SWOT Analysis Infosys Infosys is one of the largest businesses in India with a turnover in excess of $ 4 billion in 2008.

The company specializes in Information Technology (IT) and co nsulting. N.R. Narayana Murthy and six others started the company in 1981, and i t is now the largest IT company in India with its headquarters in Bangalore (alt hough it was started in Pune). It employs more than 90,000 IT professionals and was famously rated 'Best Employer in India.' It operates in a number of business sectors from banking to retail, and its serv ices tend to encompass end-to-end IT solutions which includes a whole bundle of added-value solutions from infrastructure to software engineering. This SWOT ana lysis is about Infosys. Strengths Since the company is based in India its competitive advantage is enhanced. The I ndian economy, despite weak economic indicators such as relatively high rates of inflation, has low labor costs. The workforce has relatively high skills levels in Information Technology. Couple these two elementstogether and you have an op erational basis that offers low-cost based, highly skilled competitive advantage . Trained Indian personnel often speak very good English and are sensitive to We stern culture, underpinned by India's colonial past. Infosys is in a strong financial position. The business turned over more than $4 billion in 2008. This means that it has the capital to expand, and also the bas is to leverage potential investors. The company has bases in 44 global development centres, most of which are locate d in India, although the company has offices in many developed and developing na tions. This means not only that Infosys is becoming a global brand but also that it has the capability to support the global operations of multinational clients . Weaknesses Infosys on occasion struggles in the US markets, and has particular problems in securing United States Federal Government contracts in North America. Since thes e contracts are highly profitable and tend to run for long periods of time, Info sys is missing out on lucrative business. Added to this is the fact that its com petitors do well in terms of securing the same Federal business (and one should also take into account that many of its competitors are domiciled in the US and there could be political pressure on the US Government to award contracts to dom estic organizations). Despite being a huge IT company in relation to its Indian competitors, Infosys i s much smaller than its global competitors. As discussed above, Infosys generate d $4 billion in 2008, which is relatively low in comparison with large global co mpetitors such as Hewlett-Packard ($91 billion), IBM ($91 billion), EDS ($21 bil lion) and Accenture ($18 billion). It is sometimes argued that Infosys is weaker when it comes to high-end manageme nt consultancy, since it tends to work at the level of operational value creatio n. Competitors such as IBM and Accenture tend to dominate this space. Opportunities At a time of recession in the global economy, it may appear that some companies will reduce take up of services that Infosys offers. However, in tough times cli ents tend to focus upon cost reduction and outsourcing - with are strategies tha t Infosys offers. So hard times could be profitable for Infosys. There is a new and emerging market in China as the country undergoes a huge indu strial revolution. The strategic alliance between Infosys and Schlumberger gives the IT company acc ess to lucrative business in the gas and oil industries. There has been a trend over recent years for European and North American compani es to base some or all of their operation in India. This is called an offshore s ervice. Essentially there is a seamless link between domestic operations and ser

vices hosted in India. Examples include telecommunications companies such as Bri tish Telecom and banks such as HSBC that have customer service and support centr es based in India. Think about the times that you have made calls to a support l ine to find that the adviser is in Mumbai or Bangalore and not in your home mark et. Threats India is not the only country that is undergoing rapid industrial expansion. Com petitors may come from countries such as China or Korea where there are large po ols of low-cost labor, and developing educational infrastructures such as univer sities and technology colleges. Customers may switch to other offshore service companies in other countries such as China or Korea. Other global players have realised that India has the benefit of low-cost, highl y-skilled labor that often speaks English and is culturally sensitive to Western practices. As with all global IT players, Infosys has to compete for skilled la bor and this may have the effect of driving up wage levels, and making it more d ifficult to recruit and retain staff. Bibliography Wiki - Infosys Infosys's own official site Business Today - The Best Companies to Work for in India Business Today - 20 companies to watch in 2008 Disclaimer: This case study has been compiled from information freely available from public sources. It is merely intended to be used for educational purposes only. Which SWOT Analysis do you want to study? Amazon SWOT Starbucks SWOT Apple SWOT Tata Motors SWOT Bharti Airtel SWOT Infosys SWOT Toyota SWOT Ben & Jerry's SWOT ITC SWOT Toys R Us SWOT Dell SWOT McDonald's SWOT Wal-Mart SWOT eBay SWOT Nike SWOT Yahoo SWOT China Mobile SWOT Crayola SWOT General Motors SWOT Hewlett Packard SWOT Home Depot SWOT Kroger SWOT Nestl SWOT PepsiCo SWOT Sandals SWOT Time Warner SWOT Trojan SWOT Whole Foods SWOT Indian Premier League SWOT Smith and Wesson SWOT

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