The SWOT Analysis of Infosys focuses on the strengths, weaknesses, opportunities, and threats of the company. Strengths and weaknesses are the internal factors and opportunities and threats are the external factors that affect Infosys.
Let look at The Overview of the company before moving into the SWOT Analysis Of Infosys.
Overview Of Infosys
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 in India after Tata Consultancy Services in terms of revenue and the 602nd largest listed company in the world according to Forbes Global 2000 ranking. The company’s credit rating is CRISIL AAA / Stable / CRISIL A1+ (rated by CRISIL).
On August 24, 2021, Infosys became the 4th Indian company to cross the $100 billion market capitalization
Products and Services Offered By Infosys
Infosys provides software development, maintenance, and independent validation services to businesses in finance, insurance, manufacturing, and other sectors.
One of its well-known products is Finacle, a universal banking solution with various modules for retail and corporate banking.
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
- Panaya Cloud Suite
- Engineering Services
- Digital Marketing
Did You Know?
Infosys was founded as an IT services company in 1981 by seven engineers led by Founder N R Narayana Murthy, with an initial capital of Rs 10,000 given by N R Narayana Murthy’s wife Sudha Murthy.
SWOT Analysis Of Infosys
S Stands For Strengths
As an essential component of SWOT, a company’s strength is its asset to plan its expansion. Infosys has several strengths that make them one of the largest IT companies in India
- Low Expenditure For Salaries: India has given Infosys a major advantage over its global peers in terms of lower salaries. The majority of Infosys’ 119 development centers are located in India, which provides the company with quality technical talent at a much lower cost, as salaries in India are much lower than in developed countries.
- Complete Business Solutions: Infosys offers a wide range of consulting services and provides comprehensive end-to-end business services in IT services, software-based services, business consulting, and business process management. This enables Infosys to attract businesses across various industries.
- Strategic Partnerships: Infosys has partnered with major technology and business players to strengthen its services and business solutions. The company has already partnered with Google HP, IBM, Microsoft, Amazon, Oracle, and other 30+ companies. The strong partnership network enables Infosys to deliver innovative and collaborative solutions.
Also, Read the SWOT Analysis Of Amazon in a Simplified Way.
- Return Of Investment: Infosys is relatively successful in executing new projects and earns good profits through its existing business. The company is earning a good return on its investments.
Did You Know?
Rs 9,500 invested in Infosys IPO in June 1993 is worth over Rs 2,00,00,000 Crore With Rs 20,00,000 Lakhs dividend annually.
- Training Programmes For Employees: High-level personal skills can be acquired through training and development programs. Infosys Inc. provides continuous training and development to its employees, resulting in an innovative and motivated team.
- Brand Value: Infosys is the 602nd largest public company in the world according to Forbes Global 2000 ranking and Has a credit rating of CRISIL AAA / Stable / CRISIL A1+ (rated by CRISIL).
W Stands For Weakness
Everyone has positive and negative sides; so do Infosys has weaknesses. Though Infosys is one of the largest IT Companies in India, there are many weaknesses that can become a nightmare for Infosys’s growth.
- Limited Market: North America and Europe account for over 80% of the company’s revenue. This makes the company vulnerable to instability and uneven growth.
- Focusing on Product Segments: Though Infosys has started focusing on its platform and product business, the services segment still contributes nearly 94 percent of the revenue.
- Emerging Markets: Emerging markets have grown rapidly, and most of the credit goes to fast-growing technology. Infosys has no services for the majority of emerging markets and is missing out on growth potential.
- High Attrition Rate: Many employees leave Infosys for better-paying jobs, better career opportunities, and higher educational opportunities for studies. When staff turnover is high, a company has a bad image.
O Stands For Opportunities
- Acquisition: One way to expand technology would be to invest in technology startups. Infosys has seen the potential and has invested heavily in early-stage technology companies. For example, in 2016, it invested in Trifacta, a data wrangling software company, and Waterline Data Science. Infosys should continue to invest in companies that offer Infosys the competitive advantage of technology.
- Cloud Computing Solutions: The demand for cloud-based solutions is increasing as cloud computing has changed the fundamental things that how we compute. Global spending on cloud services will grow rapidly through 2025, according to industry estimates. Infosys, which has a significant presence in the cloud computing market, will benefit from the growing demand.
- Focusing On Emerging Markets: Infosys needs to focus on emerging markets that are expected to provide good business for IT services and consulting firms in the future. Infosys should grab the opportunity when it is within reach.
T Stands For Threats
- Exponentially Increasing Competition: The service IT industry is highly competitive. Infosys competes with large technology and consulting firms like Accenture, Capgemini, Wipro, and TCS, etc. The company also competes with software consulting giants like Oracle, Salesforce, and SAP. Intense competition leads to pricing pressure and investment in innovative technologies to gain a competitive advantage.
- Changes in US immigration laws: Immigration laws are subject to political pressure and therefore can be changed with a change in political power in the US. US immigration laws may become stricter, which will impact Infosys’ business and other countries that rely heavily on the US market.
- Rising wages in India: Infosys and Indian IT companies have a big competitive advantage which lowers labor costs, but now there is also pressure from rising wages in India. Infosys too has had to keep up with wage inflation to retain its technical staff. Such measures affect the profit margins of the company.
- Volatility in Global Market: Due to volatile world financial markets, Infosys is exposed to volatile international macroeconomic indicators.
SWOT Analysis Of Infosys Key Takeaways
The SWOT analysis of Infosys highlights where the brand currently stands and its threats in this era. Following the detailed analysis of Infosys, Here are Few Important Key Points.
- Strong Brand Value
- Strong Partnerships
- Strong Financials
Following the detailed analysis of Asian Paints, we have few suggestions from Business Mavericks:
- Focus more on Asian Market To Increase Revenue from this markets.
- Should launch a Product to make a Transition into Product based Company.
- Employee Retention.
- Tata Consultancy Service ( TCS ): Tata Consultancy Services (TCS) is an Indian multinational information technology (IT) services and consulting company headquartered in Mumbai, Maharashtra, India with its largest campus located in Chennai, Tamil Nadu, India. As of February 2021, TCS is the largest IT services company in the world by market capitalization ($169.2 billion). It is a subsidiary of Tata Group and operates from 149 locations in 46 countries.
- Accenture: Accenture plc is a multinational company based in Ireland that provides consulting and professional services. A Fortune Global 500 company, it had revenues of $44.33 billion in 2020 and 569,000 employees. In 2015, the company had about 150,000 employees in India, 48,000 in the US, and 50,000 in the Philippines. Accenture’s current clients include 91 of the Fortune Global 100 and more than three-quarters of the Fortune Global 500.
- Wipro: Wipro Limited is an Indian multinational company that provides information technology, consulting, and business process services. According to Fortune India 500, it is the 29th largest Indian company by total revenue. It is also the 9th largest employer in India with nearly 195,000 employees.
- Cognizant: Cognizant is an American multinational technology company that provides management consulting, information technology, and outsourcing services. It is headquartered in Teaneck, New Jersey, United States. Cognizant is part of the NASDAQ-100 and trades under CTSH. It was founded in 1994 as an internal technology unit of Dun & Bradstreet and began serving external clients in 1996.
- Oracle Corporation: Oracle is an American multinational computer technology corporation headquartered in Austin, Texas. The company was formerly headquartered in Redwood Shores, California until it moved its headquarters to Texas in December 2020. The company sells database software and technology, cloud-based systems, and enterprise software products – particularly its own brands of database management systems.
- Capgemini: Capgemini SE is a French multinational information technology (IT) services and consulting firm. It is headquartered in Paris, France. Capgemini has over 270,000 employees in over 50 countries, including nearly 125,000 in India.