3/5/2024 STRATEGIC

MANAGEMENT
Submitted to: Prof. Shambu Prasad C.

SUBMITTED BY: GROUP 6

Chandresh Jindal X05005
Lalita Modi X05014
Ankurkumar Patel X05020
Jaypalsinh Rahevar X05028
Sumit Kumar X05033

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 INDEX
Sr.No. Particulars Page No.
1 Introduction 1
2 Products and Services 2
3 Various controversies and challenges for 3
Infosys
4 Competitors 5
4.1 Capgemini 5
4.2 TATA Consultancy Services 5
4.3 Cognizant 5
4.4 Accenture 6
4.5 HCL Technologies 6
4.6 Infosys vs its competitors 7
5 Revenue and Number of Employees 9
6 Acquisitions 9
7 Strategy 13
7.1 Analysis of Strategies of Infosys 15
7.1.1 Corporate level strategy 15
7.1.2 Generic Strategies 16
7.2 SWOT Analysis for Infosys 17
7.3 Porter 5 forces Model for Infosys to understand 18
the business environment
7.4. Use of Mckinsey 7S Framework to Analyze 18
Infosys
8 References 21

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List of Tables:
S. No Particulars Page No.

1 Infosys VS other IT companies 7

2 Infosys vs TCS Business Verticals 8

3 Infosys vs TCS Revenue Growth (2018-2022) 8

4 Acquisitions by Infosys 10

5 SWOT Analysis 17

List of Figures:
S. No Particulars Page No.

1 Revenue growth of Infosys 9

2 Number of employees 9

3 Porters 5 forces model 18

4 Mckinsey’s 7S model 20

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1.0 Introduction

Infosys Limited is an Indian multinational information technology company that provides

business consulting, information technology, and outsourcing services. Bangalore serves as
the company's headquarters; it was established in Pune. According to 2020 revenue estimates,
Infosys is the second-biggest Indian IT business after Tata Consultancy Services, and it is
ranked as the 602nd largest public company in the world by Forbes Global 2020. On August
24, 2021, Infosys became the fourth Indian firm to have a market valuation of $100 billion
(“Infosys Becomes 4th Indian Company to Touch $100 Bn Market Cap,” 2021).

Due to great leadership from their CEO, Salil Parekh, and differentiated digital services,
Infosys holds its strong position as one of the top 3 IT services brands in the world and has
risen to become one of the top 150 brands in the world.

Training and development offered at Infosy is world-class, the ESOPs are offered for
sustaining employee motivation, which is the main reason for Infosys being regarded as the
"Best Employer in India". It is also one of the few organizations in India, which is using
economic value added (EVA) as a tool for performance measurement.

In Pune, Maharashtra, India, seven engineers created Infosys. $250 served as its first funding.
On July 2nd, 1981, Infosys Consultants Private Limited was registered. It moved to
Bangalore, Karnataka, in 1983.

The company changed its name to Infosys Technologies Private Limited in April 1992 and to
Infosys Technologies Limited when it became a public limited company in June 1992. It was
renamed Infosys Limited in June 2011.

In February 1993, an initial public offering (IPO) was launched with a share price of 95
against a book value of 20. The US investment bank Morgan Stanley "bailed out" the
undersubscribed IPO by purchasing a 13% equity share at the offer price. Its shares were
listed in June 1993, with the opening price for trading being 145 yen (equal to 890 yen or $11
in 2020)

As American depositary receipts, Infosys shares were listed on the Nasdaq stock exchange in
1999. (ADR). It was the first firm from India to list on Nasdaq. By 1999, the share price had
risen to 8,100 yen, which is equivalent to 30,000 yen or US$370 in 2020, making it the most
expensive share available on the market at the time. Infosys was one of the top 20 Nasdaq
companies by market capitalization at the time. To improve access to the company's shares

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for European investors, the ADR listing was moved from Nasdaq to NYSE Euronext. Its
annual revenue reached US$100 million in 1999, US$1 billion in 2004, and US$10 billion in
2017.

In 2012, Infosys announced a new office in Milwaukee, Wisconsin, to serve Harley-

Davidson. Infosys hired 1,200 United States employees in 2011 and expanded the workforce
by 2,000 employees in 2012. In April 2018, Infosys announced expanding in Indianapolis,
Indiana.

Edge Verve Systems is a product subsidiary that Infosys established in July 2014 with a focus
on enterprise software products for the disciplines of business operations, customer support,
procurement, and commerce networks. Assets from Finacle Global Banking Solutions were
transferred from Infosys in August 2015, and as a result, they are now a part of the product
range of Edge Verve Systems.

(Source-Wikipedia)

The core elements of Infosys' strategy include:

 Client Centricity: Infosys places a strong emphasis on understanding and meeting the
unique needs of its clients.
 Digital Transformation: Infosys helps its clients embrace digital technologies to drive
innovation and growth.
 Talent Development: Infosys invests heavily in developing its employees and building
a diverse, highly skilled workforce.
 Sustainability: Infosys is committed to operating in a socially and environmentally
responsible manner.
 Partner Ecosystem: Infosys works with a global network of partners to deliver end-to-
end solutions to its clients.

Overall, Infosys' strategy is focused on delivering value to its clients through a combination
of technology expertise, business acumen, and a commitment to sustainability and social
responsibility.

2.0 Products and Services

Infosys mainly deals in software development, maintenance, and independent validation

services to companies in finance, insurance, manufacturing, and other domains.

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Finacle, one of its well-known products is a universal banking solution with various modules
for retail and corporate banking.

Its key products and services are:

 NIA – Next Generation Integrated AI Platform (formerly known as Mana)

 Infosys Consulting – a global management consulting service
 Infosys Information Platform (IIP) – Analytics platform
 Edge Verve Systems which includes Finacle, a global banking platform
 Panaya Cloud Suite
 Skava
 Engineering Services
 Digital Marketing

(Infosys - Innovation-Led Business Growth for Global Enterprises | Products & Platforms,
n.d.)

3.0 Various Controversies and challenges for Infosys

3.1. Employee Backlash and Concerns

Infosys founder NR Narayana Murthy's recent remarks advocating a 70-hour work week for
Indian youth have ignited a fierce debate across social media platforms. Speaking on a
podcast 'The Record,' Murthy emphasized the need for young people to work 12 hours a day
to enhance India's competitiveness on the global stage, drawing parallels with the post-World
War II efforts of countries like Japan and Germany.

While the 70-hour work week may have seemed reasonable to company executives from an
operational standpoint, it quickly sparked a wave of backlash from Infosys employees.
Several key concerns have emerged:

1. Work-Life Balance: Employees argue that such extended work hours disrupt their
work-life balance, leading to burnout, stress, and adverse effects on their personal
lives.

2. Health and Well-Being: Extended work hours can take a toll on physical and mental
health. Employees reported increased stress, sleep deprivation, and a sense of being
overworked.

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 3. Quality of Work: Some employees expressed concerns that prolonged work hours
negatively impact the quality of their work, as fatigue can lead to errors and reduced
productivity.

4. Impact on Diversity and Inclusion: Critics argue that mandatory long hours may
disproportionately affect certain groups, such as working parents and caregivers,
potentially harming the company's commitment to diversity and inclusion.

(Source: Editorji News Desk, Updated: Oct 27, 2023 “Infosys founder Narayana Murthy
sparks controversy with 70-hour work week proposal”)

3.2. The Infosys assets controversy involving Rishi Sunak and wife Akshata Murthy

It was reported in British newspapers on Thursday, April 7, that Akshata Murthy, the wife of
Indian-origin United Kingdom Finance Minister Rishi Sunak and daughter of Infosys co-
founder Narayan Murthy, claims a non-domiciled tax status in the UK. Under British law,
this essentially means that one does not have to pay taxes on dividend benefits received from
overseas companies.

(Source: The Hindu, updated: Apr 08, 2022 “Explained | The Infosys assets controversy
involving Rishi Sunak and wife Akshata Murthy”)

3.4 Increase in Sikka’s pay

In February,2016 then CEO Sikka’s pay was increased by 55 percent to USD 11 million
including restricted stock. This increase did not go down very well with the founders. There
were also issues raised against Sikka’s spending, which included his using a chartered plane
for travel.

3.5 Alleged wrongdoings in Panaya deal

In 2017, There were two anonymous letters released pointing towards wrongdoings in the
Panaya deal and several other financial deals. After this, the company instituted an
independent forensic investigation by US law firm Gibson Dunn & Crutcher. However, post-
investigation there was no evidence found of wrongdoing or inappropriate contracting, giving
a clean chit to the team.

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(Source: CIO, 17 Aug 2017 by Apurva Venkat “5 controversies Infosys faced in recent
times”)

4.0 Competitors

With a focus on digital transformation, a client-centric strategy, and a dedication to

sustainability and social responsibility, Infosys stands apart from its rivals. Nonetheless, there
is fierce competition in the IT services and consulting sector, with each business competing
to offer its customers the most creative and efficient solutions. The main rivals of Infosys are
listed below.

4.1 Capgemini

Capgemini SE is a French multinational corporation that provides consulting, technology,

professional, and outsourcing services. It is headquartered in Paris, France. Capgemini has
over 270,000 employees in over 50 countries, of whom nearly 120,000 are in India.

4.2 TATA Consultancy Services

With its headquarters in Mumbai, Maharashtra, India, Tata Consultancy Services Limited
(TCS) is a global Indian information technology (IT) services and consulting firm. TCS is
one of the most valuable IT services brands globally and the second-largest Indian firm by
market capitalization. It is the second Indian firm after Reliance and the largest provider of IT
services in the world, with a market capitalization of $100 billion.

4.3 Cognizant

Cognizant is an American multinational corporation that provides IT services, including

digital, technology, consulting, and operations services. Headquartered in Teaneck, New
Jersey, United States, Cognizant is part of the NASDAQ-100 and was founded as an in-house
technology unit of Dun & Bradstreet in 1994.

Services: Cognizant provides information technology, information security, consulting, ITO,

and BPO services. These include

 Business & technology consulting,  Analytics,

 Systems integration,  Business intelligence,
 Application development &  Data warehousing,

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 maintenance  Customer relationship management,
 IT infrastructure services,  Supply chain management,
 Artificial Intelligence  Engineering & manufacturing
 Digital Engineering solutions
Digital Business, Digital Operations, and Digital Systems & Technology are the three key
areas of expertise that makes up Cognizant’s business.

4.4 Accenture

Accenture is a Fortune Global 500 firm and a multinational professional services provider
with Irish headquarters. Accenture, a Dublin-based corporation, provides services to
customers in more than 200 cities across 120 nations. 91 of the Fortune Global 100 and more
than 75 percent of the Fortune Global 500 are among Accenture's current clients.

Services and Operations:

 Accenture Strategy provides business strategy, technology strategy, and operations

strategy services.
 Accenture Consulting provides technology, business, and management consulting.
 Accenture Digital provides digital marketing, analytics, and mobility services.
 Accenture Technology focuses on technology software, implementation, delivery, and
research & development, including its Technology Labs for emerging technologies.
 Accenture Operations focuses on an “as-a-service” model of service delivery. This
includes business process outsourcing, IT services, cloud services, managed
operations, and security.

4.5 HCL Technologies

HCL Technologies is a multinational Indian IT services and consulting firm with its
headquarters in Noida, Uttar Pradesh, India. HCL initially existed as a branch of HCL that
handled research and development; however, in 1991, when HCL began offering software
services, the company became an independent entity. The business has offices throughout 44
nations, including the United Kingdom, the United States, France, and Germany. 250 of the
Fortune 500 and 650 of the Global 2,000 are among Infosys' clients. HCL Technologies
operates in varied industries some of which are:

 Aerospace and defence,  Chemical and process industries,

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  Automotive,  Energy and utilities,
 Banking,  Healthcare,
 Capital markets  Hi-tech,
 Industrial manufacturing, etc
HCL Technologies operate in 44 countries and has below-mentioned business lines:

BUSINESS LINES

 Applications Services and Systems Integrations

 BPO/Business Services: This division has “delivery centers” in India, Philippines,
Latin America, USA, HCL BPO Northern Ireland, and Europe.
 Engineering and R&D Services (ERS)
 Infrastructure Management Services (IMS)
 IoT WoRKS
 DRYiCE
 Digital & Analytics
 Cybersecurity and GRC Services
(Source-Economic Times)

4.6 Infosys vs its competitors

Table 1. Infosys VS other IT companies

Name Market Cap. Sales Net Profit Total Assets

(Rs. cr.) Turnover
Infosys 649,115.56 103,940.00 21,235.00 69,306.00
TCS 1,244,242.12 160,341.00 38,187.00 77,173.00
HCL Tech 297,105.62 40,638.00 10,874.00 42,817.00
Wipro 215,811.79 59,574.40 12,135.30 62,029.80
LTIMindtree 143,576.76 24,845.40 3,912.30 8,402.90
Tech Mahindra 108,991.13 34,726.10 4,913.10 27,079.60
Mindtree 56,643.29 10,525.30 1,652.80 5,473.40

As we can see, TCS is Infosys' next-largest rival. TCS is larger than Infosys, and both
businesses operate in essentially the same market. Except manufacturing, TCS and Infosys

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share the same main business sectors. The business has a section for life sciences and
healthcare instead.
Table 2. Infosys vs TCS Business Verticals

Infosys TCS
Financial services Financial services
Retail Retail
Key Business Verticals Communication Communication
Energy and utilities Manufacturing
Manufacturing Life science and healthcare
Market leader in IT services
Digital services
space

Competitive advantage Internet of things (IoT) Outsourcing

Big data and analytics Diversified client base
Artificial Intelligence (AI)

Revenue for Infosys and TCS increased at a CAGR of 12.2% and 10.2%, respectively, over
the past five years (2017-2021). TCS is in the lead in terms of revenue, even though Infosys
has a higher CAGR; TCS's revenue is 1.6 times that of Infosys. The technology, energy, and
utilities sectors drove Infosys' revenue growth. On the other hand, TCS's life science and
healthcare sector drove the company's revenue increase.

Table 3. Infosys vs TCS Revenue Growth (2018-2022)

2017- 2018- 2019- 2020- 2021- 2021-

2018 2019 2020 2021 2022 2022
Revenue (in m)
Infosys 705,220 826,750 907,910 1,004,720 1,216,410 1,467,670
TCS 1,231,040 1,464,630 1,569,490 1,641,770 1,917,540 2,254,580
Revenue Growth (%)
Infosys 2.90% 17.20% 9.80% 10.70% 21.10% 20.65%
TCS 4.40% 18.90% 7.20% 4.60% 16.80% 17.58%
(Infosys vs TCS, n.d.)

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5.0 Revenue and Number of Employees

The revenue for the company from 2014 to 2023 is as below. The figures are in billion
dollars.

20 18.21
18 16.31
Revenue in billion U.S.

16
14 12.78 13.56
11.8
12 10.21 10.94
dollars

8.71 9.5
10 8.25
8
6
4
2
0
FY FY FY FY FY FY FY FY FY FY
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Fig. 1. Revenue growth of Infosys

As the company is in the services industry the major cost of the company last year was the
aggregate employee cost/ revenue percentage is 52.6%. this shows the magnitude of
employee cost in total revenue. The number of employees from 2014 to 2022 is as below

400,000
350,000
300,000
250,000
200,000
150,000
100,000
50,000
0
FY FY FY FY FY FY FY FY FY FY FY FY FY FY
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Fig 2. Number of Employees

(Source-Statista)

6.0 Acquisitions

Infosys has done more than 16 acquisitions in its history; the company has acquired majority
of the companies outside India. Some of the major acquisitions are stated below

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 Table 4. Acquisitions by Infosys

Name of Company Details

Acquired
Expert Information Type of Business- IT service provider
Services Acquisition Cost- US $ 23 million
Acquisition Date- December 2003

Expert is one of Australia's leading IT service providers specializing in

the design, build and integration of business solutions and products to
leading companies in Australia. Its clients include medium and large
enterprises, which span across various industry verticals such as
Telecom, Financial services, Retail, and Government sector.

Expert achieved total revenues of A$ 46.7 million (US$ 34.6 million*)

for the fiscal year ended June 30, 2003 and a net profit after tax of A$
7.0 million (US$ 5.2 million).

Oddity Type of Business- Digital marketing, Experience and commerce

agencies
Acquisition Cost- Eur 50 million
Acquisition Date- March 2022

The acquisition was done to strengthens Infosys’ creative, branding

and experience design capabilities, and demonstrate its continued
commitment to co-create with clients and help them navigate their
digital transformation journey. oddity brings to Infosys a
comprehensive service portfolio comprising digital-first brand
management and communication, in-house production, including
virtual and augmented reality, experience design and e-commerce
services as well as its metaverse-ready set-up across Europe.

Guidevision Type of Business- Service Now Partner

Acquisition Cost- Eur 30 million
Acquisition Date- October 2020

Through this acquisition, Infosys further enhances its digital

capabilities, strengthens Infosys Cobalt portfolio of cloud services and
reaffirms commitment to the growing ServiceNow ecosystem.
GuideVision brings to Infosys, end-to-end offerings, including
SnowMirror - a proprietary smart data replication tool for ServiceNow
instances – that enables over 100 enterprise clients to simplify
complex business and IT processes. GuideVision’s training academy
and nearshore capabilities in Czech Republic, Hungary, Poland, and
presence in Germany and Finland strengthens Infosys’ ServiceNow
capabilities, offering clients in Europe unparalleled capabilities in
cloud-first digital transformation.

ServiceNow is one of the fastest growing enterprise software

companies, and is becoming an ‘essential service’ and workflow

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 standard for organizations. Infosys was recognized by ServiceNow as
the 2019 and 2020 ServiceNow Global Service Provider Partner of the
Year.

Kaleidoscope Type of Business- Product design and development

Acquisition Cost- US $42 million
Acquisition Date- September 2020

Infosys’ commitment to innovate for its clients, and make meaningful

impact on human lives through a combination of cutting-edge
technologies. This collaboration further aims to revolutionize patient
care, treatment, diagnostics and consumer health, across the world.

With Kaleidoscope Innovation, Infosys will further strengthen its

digital offerings and also its workforce, with a diverse talent pool with
extensive knowledge of design and engineering. Kaleidoscope
leverages a deep understanding of clinical environments, strong
product development capabilities across domains, and a consultancy-
style approach addressing human factors, product design, UI/UX
design, research & insight, development and visualization. It serves a
marquee and diversified customer base with state of the art, in-house
labs, 3D design environments and customer experience centers.

Kaleidoscope Innovation designs microsurgical instruments, devices

used in minimally invasive surgery, drug delivery devices for
ophthalmic therapies and user-centric wearables. It also offers usability
testing in support of regulatory submissions, including the delivery
mechanism for aortic stents.
Stater N.V. Type of Business- Mortgage Services
Acquisition Cost- EUR 127.5 million
Acquisition Date- April 2019

Infosys announced a strategic partnership with ABN AMRO, the third

largest bank in the Netherlands headquartered in Amsterdam. This
partnership strengthens Infosys’ position as a leading technology and
business process management provider across the mortgage services
value chain, improving experience and operational efficiencies, and
further enhances the company’s strategy to help clients navigate their
next digital transformation journeys.

As part of the announced partnership, Infosys will acquire 75% of the

shareholding in Stater N.V., a wholly owned subsidiary of ABN
AMRO Bank N.V., that offers pure-play, end-to-end mortgage
administration services in the Netherlands, Belgium and Germany.
ABN AMRO will continue to hold the remaining 25% of the
shareholding.

Stater is a market leader in the Benelux region, operating across the

mortgage and consumer lending value chain with deep capabilities in
digital origination, servicing and collection. Stater also brings deep

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 European mortgage expertise and a robust digital platform to drive
superior customer experience. Infosys will drive the digital
transformation roadmap of Stater with accelerators such as dynamic
workflow, API layers, RPA and analytics. The current management
team of Stater will continue to steer the company.

Mortgage services is a focus area for large corporations in the financial

sector, given the importance of the asset on a bank’s balance sheet.
The specialized knowledge and experience of Stater in the mortgage
services market, combined with the global reach, AI, digital
transformation and automation capabilities of Infosys, can potentially
create differentiated solutions for the market

WongDoody Type of Business- Advertising and creative strategy services

Acquisition Cost- US $75 million
Acquisition Date- January 2019

The move strengthens Infosys’ creative, branding and customer

experience capabilities, and demonstrates its continued commitment to
bringing innovative thinking, talent and creativity to clients around the
world.

WONGDOODY, an award-winning creative agency with studios in

Seattle and Los Angeles, brings to Infosys globally recognized creative
talent and deep marketing and brand engagement expertise. The
agency is known for its fully-integrated campaigns, omni-channel
programs, expertise in connecting digital experiences to physical in-
store experiences, and capabilities to create multi-platform content that
marries data and analytics with creative expertise to drive compelling,
sharable content. With services that include strategy, research and
insights, brand and marketing positioning, creative design, advertising
and production, WONGDOODY elevates global brands across
industries from telecommunications and consumer electronics, to
healthcare and consumer packaged goods.

Fluido Oy Type of Business- Salesforce advisor and consulting partner

Acquisition Cost- EUR 65 million
Acquisition Date- October 2018
Fluido, is one of the largest and longest tenured independent
Salesforce Platinum Consulting Partners in Europe and an Authorized
Salesforce Training Delivery partner in the Nordics. Fluido brings to
Infosys globally recognized Salesforce expertise, alongside a world-
class agile delivery process that simultaneously simplifies and scales
digital efforts across channels and touchpoints. The acquisition is in
accordance with the terms set out in the agreement announced by the
company on September 14, 2018.

Through this acquisition Infosys strengthens its position as a leading

Salesforce enterprise cloud services provider, and enhances its ability
to provide clients an unparalleled cloud-first transformation. With

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 offices in Finland, Denmark, Sweden, Norway and Slovakia, Fluido
elevates Infosys’ presence across the Nordics region with developed
assets and deep client relationships, a great team and an effective local
culture. Fluido customers are represented across industries, such as
manufacturing, energy, retail and telecommunications sector.
(“Infosys,” 2023)

7.0 Strategy

To achieve expansion, Infosys has developed a client-focused strategy. It concentrates on a

small number of significant organisations around the world rather than many local
organisations. The business places a strong emphasis on custom-built software to better serve
its customers. The premium margins Infosys commands are another differentiator. The
corporation won't discuss margins after a certain point and, occasionally, would rather walk
away from a deal than give up quality for a lower price. This has aided in creating a positive
perception of the quality-driven strategy as opposed to the cost-differentiating model.
Increase business from existing and new clients: By raising the size and quantity of projects
and broadening the range of its service offerings, Infosys has concentrated on enhancing the
nature and scope of engagements for current clients. By utilising its extensive industry
knowledge, it offers new clients value-added solutions. By offering services that are long-
term in nature and necessitate regular customer engagement, such as software re-engineering,
maintenance, infrastructure management, and business process management, it boosts its
recurring business with clients.
Expand geographically: To broaden its worldwide reach, Infosys intends to open new sales
and marketing offices, representative offices, and global development centres. It intends to
expand its footprint through Infosys China, Infosys BPO, Infosys Australia, Infosys
Australia, and Infosys Mexico in Australia, China, the Czech Republic, and Eastern Europe.
Enhance solution set: Infosys concentrates on the cutting-edge business difficulties that our
clients face, as well as developing trends, new technology, targeted industries, and general
business issues. It has recently expanded its service offerings, which have been key drivers of
growth. They include consulting, business Process management, systems integration, and
infrastructure management.
Develop deep industry knowledge: Infosys offers specific industry knowledge in the
manufacturing, financial services, telecommunications, retail, logistics, and retail industries.
Enhance brand visibility: Through participation in media and industry analyst events,
sponsorship of and participation in targeted industry conferences, trade shows, recruiting
initiatives, community outreach programmes, and investor relations, Infosys invests in the
development of its premium brand identity in the marketplace.
Pursue alliances and strategic acquisitions: Although it has strategic alliances with top
technology suppliers to benefit from developing technologies in a way that is cost-

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competitive and mutually beneficial, Infosys is known for its organic growth (risk-averse)
strategy.
Infosys has driven its growth strategy based on five pillars (C.L.O.U.D)
C: Catalyse digital transformation
In the areas of infrastructure as a service, platform as a service, and software as a service, the
company's Cobalt cloud capabilities are market leaders. Early investments by Infosys in
cloud computing enabled the company to develop faster than the market as a whole and gave
it an excellent position from which to expand its market share. The organization's main
growth engines were the digital and cloud sectors. This industrial subsegment is expanding at
a CAGR of 14–16%. In Q4FY22, digital projects generated 59.2% of total income, up 40%
year over year in the cloud sector. The company put a strong emphasis on developing its sales
team and investing in digital competencies, which has helped it advance its digital business.
L: Localisation in markets like the US, Europe and Australia
At times of macro uncertainty, the organisation has pursued discretionary and project-based
IT investment. The company has been able to deliver and reduce the risk to its operations
from regulatory changes, particularly Visa uncertainty, because to a strong localization
approach. In important markets in FY2022, Infosys hired around 14,805 local workers,
including 3,650 freshmen. Infosys is proud of its successful operations throughout Europe.
These areas represent a major development engine, and major European corporations are
becoming more open to considering digital transformation. By employing local talent in its
markets, including North America, Europe, and APAC, Infosys is advancing its localization
strategy.
O: Opportunities boosting its clients’ technology landscape with new emerging technologies
In addition to investing in more solid alliances with other significant SaaS providers and
global cloud hyperscalers like AWS, GCP, and Microsoft Azure, Infosys continues to
develop its data, analytics, AI, cybersecurity, and IoT expertise. The business made an
investment in developing the necessary skills and abilities to deliver in these areas, thereby
meeting consumer expectations. Investments made by Infosys to improve its automation
platforms and capabilities, such as the Bot Factory with preconfigured automation bots and
LEAP, a platform for maximising large-scale application maintenance and reengineering,
have been very important in this situation. Infosys has been guided back onto its high-growth
trajectory by the execution and augmentation of digital capabilities through regular
investments.
U: Unique Skill & Talent Pyramid Build-up
Due to a high demand for digital skills and severe supply-side issues over the past few
quarters, the sector has been struggling to meet demand. The same problem affected Infosys,
which was fairly clear from its rising attrition rate, which rose from 10.9% at the end of last
year to 27.7% in Q4FY'2022. Instead of its initial aim of recruiting 25,000 fresh graduates at
the beginning of the year to satisfy increasing demand, the company ultimately hired 84,782+
fresh graduates closer to FY2022. Given its outstanding training capabilities, this three-fold
rise over the previous year does not hinder any execution risk. With an emphasis on
improving employee engagement and facilitating quicker and more predictable career

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advancement, Infosys has created a distinctive staff pyramid structure to meet the expanding
demands of the sector.
D: Deal Signing Momentum
Another factor contributing to its continuous performance was a steady increase in the
number of net new clients and larger deal engagements won with the help of deal advisors,
consulting firms, and private equity investors. Infosys kept concentrating on the big deal,
resulting in a deal TCV of USD 9.5 billion in FY'22, which is nearly three times more than
when Salil took over as CEO of Infosys. A total of 94 people signed up for the agreement,
amounting to $9.5 billion for the year. In FY2022, the company's revenue from the top
5/10/20 accounts climbed by 25.2%, 25.3%, and 23.4% YoY. On a YoY basis, the number of
clients with $200 million and $100 million climbed by five and six each, to 12 and 38,
respectively, while clients with $50 million and $10 million increased by five and 23 each, to
64 and 275, respectively. Surprisingly, the organisation has proven to be capable of handling
large-scale, challenging transformation programmes because the rate of client addition in the
$100 million bracket has been higher than the $50 million bracket.(Infosys Poised for Future
Growth, n.d.)

7.1 Analysis of Strategies of Infosys

7.1.1 Corporate level strategy

 Global delivery model -Producing where it is most effective to produce and selling
where it is most profitable to sell.
 Moving up the value Chain-Getting involved in a software development project at the
earliest stage of its life cycle.
 PSPD model- “Predictability of Revenues, Sustainability of Revenues, Profitability,
De-Risking” for risk management
Actions Taken

1. To maintain low-cost advantage, they have opened offices in Czech Republic,

Mauritius, Poland, Philippines, Thailand and Mexico.
2. Invested in developing training centres
3. Improved quality capabilities – CMM level 5i company.
4. Infosys Consultancy established to provide high end services in value chain.
5. Has hedged currency for more predictability of revenues (risk management).
7.1.2 Generic Strategies

1. Low Cost – Global delivery 24/7 model.

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 2. Little differentiation in low end services of value chain: high differentiation in high
end services of value chain like software products and package solutions.
3. Focus on quality, customer relationship management and timely delivery.

7.2 Strategies for Covid-19

Infosys is using two strategies for mitigating Covid one is taking care of employees and the
other is taking care of clients, these are explained as below

7.2.1 Prioritizing Employees

With lockdowns effective, in several parts of the world, 93% of the Infosys global workforce
is working from home. Small teams of mission-critical frontline personnel continue to work
out of the company’s workplaces to deliver on specific business continuity plans for clients in
critical infrastructure and service industries. To enable its employees to work from home,
Infosys rapidly mobilized laptops and desktops, with access to secure virtual work
environments wherever necessary. The company has provided high-speed broadband
connectivity for remote workers and expanded its own virtual private network bandwidth by
10X. This meant shipping over 35,000 assets to employee residences. Significant and rapid
amplification of its technology landscape was undertaken to support robust and secure remote
working at global scale. This meant driving 4X increase in backend capacity to support the
increase in concurrently connected remote users. The company leverages its InfyMe app to
connect with its global workforce and provide the latest updates from advisories, to company
policies and other benefits on offer. It also allows employees to self-declare their health
status.

7.2.2 Prioritizing clients

Infosys helped their clients overcome the tide of covid by enabling their employees to work
from home. They helped their clients to overcome lockdowns and movement restrictions
across the globe by shifting the data and operations from clients’ offices to employees’
homes. Infosys also helped to build capacity for employees working from home. In one case
of a healthcare firm, they helped the client to shift their operations from office-based servers
to cloud servers to enable employees to work from home.(Preparedness and Resilience for
COVID-19 | Infosys, n.d.)

7.2 SWOT Analysis for Infosys

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 Table 5. SWOT Analysis
Strength
 Cost advantage – according to A T
Kearney's research of international IT
destinations, India is the nation with the best
financial climate
 Breadth of service offering – complete
solutions that include premium services like
IT consulting and KPO
 Ease of scalability – India has a population
that is under 25 years old in excess of 50%.
English-speaking IT and ITES workers are
expanding quickly.
 Quality and maturity of process - To
distinguish themselves from other low cost
advantage countries, several players have
quality standards like CMM.
 Global and 24/7 delivery capability –
Excellent telecommunications and internet
infrastructure allow businesses to establish
24/7 delivery capabilities from India.
Opportunity
 Greater scope for product innovation
 Increased focus on high end work like
consulting and KPO
 Domestic demand for IT services is to grow
at 20%
 Greater scope to service domains other than
BFSI such as Transportation, Infrastructure,
etc.
 Satyam debacle - Likely to have a positive
influence on business given corporate 
governance, the chance of transferring
business, receiving more business from
clients who already do business with you
and gaining new business from clients who
don't know you yet.
(Infosys SWOT Analysis (2023) | Business Strategy Hub, n.d.)
Weakness
 Excessive dependence on USA for revenues
 US Companies are cutting down IT budget
hence revenues to be hit hard of Indian IT
firm’s excessive reliance on the BFSI industry
for revenue
 High rates of attrition – Despite a slowdown
in the global economy, the industry still has
significant attrition rates when compared to
other sectors.
 Decreasing competitive advantage – rising
salary expenses is taking away the cost
advantage enjoyed by India.
Threats
 Low IT spending globally due to the
possibility that the global economic recession
may last for years, and US government
opposition to outsourcing
 Margin contraction as a result of increased
wage inflation The rupee-dollar exchange rate
has an impact on revenue and profits.
 Increased competition from foreign firms like
Accenture, IBM etc.
Increased competition from low-wage
countries like China, Indonesia etc.
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 7.3 Porters 5 forces Model for Infosys to understand the business environment

Threat of Substitutes
1.Other offshore locations as Eastern
Europe, the Philippines and China, are
emerging and are posing threat to Indian
IT industry because of their cost-
advantage.However, this should have an
impact only in the medium to long term
2. Price quoted for projects is a major
differentiator , the quality of products
being same

Bargaining power of suppliers Bargaining power of customers

1. Availability of vast talent pool freshers
and experienced.
2. Demand and supply of IT
professionals is no longer favourable to
employees.
3. Die to slowdown , the job cuts , the
layoffs and bleak IT outlook the the
barganing power of suppliers shifts from
high to low.
1. Large number of IT companiesvying for
1.Rivalry Among Firms: High IT projects – resulting in high competition
2.1. Commoditized offerings for projects.
3.2. Low-Cost, little differentiation 1.2.Huge decline in IT expenditure:Indian
positioning IT sector is dependent on USAfor majority
of its revenues, and with the recent financial
4.3. High Industry growth crisis, the new spending from these has
5.4. Strong competitors-few number of reduced tremendously.However, for the
large companies existing products and services, the clients
continue the old companies.

Barriers to entry
1. Low barriers to entry
2. Large value chain space for small
enterprises.
3.MNCs are ramping up capacity and
employee strength.

Figure 3. Porters 5 forces model

7.4 Use of Mckinsey 7S Framework to Analyze Infosys:

7.4.1. Strategy
Infosys needs to build a balance between short run cost savings and protecting its core
competitive advantage. Customers perceive Infosys products and services to deliver ‘value

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for money’ proposition plus a bit extra. In its zest to gain more market share through
competing on prices, Infosys should avoid cutting costs that can result in inferior product and
service delivery.

7.4.2.Structure
The pandemic has questioned the current structure and supply chain management of the
company. To be more resilient organization and prepare itself for future disruption of similar
magnitudes Infosys should focus on – diversifying suppliers geographically so that climate
related, geopolitical, and other disruptions don’t impact the long term survival of the
company.

Reduce the dependence on China – As the trade war between US and China is getting
aggressive, it should reduce its dependence on supply chain emerging out of China. This will
help the organization to diversify risks, avoid regulatory problems etc.

To achieve the above two goals – Infosys needs to fine tune its organization structure. It
needs to have smaller teams, easy reporting to the headquarters, and enabling teams to take
decisions based on real time developments.
7.4.3. Systems
Infosys needs to focus on the following areas – Improve internal processes, such as risk
management, Customer Relationship Management (CRM), web app optimization, and data
visualization across the organization.

Infosys needs to put in place robust system for “work from home” employees so that there
can be greater interaction among the employees both online and in physical environment. It
will not only improve productivity but also increase the data security and cyber security.
7.4.4. Staff
Some of the steps Infosys can take in to improve the human resources are –

Recruitment and remote onboarding – Because of the pandemic, a lot of employees are
working from remote locations. To make the environment more inclusive for the new
employees, Infosys should build system for remote onboarding such as – catalog of short
videos, small groups interaction, technical demonstrations.

Open chats for the people to approach people at various levels in the hierarchy. It will not
only help the top management to directly interact with the people below but also help in
building an open and transparent culture.
7.4.5. Skills
Infosys can build a structured training and development program for people working from
remote locations.

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Infosys can hire fresh talent as more and more people are leaving their existing jobs because
they are not challenging them enough.
7.4.6. Style / Leadership Style & Culture
The leadership styles required in the physical location and in remote scenario are completely
different. In a physical environment manager can stop by a chat, provide inputs and go
through the work. But in the remote locations employees have to work in far more isolated
environment. To improve the workflow – leaders should pursue collaborative and inclusive
form of leadership. Leaders should build smaller teams as part of larger teams.
7.4.7. Shared Values
The organization has built a successful business model based on its core values, vision and
mission. It doesn’t have to change much in the shared values segment. One area where it can
focus more is – sustainability. Investors are putting a lot of stress on Environmental, Societal,
and Governance issues, so it can bring more transparency by using the Triple Bottom Line
concept in its ESG and financial reporting.

Figure 4 Mckinsey's 7S model

(Source: https://embapro.com/frontpage/mckinsey7scoanalysis/10575-infosys)

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8.0 References
1. Infosys. (2023). In Wikipedia.

https://en.wikipedia.org/w/index.php?title=Infosys&oldid=1139671180

2.Infosys becomes 4th Indian company to touch $100 bn market cap. (2021, August 24). The

Economic Times. https://economictimes.indiatimes.com/markets/stocks/news/infosys-

becomes-4th-indian-company-to-touch-100-bn-market-

cap/articleshow/85595820.cms

3.Infosys Poised for future growth. (n.d.). Retrieved February 17, 2023, from

https://www.dqindia.com/infosys-poised-for-future-growth/

4.Infosys SWOT Analysis (2023) | Business Strategy Hub. (n.d.). Retrieved February 17,

2023, from https://bstrategyhub.com/infosys-swot-analysis/

5.Infosys vs TCS: Which IT Stock is Better? (n.d.). Equitymaster. Retrieved February 26,

2023, from

https://www.equitymaster.com/detail.asp?date=11/26/2021&story=5&title=Infosys-

vs-TCS-Which-IT-Stock-is-Better

6.Infosys—Innovation-Led Business Growth for Global Enterprises | Products & Platforms.

(n.d.). Retrieved February 17, 2023, from https://www.infosys.com/products-and-

platforms.html

7.Preparedness and Resilience for COVID-19 | Infosys. (n.d.). Retrieved February 17, 2023,

from https://www.infosys.com/newsroom/features/2020/resilient-prepared-navigate-

covid19.html

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