Company Profile Infosys Limited Premium

Company Profile
Infosys Limited
PREMIUM
2020 © Benori Knowledge. All Rights Reserved 1
Contents
▪ Executive Summary
▪ Company Overview
- Snapshot
- Reporting structure
- Key personnel
▪ Financial Performance
- Company performance
- Key ratios
▪ Key Developments
▪ Company Strategy and SWOT
- Company strategy
- SWOT analysis
▪ Industry Landscape
- Industry overview
- Key competitors
2020 © Benori Knowledge. All Rights Reserved

Executive Summary

Executive Summary
Infosys Limited is an India-based multinational corporation that provides technology, consulting, outsourcing and next-generation digital
services. It primarily operates through eight business segments. The company has more than 2,28,000 employees across 46 countries. The
company’s North America geographic segment accounted for the largest revenue share which was followed by other regions such as
Europe, the rest of the world and India.
Strategic Imperatives
Key Areas Description
Focuses on growing digital business and increasing its share in the total revenue by selling it as a set of five use cases,
Digital services forming partnerships to complement core competencies and strengthening R&D capabilities to launch new offerings
Continuously leverages automation and AI-based techniques as well as software automation platforms by following a
Automation and AI (Artificial
product agnostic approach, building specific platforms for emerging technologies and establishing partnerships to
Intelligence) increase reach and availability
Offers courses on latest emerging technologies through an in-house talent transformation platform and partners with
Workforce reskilling universities and online training providers to offer relevant reskilling programs
Localises workforce by opening new delivery centres in the US by focusing on local recruitment, updating delivery
Localisation models and strengthening the company's position in emerging countries through partnerships
Past Year Performance (FY19) Outlook

 Reported revenue of US$ 11.8 B by registering a y-o-y growth of 7.9%  Expected to gain favorably from the positive spend outlook for IT services
mainly due to an increase in the volume of business across major and digital transformation
segments  Guidance (FY20): Revenue growth of 9%–10% in constant currency;
 Operating margin and net margin decreased by 1.5 p.p. and 4.1 p.p. operating margin to be in 21%–23% range
y-o-y, respectively
Company Overview

Company Overview
Snapshot (1/2)
Snapshot
Established in 1981, Infosys Limited (Infosys) offers consulting, technology, outsourcing and digital services. It operates through eight
segments and categorises offerings in core and digital. The company operates in 46 countries and is headquartered in Bangalore, India.
Business Segments
Revenue
Segment Description
Contribution
Offerings include solutions for capital market, consumer banking, reconciliation, data migration and
Financial Services (FS) 32.0%
management, cards and payments, commercial banking, governance, risk & compliance and mortgages
Includes retail, consumer goods and logistics industry; offerings include digital customer engagement, omni-
Retail 16.4%
channel commerce and supply chain
Includes clients in the telecom OEM, communication and media industry; offerings cover operations, processes,
Communication (COMM) 12.6%
digital transformation and screen convergence
Offerings include automation tools and remote monitoring solutions for mining; services based on automation,
Energy, Utilities, Resources and
12.6% analytics and artificial intelligence for oil and gas; and services for generation, transmission, distribution and
Services (EURS)
customer networks of utilities
Manufacturing (MFG) 9.9% Offerings include selling bundled services as an ‘outcome as a service’ solution
Hi-Tech 7.5% Offerings include engineering services and digital transformation
Offerings include services for application portfolio rationalisation and digital marketing; examples of solutions
Life Sciences (LS) 6.3%
include data and document management, device connectivity, compliance and CRM
Encompasses businesses operating in China, India, Japan, Infosys Public Services and other public services
Others 2.8%
enterprises
Sources: Company website, Annual report 2019 Note: Offerings included are indicative in nature
Company Overview
Snapshot (2/2)
Key Facts Key Financials (FY19; US$ B)
Headquarters Bengaluru, India Sales 11.8
Founded 1981
Operating profit 2.7
Stock exchange NYSE, NSE and BSE
Total assets 12.3
Number of employees 228,123
Market cap (as on 1 April 2019) 46.4
Website https://www.infosys.com
The promoter and promoter group includes 22 shareholders. The public owner category includes 9,19,009 shareholders. Key
Ownership Structure entities holding majority of the shares within the public owner category include Deutsche Bank Trust Company Americas, Life
Insurance Corporation of India, HDFC Mutual Fund, SBI Mutual Fund and ICICI Prudential Mutual Fund.
Owner Category Common Stock Equivalent Held Total Shares Outstanding (%) Market Value (US$ B)
Promoter and Group 56,01,82,338 13.1 6.1
Public 3,67,65,75,155 86.4 40.1
Employee Trust 1,89,29,512 0.4 0.2
The geographic markets of Infosys include North America, Europe, Rest of the World and India, which contributed 60.5%, 24.1%,
Geographic Presence 12.9% and 2.5%, respectively, to the consolidated revenue in FY19. In total, the company has presence in 191 locations across 46
countries.
Sources: Company website, Annual report 2019

Company Overview
Reporting structure
CEO
Salil Parekh
President and Executive VP Global Executive VP Group President,

Executive VP, Data Group General
CFO COO Head, Talent and Head, HR Healthcare,
Deputy COO Technology Development
and Analytics Council and CCO
Insurance and LS
Binod R. Krishnamurthy Inderpreet
Nilanjan Roy Ravi Kumar Pravin Rao Satish HC Sawhney Mohit Joshi
Hampapur Shankar
 Deputy CFO  Retail, CPG and  Cisco and  Infosys Public

 Corporate Legal
 Business Finance Logistics Delivery Cyber Services
 Procurement and  Business Portfolio  Data Scientist
Information and Strategy  Digital
Services  India Business  Talent
 Insurance Acquisition US
 Financial  Microsoft and
Services UK Digital
 Business Finance Experience
and Revenue
Sources: Company website, Annual report 2019, The Official Board

Company Overview
Key personnel
Executive Management
Salil Parekh (CEO and MD)

 Salil was appointed as a CEO in January 2018
 He handles the strategic direction for the company and offerings portfolio
 Prior to this, he served as a member of the Group Executive Board at Capgemini
and as a Partner at EY
 He has nearly three decades of experience in the IT service industry including
managing acquisitions and executing business turnarounds
U.B. Pravin Rao (COO and Whole-time Director) Nilanjan Roy (CFO)
 Pravin joined the company in 1986 and was appointed  Nilanjan was appointed as the CFO in March 2019
as the COO in January 2014  He is responsible for managing financial planning,
 He has overall strategic and operational responsibility financial risk, record-keeping and financial reporting
for the entire portfolio of Infosys offerings  Prior to Infosys, he served as the Global CFO of Bharti
Airtel Ltd. and was responsible for overseeing the
finance function across India and Africa
Ravi Kumar S. (President and Deputy COO) Mohit Joshi (President)

 Ravi joined Infosys in November 2002 and he leads  Mohit joined Infosys in December 2000 and he leads the
the Infosys’ delivery globally across all industry Healthcare, BFSI and Life Sciences domains
segments  He is also responsible for company-wide sales operations
 He is also responsible for the US talent model to and reporting processes including top account growth
create a technology hub by collaborating with local and large deal pursuits
states, clients and academic ecosystem
Financial Performance

Company performance (1/2)
Annual Revenue Trend FY17–19 (US$ B)

 In FY19, Infosys reported a revenue of USD$ 11.8 B by registering a
11.8 y-o-y growth of 7.9%. During FY16-19, the company’s revenue increased
12.0 30.0%
10.9 at a CAGR of 7.5%. The growth in revenue can be attributed to:
10.2  Increase in the volume of business across major segments as
10.0 25.0% well as new solutions being offered to the clients
24.7% 24.3%  Addition of 345 new customers in FY19 compared to 283
22.8% customers in FY18
8.0 20.0%  Operating margin decreased by 1.5 p.p. y-o-y in FY19 mainly due to
10.7% increase in total operating expenses
Revenue (US$ B)
 Net margin also decreased by 4.1 p.p. y-o-y in FY19 mainly due to:
6.0 15.0%
 Decrease in operating profit and increase in tax expenses by
0.9% on an annual basis
4.0 10.0%  Reduced fair value of the disposal group ‘held for sale’ asset
resulted in decline of net profit
 Revenue per employee decreased from US$ 54,602 in FY18 to US$
2.0 5.0% 54,038 in FY19
 Revenue from software services represented 94.8% of the total revenue
in both FY19 and FY18
0.0 0.0% Guidance (FY20): Revenue growth of 9%–10% in constant currency;
2017 2018 2019 operating margin to be in 21%–23% range
Revenue Operating Profit Margin
Sources: Company website, Annual report 2019, Investor presentations

Company performance (2/2)
Revenue Breakdown (by segment) FY17–19 (US$ B)
12.0 In FY19, all the operating segments except Life Sciences and Others
0.3 reported increase in revenue
0.7
0.4  Overall profitability across most of the segments decreased as
0.7 0.9 compared to FY18 mainly due to:
10.0 0.4
0.7 0.8 1.2  Cross-currency fluctuations, higher cost of technical sub-
0.8 1.0 contractors and investments in areas such as re-skilling of
8.0 0.9 1.5 workforce, investments in digital, localisation strategy and
Revenue (US$ B)
1.3 increased sales and marketing expenses

1.1  EURS business segment reported the highest annual growth of 14.3%—
1.5
6.0 1.4 however, its profitability was lower on account of higher subcontractor
1.3 costs and higher third-party cost related to project specific
1.9 requirements
1.7 1.8
4.0  The MFG segment revenue increased by over 12% — profitability was
also up by 33.3% y-o-y due to an increase in offshoring as well as
booking contingency loss provisions on various projects
2.0 3.6 3.8  COMM segment profitability was lower on account of higher
3.4
subcontractor costs and due to ramp up and transition costs of large
deals
0.0  Retail segment revenue witnessed an annual increase of over 9.0% due
2017 2018 2019 to increasing demand for digital services—the segmental profit also
increased by 12.7% compared to the previous year
FS Retail COM EURS MFG Hi-Tech LS Others
The company reported 13 large deals with total contract value (TCV) of
US$ 2.7 B in FY19
Sources: Company website, Annual report 2019 2020 © Benori Knowledge. All Rights Reserved 12
Key ratios
Key Ratios and Comparison

Ratios Infosys Peers  Infosys reported an annual EPS of US$ 0.5 in 2019, by registering a 7.3% y-
o-y decline compared to 2018
Net margin 18.6% 16.8%
 The median value for peers’ EPS was US$ 1.1 as only Wipro
EPS US$ 0.5 US$ 1.1
reported EPS lower than the company
Return on assets 18.2% 19.0%
 The company reported a higher PE ratio of US$ 0.3 in FY19 as compared
Return on equity 23.7% 26.0% to US$ 0.2 in FY18 owing to the buyback of equity shares
Price/Book value 5.0X 4.8X  Infosys peers reported a low PE ratio of US$ 0.2 in FY19
EV/Sales 3.7X 5.4X  Infosys witnessed higher EV/EBITDA metrices as compared to its peers
EV/EBITDA 13.1 12.6  This can be attributed to the acquisition of voting rights of more
PE US$ 0.3 US$ 0.2 than 51% in two companies in FY19
Dividend yield 3.1% 0.8%  It also made multiple acquisitions in FY18
Net debt/Equity 0.3 0.2  Infosys was one of the high dividend yield stocks in FY19 as it yielded a
dividend of 3.1% to its shareholders, compared to a median divided of
Note: Median value of three peers (Wipro Ltd, TCS Ltd. and HCL Technologies Ltd.) have
0.8% yielded by its peers
been considered; All financial ratios are for FY19
CAPEX and OPEX Profile (US$ M)

2017 2018 2019  During FY17-19, CAPEX and OPEX registered a CAGR of 7.9% and 6.8%,
respectively
CAPEX 411 310 349  CAPEX witnessed a y-o-y growth of 12.6% in FY19, as the OPEX increased
OPEX 1,242 1,279 1,416 10.7% y-o-y due to investments and acquisitions

Key Developments

Key Developments
Press search (1/7)
Partnerships
Date Area Description

EdgeVerve Systems, a subsidiary of Infosys, announced partnership with Idego, a Peru-based digital transformation
Dec 2019 Partnership
consulting organisation, to drive RPA adoption in telecom and financial services companies across Latin America
Infosys partnered with SAP, a Germany-based enterprise application software provider, to accelerate enterprise digital
transformation for its customers, through a new strategic program named Innov8
Oct 2019 Partnership
 In addition, both the companies are engaged in creating a joint go-to-market engagement model between the Innov8
program from Infosys and project Embrace from SAP
The company announced collaboration with Hewlett Packard Enterprise by adopting HPE GreenLake, an as-a-service
offering that offers on-demand infrastructure
Jan 2019 Partnership
 The partnership is expected to help customers accelerate digital transformation by enabling them to pay for only
consumed services
Sources: Company website, News articles

Key Developments
Press search (2/7)
New Products/Solutions

Launched three blockchain-powered distributed applications for government services, insurance and supply chain
management domains
Dec 2019 New Applications
 These ready-to-subscribe business applications enable fast deployment, interoperability across different systems
involving multiple use-cases on technologies such as IoT and analytics
Introduced Cyber Next platform-based offerings — the platform is enabled by Microsoft Azure Sentinel, a cloud-based
Nov 2019 Product Launch security solution
 The new platform is expected to help customers in increasing threat detection and response capabilities
Launched ATP Tour App for the iOS and android devices in partnership with the Association of Tennis Professionals, a men’s
tennis governing body
Nov 2019 App Launch
 The app will provide information such as news, live scores, stats, videos and personalised feeds for the tennis sports
fans
Introduced McCamish NGIN platform for the life insurance and annuity industry, including functionalities across all insurance
Sep 2019 Platform Launch
product lines along with features for whole-life, term, annuities and universal life

Key Developments
Press search (3/7)
Customer Acquisitions (1/3)

Customer Selected by Telenet Group, a telecom services provider in Belgium, to drive digital and data transformation programs for
Dec 2019
Acquisition the next five years
Customer Infosys Finacle, a digital banking solution suite from EdgeVerve Systems, was selected by Glory Farmer Development Bank, a
Dec 2019
Acquisition Myanmar-based private bank, to improve and transform its retail banking business
Selected by the Australian Federal Government’s Services to digitise welfare entitlements. The project includes
Customer
Nov 2019 transformation of the entitlement calculation engine (ECE) through an agile and configurable Pega platform
Acquisition
 Pega platform is a tool for scalable enterprise-wide, transformational deployments
EdgeVerve Systems was selected as a partner by WM Promus, a London-based IT software and service provider, to develop
Customer
Nov 2019 and deliver an automation solution and assist enterprises in industries such as manufacturing, financial services, airlines and
Acquisition
retail to improve productivity and efficiency

Key Developments
Press search (4/7)

Selected as a strategic IT partner by ARLANXEO, a synthetic rubber company, to deliver IT support and projects for S/4HANA
Customer
Nov 2019 digital ecosystem
Acquisition
 Infosys will also act as a preferred partner for the company-wide application development
Selected as a sole technology partner for digital transformation by Movement Mortgage, a US-based mortgage bank
Customer
Nov 2019  Under this agreement, Infosys will provide IT-as-a-Service and will lead the digitisation of the company across 650
Acquisition
locations in 47 states
Partnered with Siemens Gamesa Renewable Energy (SGRE), to digitalise its IT landscape
Customer
Nov 2019  Infosys would provide the end-to-end IT infrastructure transformation including the roll-out of a Software-Defined
Acquisition
Network (SDN), hybrid cloud transformation, digital workplace services and the set-up of an intelligent service desk
Selected by Volvo Cars, a unit of Volvo Group, to offer digital transformation services
Customer
Oct 2019  Services offered will include next-generation application services through agile delivery, automation and other services
Acquisition
optimisation offerings for enterprise digital commercial operations, applications and products

Key Developments
Press search (5/7)

Selected as a technology partner by Toyota Material Handling North America (TMHNA), a forklift sales company, for cloud-
Customer
Aug 2019 based telematics solutions through Infosys’ diagnostics capabilities and remote monitoring services such as system
Acquisition
maintenance, vehicle access control, condition sensing and location tracking
Customer EdgeVerve Systems was selected as a partner by Al Ahli Bank, a Kuwait-based bank, to enable Robotic Process Automation
July 2019
Acquisition (RPA) in operations and information security areas
Customer EdgeVerve Systems was selected as a partner for Ahli United Bank, a Kuwait-based bank, to deploy RPA in the bank’s
April 2019
Acquisition operational processes, to improve the Service Level Agreement (SLAs), reduce errors and accelerate the turnaround time
Announced a three-year technology partnership with Roland-Garros, the venue that hosts the French Open
Customer
March 2019  Under the partnership, Infosys will leverage its solutions in artificial intelligence, big data and analytics, mobility, virtual
Acquisition
and augmented reality to offer fans, players and coaches a new digital experience
Customer Selected as a partner by Rolls-Royce Plc to provide digital solutions and engineering services to help achieve customers’
March 2019
Acquisition increasing needs for sustainable energy

Key Developments
Press search (6/7)
Business Expansion

Opened a new digital innovation centre in Dusseldorf, Germany, to bridge the IT skill gap across Europe and support
Business customers to digitally transform businesses
Nov 2019
Expansion  The centre will focus on developing next-generation business suites, cloud-based services, 5G, IoT, Machine Learning and
AI for enterprises
Business Inaugurated a technology and innovation centre in Arizona, US. With the opening of this centre, it plans to hire 1,000
Sep 2019
Expansion American workers in the state by the end of 2023
Business Established a new cyber defense centre in Bucharest, Romania, to provide real-time cybersecurity protection and
July 2019
Expansion monitoring services to global and European businesses
Business Launched an experience design and innovation studio in London, to focus on the development of customer-centric
June 2019
Expansion experience, collaboration and innovation by creating a design coupled with technologies such as 5G, IoT, AI and AR/VR
Established a joint venture with three Japanese firms, i.e., Hitachi (diversified conglomerate), Panasonic Corporation
April 2019 Joint Venture
(electronics company) and Pasona Inc (staffing services company) to strengthen operations in Japan

Key Developments
Press search (7/7)
Mergers & Acquisitions

Acquired Eishtec, an Ireland-based 1,400-employee contact centre company. The transaction is expected to help in the
Oct 2019 Acquisition
growth of its contact centre business as Eishtec and Infosys BPM share some key clients
Infosys Consulting acquired 75.0% shareholding in Stater NV, a mortgage service provider and a subsidiary of ABN AMRO Bank
May 2019 Acquisition  The acquisition is expected to strengthen its capabilities as a technology and business management provider for the
mortgage industry in Europe
Acquired 81.0% voting interest in Hitachi Procurement Service Co., Ltd., (HIPUS), a subsidiary of Hitachi Ltd, through its
April 2019 Acquisition subsidiary Infosys Consulting Pte Limited (Infosys Consulting) for approximately US$ 30 M
 The acquisition is expected to help in building local presence in the region

Company Strategy and SWOT

Company Strategy
Snapshot
Infosys growth strategy focuses on increasing digital revenue, expanding operations to the major and emerging markets through
acquisitions and partnerships and creating a sustainable organization that strengthens company’s relevance with the clients
Reskill the workforce: A key element of strategy that:

Scale Agile Digital: Targeted investments to grow digital  Offers courses on emerging technologies through an in-
business and increase its share in total revenue by: house talent transformation platform
 Selling digital as a set of five use cases  Partners with universities and online training providers to
 Partnerships to complement core competencies offer relevant reskilling programs
 Strengthening R&D capabilities to launch new offerings
Energise the core: To continue using automation and AI- Localisation: Investment in localising workforce to gain
based techniques and software automation platforms from client proximity by:
through:  Launching new delivery and innovation centres in the
 Building specific platforms for emerging technologies US, complemented with focus on local recruitment
 Product agnostic approach  Updating Global Delivery Model
 Making automation part of capabilities such as cloud  Strengthening position in emerging countries through
 Partnerships to increase reach and availability joint ventures
Sources: Company website, Annual report 2019, News articles

Company Strategy
Digital services and automation
Scale Agile The company makes targeted investments to increase digital business which is defined as a set of following five use cases:
Digital  Experience (systems for digital marketing, omni-channel interaction, personalisation and content management), insight (AI-based
systems for analytics), innovate (digital products and offerings using concepts such as the IoT), accelerate (digitisation of core
systems by migrating to cloud technologies and RPA) and assure (advanced cyber-security systems and validation)
In 2019, it partnered with Idego (digital transformation consulting), SAP (enterprise digital transformation through a new program) and
HPE (digital transformation by paying for only consumed services) to complement its core competencies
It is also focused on enhancing R&D capabilities to incubate new offerings in areas such as blockchain, AR/VR and speech, vision, video
and image intelligence
 In December 2019, it launched three blockchain applications for government, insurance and supply chain management domains
A continuous focus on digital has resulted in 5 p.p. increase of digital revenue in FY19 compared to the previous year
The company aims to continue using automation and AI-based techniques and software automation platforms to increase productivity of
Energise the clients’ core processes and systems
core  As part of its continuous focus on emerging technologies, it will continue investments in AssistEdge (RPA platform), Infosys Nia (AI
platform), Panaya and Skava software components, Finacle (a core business application) and McCamish (insurance, annuities and
retirement services) to keep them updated with latest features and capabilities
The company’s AI and automation capabilities are product agnostic and it has competencies in products such as Watson (a machine
learning system by IBM), Azure AI/Cortana (AI suite by Microsoft), Workfusion (AI-powered automation software) and RPA software tools
(including Automation Anywhere, Blue Prism and UIPath)
Infosys Automation Suite, offered under cloud and infrastructure management capabilities, reduces manual effort through process
standardisation, predictive analytics and workflow automation
In 2019, the customer acquisitions related to RPA included two Kuwait-based banks. It also partnered with a Peru-based digital
transformation consulting organisation to drive RPA adoption across Latin America in the same year
Company Strategy
Reskilling and localisation
Reskill the Workforce reskilling is a key element of strategy as it offers curated courses on new and emerging technologies through Lex, an in-
house next-gen talent transformation platform, to enable learning in an on-the-go anytime, anywhere way
workforce
 The platform is being used by 200,000+ employees, who spend on an average between 35–40 minutes on a weekday and 50–55
minutes on weekends at the platform
 The company has launched the customisable client-ready version of this platform as Wingspan
Infosys also partners with multiple universities and online training providers to offer reskilling programs
 Examples include Rhode Island School of Design (design skills), Purdue University (cyber security), Trinity College, Hartford
(business analysis skills), Cornell University (program management) and the University of North Carolina (data analytics)
As client proximity offers several benefits, the company continues to invest in localising workforce in various geographies
Localisation  It had announced to establish four delivery and innovation centres in the US in FY18—announced one more in FY19
 These centres are operational in Indiana, Connecticut, Rhode Island, Texas and North Carolina
 The company is recruiting locally from the universities in the US and aims to become an employer of choice for the US
universities. Localisation is expected to reduce dependence on immigration policies such as H1B visas
As part of localisation strategy, in September 2019, the company updated its global delivery model
 The updated model follows a 70:15:15 global delivery model, as compared to the traditional 70:30 one
 Under the new approach, 70% of the work will be delivered from offshore locations, 15% will be delivered through on-site local
workforce and the remaining 15% by deploying resources at clients’ premises in on-shore locations
In September 2019, the company inaugurated its latest technology and innovation centre in Arizona, US. This is part of its plans to hire
1,000 American workers in the state by the end of 2023
In the same year, the newly opened European centres included a digital innovation centre in Germany, a cybersecurity centre in
Romania and an experience design and innovation studio in London. It also established a joint venture with three Japanese firms to
strengthen local operations
SWOT Analysis
Strengths Weaknesses
 Diversified and growing clientele: The company serves clients across all  Legal proceedings and conflict of interest: The company’s brand image
major verticals. In FY19, total number of clients increased to 1,279 from was negatively impacted due to legal proceedings from the former CFO
1,204 in FY18. Similarly, number of US$ 100 M+ clients increased by 25.0% related to arbitration cases and conflict between the management and the
to 25 in FY19. former CEO.
 Strong top line performance: In FY19, the company reported revenue of  Declining profitability in FY19: The operating margin and net margin
US$ 11.8 B by registering a y-o-y growth of 7.9%. During FY15-19, revenue decreased by 1.5 p.p. and 4.1 p.p. y-o-y, respectively. Operating margin
of the company increased at a CAGR of 7.9%. A consistent growth in declined due to 10.7% increase in operating expenses, whereas net margin
revenue augurs well for future business plans. was impacted by decreased operating profit and increase in tax expenses.
 Robust and trusted delivery model: The company has over twenty years of  High attrition rate: The company has a higher attrition rate (21.7%, Sep
experience in delivering technology services to Fortune Global 500 clients 2019) compared to its competitors such as TCS (11.6%, Sep 2019), Wipro
utilising its Global Delivery Model. (~17%, Sep 2019) and HCL Technologies (17.3%, Jun 2019).
Opportunities Threats
 Growing global IT services spend: According to Gartner, the global IT  Currency fluctuations: Infosys operations are spread across multiple
services spend is expected to grow at a CAGR of 4.8% to reach US$ 1,308 B geographies. Any adverse currency fluctuation in the exchange rate
in 2022. Being a major global IT services provider, the company stands to between INR to USD and other foreign currencies can negatively impact the
gain from the growing IT services spend. company’s financial performance.
 Positive outlook for public cloud services: According to IDC, global  Government regulations: Stringent regulations related to the scrutiny of
spending on public cloud services and infrastructure will more than double new as well as renewal of H-1B visa applications in the US may result in
over the 2019-2023 period to approximately US$ 500 B in 2023. The delay or additional cost of managing on-shore projects.
company, with its cloud and infrastructure management capabilities and  Brexit speculation: The withdrawal of the UK from the EU may result in
enterprise cloud application solutions, is expected to benefit from the low demand for Infosys services, as clients may postpone or reduce their
positive outlook for public cloud services. technological spending.
Sources: Company website, Annual report 2019, News articles and industry analysis

Industry Landscape

Industry Landscape
Industry overview
Global IT Services Spend (US$ B) Indian IT Services Market (US$ B) Sector-wise Breakup of Indian IT Market
350 IT Software
1,308 317
1,190 1,248 287
1,083 1,135 260 19.9%
235 Business Process
213 Management
193
167 9.0%
51.8% Hardware
19.3%
Software
Products &
Engineering
2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 2023 2024 2025 Services
 The global IT services spend is expected to reach US$ 1,308 B by 2022, at a CAGR of 4.8%, as companies across BFSI, healthcare,
government and telecom sector continue to invest in IT services to ensure digital transformation
Overview
 India is one of the fastest growing IT services market in the world. The growth drivers include large deals for digitalisation, improved
business opportunities in Europe and APAC and establishment of more than 1,000 global delivery centres by Indian IT companies
 Top technology priorities for global businesses include advanced analytics and AI, hybrid cloud, cybersecurity, IoT and blockchain
 IDC predicts that global spending on AI and cognitive intelligence will reach US$ 77.6 B by 2022 as the organizations will adopt AI to enable
Outlook their digital workforce, transform customer service and gain insights from siloed unstructured data
 Similarly, cloud computing applications and platforms will proliferate to support new business models (as-a-service models) and will
achieve higher scalability, speed and security
Sources: Company website, Annual report 2019, News articles and Industry analysis
Industry Landscape
Key competitors
A Comparison of Infosys and its Three Key Competitors

Target TCS Wipro HCL Technologies Infosys
Founded in 1968, TCS is an Founded in 1968, Wipro entered IT Founded in 1976, HCL is an India- Founded in 1981, Infosys is an
India-based IT consulting, products and businesses in 1982. based IT service and consulting India-based organisation that
service and business The company is an India-based IT, company which helps enterprises offers consulting, technology,
Overview
solutions organization consulting, business process to transform business through outsourcing and digital services
service enterprise with clients digital transformation
across 27 industry verticals
BFSI (39.6%), Retail and IT Services (96.5%), IT Products Software Services (57.8%), Financial Services (32.0%), Retail
Consumer Business (2.1%) and India State Run Infrastructure Services (37.2%), (16.4%), Communication (12.6%),
(17.2%), Communication, Enterprise (ISRE) (1.5%) Business Process Outsourcing EUR (12.6%), MFG (9.9%), Hi-Tech
Business segments Media and Technology Services (5.0%) (7.5%), Life Sciences (6.3%),
(CMT) (16.3%), Others (2.8%)
Manufacturing (10.7%) and
Others (16.2%)
Americas (53.0%), Europe Americas (55.0%), Europe (25.0%), Americas (59.6%), Europe (26.7%), North America (60.5%), Europe
(29.7%), India (5.7%) and India (5.0%) and Rest of the World India (3.5%) and Rest of the World (24.1%), Rest of the World (12.9%)
Geographical
Others (11.6%) (15.0%) (10.2%) and India (2.5%)
presence
FY19 Sales (US$ B) 21.1 8.5 8.7 11.8
Sources: Company websites, Annual reports 2019, News articles Note: Values in brackets denote percentage contribution to the total revenue in FY19
Benori Knowledge is a global provider of custom research and analytics
solutions across industries, including consumer & retail, technology, media &
telecom, internet & e-commerce, professional services, financial services,
healthcare, industrials and education & social. We offer solutions aimed at
supporting our clients’ strategic needs that are critical to accelerate their
growth and value creation.
Our team of knowledge consultants is committed to minimising the

challenges faced due to high costs, poor access and low quality of knowledge
processes, and transforming them to deliver world-class and cost-effective
information, intelligence and insights.
Headquartered in India, we serve clients across the world.
Simplifying Decisions.
info@benoriknowledge.com
benoriknowledge.com

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Company Profile

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Past Year Performance (FY19) Outlook

2020 © Benori Knowledge. All Rights Reserved

Public 3,67,65,75,155 86.4 40.1

Employee Trust 1,89,29,512 0.4 0.2

Sources: Company website, Annual report 2019

President and Executive VP Global Executive VP Group President,

 Deputy CFO  Retail, CPG and  Cisco and  Infosys Public

Sources: Company website, Annual report 2019, The Official Board

Salil Parekh (CEO and MD)

Ravi Kumar S. (President and Deputy COO) Mohit Joshi (President)

2020 © Benori Knowledge. All Rights Reserved

Annual Revenue Trend FY17–19 (US$ B)

Sources: Company website, Annual report 2019, Investor presentations

Revenue Breakdown (by segment) FY17–19 (US$ B)

1.3 increased sales and marketing expenses

Key Ratios and Comparison

CAPEX and OPEX Profile (US$ M)

Sources: Company website, Annual report 2019

2020 © Benori Knowledge. All Rights Reserved

Date Area Description

Sources: Company website, News articles

Date Area Description

Sources: Company website, News articles

Customer Acquisitions (1/3)

Date Area Description

Sources: Company website, News articles

Customer Acquisitions (2/3)

Date Area Description

Sources: Company website, News articles

Customer Acquisitions (3/3)

Date Area Description

Sources: Company website, News articles

Date Area Description

Sources: Company website, News articles

Mergers & Acquisitions

Date Area Description

Sources: Company website, News articles

2020 © Benori Knowledge. All Rights Reserved

Reskill the workforce: A key element of strategy that:

Sources: Company website, Annual report 2019, News articles

2020 © Benori Knowledge. All Rights Reserved 26

2020 © Benori Knowledge. All Rights Reserved

A Comparison of Infosys and its Three Key Competitors

FY19 Sales (US$ B) 21.1 8.5 8.7 11.8

Our team of knowledge consultants is committed to minimising the

Headquartered in India, we serve clients across the world.

2020 © Benori Knowledge. All Rights Reserved 30

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