, etc.

People


Infosys is one of the top recruiters in India in the IT and consulting sector.
Employees are required to possess competencies like advisory skills,
communication skills, management skills, technical language skills, etc. Infosys
employs 200,000 employees that serve globally.

INFOSYS Income Statement Analysis

 Operating income during the year rose 21.1% on a year-on-year (YoY) basis.
 The company's operating profit increased by 14.3% YoY during the fiscal.
Operating profit margins witnessed a fall and stood at 25.9% in FY22 as
against 27.4% in FY21.

 Depreciation charges increased by 6.4% and finance costs increased by

2.6% YoY, respectively.
 Other income declined by 9.9% YoY.
 Net profit for the year grew by 14.0% YoY.
 Net profit margins during the year declined from 19.3% in FY21 to
18.2% in FY22.
 INFOSYS Income Statement 2021-22
No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change

Net Sales Rs m 1,004,720 1,216,410 21.1%

Other income Rs m 25,470 22,950 -9.9%

Total Revenues Rs m 1,030,190 1,239,360 20.3%

Gross profit Rs m 275,430 314,910 14.3%

Depreciation Rs m 32,670 34,760 6.4%

Interest Rs m 1,950 2,000 2.6%

Profit before tax Rs m 266,280 301,100 13.1%

Tax Rs m 72,050 79,640 10.5%

Profit after tax Rs m 194,230 221,460 14.0%

Gross profit margin % 27.4 25.9

Effective tax rate % 27.1 26.4

Net profit margin % 19.3 18.2

INFOSYS Balance Sheet Analysis
 The company's current liabilities during FY22 stood at Rs 336 billion as
compared to Rs 239 billion in FY21, thereby witnessing an increase of
40.8%.
 Current assets rose 11% and stood at Rs 672 billion, while fixed assets rose
6% and stood at Rs 495 billion in FY22.
 Overall, the total assets and liabilities for FY22 stood at Rs 1,167 billion as
against Rs 1,073 billion during FY21, thereby witnessing a growth of 9%.

INFOSYS Balance Sheet as on March 2022

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change

Networth Rs m 759,790 747,440 -1.6

Current Rs m 238,650 336,030 40.8

Liabilities
Long-term Debt Rs m 0 0 0.0

Total Liabilities Rs m 1,072,880 1,166,730 8.7

Current assets Rs m 607,330 671,850 10.6

Fixed Assets Rs m 465,550 494,880 6.3

Total Assets Rs m 1,072,880 1,166,730 8.7

 Features of Organizational Structure -
Organizational structure followed in Infosys is a Functional Structure. It is
the most common organizational structures used by many Companies. Under this
structure, company will be organized into three main functions (Global sales
function, Global delivery function and business enabling functions). In Infosys
divides the industry verticals into following five segments
• Financial Services Segment
• Manufacturing Segment
• Retail Segment
• Energy, Utilities, Communications & Services Segment
• Life Sciences, Healthcare & Insurance Segment.
Functional structures are proved to operate well in stable environments where
business strategies are less inclined to changes or dynamism, the amount of
bureaucracy makes it tough for organizations to respond to changes in the market
quickly.
It also conducts Career development practice to help employees to showcase
their skills, providing career guidance and career development activities. Infosys
provides strong property rights to its employees by providing employee stock
option plans. Top management were given profit sharing plans based on the
company performance as an incentives. ESOP’s usually guarantee long term
employment. But later Infosys withdrew the stock options plan due to various
complexities and accounting challenges. Infosys also provides health and pension
benefits, but not at a very lucrative scale. It is in line with the government policies.
For its employees, Long term employment recognition and benefits like Pension
Plans, Group Medical Policy, Accident Policy, Bonus, Annual Medical Check-ups,
Budgets for quarterly team lunch, Annual outings as part of team building
activities and flexible work hours. In addition to the above mentioned benefits,
Managers and employees above in the hierarchy level also get these additional
benefits – Large salaries, Company vehicle with fuel and driver charges,

CSR (Corporate Social Responsibility) Activities

CORPORATE SOCIAL RESPONSIBILITY POLICY OF INFOSYS LIMITED

1. CONTEXT

Infosys Limited (“Infosys” or “the Company”) has been an early adopter of

corporate social responsibility (“CSR”) initiatives. Along with sustained economic
performance, environmental and social stewardship is also a key factor for holistic
business growth. The Company established the Infosys Foundation in 1996 as a
not-for-profit nodal body aimed at providing a dedicated approach to community
development and also to fulfil our CSR commitments. Infosys Foundation works
towards removing malnutrition, improving healthcare infrastructure, supporting
primary education, rehabilitating destitute individuals and caring for animals, and
preserving Indian art and culture. Infosys Foundation partners with non-
government organizations (NGOs) to make a difference among local communities.
The Company’s focus has always been to contribute to the sustainable
development of society and the environment, and to make our planet more liveable
for future generations.

2. OBJECTIVES Infosys’ CSR Policy intends to:

• Strive for economic development that positively impacts society at large
with minimal resource footprint.

• Embrace responsibility for the Company’s actions and encourage a positive

impact through its activities to alleviate hunger, poverty and malnutrition; to
protect the environment; and to support communities, stakeholders and society.

3. FOCUS AREAS AND MODES OF IMPLEMENTATION

Focus areas In accordance with the requirements under the
Companies Act, 2013 and the rules / regulations framed there under and circulars /
clarifications issued there under (collectively, “Applicable Law”), Infosys CSR
activities, amongst others, will focus on:

• HUNGER, POVERTY, MALNUTRITION AND HEALTH:

Eradicating extreme hunger, poverty and malnutrition,

promoting preventive healthcare and sanitation and making available safe drinking
water. • EDUCATION: Promoting education, including special education and
employment-enhancing vocational skills, especially among children, women, the
elderly and the differently abled, and livelihood enhancement projects; monetary
contributions to academic institutions for establishing endowment funds, chairs,
laboratories, etc., with the objective of assisting students in their studies, this also
includes skilling and reskilling initiatives for those who are in need.

• RURAL DEVELOPMENT PROJECTS:

Strengthening rural areas by improving accessibility, housing,
drinking water, sanitation, power and livelihoods, thereby creating sustainable
villages. Amended and
• GENDER EQUALITY AND EMPOWERMENT OF WOMEN:
Promoting gender equality and empowering women; setting up
homes, hostels and day care centers for women and orphans; setting up old age
homes and other similar facilities for senior citizens; and adopting measures for
reducing inequalities faced by socially and economically backward groups.

• ENVIRONMENTAL SUSTAINABILITY:
Ensuring environmental sustainability, ecological balance,
protection of flora and fauna, animal welfare, agro-forestry, conservation of natural
resources and maintaining the quality of soil, air and water.

• NATIONAL HERITAGE, ART AND CULTURE:

Protecting national heritage, art and culture, including the
restoration of buildings, sites of historical importance, and works of art; setting up
public libraries; reviving, promoting and developing traditional arts and
handicrafts.

SWOT Analysis -
Strengths of Infosys

Superior Customer Experience and Strong Product

Infosys’ products and services are of superior quality leaving high customer
satisfaction rates. The brand has earned high customer reviews on various review
sites. The brand is rated 4.6/5 stars by 67,798 on glassdoor.co.in, 3.9/5 stars on
ie.indeed.com by 13,842.

Low Labor Cost

Infosys has a major advantage over its competitors globally when it comes
to its cost of labor. Infosys has the majority of its development centers in India.
India is rich with quality expertise in technical talent that is offered at very low
costs.
India’s labor rates are much lower than in developed countries. This savings in the
cost of operation goes a long way in increasing the profitability and affordability
of a brand’s services. With this lower labor cost, the company is able to sell at
lower prices and thus gain a competitive advantage over other companies. Strong
Strategic Partnerships
Infosys has formed strategic partnerships with major technological
companies on the global scene to enrich its product and service delivery. Its
partners include IBM, HP, Microsoft, Oracle, and Amazon among other 30+
companies. These partnerships build synergies in the areas of expertise, innovation,
finances, business networking, and market opportunities among others.

Infosys in the end is able to deliver a superior customer experience.

Employee Training Programs

Infosys provides continuous training for high-level personal
skills. This equips employees with the necessary expertise to innovate solutions for
the global stage. This has helped Infosys increase its employee focus and
productivity, has had its employees remain up-to-date with the technological
changes as well as industry changes. Weaknesses of Infosys

Heavy Dependence on Two Markets

Infosys heavily depends on the North American and European markets for
its business. Close to 80% of Infosys’s revenues come from the two regions. In
case of adverse occurrences in either of these markets, then Infosys’ operations and
profitability could be significantly affected.

Employee Attrition
Infosys has witnessed high attrition rates in the recent past. The brand saw
employee attrition rise from 5.2% to 15.2% in December. This was a steep rise
over the two quarters. Analysts observed that Infosys would have to award wage
hikes to stem any further rise in attrition rates.
The brand attributes this attrition to strong industry growth. A statement by
the brand said that it plans to build up employee engagement, hike their salaries
and also offer promotions.
Opportunities of Infosys Strong Industry Growth
The IT industry has witnessed strong growth in the recent past due to the
paradigm shift in working arising from COVID. Analysts foresee strong growth in
software spending that is predicted to grow at 10% in 2021 and 11% in 2022.
Infosys has been a beneficiary of this growth registering growth rates of up
to 40%. The brand needs to continue strategically positioning itself to reap further
from the growth that will continue for the foreseeable future.

More Markets to Explore

Infosys has concentrated its efforts on the North America and Europe
markets. While these two markets have seen Infosys grow in revenues to be a giant
in its industry, the brand has a lot more opportunities in emerging markets all over
the globe.
It is important however that proper market research is done to map out
particular markets that fit well with Infosys’s business model

More Strategic Acquisition

Infosys should continue to identify start-ups that could be the best fit in the
brand’s growth agenda and acquire such for the brand’s growth. The brand already
has experience in acquisitions and would therefore be better placed to make more
growth in this regard.

Continuous Innovation
Continuous innovation is an indispensable part of growth for Infosys and
any other brand in the market today. Regardless of the size of the brand, if it fails
to innovate then it is sure headed for a downfall. Infosys has come so far with
heavy investments in innovation. The brand should continue with this strategy

Threats of Infosys Rising Wage Rates

The industry has seen a marked increase in wage rate. Initially, Infosys
thrived on low wage rates in India, but now there is pressure worldwide to increase
wages or face attrition. This increase in wages is sure to eat into the brand’s profits.
At this level, the brand does not have much of a choice.

Stiff Competition
Infosys faces strong competition from Accenture, TCS, Capgemini, and
Wipro among others. Competition is not only from the well-established brands
mentioned above, the brand faces competition from startups and new entrants into
the market. All these threaten Infosys’s market share.

Executive summary
Infosys is the incredible story of success and successful execution of
business model, the company has entered red ocean market with insignificant
stake and power in market, but because of successful market re-definition
company managed to achieve to be the first among the first ones and be
remarkable example for rivals. So, what was the principal innovation that made
Infosys successful? – among the other reasons we could say that company
managed to realize what was the market pain before anyone else and they
managed to translate it into successful business model. Business model proposed
by Infosys re defined market needs, improved service time and quality and
conceptually changed the game rules that bigger players where following.
Business model of Infosys was not complicated, yet it was very hard to copy
because it required from company flexibility and dynamic changes in business
processes. Business concept of Infosys was different from any other companies
because they managed to identify problematic areas of IT projects, they realized
that IT projects needed more and more detailed, customized business process
mapping, which in a most cases was done by independent consultants without
relevant IT background, this was the reason why the projects implemented by
Infosys competitors had lower quality and where holding high risk of failure or
contingency, on the other hand IT project implementations where taking in
average 1 year to implement, which also was a big disadvantage for it projects.
Infosys combined business process mapping service with the traditional IT project
package, created local implementation teams on shore and support teams offshore
this way company achieved to work on projects practically 24 hours every day.
Changes in service resulted higher quality in project implementation, as far as
Infosys itself was doing business process mapping and adjustments in existing
system, project implementation time reduced to 6 month. Another very innovative
change in company performance was the measurement and assessment
methodologies, Infosys managed to start measuring almost everything, including
customer satisfaction, employee efficiency, financial results related to project
implementations. This innovation was brake through in existing environment
because it was equally satisfying both, client companies and employees, also was
automatically and generously rewarding outstanding performance. By
implementing and adopting above mentioned changes company achieved to reach
its goals in a very short period of time, it managed to achieve fast growth and rank
alongside with larger players on the market, managed to propose faster and better
services to customers and created unique organizational culture based on
meritocracy and transparency.