Subject category:
Strategy and General Management
Published by:
IBS Case Development Center
Length: 20 pages
Data source: Published sources
Abstract
In April 2004, India-based Infosys Technologies Limited became the first listed IT (information technology) company to record annual revenues of $1 billion. Since its inception in 1981, the company has constantly moved up the value chain - from custom software development to standardised products, to business process outsourcing and IT and business consulting. However, major rival Indian companies such as TCS, Wipro, Satyam etc, are also following similar business models and moving into IT and business consulting. Competition was also intensifying from global majors such as IBM (International Business Machines Corporation), EDS (Electronic Data Systems Corporation), Accenture, HP (Hewlett- Packard), etc. This case focuses on the evolution of Infosys over the years and its future plans. It allows scope for discussion in the following areas: (1) the changes in Infosys'' organisation setup aimed at meeting business and client needs; (2) to discuss further the pros and cons of the global delivery model, and if any changes needed to be made, considering that the model can be replicated; (3) Infosys'' main focus on banking products and if they need to expand their product portfolio; (4) the company''s foray into business process outsourcing when it had already established itself as a dominant player in high end services; (5) the opportunities and risks that Infosys would face in the IT and business consulting services and whether or not they should have built a presence in India first; and (6) the company''s acquisition strategy in Australia and China, and whether or not they could have established their presence in these markets in some other way.
About
Abstract
In April 2004, India-based Infosys Technologies Limited became the first listed IT (information technology) company to record annual revenues of $1 billion. Since its inception in 1981, the company has constantly moved up the value chain - from custom software development to standardised products, to business process outsourcing and IT and business consulting. However, major rival Indian companies such as TCS, Wipro, Satyam etc, are also following similar business models and moving into IT and business consulting. Competition was also intensifying from global majors such as IBM (International Business Machines Corporation), EDS (Electronic Data Systems Corporation), Accenture, HP (Hewlett- Packard), etc. This case focuses on the evolution of Infosys over the years and its future plans. It allows scope for discussion in the following areas: (1) the changes in Infosys'' organisation setup aimed at meeting business and client needs; (2) to discuss further the pros and cons of the global delivery model, and if any changes needed to be made, considering that the model can be replicated; (3) Infosys'' main focus on banking products and if they need to expand their product portfolio; (4) the company''s foray into business process outsourcing when it had already established itself as a dominant player in high end services; (5) the opportunities and risks that Infosys would face in the IT and business consulting services and whether or not they should have built a presence in India first; and (6) the company''s acquisition strategy in Australia and China, and whether or not they could have established their presence in these markets in some other way.