INFOSYS

• GENERAL OVERVIEW
Infosys is an Indian multinational company that provides business consulting, information
technology and outsourcing services. Globally, it has 85 sales and marketing offices and 114
development centres.
• Incorporation year: 1981
• Headquarter: Bengaluru, India
• Chairman: Nandan Nilekani
• Present Head (MD and CEO): Salil S. Parekh
• Chief Financial Officer: M.D. Ranganath
Evidently, it is a global leader in technology and consulting services. To point out, it enables
1045 clients in more than 50 countries to create and execute strategies for their digital
transformation.
Moreover, it is the second largest IT company in India by revenue(2017). Further, it saw a
staggering revenue of US$10.93 billion in 2018 and notably employed 200,364.

• SHAREHOLDING PATTERN OF THE COMPANY

Promoter holding 13 %
No change in Promoter holding

FII holding current Qtr 13 %

FII holdings rise by 0.72%

MF holding current Qtr 13 %

MF holdings fell by 0.49%

Institutions holding 55.4 %

Institutions holding decreased by 0.4%.

Institutional holding change QoQ -0.4 %

Holding decreased by -0.4%.

• MANAGEMENT OF THE COMPANY

Organizational structure followed in Infosys is a Functional Structure. It is the most common
organizational structures used by many Companies. Under this structure, company will be
organized into three main functions (Global sales function, Global delivery function and
business enabling functions).
In Infosys divides the industry verticals into following five segments
• Financial Services Segment
• Manufacturing Segment
• Retail Segment
• Energy, Utilities, Communications & Services Segment
• Life Sciences, Healthcare & Insurance Segment.
 • STRENGTHS, WEAKNESSES, OPPORTUNITIES & THREATS (SWOT)
ANALYSIS OF THE COMPANY

Strength in the SWOT Analysis of Infosys :

Cost advantage due to a presence in India: Majority of Infosys’ 119 development centres
are present in India, which gives it high-quality technical talent at a great cost advantage
considering the fact that wage costs have been significantly lower in India than the developed
parts of the world.
Provides strong end to end business solutions: The company offers a wide range of
consultancy services and provides comprehensive end to end business services in IT services,
software-based services, business consulting and business process management. This allows
Infosys to attract companies from various industries.
Strategic Association: Infosys has partnered with major technology and business players in
order to strengthen its services and business solutions. The company has earlier partnered
with HP, IBM, Microsoft and Amazon etc. The strong partnership network allows Infosys to
deliver innovative and collaborative solutions.

Weakness in the SWOT Analysis of Infosys :

Dependent on Limited markets: Infosys has concentrated operations majorly based out of
the America and Europe. Together, North America and Europe constitute over 80% of the
company’s revenue. This makes the company susceptible to instability and uneven growth.
Not covering growing markets: The emerging markets have been growing rapidly, and most
of the credit goes too fast growing technology. Infosys does not have services for the majority
of the emerging nations and thus misses out on a potential of growth.
High Attrition rate: Infosys is one of the tech companies in India which has been a victim of
the high attrition rate. Many employees leave for better career opportunities and higher
education. High attrition rates affect company’s image.

Opportunity in the SWOT Analysis of Infosys :

Invest in young technology companies: Infosys has been identifying potential and investing
heavily in early stage technology companies. For instance, investments in Trifacta, a data
wrangling software company and Waterline Data Science in the year 2016.Infosys should
continue making investments in such companies as it provides the competitive technological
advantage to Infosys.
Growth in spend on Digital Transformational Technologies: In the period of the year 2014-
2019, global spending on Digital Transformational Technologies are expected to grow at a
CAGR of about 17 percent. Infosys has increased its focus on providing digital transformation
services and thus increased global spending can be beneficial for it.
Increasing demand for cloud-based solutions: There is a positive outlook for cloud-based
solutions as the fundamental nature of computing has been changed by cloud computing.
According to industry estimates, global spending on cloud services is expected to grow at a
CAGR of over 18 percent from the period 2015 to 2019. Infosys having a significant presence
in cloud computing market is set to be benefitted by the increasing demand.
Focus on emerging markets: Infosys need to focus on emerging markets which are expected
to give good business to IT services and consultancy firms in the future. Infosys should not
fall behind when the opportunity is up for grab.
Threat in the SWOT Analysis of Infosys :
Intense competition: The IT services industry is a highly competitive industry. Infosys
competes with large technology and consultancy firms like Accenture, Capgemini
and TCS etc. The company also competes with software consultancy giants like Oracle and
SAP. Intense competition leads to pricing pressures and investment in innovative technology
to gain competitive advantage.
Changes in US immigration laws: Immigration laws are subject to political pressure and thus
can be changed with a change in political power in the US. US immigration laws can get
stricter which will affect the business of Infosys and other countries which are heavily
dependent on the US market.
Rising wage inflation in India: For companies like Infosys, lower wage cost is a great
competitive advantage, but there is a pressure of rising wages in India as well. Infosys has also
had to abide by wage inflation to retain its technical staff. Such measures affect the operating
margins for the company.

• COMPETITIVE ANALYSIS
Top Infosys Competitors
The first in the list of Infosys competitors is Capgemini
Capgemini
Capgemini SE is a French multinational corporation that
provides consulting, technology, professional, and outsourcing services. It is headquartered
in Paris, France.
Capgemini has over 270,000 employees in over 50 countries, of whom nearly 120,000 are in
India.
TATA Consultancy Services:
The third main player in the list of top Infosys competitors is TCS.
Tata Consultancy Services Limited (TCS) is an Indian multinational information
technology (IT) services and consulting company headquartered
in Mumbai, Maharashtra, India.
TCS is the second largest Indian company by market capitalisation. and is placed among the
most valuable IT services brands worldwide.
It is also the world’s largest IT services provider and is the first Indian IT company to reach
$100 billion in market capitalization, and second Indian company after Reliance.
Cognizant:
The third is the list of Infosys competitors is Cognizant
Cognizant is an American multinational corporation that provides IT services, including
digital, technology, consulting, and operations services.
Headquartered in Teaneck, New Jersey, United States, Cognizant is part of the NASDAQ-
100 and was founded as an in-house technology unit of Dun & Bradstreet in 1994.
Services:
Cognizant provides information technology, information security, consulting, ITO and BPO
services.
These include
• Business & technology consulting,
• Systems integration,
• Application development & maintenance,
• IT infrastructure services,
 • Artificial Intelligence,
• Digital Engineering,
• Analytics,
• Business intelligence,
• Data warehousing,
• Customer relationship management,
• Supply chain management,
• Engineering & manufacturing solutions,
Digital Business, Digital Operations, and Digital Systems & Technology are the three key
areas of expertise which makes up Cognizant’s business.
Accenture:
An Irish-domiciled multinational professional services company, Accenture is a Fortune
Global 500 company.
Incorporated in Dublin, Accenture is serving clients in more than 200 cities in 120 countries.
Accenture’s current clients include 91 of the Fortune Global 100 and more than three-
quarters of the Fortune Global 500.
Services and Operations:
• Accenture Strategy provides business strategy, technology strategy and operations
strategy services.
• Accenture Consulting provides technology, business and management consulting.
• Accenture Digital provides digital marketing, analytics and mobility services.
• Accenture Technology focuses on technology software, implementation, delivery, and
research & development, including its Technology Labs for emerging technologies.
• Accenture Operations focuses on an “as-a-service” model of service delivery. This
includes business process outsourcing, IT services, cloud services, managed
operations and security.
HCL Technologies:
The last in the list of Competitors of Infosys is HCL technologies.
An Indian multinational information technology (IT) services and consulting company, HCL
Technologies is headquartered in Noida, Uttar Pradesh, India.
Started off as a research and development division of HCL, the company emerged as an
independent company in 1991 when HCL entered into the software services business.
The company has global presence with offices in 44 countries including United
Kingdom, United States, France, and Germany
The customers of Infosys include 250 of the Fortune 500 and 650 of the Global 2,000
companies.
HCL Technologies operates in varied industries some of which are:
• Aerospace and defense,
• Automotive,
• Banking,
• Capital markets,
• Chemical and process industries,
• Energy and utilities,
• Healthcare,
• Hi-tech,
• Industrial manufacturing, etc
HCL Technologies operate in 44 countries and hase below mentioned business lines:
BUSINESS LINES
1. Applications Services and Systems Integrations
2. BPO/Business Services: This division has “delivery centres” in India, Philippines,
Latin America, USA, HCL BPO Northern Ireland, and Europe.
3. Engineering and R&D Services (ERS)
4. Infrastructure Management Services (IMS)
5. IoT WoRKS
6. DRYiCE
7. Digital & Analytics
8. Cybersecurity and GRC Services

• CONCLUSION AND WAY FORWARD FOR THE COMPANY

Infosys is a global leader in next-generation digital services and consulting. It has enabled
clients in 46 countries to navigate their digital transformation, with nearly four decades of
experience in managing the systems and workings of global enterprises. Their distinct service
offerings clearly have many takers and they only continue to grow and expand their portfolio.
The company is doing well on promotional fronts, while maintaining its brand as one of the
top names. But with increasing competition in the industry, the company needs to constantly
evaluate its position and be at par with the rest.