S.P.

MANDALIS

R. A PODAR COLLEGE OF COMMERCE AND ECONOMICS MATUNGA, MUMBAI-400 019.

A PROJECT REPORT ON SWOT Analysis SUBMITTED BY Jincy Babu Thersia M.COM (SEM.I): Strategic Management

SUBMITTED TO UNIVERSITY OF MUMBAI 2013-2014 PROJECT GUIDE Prof. Dr. (Mrs.) Vinita Pimpale

S.P. MANDALIS

R. A PODAR COLLEGE OF COMMERCE AND ECONOMICS MATUNGA, MUMBAI-400 019.

CERTIFICATE
This is to certify that Ms. Jincy Babu Thersia of M.Com (Business Management/ Accountancy) Semester I (2013-2014) has successfully completed the project on SWOT Analysis under the guidance of Prof. Dr. (Mrs.) Vinita Pimpale.

Project Guide/Internal Examiner Prof. Dr. (Mrs.) Vinita Pimpale

External Examiner Prof.________________________

Dr. (Mrs) Vinita Pimpale Course Co-ordinator

Dr.(Mrs) Shobana Vasudevan Principal

Date

Seal of the College

ACKNOWLEDGEMENT

I acknowledge the valuable assistance provided by S. P Mandalis R. A. Podar College of Commerce & Economics, for two year degree course in M.Com. I specially thank the Principal Dr. (Mrs.) Shobana Vasudevan for allowing us to use the facilities such as Library, Computer Laboratory, internet etc. I sincerely thank the M.Com Co-ordinator for guiding us in the right direction to prepare the project. I thank my guide Prof. Dr. (Mrs.) Vinita Pimpale who has given her valuable time, knowledge and guidance to complete the project successfully in time. My family and peers were great source of inspiration throughout my project, their support is deeply acknowledged.

Signature of the Student

DECLARATION

I, Jincy Babu Thersia of R. A. PODAR COLLEGE OF COMMERCE & ECONOMICS of M.Com SEMESTER I, hereby declare that I have completed the project SWOT Analysis in the academic year 2013-2013 for the subject Strategic Management. The information submitted is true and original to the best of my knowledge.

Signature of the Student

INDEX

SR. No. 1.

PARTICULARS

Introduction 1.1 Objective 1.2 Title of the project 1.3 Layout of the project 1.4 Method of data collection 2. SWOT ANALYSIS 2.1 Meaning of SWOT analysis 2.2 Need of SWOT analysis 2.3 Aim of SWOT analysis 2.4 When do you use SWOT 2.5 What are the elements of a SWOT analysis 2.6 Overview of four factors A.) Strengths B.) Weakness C.) Opportunity D.) Threats 2.7 Listing your internal factors 2.8 Listing your external factors 2.9 Advantages 2.10 Limitations 3. SWOT ANALYSIS OF INFOSYS 3.1 Company background 3.2 History 3.3 Change in name 3.4 Organisational structure 3.5 Strategy 3.6 Leadership Style 3.7 Strengths 3.8 Weakness 3.9 Opportunity 3.10 Threats 4. 5. 6. Recommendation Conclusion Bibliography

PAGE NO. 1-2 1 2 2 2 3-12 3 4 4 5 6 7 7 8 8 9 10 11 12 13-23 13 14 14 14 15 15 16 19 21 23 25 26 27-28

EXECUTIVE SUMMARY

Infosys Technologies Limited - SWOT Analysis examines the companys key business structure and operations, history and products, and provides summary analysis of its key revenue lines and strategy.

Infosys Technologies Limited is an India-based IT enabled business solutions provider. The company offers end-to-end business solutions, including business and IT consulting, design, development, product engineering, maintenance, systems integration, package enabled consulting and implementation, and infrastructure management services. It serves clients in banking, insurance and capital markets; communications, media and entertainment; energy, utilities and services; healthcare and other industries. It also provides software products to the banking industry, through its Finacle suite of universal banking solution. The company primarily operates in North America and Europe. The company is headquartered in Bangalore, India and employs about 113,800 people. The company recorded revenues of $4,804 million during the financial year ended March 2010 (FY2010), an increase of 3% over 2009. The increase in revenues was attributable primarily to an increase in business from existing clients, particularly in industries such as financial services, manufacturing and retail. The operating profit of the company was $1,460 million in FY2010, an increase of 6.3% over 2009. Its net profit was $1,313 million in FY2010, an increase of 2.5% over 2009.

Scope of the Report Provides detailed explanation about SWOT analysis Provides all the crucial information on Infosys Technologies Limited. Contains a study of the major internal and external factors affecting Infosys Technologies Limited in the form of a SWOT analysis

INTRODUCTION

1.1 OBJECTIVE

The SWOT analysis is part of a company's strategic planning process where it connects its objectives and strategies to actionable tactics carried out by employees. Specifically, SWOT is part often of the situation analysis, where the company determines where it stands on four key strategic areas to better determine what changes to make. The objective of doing SWOT analysis is to allow achievable goals or objectives to be set for the organization.

SWOT Analysis is the most renowned tool for audit and analysis of the overall strategic position of the business and its environment. Its key purpose is to identify the strategies that will create a firm specific business model that will best align an organizations resources and capabilities to the requirements of the environment in which the firm operates. In other words, it is the foundation for evaluating the internal potential and limitations and the probable/likely opportunities and threats from the external environment. It views all positive and negative factors inside and outside the firm that affect the success. A consistent study of the environment in which the firm operates helps in forecasting/predicting the changing trends and also helps in including them in the decision-making process of the organization.

1.2 TITLE OF THE PROJECT

SWOT is an acronym that identifies the four critical elements of the analysis. The letters stand for strengths, weaknesses, opportunities and threats. Strengths provide an analysis of the company's advantages over its competitors. Weaknesses consider areas in which the companies are at a competitive disadvantage. Opportunities are a list of untapped markets or business developments. Threats explore the external environment that could affect the company, including technological, environmental and regulatory factors.

1.3 LAYOUT OF THE PROJECT

SWOT Analysis is explained in detail. The need of conducting SWOT analysis, the process involved in conducting SWOT analysis, advantages and limits. Conduct a detailed study on the SWOT analysis of Infosys. Provides all the crucial information on Infosys Technologies Limited required for business and competitor intelligence needs. It contains a study of the major internal and external factors affecting Infosys Technologies Limited in the form of a SWOT analysis as well as a breakdown and examination of leading product revenue streams of Infosys Technologies Limited. Data is supplemented with details on Infosys Technologies Limited history, key executives, business description, locations and subsidiaries as well as a list of products and services and the latest available statement from Infosys Technologies Limited.

1.4 METHOD OF DATA COLLECTION

Secondary data collected with the help of books, websites and research papers.

SWOT ANALYSIS

2.1 MEANING OF SWOT ANALYSIS

SWOT Analysis is another method under the situation analysis that examines the Strengths and Weaknesses of a company (internal environment) as well as the Opportunities and Threats within the market (external environment). A SWOT analysis looks at both current and future situations, where they analyze their current strengths and weaknesses while looking for future opportunities and threats. The goal is to build on strengths as much as possible while reducing weaknesses. A future threat can be a potential weakness while a future opportunity can be a potential strength. This analysis helps a company come up with a plan that keeps it prepared for a number of potential scenarios.

It is a structured planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. A SWOT analysis can be carried out for a product, place, industry or person. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieving that objective.

SWOT is a basic, straightforward model that assesses what an organization can and cannot do as well as its potential opportunities and threats. The method of SWOT analysis is to take the information from an environmental analysis and separate it into internal (strengths and weaknesses) and external issues (opportunities and threats). Once this is completed, SWOT analysis determines what may assist the firm in accomplishing its objectives, and what obstacles must be overcome or minimized to achieve desired results.

The technique is credited to Albert Humphrey, who led a convention at the Stanford Research Institute (now SRI International) in the 1960s and 1970s using data from Fortune 500 companies.

2.2 NEED OF SWOT ANALYSIS

The name says it: Strength, Weakness, Opportunity, Threats. SWOT analysis guides you to identify the positives and negatives inside your organization (S-W) and outside of it, in the external environment (O-T). Developing a full awareness of your situation can help with both strategic planning and decision-making.

The SWOT method (which is sometimes called TOWS) was originally developed for business and industry, but it is equally useful in the work of community health and development, education, and even personal growth.

SWOT is not the only assessment technique you can use, but is one with a long track record of effectiveness. The strengths of this method are its simplicity and application to a variety of levels of operation.

2.3 AIM OF SWOT ANALYSIS

To help decision makers share and compare ideas. To bring a clearer common purpose and understanding of factors for success. To organize the important factors linked to success and failure in the business world. To analyze issues that has led to failure in the past. To provide linearity to the decision making process allowing complex ideas to be presented systematically

2.4 WHEN DO YOU USE SWOT?

A SWOT analysis can offer helpful perspectives at any stage of an effort. You might use it to:
a) b)

Explore possibilities for new efforts or solutions to problems. Make decisions about the best path for your initiative. Identifying your opportunities for success in context of threats to success can clarify directions and choices.

c)

Determine where change is possible. If you are at a juncture or turning point, an inventory of your strengths and weaknesses can reveal priorities as well as possibilities.

d)

Adjust and refine plans mid-course. A new opportunity might open wider avenues, while a new threat could close a path that once existed.

SWOT also offers a simple way of communicating about your initiative or program and an excellent way to organize information you've gathered from studies or surveys.

The usefulness of SWOT analysis is not limited to profit-seeking organizations. SWOT analysis may be used in any decision-making situation when a desired end-state (objective) has been defined. Examples include: non-profit organizations, governmental units, and individuals. SWOT analysis may also be used in pre-crisis planning and preventive crisis management. SWOT analysis may also be used in creating a recommendation during a viability study/survey

2.5 WHAT ARE THE ELEMENTS OF A SWOT ANALYSIS?

A SWOT analysis focuses on the four elements of the acronym, but the graphic format you use varies depending on the depth and complexity of your effort. The purpose of performing a SWOT is to reveal positive forces that work together and potential problems that need to be addressed or at least recognized Or if a looser structure helps you brainstorm, you can group positives and negatives to think broadly about your organization and its external environment.

POSITIVES

NEGATIVES

strengths assets resources opportunities

weaknesses limitations restrictions threats

prospects

challenges

2.6 OVERVIEW OF FOUR FACTORS 1. STRENGTHS

Strengths are the qualities that enable us to accomplish the organizations mission. These are the basis on which continued success can be made and continued/sustained. Strengths can be either tangible or intangible. These are what you are well-versed in or what you have expertise in, the traits and qualities your employees possess (individually and as a team) and the distinct features that give your organization its consistency. Strengths are the beneficial aspects of the organization or the capabilities of an organization, which includes human competencies, process capabilities, financial resources, products and services, customer goodwill and brand loyalty. Examples of organizational strengths are huge financial resources, broad product line, no debt, committed employees, etc.

2. WEAKNESSES
Weaknesses are the qualities that prevent us from accomplishing our mission and achieving our full potential. These weaknesses deteriorate influences on the organizational success and growth. Weaknesses are the factors which do not meet the standards we feel they should meet. Weaknesses in an organization may be depreciating machinery, insufficient research and development facilities, narrow product range, poor decision-making, etc. Weaknesses are controllable. They must be minimized and eliminated. For instance - to overcome obsolete machinery, new machinery can be purchased. Other examples of organizational weaknesses are huge debts, high employee turnover, complex decision making process, narrow product range, large wastage of raw materials, etc.

3. OPPORTUNITIES
Opportunities are presented by the environment within which our organization operates. These arise when an organization can take benefit of conditions in its environment to plan and execute strategies that enable it to become more profitable. Organizations can gain competitive advantage by making use of opportunities. Organization should be careful and recognize the opportunities and grasp them whenever they arise. Selecting the targets that will best serve the clients while getting desired results is a difficult task. Opportunities may arise from market, competition, industry/government and technology. Increasing demand for telecommunications accompanied by deregulation is a great opportunity for new firms to enter telecom sector and compete with existing firms for revenue.

4.

THREATS
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Threats arise when conditions in external environment jeopardize the reliability and profitability of the organizations business. They compound the vulnerability when they relate to the weaknesses. Threats are uncontrollable. When a threat comes, the stability and survival can be at stake. Examples of threats are - unrest among employees; ever changing technology; increasing competition leading to excess capacity, price wars and reducing industry profits; etc.

2.7 LISTING YOUR INTERNAL FACTORS: STRENGTHS AND WEAKNESSES (S, W)

Internal factors include your resources and experiences. General areas to consider are:
a) b)

Human resources - staff, volunteers, board members, target population Physical resources - your location, building, equipment (Does your building have a prime location? Does it need renovations?)

c) d) e)

Financial - grants, funding agencies, other sources of income Activities and processes - programs you run, systems you employ Past experiences - building blocks for learning and success, your reputation in the community

Analysis may view the internal factors as strengths or as weaknesses depending upon their effect on the organization's objectives. What may represent strengths with respect to one objective may be

weaknesses (distractions, competition) for another objective. The factors may include all of the 4Ps, as well as personnel, finance, manufacturing capabilities, and so on.

2.8 LISTING EXTERNAL FACTORS: OPPORTUNITIES AND THREATS (O, T)

a)

Future trends - in your field (Is research finding new treatments?) or the culture (Do current movies highlight your cause?)

b) c) d) e)

The economy - local, national, or international Funding sources - foundations, donors, legislatures Demographics - changes in the age, race, gender, culture of those you serve or in your area The physical environment (Is your building in a growing part of town? Is the bus company cutting routes?)

f) g)

Legislation (Do new federal requirements make your job harder...or easier?) Local, national or international events

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As a tool designed for businesses, the major threat to success for most SWOT practitioners is "the competition." Programs to improve the health and well-being of individuals and communities might not have competitors in the market sense, but there could be overlap in services with other agencies that you need to consider. Or perhaps preferences for funding aren't favoring you you're interested in health promotions, but treatment is getting all the resources.

2.9 ADVANTAGES OF SWOT ANALYSIS

SWOT Analysis is instrumental in strategy formulation and selection. It is a strong tool, but it involves a great subjective element. It is best when used as a guide, and not as a prescription. Successful businesses build on their strengths, correct their weakness and protect against internal weaknesses and external threats. They also keep a watch on their overall business environment and recognize and exploit new opportunities faster than its competitors. SWOT Analysis helps in strategic planning in following mannera) It is a source of information for strategic planning. b) Builds organizations strengths. c) Reverse its weaknesses. d) Maximize its response to opportunities. e) Overcome organizations threats.
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f) It helps in identifying core competencies of the firm. g) It helps in setting of objectives for strategic planning. h) It helps in knowing past, present and future so that by using past and current data, future plans can be chalked out.

2.10 LIMITATIONS OF SWOT ANALYSIS

SWOT Analysis is not free from its limitations. It may cause organizations to view circumstances as very simple because of which the organizations might overlook certain key strategic contact which may occur. Moreover, categorizing aspects as strengths, weaknesses, opportunities and threats might be very subjective as there is great degree of uncertainty in market. SWOT Analysis does stress upon the significance of these four aspects, but it does not tell how an organization can identify these aspects for itself. There are certain limitations of SWOT Analysis which are not in control of management. These includea. Price increase; b. Inputs/raw materials; c. Government legislation; d. Economic environment;
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e. Searching a new market for the product which is not having overseas market due to import restrictions; etc. Internal limitations may includea. Insufficient research and development facilities; b. Faulty products due to poor quality control; c. Poor industrial relations; d. Lack of skilled and efficient labor ; etc

SWOT ANALYSIS OF INFOSYS

3.1 COMPANY BACKGROUND

Infosys (formerly Infosys Technologies) is an Indian multinational provider of business consulting, information technology, software engineering and outsourcing services. It is headquartered in Bangalore, Karnataka. Infosys is the third-largest India-based IT services company by 2012 revenues and the second largest employer of H-1B visa professionals in the United States, as of 2012.On 28 March 2013, its market capitalization was $30.8 billion, making it India's sixth largest publicly traded company. Infosys established the Global Delivery Model (GDM), which emerged as a disturbing force in the industry leading to the rise of offshore outsourcing. The GDM is based on the formula of taking work to the site where the best talent is available, where it makes the best economic sense, with the least amount of acceptable risk. Infosys has a world-wide footprint with 64
13

offices and 63 development centers in US, India, China, Australia, Japan, Middle East, UK, Switzerland, Germany, France, Netherlands, Poland, Canada and many other countries. Infosys and its subsidiaries have 130,820 employees working with it as on March 31, 2011. Infosys takes delight in building strategic long-term client relationships.

3.2 HISTORY
It went public in India in 1993 and got listed on the United States of America (USA) NASDAQ in 1999. Infosys was co-founded in 1981 by Narayan Murthy, Nandan Nilekani, N. S. Raghavan, S. Gopalakrishnan, S. D. Shibulal, K. Dinesh and Ashok Arora after they resigned from Patni Computer Systems. The company was incorporated as "Infosys Consultants Pvt Ltd." with a capital of $250 in Model Colony, Pune as the registered office and signed up its first client, Data Basics Corporation, in New York. In 1983, Infosys corporate headquarters was relocated to Bangalore.

3.3 CHANGE IN NAME

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It changed its name to "Infosys Technologies Private Limited" in April 1992. It changed its name to "Infosys Technologies Limited" when it became a public limited company in June 1992. It was later renamed to "Infosys Limited" in June 2011.On 1 June 2013, Mr. Narayan Murthy, one of the founding members of Infosys and its long time CEO, returned back from his retirement to assume office in Infosys as its Executive Chairman. Infosys competes in the Software and Information Technology Services and Consulting industry and focuses on providing IT expertise, software design, development and maintenance services as well as on-site management and other IT functions to its customers.

3.4 ORGANIZATIONAL STRUCTURE

The company has adopted a free form organization devoid of hierarchies. Everyone is known as assistant irrespective of his position in the company. Software development is undertaken through teams and the content of teams is based on the principle of flexibility. A member, who might have been team leader in one project, may be substituted with another member of the same team for another project. This system not only helps in developing the feeling of equality but also helps in developing project leaders.

3.5 STRATEGY
Infosys has adopted a client-focused strategy to achieve growth. Rather than concentrating on numerous small organizations, it concentrates on limited number of large organizations globally. In order to gratify its clients, the company stresses on custom-built software. Another contrasting factor for Infosys is that it commands premium margins. Company does not adjusts over margins beyond a certain point and sometime prefers to walk-out rather than compromise and adjust on quality for lowcost contracts. This has helped in establishing an image for quality driven model rather than costdifferentiating model.
a) b)

Increase business from existing and new clients Expand geographically

15

c)

Enhance solution set: Stresses on emerging trends, new technologies, specific industries and pervasive business issues.

d) e) f)

Develop deep industry knowledge Enhance brand visibility Pursue alliances and strategic acquisitions

3.6 LEADERSHIP STYLE

Infosys believes that leadership is one of the most primary and essential ingredients of organizational success which is provided by its Chairman, N R Narayan Murthy. Leadership is based on high business vision and prevailing supportive styles. There is attention on developing leadership qualities among employees. For this purpose, it has constituted Infosys Leadership Institute. Top management lays stress on open door policy, continuous sharing of information, takes inputs from employees in decision making, and builds personal empathy with employees.

3.7 STRENGTHS INFOSYS

Infosys has strong brand recognition in the IT industry in India and abroad. It was the first Indian company to list on a US Stock Exchange. It is ranked among the 50 most respected countries in the world by Reputation Institutes Global Pulse 2009. It has also been voted most admired Indian company in the Wall Street Journal Asia since 2000. It has been consistently voted as the Best Employer in India. It benchmarks its services against internationally recognized quality standards including CMM level 5, ISO 9001-2000. Infosys also ranked 32nd globally in the most innovative companies around the world survey conducted by Business Week joined with The Boston Consulting Group. It was also recognized in a number of other categories including corporate governance, creation of shareholder value, corporate social responsibility and innovation. Infosys has used these awards and quality certifications effectively in their marketing campaigns and advertisements. The

16

strong brand identity has definitely helped Infosys in attracting high quality employees as well as new clients.

One of Infosys key strengths has been its ability to add new business offerings and mould itself to suit changing market and customer requirements. It has added services such as independent software testing and enterprise applications to its offerings and re-organized itself along the verticals or industries of its clients. This has enabled Infosys to gain superior expertise and knowledge within the vertical. Infosys uses this industry-specific expertise to publish case studies, white papers and client testimonials in recognized journals and magazines such as Harvard Business Review. Client testimonials are also published on its website, which help to further market its credibility, knowledge and customer focus.

Infosys also has a very strong corporate culture. Infosys management focuses on nurturing a familyoriented culture where each employee is called Infoscion (Infosys family member) which breeds loyalty and motivation in employees. Their advertisements for employee recruitment often carry personal testimonials by Infosys employees talking about their experience and excitement about working for Indias best software company in a challenging environment for big Fortune 500 clients, which is a good marketing tactic for attracting enthusiastic engineers who have just passed out of college and are eager to join to workforce.

Since the company is based in India its competitive advantage is enhanced. The Indian economy, despite weak economic indicators such as relatively high rates of inflation, has low labor cost

The workforce has relatively high skills levels in Information Technology. Couple these two elements together and you have an operational basis that offers low-cost based, highly skilled competitive advantage.

17

Trained Indian personnel often speak very good English and are sensitive to Western culture, underpinned by India's colonial past.

Infosys is in a strong financial position. The business turned over more than $4 billion in 2008. This means that it has the capital to expand, and also the basis to leverage potential invests.

The company has bases in 44 global development centres, most of which are located in India, although the company has offices in many developed and developing nations. This means not only that Infosys is becoming a global brand but also that it has the capability to support the global operations of multinational clients.

Leadership in sophisticated solutions that enable clients to optimize the efficiency of their business.

Global

and

24/7

delivery

capability

excellent

internet

backbone

and

telecommunications facilities enabling companies to develop 24/7 delivery capabilities from India itself. Commitment to superior quality and process execution - Infosys has quality standards such as CMM Level 5i to differentiate from other competitors. Strong Brand and Long-Standing Client Relationships

Status as an employer of choice

Ability to scale

Innovation and leadership.

Cost advantage - Presence of Infosys in India is key to its success

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Breadth of service offering - end to end solutions including high end services like IT consultancy and KPO.

3.8 WEAKNESSES INFOSYS

Although Infosys attracts some of the best talent, it has a problem retaining the talent due to the low compensation structures. Infosys faces the highest attrition rate of 16% in the Indian software industry. These attrition numbers are thrice as much as the general industry rate. With an increasing number of international firms such as IBM, Microsoft, Accenture, and Deloitte competing with Infosys for hiring from the same pool of software engineering professionals, the gap between the demand and availability of skilled manpower in India and abroad is likely to increase further. The high attrition rate and low compensation packages affect Infosys marketing strategy to attract new
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and lateral talent. Clients are also concerned about losing key people who are working on their projects. Infosys will need to take efforts to retain employees such as hike in compensation structure and increase lateral hiring. Infosys on occasion struggles in the US markets, and has particular problems in securing United States Federal Government contracts in North America. Since these contracts are highly profitable and tend to run for long periods of time, Infosys is missing out on lucrative business.

And its competitors do well in terms of securing the same Federal business (and one should also take into account that many of its competitors are domiciled in the US and there could be political pressure on the US Government to award contracts to domestic organizations).

Despite being a huge IT company in relation to its Indian competitors, Infosys is much smaller than its global competitors. As discussed above, Infosys generated $4 billion in 2008, which is relatively low in comparison with large global competitors such as Hewlett-Packard ($91 billion), IBM ($91 billion), EDS ($21 billion) and Accenture ($18 billion).

It is sometimes argued that Infosys is weaker when it comes to high-end management consultancy, since it tends to work at the level of operational value creation. Competitors such as IBM and Accenture tend to dominate this space.

Excessive dependence on US for revenues - 67 % of revenues from USA.

Excessive dependence on BFSI sector for revenues - 36 % of revenues from BFSI. Banking sector is facing a crisis globally and is going to spend less on IT.

Weak player in domestic market. Only 1 % of revenues from India - low as compared to peers.

Low R & D spending as compared to global IT companies - only 1.3 % of total revenues.
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Rising wage bill - 42.9 % to 44.8 % of revenues.

Low expertise in high end services like Consultancy and KPO.

Revenues to be hit hard for Infosys.

High rates of attrition - Although slowdown in global economy has lowered attrition rate but the industry still faces high attrition rates as compared to other sectors.

Decreasing competitive advantage - rising salary expenses is taking away the cost advantage enjoyed by Indian companies (including Infosys).

3.9 OPPORTUNITIES
Infosys has traditionally been averse to acquisitions, held its premium pricing strategy and focused on its core IT enabled services business. However, the recent changes in the corporate leadership in 2011 and slowdown in growth have prompted a strategic shift towards global expansion and moving up the value chain with consulting and technology partnership. Infosys recently acquired Zurichbased Lodestone Management Consultancy, which gives Infosys a profitable and strategic SAP
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customer base. Infosys has been successfully marketing the newly added enterprise-level technological skill set to its existing customer base and becoming a strategic business partner instead of simply being a service provider. In the past decade, it has also been shifting its marketing strategy to increasingly offer platform and product solutions coupled with superior service, which are geared towards providing much more value to its clients as a one-stop-shop for all their IT needs, getting more clients and delivering high value product and services in a cost-effective way.

At a time of recession in the global economy, it may appear that some companies will reduce take up of services that Infosys offers. However, in tough times clients tend to focus upon cost reduction and outsourcing - with are strategies that Infosys offers. So hard times could be profitable for Infosys.

There is a new and emerging market in China as the country undergoes a huge industrial revolution.

The strategic alliance between Infosys and Schlumberger gives the IT company access to lucrative business in the gas and oil industries.

There has been a trend over recent years for European and North American companies to base some or all of their operation in India. This is called an offshore service .

There is a seamless link between domestic operations and services hosted in India. Examples include telecommunications companies such as British Telecom and banks such as HSBC that have customer service and support centres based in India. Think about the times that you have made calls to a support line to find that the adviser is in Mumbai or Bangalore and not in your home market.

Domestic market set to grow by 20%.

Expanding into new geographies - Europe, Middle East, etc

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Infosys is cash rich (Around US $ 1 Billion) - Acquiring companies to increase expertise in Consultancy, KPO and package implementation capabilities.

Opening offices and development centers in cost advantage countries such as those in Latin America and Eastern Europe.

3.10 THREATS
Infosys is competing globally with other Indian offshore technology services firms such as TCS, Wipro, HCL Technologies, and Cognizant as well as international consulting firms such as Accenture, Atos Origin, Cap Gemini and Deloitte for clients as well as human resources. It also competes with divisions of large multinational technology firms such as HP and IBM and software
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firms such as Oracle and SAP. Business Process Outsourcing firms such as Genpact and WNS Global services and in-house IT departments of large corporations are also its competitors. Infosys provides a range of proprietary products and support services that can be customized to suit the business needs of its clients across multiple domains such as banking, retail and insurance as described earlier. However, similar bespoke products and services are also provided by its global competitors, so there is a higher threat of substitute products and services with lower switching costs. Differentiating Infosys from its competitors as a high quality and low-cost provider is increasingly becoming a marketing challenge for Infosys, as other companies are following similar business strategies. India is not the only country that is undergoing rapid industrial expansion. Competitors may come from countries such as China or Korea where there are large pools of low-cost labor, and developing educational infrastructures such as universities and technology colleges.

Customers may switch to other offshore service companies in other countries such as China or Korea

Other global players have realised that India has the benefit of low-cost, highly-skilled labor that often speaks English and is culturally sensitive to Western practices. As with all global IT players, Infosys has to compete for skilled labor and this may have the effect of driving up wage levels, and making it more difficult to recruit and retain staff.

Intense competition in the market for technology services could affect cost advantages.

High dependency on a small number of clients, and the loss of any one of the major clients could significantly impact business.

Termination of Client contracts can typically be terminated without cause and with little or no notice or penalty.

Global economic slowdown may continue for several years - hence low IT spending globally.

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US Govt. against outsourcing.

Shrinking margins due to rising wage inflation.

Rupee-dollar movement affects revenue and hence margins.

Increased competition from foreign firms like Accenture, IBM etc. Increased competition from low-wage countries like China, Indonesia etc.

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4.RECOMMENDATION

High skilled IT professionals with widespread development centres and successful global delivery models is always been the success of Infosys. But concentrating on the Management consultancy side can definitely help them increase their international market share which is mostly held by their US competitors. The cost reduction strategies were always an advantage for Infosys but to reduce the risks from raising competition from East Asia markets, they should concentrate more on the domestic markets and R & D which can be the key for long term success. With scalable development models and efficient leadership, Infosys will always be successful in its future.

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5. CONCLUSION
A realistic recognition of the weaknesses and threats that exist for your effort is the first step to countering them with a robust and creative set of strengths and opportunities. A SWOT analysis identifies your strengths, weaknesses, opportunities and threats to assist you in making strategic plans and decisions. SWOT is a simple yet comprehensive way of assessing the positive and negative forces within and without your organization, so you can be better prepared to act effectively. The more stakeholders you involve in preparing the SWOT, the more valuable your analysis will be. Whatever courses of action you decide on, the four-cornered SWOT analysis prompts you to move in a balanced way throughout your program. It reminds you to:
a) b) c) d)

build on your strengths minimize your weaknesses seize opportunities counteract threats

A SWOT analysis will be most helpful if you use it to support the vision, mission, and objectives you have already defined. The SWOT will at least provide perspective, and at best will reveal connections and areas for action.
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6.BIBLIOGRAPHY
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[5.] Forbes (2012, September 10). News Analysis: Infosys Buys Lodestone for $350M - Forbes. Retrieved April 16, 2013, from http://www.forbes.com/sites/raywang/2012/09/10/news-analysisinfosys-buys-lodestone-for-350m/ [6.] Haour, G. (2007, September). GROWTH - THE INFOSYS PHENOMENON. Retrieved 2013, from http://www.imd.org/research/challenges/TC070-07.cfm [7.] Infosys (2012). Infosys Annual Report 2012. Retrieved 2013, from http://www.infosys.com/investors/reports-filings/annual-report/annual/Documents/Infosys-AR13.pdf [8.] Infosys (2012). Infosys Annual Report 2012. Retrieved 2013, from http://www.infosys.com/investors/reports-filings/annual-report/annual/Documents/Infosys-AR13.pdf [9.] Infosys - Reorganization to leverage opportunities in a Flat World | Press Releases | Newsroom. Retrieved 2013, from http://www.infosys.com/newsroom/press-releases/Pages/growing-businessopportunities.aspx [10.] Infosys Ltd. (2011). Infosys Sustainability Report. Retrieved 2013, from http://www.infosys.com/sustainability/Documents/infosys-sustainability-report-1011.pdf [11.] Infosys (2012). Infosys Annual Report 2012. Retrieved, 2013, fromhttp://www.infosys.com/investors/reports-filings/annual-report/annual/Documents/Infosys-AR12.pdf [12.] Iyer, S. (2012, July 16). Infosys attrition number is the real shocker | Firstpost. Latest News: Breaking/Live News Today, Latest News India, Politics News, Business/Stock Market News, Sports Updates, Bollywood News and Opinions - Firstpost.com. Retrieved December 2013, fromhttp://www.firstpost.com/business/infosys-attrition-number-is-the-real-shocker-378976.html [13.] Jones, Bernie. (1990). Neighborhood Planning: A Guide for Citizens and Planners. Chicago and Washington, D.C.: Planners Press, American Planning Association. [14.] People Matters - Strategic Human Resource Management, Leadership & Management, HR Magazine India. Retrieved 2013, from http://peoplematters.in/articles/learning-curve/infosys-suffersfrom-attrition-woes [15.] http://ctb.ku.edu/en/tablecontents/sub_section_main_1049.aspx
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[16.] http://www.mindtools.com/pages/article/newTMC_05.htm [17.] http://ctb.ku.edu/en/tablecontents/sub_section_main_1049.aspx

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