powered by intellect driven by values

Type :Public Traded as BSE: 500209 NSE: INFY NASDAQ: INFY BSE SENSEX Constituent Industry IT services, IT consulting Founder(s) N. R. Narayana Murthy Nandan Nilekani N. S. Raghavan S. Gopalakrishnan S. D. Shibulal K Dinesh Ashok Arora

Headquarters Bengaluru, India Area served Worldwide Services IT, business consulting and outsourcing services Revenue US$ 6.99 billion (2012)[1] Operating income US$ 1.01 billion (2012)[1] Profit US$ 2.71 billion (2012)[1] Total assets US$ 7.53 billion (2012)[1] Total equity US$ 6.57 billion (2012)[1] Employees 150,000 (2012)[1] Divisions Infosys BPO, Infosys China Website www.infosys.com

 Infosys

Limited formally Infosys Technologies (BSE: 500209, NSE: INFY, NASDAQ: INFY) is an Indian global technology services company headquartered in Bangalore, India. It is ranked #27 in the list of top companies of India in Fortune India 500 list in 2011.It has offices in 29 countries and development centers in India, US, China, Australia, UK, Canada, Japan and many other countries. The company provides business consulting, technology, engineering and outsourcing services to help clients in over 30 countries.

Established in 1981, Infosys is a NASDAQ listed global consulting and IT services company with more than 149,000 employees. From a capital of US$ 250, we have grown to become a US$ 6.994 billion (FY12 revenues) company with a market capitalization of approximately US$ 32 billion. In our journey of over 29 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.

Our Vision, Mission and Values Vision "We will be a globally respected corporation." Mission "Strategic Partnerships for Building Tomorrows Enterprise." Values We believe that the softest pillow is a clear conscience. The values that drive us underscore our commitment to: Client Value: To surpass client expectations consistently Leadership by Example: To set standards in our business and transactions and be an exemplar for the industry and ourselves Integrity and Transparency: To be ethical, sincere and open in all our transactions Fairness: To be objective and transaction-oriented, and thereby earn trust and respect Excellence: To strive relentlessly, constantly improve ourselves, our teams, our services and products to become the best

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R. Narayana Murthy Nandan Nilekani N. S. Raghavan S. Gopalakrishnan S. D. Shibulal K Dinesh Ashok Arora

Infosys has experienced a decade of growth fuelled by outsourcing of jobs from the US, and are now turning to acquisitions in Europe so as to expand into Europe. It may help Bengaluru-based Infosys achieve a target of getting 40 percent of its sales from Europe, up from about 22%. Infosys' stock declined 14% in the year 2011, valuing Infosys at U+20B9 1.36 lakh crore. In 2008, Infosys decided against further pursuing a plan to buy Axon after its bid was trumped by New Delhi-based HCL Technologies. In 2006, Infosys spent $115 million to purchase Citigroup's stake in Progeon, a back-office service provider controlled by Infosys.

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Since the company is based in India its competitive advantage is enhanced. The Indian economy, despite weak economic indicators such as relatively high rates of inflation, has low labour costs. The workforce has relatively high skills levels in Information Technology. Couple these two elements together and you have an operational basis that offers low-cost based, highly skilled competitive advantage. Trained Indian personnel often speak very good English and are sensitive to Western culture, underpinned by India's colonial past. Infosys is in a strong financial position. The business turned over more than $4 billion in 2008. This means that it has the capital to expand, and also the basis to leverage potential investors. The company has bases in 44 global development centres, most of which are located in India, although the company has offices in many developed and developing nations. This means not only that Infosys is becoming a global brand but also that it has the capability to support the global operations of multinational clients.

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Infosys on occasion struggles in the US markets, and has particular problems in securing United States Federal Government contracts in North America. Since these contracts are highly profitable and tend to run for long periods of time, Infosys is missing out on lucrative business. Added to this is the fact that its competitors do well in terms of securing the same Federal business (and one should also take into account that many of its competitors are domiciled in the US and there could be political pressure on the US Government to award contracts to domestic organizations). Despite being a huge IT company in relation to its Indian competitors, Infosys is much smaller than its global competitors. As discussed above, Infosys generated $4 billion in 2008, which is relatively low in comparison with large global competitors such as Hewlett-Packard ($91 billion), IBM ($91 billion), EDS ($21 billion) and Accenture ($18 billion). It is sometimes argued that Infosys is weaker when it comes to high-end management consultancy, since it tends to work at the level of operational value creation. Competitors such as IBM and Accenture tend to dominate this space.

At a time of recession in the global economy, it may appear that some companies will reduce take up of services that Infosys offers. However, in tough times clients tend to focus upon cost reduction and outsourcing - with are strategies that Infosys offers. So hard times could be profitable for Infosys. There is a new and emerging market in China as the country undergoes a huge industrial revolution. The strategic alliance between Infosys and Schlumberger gives the IT company access to lucrative business in the gas and oil industries. There has been a trend over recent years for European and North American companies to base some or all of their operation in India. This is called an offshore service. Essentially there is a seamless link between domestic operations and services hosted in India. Examples include telecommunications companies such as British Telecom and banks such as HSBC that have customer service and support centres based in India. Think about the times that you have made calls to a support line to find that the adviser is in Mumbai or Bangalore and not in your home market.

India is not the only country that is undergoing rapid industrial expansion. Competitors may come from countries such as China or Korea where there are large pools of low-cost labor, and developing educational infrastructures such as universities and technology colleges. Customers may switch to other offshore service companies in other countries such as China or Korea. Other global players have realised that India has the benefit of low-cost, highly-skilled labor that often speaks English and is culturally sensitive to Western practices. As with all global IT players, Infosys has to compete for skilled labor and this may have the effect of driving up wage levels, and making it more difficult to recruit and retain staff.

 Netaji
Vijay Sudeep Sudeepu Varun Pranjal

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