1. Strategy Management of Infosys
Prepared By :
01 : Dharmista Baria
02 : Kushal Bhagat
03 : Dipak Bhayani
Submitted To : ( Group : 1 )
Prof . Hiren Patel

2. History
Infosys was founded on July 2, 1981 in Pune by N. R. Narayana Murthy and six others: Nandan Nilekani, N. S. Raghavan, Kris Gopalakrishnan, S. D. Shibulal, K. Dinesh and Ashok Arora, with N. S. Raghavan officially being the first employee of the company.
Murthy started the company by borrowing INR 10,000 from his wife Sudha Murthy. The company was incorporated as "Infosys Consultants Pvt Ltd.", with Raghavan's house in Model Colony, north-central Puneas the registered office.

3. Infosys went public in Interestingly, Infosys IPO was undersubscribed but it was "bailed out" by US investment banker Morgan Stanley which picked up 13% of equity at the offer price of Rs. 95 per share.
The share price surged to Rs. 8,100 by 1999 making it the costliest share on the market at the time.
Infosys was among the 20 biggest companies by market capitalization
Established in 1981, Infosys is a NASDAQ listed global consulting and IT services company with more than 103,000 employees. From a capital of US$ 250, it’s grown to become a US$ 4 billion company with a market capitalization of approximately US$ 14 billion.

4. Milestone
Year
Detail
1981
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 York
1983
Relocates corporate headquarters to Bangalore
1987
Opens first international office in Boston, US
1993
Introduces Employee Stock Options (ESOP) program , Acquires ISO 9001/TickIT certification

5. Year
Detail
1994
Moves corporate headquarters to Electronics City, Bangalore. Opens a Development Center at Fremont
1995
Opens first European office in the UK and Global Development Centers at Toronto and Mangalore. Sets up e- Business practice
1996
The Infosys Foundation is established
1997
Opens an office in Toronto, Canada
1998
Starts enterprise solutions (packaged applications) practice
1999
Listed on NASDAQ
Opens offices in Germany, Sweden, Belgium, Australia
Infosys Business Consulting Services is launched

6. Year
Detail
2000
Re-launches Banks 2000, the universal banking solution
2001
N. R. Narayana Murthy is rated among Time Magazine/CNN's 25 most influential businessmen in the world
Opens offices in UAE and Argentina, and a Development Center in Japan
2002
Nandan M. Nilekani takes over as CEO from N.R. Narayana Murthy, who is appointed Chairman and Chief Mentor
2003
Expands operations in Pune and China
2004
Revenues reach US$ 1 billion , Infosys Consulting Inc. is launched
2005
Records the largest international equity offering of US$ 1 billion from India

7. Year
Detail
2006
Infosys celebrates 25 years. Revenues : US$ 2 billion. Emplo grow to 50,000+
N. R. Narayana Murthy continues as Chairman and Chief Mentor of Infosys
2007
Kris Gopalakrishnan, COO, takes over as CEO. Nandan M. Nilekani is appointed Co-Chairman of the Board of Directors
2008
Infosys crosses revenues of US$ $ 4.18 billion. Employees grow to over 90,000+
Reports Q4 revenue of US$ 1,142 million

8. What Infosys are 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.“
Values
infosys believe that the softest pillow is a clear conscience. The values that drive us underscore our commitment to:
Customer Delight
Pursuit of Excellence:
Fairness:
Integrity and Transparency:

9. Members of the Board 1 2 3 4 5 6 7 8 9 10 11 12 S.No Name Designation
Mr. N R Narayana Murthy
Chairman & Chief Mentor 2
Mr. S Gopalakrishnan
Managing Director & CEO 3
Mr. Kundapur Vaman Kamath
Additional Director 4
Mr. K Dinesh
Director 5
Mr. T V Mohandas Pai 6
Mr. Srinath Batni 7
Mr. S D Shibulal
Director & COO 8
Mr. David L Boyles
Independent Director 9
Mr. Claude Smadja 10
Mr. Deepak M Satwalekar 11
Mr. Sridar A Iyengar 12
Prof. Jeffrey S Lehman

10. Infosys Business Lines
Insurance Healthcare Insurance
Banking & Capital Market
Communication Media & Entertainment
Energy ,Utility, and Services
Manufacturing (MFG)
New Market & services (NMS) aus,china,maxico
Indian Business Unit
Infosys BPO
Infosys China
Infosys Australia
Infosys Mexico
Consulting Solutions ( CS )
Enterprise Solutions (ES)
Product Engineering & Validation Services ( PEVS)
Infrastructure Management Services (IMS)
S/w Engineering & Technology Labs ( SET Labs)
System integration Services (SI)
Corporate Sales & Marketing ( CSM )
Infosys Leadership Institute
Tech Services
Information Systems(IS)
Quality
Human Resource
Education & Research ( E & R)
Security Audit & Architecture ( SA & A)

11. Infosys other Business or Focus Areas :
Arts & Culture
Environment
Healthcare & Education
Diversity
Talent

12. Infosys alliance partners
Microsoft
Oracle
IBM HP
Mantas
Sun Microsystems
Siemens
TIBCO Software Inc.

13. Achievement & Awards
Infosys was ranked among the top 50 most respected companies in the world by Reputation Institute’s Global Reputation Pulse 2009.
Infosys won Sears Holding Corporation's Partners in Progress award for the second consecutive year.

14. Conti…..
also won HDS' Diamond Award for 'Best Virtualization Strategy' and Platinum Award for 'Best Green Strategy for a Data Center'.
Infosys was also listed in the Most Admired Knowledge Enterprises (MAKE) 2008 study and Forbes' Asian Fabulous 50for the fourth consecutive year.
Infosys were ranked among 'India's Best Companies to Work For ' in a survey by the Great Place to Work® Institute and conferred with the NASSCOM gender inclusivity award.
Asset magazine acclaimed their Corporate Governance, acknowledging their corporate policies and practices as amongst the best in the industry

15. Share Holding Pattern as on :
 30/06/2009
31/03/2009
Face Value
 5.00
No. Of Shares
% Holding
Indian Promoters  
 16.49
Sub Total
Mutual Funds and UTI  
 4.16  
 3.58
Banks Fin. Inst. And
Insurance  
 4.13  
FII's  
 35.66  
 34.86  
 43.95  
 42.59
Private Corporate Bodies  
 3.94  
 3.51
NRI's/OCB's/Foreign Others  
 0.86  
 0.89
Others  
 18.77  
 19.63  
 23.58  
 24.03
General Public  
 15.99  
 16.89
GRAND TOTAL  
100.00  

17. SWOT ANALYSIS STRENGTHS
Leadership in sophisticated solutions that enable clients to optimize the efficiency of their business
Proven “Global delivery model”
Commitment to superior quality and process execution
Strong Brand and Long-Standing Client Relationships
Status as an employer of choice
Ability to scale
Innovation and leadership

18. WEAKNESSES
Excessive dependence on US for revenues – 67 % of revenues from USA
Excessive dependence on BFSI sector for revenues – 36 % of revenues from BFSI
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
Rising wage bill – 42.9 % to 44.8 % of revenues
Low expertise in high end services like Consultancy and KPO.

19. OPPORTUNITIES Domestic market set to grow by 20%.
Expanding into new geographies – Europe, Middle East, etc
Infosys is cash rich (Around US $ 1 Billion) - Acquiring companies to increase expertise in Consultancy, KPO and package implementation capabilities
Opening offices and development centers in cost advantage countries such as those in Latin America and Eastern Europe.

20. 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.
Failure to complete fixed-price, fixed-time frame contracts within budget and on time
Currency fluctuations
Termination of Client contracts can typically be terminated without cause and with little or no notice or penalty.

21. Infosys Technologies Ltd.
Exchange : BSE
Price Date
Open Price
High Price
Low Price
Close Price
Traded Value
Number Of Trades
Traded Quantity
1999
1957
1971.4
4893
145082
1985
1988
1936
1950.7
4500
150657
1970.4
1995
1992.8
2765
219033
1972
2028.5
6106
232789
2041
2082.4
4260
115593
2068
2104
2096.1
5213
151542
2105
2188
2098
10578
254324
2180
2202.7
2121.2
8293
196202
2185
2199
2142.5
4962
135164
2168
2125
2132.3
3984
74118
1/9/2009
2139.8
2189.7
5179
134253
2/9/2009
2130
2178
2165.2
3814
78518
3/9/2009
2200
2188.2
6565
134792
4/9/2009
2214.9
2138.2
5692
129759
7/9/2009
2210
2228
2223.4
5444
114842
8/9/2009
2187
2235
5028
105487
9/9/2009
2216.9
2193.1
4791
137665
10/9/2009
2206
2235.1
5430
124430
11/9/2009
2271.9
2266
6143
141607
2245
2259.9
2240.6
2658
113047
2250.2
2275
4662
153897
2282.5
2324.4
2273.4
6413
225847
2327
2367
2360.9
6488
146482
2370.1
2388
2350
2363.8
4147
85038
2414.7
2341
2405.6
5630
138008
2405
2360
3661
81310
2349.7
2261.5
2285.1
10978
333740
2252
2245.3
7581
177821

22. Stock Exchange :BSE
IN Rs
Date : to

23. Infosys Technologies Ltd.
Exchange : NASDAQ
Price Date
Open Price
High Price
Low Price
Close Price
Traded Quantity
40.51
41.04
40.17
40.88
40.32
41.2 40
41.05
41.22
41.27
40.31
41.61
42.49
42.25
42.9
42.98
42.13
42.36
42.63
43.1
42.52
43.08
44.41
45.22
43.92
44.21
44.51
44.89
43.84
44.82
44.71
45.13
44.23
43.53
43.83
42.82
43.23
1/9/2009
43.38
44.45
42.92
43.13
2/9/2009
43.77
44.08
43.42
43.43
3/9/2009
44.19
44.64
43.91
44.34
4/9/2009
44.65
45.05
44.47
44.91
8/9/2009
45.37
46.03
45.1
9/9/2009
46.04
46.96
45.76
46.85
10/9/2009
46.42
47.42
46.35
47.21
11/9/2009
47.41
46.64
46.78
46.18
46.45
46.79
47.27
46.6
47.14
47.97
48.64
47.32
48.55
48.86
49.68
48.65
49.16
49.3
49.45
48.62
48.68
48.23
49.4
48.12
48.97
748400
49.64
50.1
49.15
49.29
48.93
49.2
48.5
48.52
47.95
48.41
47.07
47.12

24. Stock Exchange :NASDAQ
IN $
Date : to

25. ANALYSIS OF STRATEGIES
Corporate level strategies: Core Strategies:
Firm believer in “Organic growth” and acquire only those companies in line with strategic goals.
Global Delivery Model – Producing where it is most cost effective to produce & 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.

26. Actions Taken by Infosys:
1. To maintain low-cost advantage they have opened offices in Czech Republic, Mauritius, Poland, Philippines, Thailand and Mexico.
2. Invested in developing training centers –
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).

27. GENERIC STRATEGIES: 1. Low cost Global delivery 24/7 Model.
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, timely-delivery.

28. GRAND STRATEGIES:
Ansoff’s Matrix:

29. MARKET DEVELOPMENT STRATEGY:
MARKET PENETRATION STRATEGY:
Current Markets: USA and Europe
Current Products: ADM, 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.

30. 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. (better the company acquired, the better the result).

31. 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)

32. OTHER STRATEGIES: CONCENTRATION: VERTICAL INTEGRATION:
90% of Infosys revenues from American and European nations.
VERTICAL INTEGRATION:
Infosys recently made a bid to acquire a European major – Axon consultancy to improve its business in European markets, but finally called off the deal due to high valuation. Otherwise, Infosys has always believed in organic growth.
INNOVATION: The Software Engineering and Technology Labs (SETLabs) at Infosys is the center for applied technology research in software engineering and enterprise technology. SETLabs conducted 24 Innovation Workshops with customers from the US and Australia, to identify research collaboration possibilities. Infosys promotes a favorable work environment that encourages innovation and meritocracy.