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Infosys - Information Technology Outsourcing

Essay by   •  October 29, 2012  •  Research Paper  •  795 Words (4 Pages)  •  728 Views

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Infosys - Information Technology Outsourcing

Infosys is a leading IT services firm in India, providing software development services, business consulting and solutions and a few proprietary enterprise products to firms primarily in the US and Europe. Its business is based on the Global Delivery Model, providing efficiency, predictability and profitability at a cost lower relative to the client home markets. Though it started out as offering cost advantages, it has built a great reputation over the years for timely quality service for its clients. The IT services and business process outsourcing industry in India has matured and customer expectations have evolved to include business solution strategies across verticals. In order to sustain its growth and leverage its expertise in industry solutions, Infosys plans to move up the value chain and offer high-end management consulting services. In order to achieve this Infosys needs to establish a global brand by marketing itself to its business customers with minimal budget for marketing communications. Infosys aims to showcase its business and domain expertise and solutions strategy to the client businesses.

Potential customers (Segmentation)

Infosys has catered traditionally to businesses primarily in the USA and Europe. In its goals of achieving a global brand, Infosys has the following options as to its target segments -

1. Businesses in the international arena, primarily USA and Europe.

2. Domestic (India) and emerging market clients

International focus - Pros and cons

Infosys already has a network of international firms that are satisfied customers. It has compiled a warehouse of knowledge in multiple industries and has provided expertise that has enabled businesses to create value. Its greatest strength in this network lies in its tried and tested Global Delivery Model. The value proposition provided is therefore the consulting solution design coupled with the development/delivery implemented through GDM at an unmatched low cost. This is in-line with the expectations of its current clients, which indicates a market for the services. Serving this market the high consulting services would be very profitable, as the earnings will be in foreign currency while the expenditure would be in rupees.

On the other hand, if Infosys targets the global market immediately, it will have to compete with Accenture, IBM and similar established consultancies. These companies have credibility and immense reputation in the market, not to mention deep pockets. Though well regarded for the GDM, Infosys ranked very low on solution impact. The tasks of maintaining its current high quality while simultaneously establish a global brand would be a challenging task for Infosys.

Domestic focus - Pros and cons

The market in India is fast growing, and though there is high competition in this market, Infosys has a significant competitive advantage. Its significant market and brand value within the IT landscape within India makes it a formidable competitor. The Indian market is rapidly growing, providing an ideal platform wherein Infosys could implement strategic solutions and adapt them globally. Finacle for example,

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