Infosys is a household name in the Information Technology space with a workforce of over 200,000 people in different countries. It was the first Indian IT company to be listed on NASDAQ and has since witnessed enormous growth. Infosys has been a consistent performer in the sector and has always been among the top IT companies in India.
This blog is an overview of the company’s growth so far, its diverse range of product and service offerings, marketing mix and campaigns, as well as an analysis of its strengths and weaknesses.
About Infosys- Company Profile
Infosys Limited is an Indian multinational IT Company incorporated in the year 1981 by Mr. N.R. Narayana Murthy. It provides business consulting, information technology and outsourcing services. The company is headquartered in Bangalore, India and has crossed fifty thousand crore rupees in revenue, under the current leadership of Dr. Vishal Sikka.
The company changed its name to Infosys Technologies Private Limited in April 1992 and later on, to Infosys Technologies Limited when it became a public limited company in June 1992. It was then finally renamed to ‘Infosys Limited’ as we know it, in June 2011.
Let us now take a deeper look at the products and services offered by the company.
Infosys Product Portfolio-
Infosys Ltd is a global technology IT services firm. The company provides end-to-end business solutions for their clients, such as:
- Technical consulting
- Product engineering
- Systems integration
- Package-enabled consulting
- Implementation and infrastructure management services
Infosys also offers software products to the banking industry. They have developed ‘Finacle’, a universal banking solution for large and medium-sized banks.
Infosys BPM is a majority-owned business process management subsidiary of Infosys set up in April 2002, that provides business process management services like:
- Finance and Accounting
- Offsite customer relationship management
- Administration and sales order processing
Now that we understand the company’s business, let us discuss their marketing mix.
Marketing Mix of Infosys
The service marketing mix is a combination of the different elements that companies use to communicate their organizational and brand message to customers. The mix consists of the Seven Ps i.e. Product, Pricing, Place, Promotion, People, Physical Evidence and Process. It is the key foundation on which most modern marketing strategies and business activities are based. We shall now decode the Marketing Mix of Infosys.
The product strategy of Infosys is to provide business and consulting solutions to various industries like pharmacy, insurance, mass media, transport services, retail, manufacturing, banking, defence, energy, etc. Also, it exercises data for these companies and cultivates software that is based on the needs of the business.
Infosys provides corporate governance data as well, analytics like sentiment analysis of different companies to see how consumers are reacting to their products.
Infosys has diverse service and solutions offerings and the pricing is dependent on factors like client, geography, industry, forex and the solutions sought by the companies.
Infosys enjoys the benefit of lower labor costs in India with a high skill set. The company capitalised on the increasing volume of engineers in the 2000s and hired cheap, high-skilled labour.
The main aim of Infosys is to enter into more and more diverse industries. Therefore, it follows a penetration pricing strategy, which means that it offers services at a low price while ensuring the precision and quality of services.
Place & Distribution Strategy
Infosys has a presence in over 50 countries and has more than 1000+ strong global clients. It is the largest IT company in India and is present in the United States and Europe as well. Besides that, the company has offices in China, Germany, Sweden, Australia and Belgium. Infosys also has training and development centres in many other locations. Their scale of operations is worldwide. In fact, it is the biggest employer of H-1B visa holders in the USA.
Infosys regularly organises and conducts promotional activities that build interest and maintain goodwill at the same time. The company has undertaken various academic initiatives which provide opportunities for employees to manage working and learning together by company-sponsored trips, case studies, speaker sessions, etc. An initiative called Infosys Foundation which caters to the green aspect of the company has been underway leading to Infosys becoming the one of top twenty green companies. Infosys also hands out an accolade called the Infosys Prize to a scientist, engineer, researcher, etc. from India, a corpus of rupees sixty-five lacs, a certification and a golden medallion. Infosys has brand awareness in the field of software, BPO, KPO, etc.
Infosys is one of the top recruiters in India in the IT and consulting sector. Employees are required to possess competencies like advisory skills, communication skills, management skills, technical language skills, etc. Infosys employs 200,000 employees that serve globally.
The company has 82 sales and marketing offices and 123 development centres across the world as of 31 March 2018, with major presence in India, United States, China, Australia, Japan, Middle East and Europe.
In 2019, 60%, 24%, and 3% of its revenues were generated from projects in North America, Europe, and India, respectively. The remaining 13% of revenues were derived from the rest of the world.
Infosys is involved in software development tailored to the needs of the client, ISP providers, interactive data access, analytics and online database management. At Infosys, there are units like BPOs and LPOs, etc, where clients are divided based on their functional needs. Zero Distance is a framework followed at Infosys which stands for eliminating all gaps between the client, his needs and the employee working on it. So that the processes are faster, more apt and streamlined to client needs. This leads to increased customer satisfaction. Infosys is perceived to be a company that hires and values only performers.
Now that we’ve thoroughly understood the company’s diverse offerings and functions, let’s see how it fares next to its competitors.
Infosys Competitors Analysis
The Indian IT sector employs more than 40 lakh people and is a $150+ billion industry. Some of the best Indian IT companies are part of the top software companies world over. Infosys is one of the top Indian IT companies and its main competitors are Tata Consultancy Services, Wipro Technologies, HCL Technologies and Tech Mahindra.
- TCS is perceived as one of Infosys’s biggest rivals. TCS has become the first Indian IT company to have a market capitalization of 100 billion dollars. It generates 163% of Infosys’ revenue. The company is the largest IT recruiter in India consistently over the last decade.
- Wipro has several key focus areas like machine learning, data sciences and analytics and is currently investing heavily in blockchain technologies. It has been a top performer and hence it is among the top IT companies in India. The company was recognized as one of the most ethical companies in the world in 2017.
- Compared to Infosys, HCL generates $3.2B less revenue. The company practices a culture of maintaining relationships beyond the contract with their clients. The company is renowned for its ability to deliver high value to its clients’ business.
- Tech Mahindra is a part of the Mahindra group, which is one of the most reputed organizations in India. Their core strength lies in technologies fulfilling customer requirements to the fullest, omni-channel distribution and smart solutions in various sectors using AI and machine learning.
Infosys’ biggest competitor is visibly TCS. They need to work on building more cost-effective competitive advantages in order to retain their clients efficiently.
Clearly Infosys is a company with many strengths and opportunities in today’s global world, but it also suffers from threats and problems. Let us discuss that in a broad sense.
SWOT Analysis of Infosys
SWOT Analysis is a method of evaluating the strengths, weaknesses, opportunities and threats of a business. This helps one in assessing the position of a business accurately, so that you can plan and adopt the necessary strategies for a favourable future. Let’s look at the SWOT analysis for Infosys.
- Infosys’ major strengths are its 119 development centres which are located in India, where enthusiastic and skillful technical professionals are hired at a low cost as labour cost is lower in India as compared to other developed countries
- Infosys provides a variety of end to end enabled software development and consultancy services to businesses which allows them to attract companies of different sectors
- Strategic collaborations with HP, IBM, Microsoft and Amazon allows Infosys to provide revolutionary and collaborative solutions
- Most of the employees of Infosys leave the company for better opportunities and higher education which affects their image.
- Many of the operations of the company are conducted in Europe and America which creates instability and vulnerability in their home country, India.
- The need for cloud-based solutions is increasing globally, Infosys can tap this market to their advantage.
- Global spending on digital transformational technologies is expected to grow. So there are chances for Infosys to regain its power in the IT market.
- Infosys is facing intense competition with rivalry consultancy companies like Accenture, Oracle, Capgemini, and TCS. This leads to pricing pressure in order to gain a competitive advantage
- The changes in the US immigration laws have affected most companies’ operations and revenue from US markets
Marketing Strategy of Infosys
Infosys’ marketing strategy is maintaining a premium brand image in its audience’s mind. The company’s marketing efforts include participation in media and industry analyst events, sponsorship and participation in targeted industry conferences, trade shows, recruiting efforts, community outreach programs and investor relations.
Infosys invests heavily in HR and networking which helps in increasing their client penetration rate. Their client-focused strategy focuses on a limited number of reputable organisations rather than concentrating on countless tiny organisations. The company also organises Ted Talks and speaker confluences by having industry experts on board. They also talk about sustainability as one of their core ethos. In 2011, they made a voluntary commitment to the UN to become carbon neutral and are since working on sustainable development goals.
Infosys Digital Marketing Presence
Apart from traditional marketing, Infosys has a very strong social media presence. They are making use of their large followings and putting out relevant content. Let’s analyse their social media presence.
- 135k followers on Instagram, 434k on Twitter, 34.7k subscribers on YouTube and 854k likes on Facebook.
- They are very active on all social media platforms, with regular posts every few weeks.
- A lot of focus is paid to their commitment to being sustainable and environmentally friendly, they constantly practice green marketing and post about the measures they’re taking in contributing towards these goals.
- They organise campaigns about their social work surrounding various issues such as gender equality, disability and cancer awareness, workplace inclusivity, LGBTQIA+ awareness, etc.
- They engage with their audience by bringing in expert speakers for online panels to discuss pressing tech issues such as cybersecurity, data privacy, digital advances and transformation, etc.
- They recently organised a campaign called “#ChooseToChallenge” that asks for gender parity in professional environments. They ask people to challenge these biases and work towards equal pay and opportunities to mindfully ensure gender diversity.
Infosys is a global leader in next-generation digital services and consulting. It has enabled clients in 46 countries to navigate their digital transformation, with nearly four decades of experience in managing the systems and workings of global enterprises. Their distinct service offerings clearly have many takers and they only continue to grow and expand their portfolio. The company is doing well on promotional fronts, while maintaining its brand as one of the top names. But with increasing competition in the industry, the company needs to constantly evaluate its position and be at par with the rest.
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