COMPANY PROFILE 2010@ infosys

download COMPANY PROFILE 2010@ infosys

of 18

  • date post

    18-Nov-2014
  • Category

    Documents

  • view

    221
  • download

    2

Embed Size (px)

description

this is research work done by my friend on company profiles; company name:-infosys

Transcript of COMPANY PROFILE 2010@ infosys

2010Infosys

International Academy of Management & Entrepreneurship

Shoubhik Sen PGPM/0911/018 2009-2011

IntroductionIT services brands in Europe. As we expand our operations in the UK and Europe, our presence in London is critical to our success as it allows us both to leverage the global talent pool, and to utilise the excellent physical and communications infrastructure required to rapidly scale up our operations. - B G Lahiri, Head EMEA

HistoryInfosys was founded on July 2, 1981 by N. R. Narayana Murthy with six others Nandan Nilekani, N. S. Raghavan, Kris Gopalakrishnan, S. D. Shibulal, K. Dinesh and Ashok Arora. N. S. Raghavan officially being the first employee of the company. Murthy started the company by borrowing Rs 10,000/-. The company was Incorporated as "Infosys Consultants Pvt Ltd.

Company BackgroundInfosys Technologies Limited, incorporated in the year 1981 provides consulting and IT services. Infosys has been a pioneer in offering innovative solutions to its clients. The company offers a wide range of software services, namely application development and maintenance, corporate performance management, independent validation services, infrastructure services, packaged application services and product engineering and systems integration.

Achievements1. Infosys was the first Indian company to be listed on the NASDAQ Stock Exchange. The company reported a consolidated net profit of US$ 152.1 million for the quarter ending March, 2006. 2. It has five subsidiaries globally Progeon Limited, Infosys Technology (Australia) Pty. Ltd., Infosys Technology (Shanghai) Co. Ltd., Progeon S.R.O. (Czech Republic) and Infosys Consulting Inc. It has presence across the globe with 30 offices spread over USA,2|Page

Europe, Australia and Asia. It currently employs people from 53 different nations. 3. Infosys has a growth rate of over 50% and more than half a billion dollars in revenues in EMEA (Europe, Middle East and Africa) region, Infosysis one of the fastest growing Consulting and IT Services organisations in EMEA region

Factors for SuccessDelivering locally relevant business valueInfosys has been able to customise its services and solutions to the requirement of its clients. Infosys has delivered enhanced customer value to its UK clients- evidenced by the 90 per cent plus repeat business that the company generates. Understanding client-specific needs and the value proposition has been key to this. An example is the creation of specific services around regulatory compliance that are region specific.

Growth Strategy of InfosysInfosys Technologies (Infosys), one of the fastest growing companies in India is growing at an annual rate of over 40%. Infosys believes it has a strong and resilient business model, which has been successfully adapted to the changing market requirements over the years. Infosys has added services like independent software testing and enterprise applications to its offerings. It has also re-organised itself along verticals or industries compared to the geography-specific orientation it had conformed to earlier. To maintain its scorching pace of growth Infosys has devised a new business model. It intends to build a super-efficient platform that could offer the entire range of software services, from consulting to business process outsourcing, and layer it over with new initiatives, such as the emphasis on business solutions, to ensure that the company does not fall into a commodity trap. "Scalability is the name of the game," points out N.R. Narayana Murthy, chairman and chief mentor. Pedagogical Objectives:

The case discusses Infosys earlier business model the global delivery model, its growth strategy and its efforts to become a globally competitive company

3|Page

It discusses the growth of offshore software development, the challenges faced by such developers and their future The case also discusses Infosys scalability model.

The project Management in InfosysInfosys Technologies Ltd. (NASDAQ: INFY) was started in 1981 by seven people with US$ 250. Today, they are a global leader in the "next generation" of IT and consulting with revenues of over US$ 3 billion. Infosys defines, designs and delivers technology-enabled business solutions that help Global 2000 companies win in a Flat World. Infosys also provides a complete range of services by leveraging our domain and business expertise and strategic alliances with leading technology providers. Infosys pioneered the Global Delivery Model (GDM), which emerged as a disruptive force in the industry leading to the rise of offshore outsourcing, to ensure the distribution of application and business process lifecycle activities and resources, while ensuring their integration. The GDM is based on the principle of taking work to the location where the best talent is available, where it makes the best economic sense, with the least amount of acceptable risk. It has several Key Drivers, which are Process, Quality, Tools, Knowledge Management, Program Management, and Risk Mitigation. In this way, the project management in Infosys is a key part of GDM, and to support the whole business of Infosys. The project Management in Infosys will be fully introduced in this page. Because of the success of Infosys in business, its project management becomes a successful case of project management of Software Outsourcing. Infosys Project Process will be explained from three parts, the structure of Infosys Processes, Key Elements of Infosys Project Processes, and Process Infrastructure. The structure of Infosys Processes The structure Infosys Processes is a pyramidal structure of 4 stages. Each stage presents a level of Infosys Processes. The higher the level, the more rigorous the process is.4|Page

In Stage 4 which is the lowest level at the bottom, only records are needed in the process. In Stage 3, which is a level higher than Stage 4, reference document are built as process product basing on records in the process. In Stage 2, which is higher than stage 3, Department and Process Manuals are needed. At last, in Stage 1, the top level, all documents and records in the process should be organized as Quality Manual and Organizational Manual, which is a full dimensional guide in process of the whole organization. Besides, Process Frameworks in PRIDE System are provided to support management. Project Management, Support Processes, Engineering Processes and Process Management are 4 parts of Process Frameworks. When being used in a certain project, a project Process will be checked out from the Process Frameworks and will be tailored into a list of activities according to customer needs/requirements and project objectives. A typical project life cycle in Infosys contains Development Process and Project Management Process. Development process uses V model and Waterfall model. The process begins from the Requirement and ends at User Acceptance Test. Requirement Phase is corresponding to System Test. Design phase is corresponding to Integration Test. Implementation Phase is corresponding to Unit Test. Project Management Process is started parallel with Development Process, which includes Risk Management, Change Management, Communication/Status Reporting, and Tracking.

HRA in InfosysInfosys used the Lev and Schwartz method to value Human Resource According to this model the present value of future earning capacity of an employee, from the time of joining the organization till retirement was estimated. Infosys used this model based on the following assumption An employees salary package included all benefits, whether direct or otherwise, earned both in India and in a foreign Nation. The additional earnings on the basis of age group were also taken into account. The method is as follows. All the employees of Infosys were divided into five groups, based on their average age .Each groups average compensation was calculated. Infosys also calculated the compensation of each employee at retirement by using an average rate of increment.5|Page

The increments were based on industry standards, and the employees performance and productivity. Finally the total compensation of each group was calculated. This value was discounted at the rate percent per annum which was the cost of capital at Infosys to arrive at the total human resources of Infosys.

Ratios of Infosys Technology ltdRatiosPer share ratios Adjusted EPS (Rs) Adjusted cash EPS (Rs) Reported EPS (Rs) Reported cash EPS (Rs) Dividend per share Operating profit per share (Rs) Book value (excl rev res) per share (Rs) Book value (incl rev res) per share (Rs.) Net operating income per share (Rs) Free reserves per share (Rs) Profitability ratios Operating margin (%) Gross profit margin (%) Net profit margin (%) Adjusted cash margin (%) Adjusted return on net worth (%) Reported return on net worth (%) Return on long term funds (%) Leverage ratios6|Page

(in crores)Mar '09 Mar '08 Mar '07 Mar '06 Mar '05 108.08 120.19 101.58 113.70 23.50 120.59 27.51 27.51 353.75 305.80 78.06 87.61 78.15 87.69 33.25 86.78 25.96 25.96 273.57 230.74 65.42 73.63 66.23 74.44 11.50 73.98 29.13 29.13 230.20 190.30 90.65 105.50 87.86 102.70 45.00 108.51 26.56 26.56 327.63 245.07 68.38 78.30 70.38 80.30 11.50 85.97 28.91 28.91 253.53 188.51

34.09 30.66 27.52 32.57 34.76 32.67 39.80

31.72 28.23 27.37 30.69 33.09 33.13 37.77

32.13 28.57 28.05 31.19 33.47 33.89 36.64

33.11 28.58 26.17 31.43 36.21 35.10 40.62

33.91 30.00 27.28 30.35 35.29 36.33 41.52

Long term debt / Equity Total debt/equity Owners fund as % of total source Fixed assets turnover ratio Liquidity ratios Current ratio Current ratio (inc. st loans) Quick ratio Inventory turnover ratio Payout ratios Dividend payout ratio (net profit) Dividend payout ratio (cash profit) Earning retention ratio Cash earnings rete