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Infosys Company - Review Report Assignment
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Q1) An Introduction to the organisation and the element of the organisation that you intend examining.
Introduction
Information Technology is the study or usage of the systems like telecommunications or computers for retrieving, storing, manipulate and transferring information in the context of organizations. Actually it is the maintenance and development of the computers, networks, software for the distribution and processing of information(Limited, 2019). The IT performs various jobs like security to IT, the technical support to the businesses or enterprises, developing and coding programs, Web development, computer system analysis, network engineering etc. for supporting the various business and companies. There are various tools that help the IT to support the business like software, routers, modems, servers, computers etc. Information Technology helps in the daily life also like business, education, treatment, banking, commerce etc. and this is the reason that different business and enterprises are investing heavily in the IT sector as it helps in serving the stakeholders better than before. Many different companies are helping the other enterprises in developing their IT sector through consultation and providing tools. The use of Information Technology helps the companies to improve and enhance their productivity as it brings fastest communication, protection of the stored information, timely retrieval of the stored information, storage of information on the electronic medium, managing of the databases on the systems. There are many companies that are offering Information Technology Services for helping and supporting the business like HP, Dell, and Infosys etc. Infosys Limited is an Information Technology that is an Indian Multinational Company which is meant to provide the consulting services to the enterprise world-wide. The company also provides outsourcing services related to the Information Technology. It is the 2nd largest IT Indian Company; its market capitalization in the year 2019 was 46.52 Billion Dollars. It is based in the Information Technology Services and Information Technology Consulting Industry, founded in the year 1981. It is divided into three divisions Infosys consulting, Edge Verse systems and Infosys BPM with 228,123 employees. The Infosys Company runs with many elements, the main element that is to be discussed with the company is the Information Technology Consulting Services. The Infosys Company has been discussed here as it is one of the largest IT Company that is serving its stakeholders better and is consulting different enterprises in the IT transformations, business analysis and change management. The company is offering its consulting services globally that is in around 10 countries including Europe, Asia, and America etc. (Ramanna, 2009). The IT consulting is serving in different products like automotive, healthcare, packaged foods, telecommunications, life sciences, utility services, retails etc. The consulting services are been chosen as the element of the Infosys Company because the consulting services of the company advises the other companies on how they can best use the IT in obtaining the business goals and objectives. The Infosys IT Consulting Services can be defined a four-tier IT system as it performs professional IT services, security consultants, staffing IT consultants and usage of IT tools for achieving the organizational objectives maintain the organizational culture. It is better to discuss as the IT consulting service of Infosys provides with technical advisory assistance.
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Q2) A PESTEL or equivalent analysis for the organisation
PESTEL Analysis of Infosys
This analysis helps the marketers to monitor and analyze the external or the macro environment of a business, it is important to monitor the external environment as it helps in allocating the resources, develop strategies, earn the competitive edge etc. The result of the PESTEL helps in deciding the SWOT of the company, all these analysis is meant to help the business understand the market trends and there after take the decisions regarding the same. It is actually a framework that works as a tool in taking future decisions on the analysis of the factors that directly or indirectly affects an organization(Raste, 2010).
Topic: PESTEL Analysis
The evaluation of the external environment of Infosys is as follows:
1: Political: Political issues needs to be discussed first while discussing the PESTEL of Infosys because the company has a movement worldwide and has revolutionize the IT industry in many countries. The company is involved in many different types of work in many different countries having different political issues, it is important for the company to maintain good political relations with the government of the countries the company is operating in for the reason of getting good business(Kapoor&Sandhu, 2010). As Infosys is an Indian Company and thus it is important to maintain healthy political issues with the government, the better part is this that India Parliament is stable, only the fear to be hung is there and thus the agencies of the government and the PSU's focuses more and more towards the IT sector and gives the projects of IT to the Indian companies for upgrading the Indian IT Industry. The business of Infosys depends largely on the American relations also and so any change in the political or economic status of the country will affect the business of the company. In India Modi government is supporting the IT projects and hence there are no negative issues for the company but in America under the Trump Government the non-immigrant visas are been curbed and so the company has to develop some strategies for becoming independent visas issues and also the company had taken the action by offering more jobs to the American citizens in the company(Joshi, 2009).
2. Economic: As the company is operating in many countries hence the company is largely affected by the economic status and the regulations related to the economic structure of the countries. It largely depends upon the uncertainties of the economic market as per the global market environment. The factors of the economic market are the pressure of the pricing over the Information Technology Services, the changing rates of currency of the countries, the pressure of providing high wages to the employees, increase in the taxation of the countries. The new entrants of the IT companies in the IT market bring a tough competition for Infosys ultimately affecting the earning of the profits of the company(Saha, 2007). In the Indian Market, the expiry of the tax holidays and its benefits in the Indian Market impacts the margins of the profits of Infosys.
3. Social: Societal affects impacts any company a lot, Infosys is a big brand and thus the strategies and the stock prices is highly affected by social factors of the environment. Any coverage of the media regarding the policies of Infosys that is negative for the company had already negatively impacted the company. This negative media coverage can negatively affects the concerns and attention of the shareholders and the investors and this reduces the investing of the financers in the company affecting the profit margins and growth of the company. For helping the society the company is taking many different initiatives, it has introduced its one branch as Infosys Public Services for helping people with programs like human welfare programs. This foundation of the company is sorting out the problems of people by developing a balance between funds and people for the purpose of societal welfare(Narus&Seshadri, 2007).
4. Technological: The advent of the information technology has changed the world;this Indian based IT company is providing the users with a great infrastructure of IT. The infrastructure is providing with better opportunities to the foreign and local professionals. The company is matching up with the innovative and technical trends and with the help of these upcoming trends the management of Infosys is opening new centers of technology like Indiana Tech Center, North Carolina Technology etc. These centers are innovative and technical enough to pass on the technology to the new young generation for bringing a revolution in the IT industry.
5. Legal: When a company operates in many different developed or developing countries it is better for the company to understand and abide by the legal rules and regulations of the country, this makes the working o the company easy. The domestic and the foreign or the local laws affects the working of company in a country, same is the case of Infosys, its outsourcing for the various IT works is of major concern in U.S. , it is a developed country in which new legislation and regulations by the newly elected government can restrict the working of any company. Infosys is highly dependent on the IT market of U.S. and the legal factors of the country affects the working of the IT structure in the country. The working of the visa holder employees and their wages are regulated under the wages law of the country("Pestel-Pestle Analysis of Infosys", 2019). Thus it can be observed that the change in the legislation and regulations affects Infosys in hiring and maintaining IT professionals as employees in the company.
6. Environmental: Infosys is best known for taking care of the environment and maintain sustainability in the same, the company is earning its name in making its strategies regarding the automation, education and innovation for maintain sustainable environment for all. The company is building and maintaining relationships with many leading consultancy for the environment in order to provide solutions to the problems of environmental issues for maintaining environmental safety and health in the society. Since many years the company is taking initiatives in addressing the societal challenges like water scarcity, bio-diversity challenges etc.
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Q3) A stakeholder analysis for the organisation (identify different groups & how they might have to be managed as part of change/ strategy development.
Stakeholders Analysis
Topic: Stakeholder Analysis
Stakeholders are the most important people for any organization and thus it is the part of the organizational responsibility that the stakeholders must be taken into consideration before developing any strategy for the organization. Actually the Stakeholders Analysis is a technique through which the companies identify and analyze the needs of their stakeholders; it is done so that the company might be able to identify their stakeholders who have vested important interest in the particular projects of the company(Absar, 2016). It is again important for understanding the interests of the stakeholders so that the policies and the regulations of the company may be set as per the needs of the important stakeholders. It starts with the brainstorming on which all are the stakeholders of the company that on whom the decisions of the company will directly affect. Then the priority of the stakeholders is done, prioritization helps in understanding the stakeholders needs that have a real interest in the company. Then the decisions of setting up the strategies are done as per the interest of the stakeholders. Infosys is a multinational company that has many stakeholders and it is the company is taking real care in framing their policies and strategies according to the need of their stakeholders depending upon the type of the project. In the company the stakeholders comprises of employees, clients, investors, partners, vendors, local communities and the government, the company works for earning the respect of their stakeholders and for informing and guiding the company's action to them. The company tries to keep all its stakeholders engage so that they might not feel not of the company and to work on this a proper designing of the communication channel is been defined by the company so that all may remain contacted(Jain, Aguilera &Jamali, 2016). In total there are six different groups of the stakeholders that are managed by the company; every group is catered by company for the development of the strategy.
1. Vendors: they are catered through different partner meets, event brochures, review meetings, awareness sessions.
2. Investors: they are the very important stakeholders for Infosys; the company caters them through analyst's findings and meets, results on quarterly basis, annual meetings, financial and sustainability needs, social media and press releases and the surveys of the relations with the investors.
3. Government: The Company keeps engaging with the global government forums so that they might understand the government regulations, the management of the company keep interacting with the regulatory and statutory bodies like SEBI, CPCB, SEC, tax departments, stock exchanges etc.
4. Clients: it is important for the company to keep the clients engaged, Infosys keeps them engaged through meetings and visits, proposals requests, mails, newsletters, surveys of the customer relationship, the company keep communicating with the clients through their sustainability website portal (www.infosys.com), annual meets of the customer's leaders, etc.
5. Employees: the main working hand of the Infosys through which the company is growing day by day, these are the IT professionals and the other staff members who work in the front and the back end of the company. For Infosys it is important to keep its employees engaged and also to understand the needs of the employees related to the particular project so that the employees could work for attaining the company's objective. This is done by the company through the survey of employees satisfaction, understanding the voice of the forum of the youth, the board for the grievance redressal, communication blogs where the employees can directly communication on the CEO forum or the forum of the leaders, bulletin boards, inclusivity survey, InfyRadio the radio partner, the intranet Sparsh, Eco Clubs, the committee of the employees, development surveys etc.
6. Local Communities: To bring sustainability in the organization the company keeps contacted with the local communities through visits of the sites, meetings of the local community, press releases and social media, through the various internship programs etc.
It is important on the part of the management to get the feedback of their stakeholders, the determine the materiality is done through different forums like STRAP, is the strategy of planning and action that is planned annually for the planning of the strategy, where all the senior leaders of Infosys comes under one platform for discussing the planning and implementation of the future strategy(Niu&Xu, 2016). At STRAP the progress and the future planning of the company is also discussed related on the social and environmental objectives. Many different representatives of the different groups of the stakeholders like Voice of youth are invited for the STRAP for discussing the wide range of ideas and experiences from the external and internal sources of the company. The company not only informs its leaders and different group representatives but the company takes the responsibility of the informing the employees of the whole organization about the decisions taken in the STRAP meeting through blogs, mailers and news updates.
The Company keeps its focused and regular disclosures of sustainability to its stakeholders by participating in assessments like CDP (Carbon Disclosure Project), GRI (Global Reporting Initiative) etc. and also the various awards on the international and national level for the various green initiatives the company has taken. With the help of these awards and assessments the company has fixed a benchmark to its stakeholders and the company keeps learning from the different participating practitioners also. The risk management and the compliance office of Infosys keep evaluating the requirements of the business on the regulation of the global framework for ensuring the preparedness of the organization. For supporting the stakeholders the company feels pride in taking care of the under privileged section of the society by working on the various projects like the company is benefitting around 2400 children by developing schools with Ramakrishna Mission. It is also working to end the prostitution by providing food, education and shelter to the children of sex workers, with Prerana. With the sevasansthan of the Ramakrishnan the company is helping the people who suffered under the drought conditions in Karnataka by fodder distribution centers. The development of a hospital in Itanagar by the company will help and support around 700 patients every day.
Not only is this Infosys trying to engage the most important assets from the group of stakeholders that are the employees, Infosys is trying to turn every employee into a responsible citizen and for this the employees are getting a platform through the company where they can select any of the environmental or social initiative of the company and start working on the same. For the recognition to the employees the company provides various awards like Excellence Awards, Highest recognition etc. Not only are these various steps taken by the company of the stakeholders engagement, with the help of the engagement of the stakeholders process the company learns and understands the important stakeholders for the company and thus analysis helps in prioritizing the stakeholders. All the strategies and the policies of Infosys is planned and implemented after understanding the involvement of the group of the stakeholders so that every stakeholder might feel important whole getting connected with the company. The efforts of the stakeholders analysis through the stakeholder's engagement is not limited only to a section of the society or to a particular place but the initiates and the projects are been working in many other different parts of the country. Infosys understands the importance of the stakeholders and thus whatever the company does, it try to do more for them. The company works for earning more profits by serving its clients, investors, employees and also tries to benefit the local community. In all the annual reports of Infosys there is a full column for the stakeholders so that others might understand the value of stakeholders analysis in the company.
Topic: Stakeholders Analysis of Infosys
diagram is illustrating the stakeholder's engagement and analysis of Infosys, after understanding the need of the stakeholders the company caters them accordingly. Like the clients of the company reside in more than 50 countries and the company serves all with the help of communication channel maintain the zero distance. The company has recruited more than 200,000 employees comprising 36% of the women employees, engaging and exploring each one of them. With the help of the innovative trends the company is improving the trust from the investors by making profitable business for all.
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Q4) A Research/ background document which reviews the current organisation and the sector in which it operates
Organization Structure of Infosys:
To improve the agility of the company and earn more profits, Infosys maintains an organizational structure, the CEO or the Managing Director controls the whole organization. Under this big post the Director of various departments works, the COO, The directors of Delivery Excellence, Quality and productivity, Finance, HRD, Admin and CFO. Under the Directors of the different departments, work different other employees too(Fürst, Leimbach&Prigge, 2017). The organizational structure is agile and it keeps changing as per the need and the requirement of the organization, stakeholders and the society, different decisions are been taken by the management for maintaining the agility. The recent decision that the company has taken is that the department of the sales will work under the segments of the industry while the delivery will work under the services lines. The internal movement of the employees is also a part of the organizational structure for the betterment of the organization. The company's HR Head, SrikantanMoorthy, will move to the functions of the delivery for better serving the clients. These changes keep on taking place in the organization for serving the customers and the clients better(Bustinza, Bigdeli, Baines & Elliot, 2015).
Vision/Goals of the Organization:
The vision of the company is "To be a Globally respected and sustainable Company". As per the article the vision statement of Infosys is to be "a globally respected corporation that provides best of breed business solutions, leveraging technology, delivered by best in class people." According to Shaw and Onkvisit the Mission Statement of the company is "to achieve our objectives in an environment of fairness, honesty and courtesy towards our clients, employees, vendors and society at large." The goals of the company to make the customer delight by providing the best IT services, another goal of the company is the Excellence Pursuit so that the company keeps improving its IT services and products. Maintaining integrity and transparency, is one of the most important goal so that the company might be able to serve the society with ethics and values. The company dedicates its 1% from the profit margins to the working for its foundation, who helps the under privileged. Thus the main goal or objective of the company is to serve the society with its sustainability.
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Q5) An approximate overview of current amount of resources devoted to IT - resources available
IT Structure and approach to IT:
The IT organizations need a structure for organizing its business; Infosys is the IT Company that maintains its IT structure to run the business properly. The Company's has three main factors for the IT Structure that is Computing, Storage and network. The Company is focusing more on its IT structure so that the business might earn good profits;the company is focusing more to the delivery of the services. The company is spending money in its IT infrastructure so that the company might be able to grow well. THE IT structure of Infosys depends upon the professional skilled workers; it is actually a knowledge based company which operates in such industry. The industry of the IT is growing because of the professional work force same is the case with the Infosys Company also because of the structure of the working professionals the company is growing. The turnover of the Infosys in the IT sector is more than 12 billion US dollars per year, and its operating income is about 2.7 billion US dollars, the operating profit per year is about 17,000 cores. The industry of Information Technology has a good turn over in almost every market. After TCS, Infosys is the second largest IT Company in India based on revenue and it in on 596 number in the world based on revenue in the IT industry.
Resources devoted to IT
In the coming years it is observed that the IT industry will grow more and more, after a survey it was observed that the technology budgets of the company will grow in the near future and because of this the business revenue of the IT industry will also grow and so the IT budget will also increase. The IT Companies will turn the working of the small and mid-level companies grow more, about 88% of the companies will change its working for the betterment of the company. Infosys is also growing in the terms of resources; the IT Company is focusing more towards the resources allotment(de Brentani&Kleinschmidt, 2015). In the current year 2019, the Information Technology Sector is utilizing better resources for the sake for earning profits and serving the stakeholders better. The resources needed for the IT sector are the IT tools, professionals, budget allocation, techniques and equipment's. The IT has changed the way the businesses are performed and thus the information technology also needs the resources to work upon. The main resources are:
People: Work Force comprises of the skilled workers, professionals are the building blocks of the IT industry. Without the skilled workers no industry can grow and especially the IT industry which is based on the coding and decoding and then consulting the other businesses. As per the reports around 7 million people work in the IT industry having an IT professional degree. Every year the number of the IT professionals is increasing, a survey suggests that in India last year around 12lakh people were in the IT industry and this year the percentage has increased more than 10%("2019 Energy, Resources, and Industrials Industry Outlooks", 2019).
Facilities: The IT industry is providing the facilities of consulting the business on various issues of IT in the company. The Infosys is also working on the same pattern; it is providing consultation to the other business on the IT issues("IT Resources: Important IT Resources that are required to Generate Information", 2019). The sector helps the companies in understanding their stakeholders better, evolve the hardware and software in the companies etc.
Equipment: The hardware, software, electronic medium of communications, internet, intranet and extranet are the equipment of the IT industry that is growing per year. The companies are developing the needed equipment to serve the IT industry.
Budget: This is the most important part of an organization, when it comes to the IT industry budget is very vital because the equipment of the IT industry is very costly and so the budget is also high. The usage of the IT tools have increased five times more than the last five years and thus the government is taking an initiative of improving the IT budget, every budget has a section for the IT budget so that the digitalization can be reflected in the country. With a vision in the upcoming years the government will focus the most on the IT Budget. The yearly budget of Infosys is around 3,220 crore to 3,550 crore.
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Q6) A partial IT risk analysis for the organisation which identifies one risk from each of three forms of risk discussed in class.A Review Report on Infosys Company
IT Risk Analysis:
Risk analysis is done to analyze the risk associated to different actions, it is a part of the risk management. It is important to analyze the risk for taking future decisions; once the risk associated with any event or any action is analyzed the business can easily operate its functions. The three risks associated with Infosys company are:
1. Project risk: The Company prepares different projects for its clients but it consists with different risks. The main risk that is associated with the project is the cost risk. Infosys prepares IT consulting projects for different sectors like banking, education, retail etc. The risk that can exists with the project management in the company is the cost risk because it can happen that the cost of the project goes more than the estimated budget and then the company has to suffer. The clients give a particular amount of money to the company for the development of the project and if the cost increase due to scheduling or any other matter than it affects the company.
2. Operations Risk: Infosys is IT Company that performs many different operations for serving its clients but this operation consists of the risks also. The risk associated with the operations is the failed and inadequate policies of the company through which the employee errors occur. In the company employee or the human error is very common and this brings operational risk(Hay-Gibson, 2010).
3. Opportunity Risk: Opportunity risk in the IT Industry can be directly linked to the usage of new technology in the working process; it might happen that the new technology does not support the working culture of the organization. There is a possibility of failure in grabbing an opportunity as it might be possible that a new technology does not work with Infosys background. It can be understood that Infosys keep consulting and building new projects for its clients, there is a possibility that the clients like a new project very much and then the demand of such a project increases because of the success rate among the other business but the company is unable to prepare the same projects in the offered time. This may be because of limited time, lack of resources or compliances. The opportunity came to the company but the risk was already associated with it.
Example:Finacle is product of Infosys which provides the solution to the banking, finance, manufacturing and insurance industry, for the development, validation and maintenance of the software. The product is successful and so its demand increased all of a sudden. This was an opportunity risk where the company took time in providing solutions to its clients through which it lost some of its clients also. It can be associated with operations risk also, while completing the product for various industries, the company policy for completing a project at a time can bring risk in the operations. For any of its product or service (consulting) the clients pay the company an amount but if the amount exceeds the cost associated risk occurs with the project itself(Heisler, Insurance & Team, 2019).
Business Model Canvas
It is the lean start up and strategic management template which helps in documenting the running business models("The business model canvas: tool to help you understand a business model", 2019). It denotes the value proposition of a company's services or products, its infrastructure, finances and customers, it illustrates the trade-offs that are potential in nature. This model helps in focusing and clarifying the business and helps the management of the business to achieve its objectives. It helps the business understand their zero points and start from the crux on what is important for the organization. For Infosys the business model canvas is very well structured, since its inception year that is 1981, the company has served as a poster boy for the IN sector of India. The company has shown a tremendous growth from a small scale industry to an MNC, the Company has a hood name among its stake holders and the credit goes to its structured business model("Business Model of Infosys - StudiousGuy", 2019).
During the starting stage the company had a plan to focus on the market of Europe and US because these two countries were well doing in IT sector, through their GDM (Global Delivery Model), it only focused on certain banks and its services. The main factor of its growth is the cost cutting, the company has charged lesser than the other IT companies like Accenture or IBM and this helped the company to grow("Structure of India's IT Industry | Economy Watch", 2019).
The company has always focused on continuous growth; it has started showing itself in the business that improved its visibility in the market, enhanced the investors' interest(Metall, Agrifoglio, Schiavone& Mueller, 2018).
The company has transformed its clients into partners through innovations, execution. The company has always worked upon assisting their clients and help them in taking better decisions.
The company has slowly and gradually diversified in the whole world.
The different products and services of the company is making its different from its competitors, the products like Finacle, the consulting services like NIA, Edge Verve systems serving is clients have catered its stakeholders better than its competitors.
These are some of the discussion from the business model canvas of Infosys that is making it different from its competitors, the cost structure procedures("We Offer A Strong Price/Value Proposition", 2019), the useful products and services of the company, sustainable acquisitions has made the company grow and this has made the company earn competitive advantage and earn more profits. This was made possible for the company with the help of its successful Business Model(Pedersen, Gwozdz&Hvass, 2016).
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Strategic Recommendation
Although the company is doing very well in the IT Market still being a service industry it has to work on the its main assets that are the professionals who are working in the company. This sector totally depends upon the humans and not on the machinery; the machines can be corrected or changed easily than the human resources (Perrin, R., 2016). The management of the human resource is a costly affair than the management of the machinery. Thus the service sector largely depends upon the work force and thus it should take the measures for retaining the best talent from the whole world(Mehta, 2011). Infosys should focus on recruiting and then retaining the best talent in the company, for this the company needs to work on the following:
1. The Company should provide a good salary structure to its employees.
2. The Performance Management and the appraisal system should be upgraded on yearly basis.
3. The goals of the KPI should match from the customers end to the employees end("How to find Key Performance Indicators (KPIs) with Examples", 2019).
4. Provide a flexible and comfortable work environment.
5. Opening every line of communication.
This recommendation would fit in all the branches of the organization in the HR department so that the personnel management could work efficiently. The KPI's where this recommendation of retaining the best employees would support are:
1. Best talent in the organization(MuthusiNzyoka, 2019)
2. Less turnover
3. Increased productivity
4. Better delivery of the services
5. Maintained sustainability
6. Healthy working environment(Graen& Grace, 2015)
Conclusion:
The Infosys is a developed multinational corporation that is serving its clients to its best; the company had shown a tremendous growth since the year of its inception("Business Model of Infosys - StudiousGuy", 2019). The people working with the company are also satisfied as the company is not only willing to earn profits but to engage its stake holders too(Limited, 2019). The company can do more well if the company starts retaining its best employees and start matching the KPI's of the employees with its customers, this will enhance the sales of the company ultimately improving the productivity of the employees as well as the organization.
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