Company review Session On

Infosys

Presented By:- Durgadatta Dash.Roll No:- 22073 Section :- TPS- B

Infosys Address

Head Quarter

No. 44, Hosur Road, 

Electronics City, 

Bangalore 

Karnataka 

560100

Register office

Karvy Computershare Private Ltd. Plot

No.17-24, 

Vittalrao Nagar, 

Madhapur Hyderabad - 500081

Andhra Pradesh

Global presenceBranch offices(India)

New Delhi

Mumbai

Pune

Bhubaneswar

Hyderabad

Mysore

Chandigarh

Chennai

Kerela

Overseas OfficeCaliforniaUSAGermanyCanada FranceHong KongSwedenSingaporeSwitzerlandJapanNew YorkOntarioFinlandAirlandUKUAEMarititiousNorwayRusiaSpain

The Headquarters of Infosys is located in Bengaluru

Pune Campus Thiruvananthapuram Campus

Nature of Business And Business Segment

Type:- Public

Industry:- IT services & consulting

Year of Incorporation :- 1981

The Idea

The idea was born On July 2, 1981, Infosys Consultants Pvt. Ltd. The starting

capital was $250 which was borrowed from Mrs. Murthy.

Founders• N. R. Narayana Murthy

• Nandan Nilekani

• N. S. Raghavan

• S Gopalakrishnan

• S D Shibulal

• K Dinesh

• Ashok Arora

History of Infosys1981• Infosys is established by N. R. Narayana Murthy and six engineers in Pune, India, with

an initial capital of US$ 250• Signs up its first client, Data Basics Corporation, in New York1983• Relocates corporate headquarters to Bangalore1987• Opens first international office in Boston, US1993• Introduces Employee Stock Options (ESOP) program• Acquires ISO 9001/Tick IT certification• Goes public1996• The Infosys Foundation is established1998• Starts Enterprise Solutions (packaged applications) practice

1999• Touches revenues of US$ 100 million. Listed on NASDAQ• Infosys becomes the 21st company in the world to achieve a CMM Level 5 certification

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

2009• Infosys selected as a member of The Global Dow• 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

Contd.

Contd.2012• Listed on the NYSE market• Infosys acquires Lodestone Holding AG, a leading management consultancy

based in Switzerland• Forbes ranks Infosys among the world's most innovative companies• Infosys among top 25 performers in Caring for Climate Initiative• Infosys crosses the US$ 7 billion revenue mark2013• Infosys Board appoints N. R. Narayana Murthy as Executive Chairman of the

Board• Infosys begins trading on NYSE Euronext London and Paris markets• Infosys Edge™ wins the NASSCOM Business Innovation Award for 2013• Infosys presented with ‘2013 Environmental Tracking Carbon Ranking

Leader’ award

•Vision"To be a globally respected corporation that provides best-of-breed business solutions, leveraging technology, delivered by best-in-class people.”

•Mission

"To achieve our objectives in an environment of fairness, honesty, and courtesy towards our clients, employees, vendors and society at large."

Vision and Mission

Key People

N. R. Narayana Murthy(Executive Chairman)

S. Gopalakrishnan(Executive Vice Chairman, former Co-Chairman)

S. D. Shibulal(CEO& MD)

• Infosys is listed in BSE , NSE and NYSE

Stock exchange listing details of Infosys

BSE : 500209

NSE : INFY

NYSE : INFY

BSE : Rs. 3245.60 (59.15 increase)

NSE : Rs. 3244.30 (58.50 increase )

FACE VALUE : Rs. 5.00

CURRENT MARKET CAPITAL : Rs.209,343.54 (in cr.)

Share Price Information

Shareholding Pattern

Individuals / Hindu Un-divided Families; 18.9

Mutual Funds / UTI; 6.52

Financial Institutions / Banks; 0.04

Insurance Companies; 11.65

Foreign Institutional Investors; 48.21

Bodies Corporate ; 0.57

others; 12.21

NRI s/ OCB s; 1.17Trusts; 0.73

Services that Infosys Provide• Application Development and maintenance

• Corporate performance management

• Enterprise quality services

• Infrastructure services

• Packaged application services

• Product engineering

• Systems Integration

Industries Infosys ServeAerospace & defense

Automotive

Banking

Communication

Consumer goods

Manufacturing

Energy

Healthcare

Insurance

Life Sciences

Media &Entertainment

Resources

Retail

Transportation

Utilities

High technology

Hospitality

FINACLE : The Only ProductAbout FINACLE

Infosys Finacle partners with banks to ‘simplify’ banking and arms them with accelerated innovation to build tomorrow’s bank, today. Today FINACLE is the choice of 183 clients across 84 countries and serves 14 percent of the world’s banked population. The solutions address the core banking, e-banking, mobile banking , CRM, payments, treasury,  origination, liquidity management, wealth management, requirements of retail, corporate and universal banks worldwide. The solution’s componentized structure and enterprise-class capabilities help banks enhance the quickness and efficiency of their operations significantly as well as improve customer experience across channels

Features of FINACLE

Universal banking solution from Infosys.

Empowers banks to transform their business .

Architected out of years of experience with global banks and offers several powerful and differentiating features .

One of the most comprehensive, flexible and scalable solutions in its class .

FINACLE Advantage1. Business Quickness

2. CRM and Alert Enabled

3. Global Deployment Capability

Multiple currency, time zones and languages

4. Proven solution minimized risk

100% success, rapid, smooth successful arrangements

5. Integrated multi-channel framework

Banks can offer their solutions through multiple channels

GLOBAL DELIVERY MODEL : THE CORNER STONE OF MARKETING STRATEGY

Infosys pioneered the Global Delivery Model (GDM) to ensure the distribution of application and business process lifecycle activities and resources, while ensuring their integration. The key drivers of our Global Delivery Model are: Process The strong process-orientation allows us to deliver solutions from multiple locations. Quality We deliver world-class solutions by maintaining quality across processes, interfaces and outputs, in management, core and support processes. Tools We monitor large and complex projects through a combination of indigenous tools. Knowledge management Our Knowledge Management Services help you assess your needs, evaluate technologies and recommend solutions. Program Management Our project management processes address key aspects across the project life cycle.

Brief About GDM• Introduced in 1980s

• Most important strategic initiative

• To accelerate schedule

• High time and cost predictability

• Led to rise of offshore global outsourcing

• It refers to philosophy of breaking work into logical components and assigning it geo-locationally so as to create maximum value.

• Cost reduction is the most important gain of GDM

Advantages to Clients

• Assurance of the best product quality, which cuts down costs of fixing defects, maintenance and hence, the TCO (Total Cost Ownership)

• Advantages coming out of the continuous improvements, which keep improving all the key parameters.

Eras of Strategy Strategy – Pre 1992 Era

Onsite focus , Few Large Customers, Indirect Sales Strategy past 1992 till 1999• Global benchmarking

• Global delivery model

• Employee retention

• Investment in sales and marketing

• Becoming a company of choice for investors, customers and employees

Eras of Strategy Contd.Strategy Since 1999

1. Accessible business

2. Value added services

3. Business solution services

4. End-to-end capabilities• Consulting • IT services • Business Process management

5. Modular Global Sourcing

6. Large development centers (India, China)

Building The Brand

• Aggressive marketing and branding strategy

• Coherent campaigns using multiple channels, including events, PR activities and direct marketing .

• Creating positive perceptions with clients, industry associations, media and policymakers .

• Well-recognized brand .

Coherent Market Strategy• Range of investment in infrastructure, HR ,technology and networking

• Increase in client penetration rate

• Helped in attracting best talentInvesting in Expertise

• Business innovation in GDM coupled with technology and industry expertise in various fields .

• Disruptive model has enabled Infosys to offer distinctly superior services .

• Facilitated acquiring new clients .

Delivering local Business Value

• Customizing services and solutions to suit client needs

• Understanding client-specific needs and value proposition

• Example: Creation of specific services around regulatory compliance

Subsidiaries

1. Infosys Technologies (Australia) Pty. Limited2. Infosys BPO Limited3. Infosys Tecnologia do Brasil Ltda4. Infosys Technologies (China) Co. Limited5. Infosys Technologies (Shanghai) Co. Limited6. Infosys Public Services Inc. (US Based)

Financial Statements of Infosys

2004 2005 2006 2007 2008 2009 2010 2011 2012 20130

5000

10000

15000

20000

25000

30000

35000

40000

3253.43

5241.736897

11162

13490

17809

22036

24501

29757

36059

3253.43

5241.736897

11162

13490

17809

22036

24501

29757

36059

Asset Liability details

Assets (in cr.) Liabilities (in cr.)

Net income , expense and profits (in Cr.)

2004 2005 2006 2007 2008 2009 2010 2011 2012 20130

5000

10000

15000

20000

25000

30000

35000

40000

45000

Income Expenses and profi t Details

Income (in cr.) Expenses (in Cr.) Profit (in Cr)

SWOT AnalysisStrength:

1. A well established leader among Indian IT companies. Infosys has built a solid image by delivering quality services and innovation.

2. Well defined service portfolio: In last one decade it was able to build solid capability including matured processes and team in all the key vertical including Retail, Oil and Gas etc.

3. Scale:  It has 1, 56,688 full time employees, strong presence in India and number of delivery center across globe.

4. Focus on Innovation: Infosys has dedicated about $100M to support innovative ideas coming from Mobility, cloud and Big data.

5. Less Risky: Good cash in hand, over $4B and absolutely no debt. It will help make further strategic acquisition in Europe and elsewhere.

6. Strong Relationship with Clients: Almost 98% of its business comes from existing customers. It has total 798 active clients and out of which 12 are $100M+.

Weakness:1. Leadership: So far D. Shibulal is not able to meet investor’s expectations. He became CEO

of Infosys on 3pth April 2011 and since then margin and growth has suffered. Other India offshore players such as TCS, HCL continue to do well.

2. Declining Growth and Margin: Gross margin (FY13) has declined to 37% from 41%.Company recently has withdrawn EPS guidance and expect to grow about 6% to10%. Below then Industry growth published by Nasscom.

3. Pricing Pressure: In order to generate growth, Infosys has indicated that it may go down in pricing that may not a good sign as it will further impact margin. On an annual basis pricing is down by 3%.

4. Lower utilization: In services business, a lower utilization is big threat and causes a good amount of pressure on business development team. Infosys has delivered a lower utilization and it appears that management is comfortable about it.

Opportunity :1. Emerging Technology: Emerging Technology such as Cloud, Big data are going to get

bigger and Infosys has taken concrete steps to take advantage of that.

2. Significant opportunity in Product and platform segment:  Total booking is about $685MN, and grew by 12.4%

3. Strategic Acquisition: Infosys will continue to acquire firms which can add to its top line. Growth from Innovation: Infosys is betting high on Innovation, already committed $100M to further support this initiative.

Threat :1. Global economy: Although US economy looks like going to recover soon, however Europe is

still not able to catch up.

2. Vendor Consolidation and High Competition: Now most of the big clients want to consolidate its number of vendors and competitors such as Cognizant, Accenture are able to offers/showcase well differentiated offering and strategies to clients and that may result in reduced project budget for Infosys.

PEST AnalysisPolitical Economic

PEST

Analysis

• Political stability

• Government owned companies and PSUs have decided to give more IT projects to Indian IT companies.

• Terrorist attack or war.

• Global IT spending (demand) • Domestic IT Spending

(Demand)• Currency Fluctuation • Real Estate Prices

TechnologicalSocial• Language spoken: English

• Education: A number of technical institutes and universities over the country offer IT education.

• Working age population

• Telephony

• Internet Backbone

• New IT Technologies like SOA, Web 2.0, High-definition content, grid computing, etc

INFOSYS BCG MATRIX - USA

INFOSYS BCG MATRIX - INDIA

Value System – C - Life1.Customer Delight: A commitment to surpassing customer expectations.

2. Leadership by Example: A commitment to set standards in business and transactions and be an exemplar for the industry and teams.

3. Integrity and Transparency: A commitment to be ethical, sincere and open in all dealings.

4. Fairness: A commitment to be objective and transaction-oriented, thereby earning trust and respect.

5. Pursuit of Excellence: A commitment to strive relentlessly, to constantly improve themselves, their teams, their services and products so as to become the best.

Major competitors

Comparative Analysis of Infosys, TCS and WIPRO

• TATA Consultancy Services

• TCS is the grandfather

• Unlisted till 2004, cared little about publicity and concentrated on customers

• Grabbed customers and created relationships

• Big in size and low on prices

• Now it has become choosy and fussy

• Stable and trustworthy

• Great expertise, lot to offer and low price.

Wipro

• Originally into hardware and then into software

• From 1999, PR, analyst relations and website became important

• Less focus on branding and more on sales

• In 2001, the need for brand was realized

• “Applying Thought”

• Driven by technological evolution and R&D

Infosys

• “New kid on the block” – Mr. Murthy

• Need to be different to compete with MNC

• Hiring smart people to sell in EU and US markets

• Listing on NASDAQ partially to instill confidence in customers

• Partnerships with educational institutes like Wharton

• Focus more on PR and communication for visibility

The Future

Global Sourcing• Global sourcing strategy is aligned with business strategy

• Enhancing operational efficiency and delivering value added services

• Structuring processes and services into modules thus leading to enhanced flexibility and productivity .

Enterprise Solutions

• Aggressive focus on ERP solutions like SAP and Oracle

• Planning to increase focus on Service Oriented Architecture (SOA)

• This is expected to bolster its business in enterprise solutions market

Strategies for future• Focus on emerging business trends and pervasive technologies

• Leverage existing client base to increase demand

• Promote US-India success when pursuing new clients

• Strengthen presence in North America and EU while gaining foothold in China

• Broaden strategic alliances with best-in-class providers with complementary skill sets

• Expand into high-end consulting

HR Policies

• A shared Responsibility : Each employee has a distinct responsibility in dealing with people be it as a leader of a team or as a peer.

• Dealing with People• Overtime compensation• Performance evaluations and salary increases• Equal Employment Opportunity policies

Awards• Infosys has been identified as one of the Top 25 performers in Caring for Climate

initiative by UN Global Compact and UN Environment Program.

• Infosys is ranked No.1 among the best managed companies in Asia Pacific in the annual Euromoney Best Managed Companies in Asia survey 2013.

• Infosys has been voted India’s Most Admired Company in The Wall Street Journal Asia 200 survey every year since 2000.

• Infosys has been recognized as a top performing global partner by consumer goods company Procter & Gamble (P&G).

• Infosys has received the Oracle Excellence Award for Specialized Partner of the Year – North America in both ‘Financial Management’ and ‘Human Capital Management’ categories at Oracle OpenWorld 2012.

• Infosys Engineering Services team has been declared the winner in the area of engineering design at the 2013 Simulating Reality Contest organized by MSC Software, a worldwide leader in multidiscipline simulation.

And many more …..

Corporate Social Responsibility At Infosys, the distribution of wealth is as important as its legal and ethical creation. A strong sense of social responsibility is therefore an integral part of its value system.

Infosys Foundation

• Infosys is committed to contribute the society and established the Infosys Foundation in 1996 as a not-for-profit trust to support our social initiatives.

• The Foundation supports programs and organizations devoted to the cause of the destitute, the rural poor, the mentally challenged, and the economically disadvantaged sections of the society.

• The Foundation also helps preserve certain cultural forms and dying arts of India.

CSR Activities Contd.Community service:Through our Computers @ Classrooms initiative launched in January 1999, we donated 2,567 computers to various institutions across India. Additionally, we have applied to the relevant authorities for permission to donate computers to educational institutions on an ongoing basis in the future. Microsoft Corporation continues to participate in this initiative by donating relevant software. We would like to place on record our appreciation for their continued support.

Social commitment in education:Infosys' Education & Research group has the pride of anchoring the Infosys Extension Program (IEP), which consists of the Infosys Fellowship Program, Rural Reach program, Catch Them Young and Train the Trainer.