Professional Documents
Culture Documents
Patil University
DEPARTMENT OF BUSINESS MANAGEMENT
TITLE
INFOSYS
SUBJECT
BUSINESS POLICY AND STRATEGIC
MANAGEMENT
Submitted To:
Lec. PRAJAKTA MAM.
Submitted By:
NO
1 Ankit Pareek 006
2 Milind Chavare 150
3 Madhur Wadawane 060
4 Jaspreet arora 056
5. Gomati Iyer 148
6. Suman Singh 159
7. Manisha Singh 004
8. Abhijeet Rajeshirke 041
9. Dilip Chawda 032
10. Harshada Dumbre 169
INDIAN IT INDUSTRY –
OVERVIEW
INTRODUCTION
In an increasingly globalised world, significant complexity and
uncertainty is getting attached to the unprecedented economic
crisis. The Indian economy has also been impacted by the
recessionary trends, with a slowdown in GDP growth to seven per
cent. The focus and exponential growth in the domestic market
has partially offset this fall and insulated the country, resulting in
net overall momentum. The IT-BPO industry in India has today
become a growth engine for the economy, contributing
substantially to increases in the GDP, urban employment and
exports, to achieve the vision of a “young and resilient” India.
During the year, the sector maintained its double digit growth
rate and was a net hirer. This growth has been fueled by
increasing diversification in the geographic base and
industry verticals, and adaptation in the service offerings
portfolio. While the effects of the economic crisis are expected
to linger in the near term future, the Indian IT-BPO industry has
displayed resilience and tenacity in countering the unpredictable
conditions and reiterating the viability of India‟s fundamental
value proposition. Consequently, India has retained its leadership
position in the global sourcing market. The Indian IT-BPO industry
is estimated to achieve revenues of USD 71.7 billion in FY2009,
with the IT software and services industry accounting for USD 60
billion of revenues. During this period, direct employment is
expected to reach nearly 2.23 million, an addition of 226,000
employees, while indirect job creation is estimated to touch 8
million. As a proportion of national GDP, the sector revenues have
grown from 1.2 per cent in FY1998 to an estimated 5.8 per cent in
FY2009. Software and services exports (including BPO) are
expected to account for over 99 per cent of total exports,
employing over 1.76 million employees. While the current mood is
that of “cautious optimism,” the industry is expected to witness
sustainable growth over a two-year horizon, going past its USD 60
billion export target in FY2011. While the industry has significant
headroom for growth, competition is increasing, with a number of
countries creating enabling business environments aimed at
replicating India‟s success in the IT-BPO industry. Hence,
Concentrated efforts are required by all stakeholders to address
the current challenges, to ensure that India realizes its potential,
and maintains its leadership position.
INFOSYS
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."
POLICIES OF INFOSYS
INTRODUCTION
This Code of Business Conduct and Ethics helps ensure compliance with legal
requirements and our standards of business conduct. All Company employees and
trainees are expected to read and understand this Code of Business Conduct and Ethics,
uphold these standards in day-to-day activities, comply with all applicable policies and
procedures, and ensure that all agents and contractors are aware of, understand and
adhere to these standards.
Because the principles described in this Code of Business Conduct and Ethics are general
in nature, you should also review all applicable Company policies and procedures and the
Employee Handbook, when adopted for your location for more specific instruction. You
can also contact the Human Resources Department or Legal Department if you have any
questions.
Nothing in this Code of Business Conduct and Ethics, in any company policies and
procedures or in other related communications (verbal or written) shall constitute and
shall not be construed to constitute a contract of employment for a definite term or a
guarantee of confirmed employment.
We are committed to continuously reviewing and updating our policies and procedures.
Therefore, this Code of Business Conduct and Ethics is subject to modification. This
Code of Business Conduct and Ethics supersedes all other such codes, policies,
procedures, instructions, practices, rules or written or verbal representations to the extent
they are inconsistent. The Company may update the code from time to time.
Please sign the acknowledgment form at the end of this Code of Business Conduct and
Ethics and return the form to the Human Resources Department indicating that you have
received, read, understand and agree to comply with the Code of Business Conduct and
Ethics. The signed acknowledgment form will be located in your personnel file. Each
year as part of your annual review you will be asked to sign an acknowledgment
indicating your continued understanding of the Code of Business Conduct and Ethics.
B. Applicable Laws
All Company employees, agents and contractors must comply
with all applicable laws, regulations, rules and regulatory orders. Each
employee, agent and contractor must acquire appropriate knowledge
of the requirements relating to his or her duties sufficient to enable
him or her to recognize potential dangers and to know when to seek
advice from the Legal Department on specific Company policies and
procedures.
C. Corporate Opportunities
Employees, officers and directors may not exploit for their own
personal gain opportunities that are discovered through the use of corporate
property.
A. Customer Relationships
If your job puts you in contact with any Company customers or potential customers, it is
critical for you to remember that you represent the Company to the people with whom you are
dealing. Act in a manner that creates value for our customers and helps to build a relationship
based upon trust. The Company and its employees have provided services for many years and
have built up significant goodwill over that time. This goodwill is one of our most important
assets, and the Company employees, agents and contractors must act to preserve and enhance our
reputation.
C. Publications of Others
The Company subscribes to many publications that help employees do their jobs
better. These include newsletters, reference works, online reference services, magazines,
books, and other digital and printed works. Copyright law generally protects these works,
and their unauthorized copying and distribution constitute copyright infringement. You
must first obtain the consent of the publisher of a publication before copying publications
or significant parts of them. When in doubt about whether you may copy a publication,
consult the Legal Department.
D. Free and Fair Competition
These laws often regulate the Company's relationships with its distributors, resellers,
dealers, and customers. Competition laws generally address the following areas: pricing
practices (including price discrimination), discounting, terms of sale, credit terms,
promotional allowances, secret rebates, exclusive dealerships or distributorships, product
bundling, restrictions on carrying competing products, termination, and many other
practices.
SWOT ANALYSIS OF INFOSYS
STRENTGHS
• Cost advantage – most financially attractive country in a
study by A T Kearney on global IT destinations
WEAKNESSES
• Excessive dependence on USA for revenues – US
Companies are cutting down IT budget hence revenues to be
hit hard of Indian IT firms
THREATS
• Global economic slowdown may continue for several years –
hence low IT spending globally
• US Govt. against outsourcing
• Shrinking margins due to rising wage inflation
• Rupee-dollar movement affects revenue and hence margins
• Increased competition from foreign firms like Accenture, IBM
etc.
• Increased competition from low-wage countries like China,
Indonesia etc.
PESTLE ANALYSIS OF INFOSYS
POLITICAL
• Political stability: Indian political structure is considered
stable enough expect the fact that there is a fear of „hung
parliament‟ (no clear majority).
• U.S. government has declared that U.S companies that
outsource IT work to other locations other than U.S. will not
get tax benefit.
• Government owned companies and PSUs have decided to
give more IT projects to Indian IT companies.
• Terrorist attack or war.
ECONOMIC
• Global IT spending (demand)
• Domestic IT Spending (Demand):Doemestic market to
grow by 20% and reach approx USD 20 billion in 2008-09 -
NASSCOM
• Currency Fluctuation
• Real Estate Prices: Decline in real estate prices has
resulted reducing the rental expenditures.
• Attrition: Due to recession, the layoffs and job-cuts have
resulted in low attrition rate.
• ECOMONIC ATTRACTIVENESS due to cost advantage and
other factors.
SOCIAL
• Language spoken: English is widely spoken language in
India, English medium being the most accepted medium of
education. Thus, India boasts of large English speaking
population.
• Education: A number of technical institutes and universities
over the country offer IT education.
• Working age population
TECHNOLOGY
• Telephony:
India has the world’s lowest call rates (1-2 US cents).
Expected to have total subscriber base of about 500
million by 2010.
ARPU for GSM is USD 6.6 per month.
India has the second largest telephone network after
china.
Teledensity – 19.86 %
Enterprise telephone services, 3G, Wi-max and VPN are
poised to grow.
• Internet Backbone: Due to IT revolution of „90s, Indian
cities and India is well connected with undersea optical
cables.
• New IT technologies: Technologies like SOA, Web 2.0,
High-definition content, grid computing, etc and innovation
in low cost technologies is presenting new challenges and
opportunities for Indian IT industry.
GRAND STRATEGIES
CURRENT NEW
MARKET
MARKET
MARKET PENETRATION MARKET
CURRENT PRODUCT DEVELOPMENT
STRATEGY
NEW PRODUCT PRODUCT DEVELOPMENT
DIVERSIFICATION STRATEGY
STRATEGY
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.
McKinsey’s 7 S Model
Let me go through each of these 7 elements
I think 7-S Framework is more important today. The important aspect of 7-S
framework is its simplicity. These elements allow organizations to step back
and look at its position in the global competitive environment holistically. It
acts as a complement to Porter’s strategy framework.
LEADERSHIP STYLE:
STRATEGY:
Infosys has adopted a client-focused strategy to achieve
growth. Rather than focusing on numerous small organizations, it
focuses on limited number of large organizations throughout
world. In order to cater its clients, the company emphasizes on
custom-built softwares. Another differentiating factor for Infosys is
that it commands premium margins. Company does not negotiate
over margins beyond a certain limit and some time prefers to
walk-out rather than compromise on quality for low-cost
contracts. This has helped in building an image for quality driven
model rather than cost-differentiating model.
SHARED VALUES:
ORGANIZATIONAL STRUCTURE:
The company has adopted a free form organization devoid of
hierarchies. Everyone is known as associates irrespective of his
position in the company. Software development is undertaken
through teams and the constitution of teams is based on the
principle of flexibility. A member, who might have been team
leader in one project, may be replaced by another member of the
same team for another project. This system not only helps in
creating the feeling of equality but also helps in developing
project leaders.
SKILLS:
Threat of Substitutes:
Without analyzing the above, organizations run the risks of not only losing
the effectiveness of the upgrades, but also on the opportunity to make the
organization more competitive.
Let us analyze how various facets of your business can be impacted by the
enterprise application upgrade strategy that you deploy in your
organization.
These kind of innovative and path breaking changes are typically adopted by
Early Mover organizations (described above) who constantly keep looking for
avenues of improving their business performance and competitive edge
against their industry peers. For such organizations, if the upgrade strategy
is not aligned to their overall business strategy, they will not be able to
implement the path breaking business strategies in a timely and cost-
effective manner.
Impact on IT Strategy
Traditionally upgrade initiatives have been looked as periodic
transactional events and are not included as part of the overall IT strategy of
the organization. However with the diminishing budgets and the emphasis on
quantifiable ROI, the CIOs and the IT Managers of the organization need to
align their upgrade strategy with their overall IT strategy. Early Movers and
Organizations with Complex Implementations typically view an upgrade
initiative as an opportunity to Rationalize application portfolio, Minimize
customizations, Evaluate composite application network, Optimize
application integration needs and Deploy compatible technology
environments. They conduct a detailed upgrade Assessment to evaluate
various options and choose the most optimal one. Late Adopters typically try
to leverage on past upgrade initiatives and try to implement the learning’s
from the same. They may face challenges in coming up with a business case
to justify the upgrade initiative and also to explain the business benefits of
such an initiative.
The detail assessment uncovered many areas that could help fasten the
upgrade process while minimizing their application downtime. Infosys
developed a list of responsibilities and schedules that leveraged the skills of
various Infosys and customer personnel that would be involved. Infosys
introduced an optimized “retrofit” methodology that analyzed the entire
system landscape and separated those portions of the application
environment that were not critical to the day-to-day business processes.
With this tool, the not-so-critical application areas could be upgraded first,
while other areas that were central to the business could be upgraded over
weekends where the repercussions of downtime had minimal impact.
Conclusion
Organizations have traditionally viewed the enterprise application
upgrade initiatives as transactional events with no or very less strategic
importance. They often do not have an upgrade strategy or if there is one it
is hardly aligned with their Business / Financial / IT / Operational strategies.
Infosys, based on its past experiences in managing end-to-end upgrade
initiatives for various enterprise applications, believes that an Assessment
Based structured approach can help organizations to change this perspective
and establish enterprise application upgrade strategy as a critical component
of their Business / Financial / IT / Operational strategies.