Infosys Limited is an Indian multinational information technology company that provides business consulting, information technology and outsourcing services. The company was founded in Pune and is headquartered in Bangalore.Infosys is the second-largest Indian IT company after Tata Consultancy Services by 2020 revenue figures and the 602nd largest public company in the world
On 24th August 2021, Infosys became the 4th Indian company to cross $100 billion in market capitalization.
Infosys provides software development, maintenance and independent validation services to companies in finance, insurance, manufacturing and other domains.
One of its known products is Finacle which is a universal banking solution with various modules for retail and corporate banking.
Glass building in Pune campus
Its key products and services are:
NIA – Next Generation Integrated AI Platform (formerly known as Mana)
•Infosys Consulting – a global management consulting service
•Cloud-based enterprise transformation services •Infosys Information Platform (IIP) – Analytics platform
•EdgeVerve Systems which includes Finacle, a global banking platform
•Engineering Services Digital Marketing
Organizational structure followed in Infosys is a Functional Structure.
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
Functional structures are proved to operate well in stable environments where business strategies are less inclined to changes or dynamism, the amount of bureaucracy makes it tough for organizations to respond to changes in the market quickly . It also conducts Career development practice to help employees to showcase their skills, providing career guidance and career development activities. Infosys provides strong property rights to its employees by providing employee stock option plans. Infosys also provides health and pension benefits, but not at a very lucrative scale. It is in line with the government policies.
For its employees, Long term employment recognition and benefits like Pension Plans, Group Medical Policy, Accident Policy, Bonus, Annual Medical Check-ups, Budgets for quarterly team lunch, Annual outings as part of team building activities and flexible work hours.
Success of the organization :
Digital technology is transforming services and businesses in today’s world. It is fundamentally changing operations and delivering value to consumers. It is also a cultural modification which wants organisations to experiment with various things and get comfortable with downfalls.
Infosys is an information technology consulting company. It is an Indian multinational company that provides information technology, business consulting and outsourcing assistance. It considers itself to be a global leader in next-gen digital consulting. It is the 2nd largest IT company after TCS (Tata Consultancy Services). It is also the 596th biggest company in the entire world based on the terms of revenue.
Infosys is a provider of next-gen services. The company enables clients in more than 50+ countries to stay ahead of the innovation curve and outperform in the game. It has more than 187,000 employees working within it.
Steps for betterment involved :
Infosys is one of India’s most pre-eminent providers of IT services. However, the company has suffered from its slow-moving legacy past (smaller, more discretionary projects) and out-of-date go-to-market strategy, resulting in low revenue growth relative to peers, margin compression, leadership churn, and high employee attrition. In light of these issues, Infosys has launched a number of initiatives to improve its performance. The company has some way to go before rectifying its position, but a number of signs are promising, with revenue growth, margins, client mining, and employee attrition improving. Ø ØEconomic Moat
Infosys’ narrow economic moat results from high switching costs (roughly 96%-98% of revenue is from repeat business and has been around these levels for many years). The company’s commitment to building lasting relationships, embedded systems and processes, and intimate knowledge of clients’ IT infrastructure means customers are averse to switching between vendors. On a gross basis, Infosys continually adds over 200 clients per year, which is an encouraging sign and cements further long-dated business given switching costs. Such switching costs ensure a certain level of operational consistency and the company’s exemplary financial health reflects this. We forecast Infosys to easily generate a return on invested capital in excess of its cost of capital for the foreseeable future, and we believe its lower-cost offshore delivery model allows for this assumption.
Risk Infosys has highlighted issues regarding relatively low revenue growth, margin compression, leadership churn, and high employee attrition. Management has taken steps to remedy this, but it is still early and there is the risk that these problems become inflated.Poor macroeconomic conditions, management turnover, founder disruption, visa restrictions, competitive threats, and foreign exchange movements are also external risks that could generate further downside for the company.
all the way it set out to be in this competitive world.
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