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Infosys Case Study, Organizational Structure- Infosys

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Midhu S V Unnithan
Midhu S V Unnithan

Infosys is an Indian multinational corporation that provides business consulting, information technology and outsourcing services. It was founded in 1981 and is headquartered in Bengaluru, India. Infosys has become one of the largest and most respected companies in India by focusing on strategic long-term client relationships, strong corporate governance, and global delivery of high-quality and cost-effective services. Infosys employs over 150,000 people worldwide and has established a global presence with offices and development centers across the U.S., Europe, Asia, Australia and the Middle East.

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• India’s best managed company – Business Today and AT Kearney • India’s most admired company – Business Week • Role model in corporate governance – Forbes • World’s most respected companies – FT • Amongst the “40 companies that are reshaping the global economy” - WIRED Magazine •Global Most Admired Knowledge Enterprise (MAKE) Hall of Fame
Background Of The Company • Founded in 1981 By Shri N.R Narayana Murthi and six of his colleagues • Now on its client list are a number of Fortune 500 companies • First Indian company listed on the NASDAQ • Infosys has a global footprint with 65 offices and 74 development centers in US, India, China, Australia, Japan, Middle East, UK, Germany, France, Switzerland, Netherlands, Poland, Canada and many other countries. • Infosys and its subsidiaries have 149,994 employees as on March 31, 2012. • Infosys takes pride in building strategic long-term client relationships. 97.8% of our revenues come from existing customers
Vision, Mission and Values • Vision "We will be a globally respected corporation." • Mission "Strategic Partnerships for Building Tomorrow’s Enterprise." • 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
Milestones • Infosys is established by N. R. Narayana Murthy and six engineers in Pune, India, with an initial capital of US$ 250 (1981) • Signs up its first client, Data Basics Corporation, in New York • Opens first international office in Boston, US (1987) • Acquires ISO 9001 (1993) • Moves corporate headquarters to Electronic City, Bangalore (1994) • Opens first European office in the UK and global development centers at Toronto and Mangalore (1995) • Opens an office in Toronto, Canada • Infosys is assessed at CMM Level 4 (1997) • Touches revenues of US$ 100 million. Listed on NASDAQ • Infosys becomes the 21st company in the world to achieve a CMM Level 5 certification • Opens offices in Germany, Sweden, Belgium, Australia, and two development centers in the US • Infosys Business Consulting Services is launched (1999)
Milestones • 2000 • Touches revenues of US$ 200 million • Opens offices in France and Hong Kong, a global development center in Canada and UK, and three development centers in the US • Re-launches Banks 2000, the universal banking solution from Infosys, as Finacle™ • 2001 • Touches revenues of US$ 400 million. Opens offices in UAE and Argentina, and a development center in Japan • N. R. Narayana Murthy is rated among Time Magazine/CNN's 25 most influential businessmen in the world • 2002 • Touches revenues of US$ 500 million • Nandan M. Nilekani takes over as CEO from N.R. Narayana Murthy, who is appointed Chairman and Chief Mentor • Opens offices in the Netherlands, Singapore and Switzerland
Milestones • 2003 • Establishes subsidiaries in China and Australia • Sets up a development center in Thiruvananthapuram • 2006 • Infosys celebrates 25 years. Revenues cross US$ 2 billion. Employees grow to 50,000+ • N. R. Narayana Murthy retires from the services of the company on turning 60. The Board of Directors appoints him as an Additional Director. He continues as Chairman and Chief Mentor of Infosys • 2007 • Infosys crosses revenues of US$ 3 billion. Employees grow to over 70,000+ • Kris Gopalakrishnan, COO, takes over as CEO. Nandan M. Nilekani is appointed Co-Chairman of the Board of Directors • 2010 • Infosys crosses the US$ 5 billion revenue mark • Employee strength grows to over 100,000 • 2011 • N. R. Narayana Murthy hands over chairmanship to K V Kamath • Infosys crosses US$ 6 billion revenue mark, employee strength grows to over 130,000
Services Offered • Aerospace & Defense • Airlines • Automotive • Communication Services • Consumer Packaged Goods • Education • Energy • Financial Services • Healthcare • High-Tech • Hospitality and Leisure • Industrial Manufacturing • Life Sciences • Logistics and Distribution • Media & Entertainment • Publishing
Growth • The turnover of the company has steadily increased • It grossed more than Rs 31,250 crores by March 2012
Growth
Revenue Break Up
The Infosys Strategy – Global Delivery Model
The Infosys Strategy – Global Delivery Model • Projects are divided into components and are executed independently and concurrently at client site and partly at the development centers • The components are then integrated into high quality robust solutions. • Development centers that are spread across different countries allow Infosys to leverage time zones. ie . It can have 24 hour workdays. • By this model project managers are ensured of total control .
Strategic Alliances •
SWOT ANALYSIS Strength • Proven “Global delivery model” • Commitment to superior quality and process execution • Strong Brand and Long-Standing Client Relationships • Status as an employer of choice • Innovation and leadership Weakness • Excessive dependence on US for revenues – 67 % of revenues from USA •Weak player in domestic market. Only 1 % of revenues from India – low as compared to peers •Low R & D spending as compared to global IT companies – only 1.3 % of total revenues Opportunity • Domestic market set to grow by 20%. • Expanding into new geographies – Europe, Middle East, etc • Infosys is cash rich - Acquiring companies to increase expertise in Consultancy, KPO and package implementation capabilities • Opening offices and development centers in cost advantage countries. Threats • The economic environment, pricing pressure and rising wages in India and overseas • Intense competition in the market for technology services could affect cost advantages. • High dependency on a small number of clients, and the loss of any one of the major clients could significantly impact business. • Currency fluctuations
GENERIC STRATEGIES • To maintain low-cost advantage they have opened offices in Czech Republic, Mauritius, Poland, Philippines, Thailand and Mexico. • Invested in developing training centers. • Improved quality capabilities – CMM level 5i company. • Low cost Global delivery 24/7 Model • Focus on quality, customer relationship management, timely- delivery.
GRAND STRATEGIES MARKET PENETRATION STRATEGY: Current Markets: USA and Europe Current Products: BPO, KPO, consultancy services (in BFSI, manufacturing and retail) and software products (financial products). Recommendation: As most large clients in US and Europe are cutting costs, Infosys needs to be more aggressive on cost and quality front. Result of strategy: Unlikely to yield good results MARKET DEVELOPMENT STRATEGY: New Market: India, Middle-east and Australia Current Product: BPO, KPO, consultancy services (in BFSI, manufacturing and retail) and software products (financial products). Recommendation: Since these are fast developing IT market, Infosys needs a paradigm shift in focus from US and EU markets to these markets.  Result of strategy: Likely to yield good result.
PRODUCT DEVELOPMENT STRATEGY • Current Market: USA and Europe • New Product: Consultancy and package implementation services in relatively growing sectors esp. healthcare, life sciences and aviation sector, and KPO services. • Recommendation: Concentrate on building expertise in these domains by strategic acquisitions. • Result of Strategy: Likely to have good result.
DIVERSIFICATION: • New Market: India, Middle-east and Australia • New product: Consultancy and package implementation services in relatively growing sectors esp. healthcare, life sciences and aviation sector, and KPO services. • Recommendation: Changing Brand image from low value service provider to high value service provider. • Result of Strategy: Difficult to achieve overnight (possible in long term)
‘‘ The primary purpose of corporate leadership is to create wealth legally and ethically ‘’ N. R. Narayana Murthy Chairman of the Board and Chief Mentor
Infosys Case Study, Organizational Structure- Infosys

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Infosys Case Study, Organizational Structure- Infosys

  • 1. • India’s best managed company – Business Today and AT Kearney • India’s most admired company – Business Week • Role model in corporate governance – Forbes • World’s most respected companies – FT • Amongst the “40 companies that are reshaping the global economy” - WIRED Magazine •Global Most Admired Knowledge Enterprise (MAKE) Hall of Fame
  • 2. Background Of The Company • Founded in 1981 By Shri N.R Narayana Murthi and six of his colleagues • Now on its client list are a number of Fortune 500 companies • First Indian company listed on the NASDAQ • Infosys has a global footprint with 65 offices and 74 development centers in US, India, China, Australia, Japan, Middle East, UK, Germany, France, Switzerland, Netherlands, Poland, Canada and many other countries. • Infosys and its subsidiaries have 149,994 employees as on March 31, 2012. • Infosys takes pride in building strategic long-term client relationships. 97.8% of our revenues come from existing customers
  • 3. Vision, Mission and Values • Vision "We will be a globally respected corporation." • Mission "Strategic Partnerships for Building Tomorrow’s Enterprise." • 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
  • 4. Milestones • Infosys is established by N. R. Narayana Murthy and six engineers in Pune, India, with an initial capital of US$ 250 (1981) • Signs up its first client, Data Basics Corporation, in New York • Opens first international office in Boston, US (1987) • Acquires ISO 9001 (1993) • Moves corporate headquarters to Electronic City, Bangalore (1994) • Opens first European office in the UK and global development centers at Toronto and Mangalore (1995) • Opens an office in Toronto, Canada • Infosys is assessed at CMM Level 4 (1997) • Touches revenues of US$ 100 million. Listed on NASDAQ • Infosys becomes the 21st company in the world to achieve a CMM Level 5 certification • Opens offices in Germany, Sweden, Belgium, Australia, and two development centers in the US • Infosys Business Consulting Services is launched (1999)
  • 5. Milestones • 2000 • Touches revenues of US$ 200 million • Opens offices in France and Hong Kong, a global development center in Canada and UK, and three development centers in the US • Re-launches Banks 2000, the universal banking solution from Infosys, as Finacle™ • 2001 • Touches revenues of US$ 400 million. Opens offices in UAE and Argentina, and a development center in Japan • N. R. Narayana Murthy is rated among Time Magazine/CNN's 25 most influential businessmen in the world • 2002 • Touches revenues of US$ 500 million • Nandan M. Nilekani takes over as CEO from N.R. Narayana Murthy, who is appointed Chairman and Chief Mentor • Opens offices in the Netherlands, Singapore and Switzerland
  • 6. Milestones • 2003 • Establishes subsidiaries in China and Australia • Sets up a development center in Thiruvananthapuram • 2006 • Infosys celebrates 25 years. Revenues cross US$ 2 billion. Employees grow to 50,000+ • N. R. Narayana Murthy retires from the services of the company on turning 60. The Board of Directors appoints him as an Additional Director. He continues as Chairman and Chief Mentor of Infosys • 2007 • Infosys crosses revenues of US$ 3 billion. Employees grow to over 70,000+ • Kris Gopalakrishnan, COO, takes over as CEO. Nandan M. Nilekani is appointed Co-Chairman of the Board of Directors • 2010 • Infosys crosses the US$ 5 billion revenue mark • Employee strength grows to over 100,000 • 2011 • N. R. Narayana Murthy hands over chairmanship to K V Kamath • Infosys crosses US$ 6 billion revenue mark, employee strength grows to over 130,000
  • 7. Services Offered • Aerospace & Defense • Airlines • Automotive • Communication Services • Consumer Packaged Goods • Education • Energy • Financial Services • Healthcare • High-Tech • Hospitality and Leisure • Industrial Manufacturing • Life Sciences • Logistics and Distribution • Media & Entertainment • Publishing
  • 8. Growth • The turnover of the company has steadily increased • It grossed more than Rs 31,250 crores by March 2012
  • 11. The Infosys Strategy – Global Delivery Model
  • 12. The Infosys Strategy – Global Delivery Model • Projects are divided into components and are executed independently and concurrently at client site and partly at the development centers • The components are then integrated into high quality robust solutions. • Development centers that are spread across different countries allow Infosys to leverage time zones. ie . It can have 24 hour workdays. • By this model project managers are ensured of total control .
  • 14. SWOT ANALYSIS Strength • Proven “Global delivery model” • Commitment to superior quality and process execution • Strong Brand and Long-Standing Client Relationships • Status as an employer of choice • Innovation and leadership Weakness • Excessive dependence on US for revenues – 67 % of revenues from USA •Weak player in domestic market. Only 1 % of revenues from India – low as compared to peers •Low R & D spending as compared to global IT companies – only 1.3 % of total revenues Opportunity • Domestic market set to grow by 20%. • Expanding into new geographies – Europe, Middle East, etc • Infosys is cash rich - Acquiring companies to increase expertise in Consultancy, KPO and package implementation capabilities • Opening offices and development centers in cost advantage countries. Threats • The economic environment, pricing pressure and rising wages in India and overseas • Intense competition in the market for technology services could affect cost advantages. • High dependency on a small number of clients, and the loss of any one of the major clients could significantly impact business. • Currency fluctuations
  • 15. GENERIC STRATEGIES • To maintain low-cost advantage they have opened offices in Czech Republic, Mauritius, Poland, Philippines, Thailand and Mexico. • Invested in developing training centers. • Improved quality capabilities – CMM level 5i company. • Low cost Global delivery 24/7 Model • Focus on quality, customer relationship management, timely- delivery.
  • 16. GRAND STRATEGIES MARKET PENETRATION STRATEGY: Current Markets: USA and Europe Current Products: BPO, KPO, consultancy services (in BFSI, manufacturing and retail) and software products (financial products). Recommendation: As most large clients in US and Europe are cutting costs, Infosys needs to be more aggressive on cost and quality front. Result of strategy: Unlikely to yield good results MARKET DEVELOPMENT STRATEGY: New Market: India, Middle-east and Australia Current Product: BPO, KPO, consultancy services (in BFSI, manufacturing and retail) and software products (financial products). Recommendation: Since these are fast developing IT market, Infosys needs a paradigm shift in focus from US and EU markets to these markets.  Result of strategy: Likely to yield good result.
  • 17. PRODUCT DEVELOPMENT STRATEGY • Current Market: USA and Europe • New Product: Consultancy and package implementation services in relatively growing sectors esp. healthcare, life sciences and aviation sector, and KPO services. • Recommendation: Concentrate on building expertise in these domains by strategic acquisitions. • Result of Strategy: Likely to have good result.
  • 18. DIVERSIFICATION: • New Market: India, Middle-east and Australia • New product: Consultancy and package implementation services in relatively growing sectors esp. healthcare, life sciences and aviation sector, and KPO services. • Recommendation: Changing Brand image from low value service provider to high value service provider. • Result of Strategy: Difficult to achieve overnight (possible in long term)
  • 19. ‘‘ The primary purpose of corporate leadership is to create wealth legally and ethically ‘’ N. R. Narayana Murthy Chairman of the Board and Chief Mentor