company profile infosys limited - benori · 2020. 2. 6. · infosys limited is an india-based...

2020 © Benori Knowledge. All Rights Reserved 1

Company Profile

Infosys Limited

PREMIUM

2020 © Benori Knowledge. All Rights Reserved

▪ Executive Summary

▪ Company Overview

- Snapshot

- Reporting structure

- Key personnel

▪ Financial Performance

- Company performance

- Key ratios

▪ Key Developments

▪ Company Strategy and SWOT

- Company strategy

- SWOT analysis

▪ Industry Landscape

- Industry overview

- Key competitors

Contents


Executive Summary


Executive Summary

Infosys Limited is an India-based multinational corporation that provides technology, consulting, outsourcing and next-generation digital

services. It primarily operates through eight business segments. The company has more than 2,28,000 employees across 46 countries. The

company’s North America geographic segment accounted for the largest revenue share which was followed by other regions such as

Europe, the rest of the world and India.

Strategic Imperatives

Key Areas Description

Digital servicesFocuses on growing digital business and increasing its share in the total revenue by selling it as a set of five use cases,

forming partnerships to complement core competencies and strengthening R&D capabilities to launch new offerings

Automation and AI (Artificial

Intelligence)

Continuously leverages automation and AI-based techniques as well as software automation platforms by following a

product agnostic approach, building specific platforms for emerging technologies and establishing partnerships to

increase reach and availability

Workforce reskillingOffers courses on latest emerging technologies through an in-house talent transformation platform and partners with

universities and online training providers to offer relevant reskilling programs

LocalisationLocalises workforce by opening new delivery centres in the US by focusing on local recruitment, updating delivery

models and strengthening the company's position in emerging countries through partnerships

Reported revenue of US$ 11.8 B by registering a y-o-y growth of 7.9%

mainly due to an increase in the volume of business across major

segments

Operating margin and net margin decreased by 1.5 p.p. and 4.1 p.p.

y-o-y, respectively

Expected to gain favorably from the positive spend outlook for IT services

and digital transformation

Guidance (FY20): Revenue growth of 9%–10% in constant currency;

operating margin to be in 21%–23% range

Past Year Performance (FY19) Outlook


Company Overview


Company Overview

Business Segments

SegmentRevenue

ContributionDescription

Financial Services (FS) 32.0%Offerings include solutions for capital market, consumer banking, reconciliation, data migration and

management, cards and payments, commercial banking, governance, risk & compliance and mortgages

Retail 16.4%Includes retail, consumer goods and logistics industry; offerings include digital customer engagement, omni-

channel commerce and supply chain

Communication (COMM) 12.6%Includes clients in the telecom OEM, communication and media industry; offerings cover operations, processes,

digital transformation and screen convergence

Energy, Utilities, Resources and

Services (EURS)12.6%

Offerings include automation tools and remote monitoring solutions for mining; services based on automation,

analytics and artificial intelligence for oil and gas; and services for generation, transmission, distribution and

customer networks of utilities

Manufacturing (MFG) 9.9% Offerings include selling bundled services as an ‘outcome as a service’ solution

Hi-Tech 7.5% Offerings include engineering services and digital transformation

Life Sciences (LS) 6.3%Offerings include services for application portfolio rationalisation and digital marketing; examples of solutions

include data and document management, device connectivity, compliance and CRM

Others 2.8%Encompasses businesses operating in China, India, Japan, Infosys Public Services and other public services

enterprises

Snapshot (1/2)

Sources: Company website, Annual report 2019 Note: Offerings included are indicative in nature

Established in 1981, Infosys Limited (Infosys) offers consulting, technology, outsourcing and digital services. It operates through eight

segments and categorises offerings in core and digital. The company operates in 46 countries and is headquartered in Bangalore, India.

Snapshot


Company Overview

The geographic markets of Infosys include North America, Europe, Rest of the World and India, which contributed 60.5%, 24.1%,

12.9% and 2.5%, respectively, to the consolidated revenue in FY19. In total, the company has presence in 191 locations across 46

countries.

Ownership Structure

Key Facts

Headquarters Bengaluru, India

Founded 1981

Stock exchange NYSE, NSE and BSE

Number of employees 228,123

Website https://www.infosys.com

Snapshot (2/2)

Geographic Presence

Key Financials (FY19; US$ B)

Sales 11.8

Operating profit 2.7

Total assets 12.3

Market cap (as on 1 April 2019) 46.4

The promoter and promoter group includes 22 shareholders. The public owner category includes 9,19,009 shareholders. Key

entities holding majority of the shares within the public owner category include Deutsche Bank Trust Company Americas, Life

Insurance Corporation of India, HDFC Mutual Fund, SBI Mutual Fund and ICICI Prudential Mutual Fund.

Owner Category Common Stock Equivalent Held Total Shares Outstanding (%) Market Value (US$ B)

Promoter and Group 56,01,82,338 13.1 6.1

Public 3,67,65,75,155 86.4 40.1

Employee Trust 1,89,29,512 0.4 0.2

Sources: Company website, Annual report 2019

https://www.infosys.com/


Company OverviewReporting structure

CEO

Salil Parekh

CFO

Nilanjan Roy

President and Deputy COO

Ravi Kumar

COO

Pravin Rao

Executive VP Global Head, Talent and

Technology

Binod R. Hampapur

Executive VP Group Head, HR

Development

Krishnamurthy Shankar

Executive VP, Data and Analytics

Satish HC

Group General Council and CCO

Inderpreet Sawhney

President, Healthcare,

Insurance and LS

Mohit Joshi

Deputy CFO

Business Finance

Procurement and

Information

Services

Insurance

Financial

Services UK

Business Finance

and Revenue

Corporate Legal Retail, CPG and

Logistics

Business Portfolio

and Strategy

India Business

Cisco and

Delivery Cyber

Data Scientist

Digital

Talent

Acquisition US

Microsoft and

Digital

Experience

Infosys Public

Services

Sources: Company website, Annual report 2019, The Official Board


Company OverviewKey personnel

Executive Management

Nilanjan Roy (CFO) Nilanjan was appointed as the CFO in March 2019

He is responsible for managing financial planning,

financial risk, record-keeping and financial reporting

Prior to Infosys, he served as the Global CFO of Bharti

Airtel Ltd. and was responsible for overseeing the

finance function across India and Africa

U.B. Pravin Rao (COO and Whole-time Director) Pravin joined the company in 1986 and was appointed

as the COO in January 2014

He has overall strategic and operational responsibility

for the entire portfolio of Infosys offerings

Mohit Joshi (President) Mohit joined Infosys in December 2000 and he leads the

Healthcare, BFSI and Life Sciences domains

He is also responsible for company-wide sales operations

and reporting processes including top account growth

and large deal pursuits

Ravi Kumar S. (President and Deputy COO) Ravi joined Infosys in November 2002 and he leads

the Infosys’ delivery globally across all industry

segments

He is also responsible for the US talent model to

create a technology hub by collaborating with local

states, clients and academic ecosystem

Salil Parekh (CEO and MD) Salil was appointed as a CEO in January 2018

He handles the strategic direction for the company and offerings portfolio

Prior to this, he served as a member of the Group Executive Board at Capgemini

and as a Partner at EY

He has nearly three decades of experience in the IT service industry including

managing acquisitions and executing business turnarounds



Financial Performance


Financial PerformanceCompany performance (1/2)

Annual Revenue Trend FY17–19 (US$ B)

10.2

10.9

11.8

24.7% 24.3%22.8%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

0.0

2.0

4.0

6.0

8.0

10.0

12.0

2017 2018 2019

Rev

enu

e (U

S$ B

)

Revenue Operating Profit Margin

In FY19, Infosys reported a revenue of USD$ 11.8 B by registering a

y-o-y growth of 7.9%. During FY16-19, the company’s revenue increased

at a CAGR of 7.5%. The growth in revenue can be attributed to:

Increase in the volume of business across major segments as

well as new solutions being offered to the clients

Addition of 345 new customers in FY19 compared to 283

customers in FY18

Operating margin decreased by 1.5 p.p. y-o-y in FY19 mainly due to

10.7% increase in total operating expenses

Net margin also decreased by 4.1 p.p. y-o-y in FY19 mainly due to:

Decrease in operating profit and increase in tax expenses by

0.9% on an annual basis

Reduced fair value of the disposal group ‘held for sale’ asset

resulted in decline of net profit

Revenue per employee decreased from US$ 54,602 in FY18 to US$

54,038 in FY19

Revenue from software services represented 94.8% of the total revenue

in both FY19 and FY18

Guidance (FY20): Revenue growth of 9%–10% in constant currency;

operating margin to be in 21%–23% range

Sources: Company website, Annual report 2019, Investor presentations


Financial PerformanceCompany performance (2/2)

Revenue Breakdown (by segment) FY17–19 (US$ B)

3.4 3.6 3.8

1.71.8

1.9

1.31.4

1.51.1

1.31.50.9

1.0

1.20.8

0.8

0.9

0.7

0.7

0.7

0.4

0.4

0.3

0.0

2.0

4.0

6.0

8.0

10.0

12.0

2017 2018 2019

Revenue (

US$ B

)

FS Retail COM EURS MFG Hi-Tech LS Others

In FY19, all the operating segments except Life Sciences and Others

reported increase in revenue

Overall profitability across most of the segments decreased as

compared to FY18 mainly due to:

Cross-currency fluctuations, higher cost of technical sub-

contractors and investments in areas such as re-skilling of

workforce, investments in digital, localisation strategy and

increased sales and marketing expenses

EURS business segment reported the highest annual growth of 14.3%—

however, its profitability was lower on account of higher subcontractor

costs and higher third-party cost related to project specific

requirements

The MFG segment revenue increased by over 12% — profitability was

also up by 33.3% y-o-y due to an increase in offshoring as well as

booking contingency loss provisions on various projects

COMM segment profitability was lower on account of higher

subcontractor costs and due to ramp up and transition costs of large

deals

Retail segment revenue witnessed an annual increase of over 9.0% due

to increasing demand for digital services—the segmental profit also

increased by 12.7% compared to the previous year

The company reported 13 large deals with total contract value (TCV) of

US$ 2.7 B in FY19



Financial PerformanceKey ratios

Key Ratios and Comparison

Infosys reported an annual EPS of US$ 0.5 in 2019, by registering a 7.3% y-

o-y decline compared to 2018

The median value for peers’ EPS was US$ 1.1 as only Wipro

reported EPS lower than the company

The company reported a higher PE ratio of US$ 0.3 in FY19 as compared

to US$ 0.2 in FY18 owing to the buyback of equity shares

Infosys peers reported a low PE ratio of US$ 0.2 in FY19

Infosys witnessed higher EV/EBITDA metrices as compared to its peers

This can be attributed to the acquisition of voting rights of more

than 51% in two companies in FY19

It also made multiple acquisitions in FY18

Infosys was one of the high dividend yield stocks in FY19 as it yielded a

dividend of 3.1% to its shareholders, compared to a median divided of

0.8% yielded by its peers

CAPEX and OPEX Profile (US$ M)

Ratios Infosys Peers

Net margin 18.6% 16.8%

EPS US$ 0.5 US$ 1.1

Return on assets 18.2% 19.0%

Return on equity 23.7% 26.0%

Price/Book value 5.0X 4.8X

EV/Sales 3.7X 5.4X

EV/EBITDA 13.1 12.6

PE US$ 0.3 US$ 0.2

Dividend yield 3.1% 0.8%

Net debt/Equity 0.3 0.2

2017 2018 2019

CAPEX 411 310 349

OPEX 1,242 1,279 1,416

During FY17-19, CAPEX and OPEX registered a CAGR of 7.9% and 6.8%,

respectively

CAPEX witnessed a y-o-y growth of 12.6% in FY19, as the OPEX increased

10.7% y-o-y due to investments and acquisitions

Note: Median value of three peers (Wipro Ltd, TCS Ltd. and HCL Technologies Ltd.) have

been considered; All financial ratios are for FY19



Key Developments


Key DevelopmentsPress search (1/7)

Partnerships

Date Area Description

Dec 2019 PartnershipEdgeVerve Systems, a subsidiary of Infosys, announced partnership with Idego, a Peru-based digital transformation

consulting organisation, to drive RPA adoption in telecom and financial services companies across Latin America

Oct 2019 Partnership

Infosys partnered with SAP, a Germany-based enterprise application software provider, to accelerate enterprise digital

transformation for its customers, through a new strategic program named Innov8

In addition, both the companies are engaged in creating a joint go-to-market engagement model between the Innov8

program from Infosys and project Embrace from SAP

Jan 2019 Partnership

The company announced collaboration with Hewlett Packard Enterprise by adopting HPE GreenLake, an as-a-service

offering that offers on-demand infrastructure

The partnership is expected to help customers accelerate digital transformation by enabling them to pay for only

consumed services

Sources: Company website, News articles



New Products/Solutions


Dec 2019 New Applications

Launched three blockchain-powered distributed applications for government services, insurance and supply chain

management domains

These ready-to-subscribe business applications enable fast deployment, interoperability across different systems

involving multiple use-cases on technologies such as IoT and analytics

Nov 2019 Product Launch

Introduced Cyber Next platform-based offerings — the platform is enabled by Microsoft Azure Sentinel, a cloud-based

security solution

The new platform is expected to help customers in increasing threat detection and response capabilities

Nov 2019 App Launch

Launched ATP Tour App for the iOS and android devices in partnership with the Association of Tennis Professionals, a men’s

tennis governing body

The app will provide information such as news, live scores, stats, videos and personalised feeds for the tennis sports

fans

Sep 2019 Platform LaunchIntroduced McCamish NGIN platform for the life insurance and annuity industry, including functionalities across all insurance

product lines along with features for whole-life, term, annuities and universal life




Customer Acquisitions (1/3)


Dec 2019Customer

Acquisition

Selected by Telenet Group, a telecom services provider in Belgium, to drive digital and data transformation programs for

the next five years

Dec 2019Customer

Acquisition

Infosys Finacle, a digital banking solution suite from EdgeVerve Systems, was selected by Glory Farmer Development Bank, a

Myanmar-based private bank, to improve and transform its retail banking business

Nov 2019Customer

Acquisition

Selected by the Australian Federal Government’s Services to digitise welfare entitlements. The project includes

transformation of the entitlement calculation engine (ECE) through an agile and configurable Pega platform

Pega platform is a tool for scalable enterprise-wide, transformational deployments

Nov 2019Customer

Acquisition

EdgeVerve Systems was selected as a partner by WM Promus, a London-based IT software and service provider, to develop

and deliver an automation solution and assist enterprises in industries such as manufacturing, financial services, airlines and

retail to improve productivity and efficiency






Nov 2019Customer

Acquisition

Selected as a strategic IT partner by ARLANXEO, a synthetic rubber company, to deliver IT support and projects for S/4HANA

digital ecosystem

Infosys will also act as a preferred partner for the company-wide application development

Nov 2019Customer

Acquisition

Selected as a sole technology partner for digital transformation by Movement Mortgage, a US-based mortgage bank

Under this agreement, Infosys will provide IT-as-a-Service and will lead the digitisation of the company across 650

locations in 47 states

Nov 2019Customer

Acquisition

Partnered with Siemens Gamesa Renewable Energy (SGRE), to digitalise its IT landscape

Infosys would provide the end-to-end IT infrastructure transformation including the roll-out of a Software-Defined

Network (SDN), hybrid cloud transformation, digital workplace services and the set-up of an intelligent service desk

Oct 2019Customer

Acquisition

Selected by Volvo Cars, a unit of Volvo Group, to offer digital transformation services

Services offered will include next-generation application services through agile delivery, automation and other services

optimisation offerings for enterprise digital commercial operations, applications and products






Aug 2019Customer

Acquisition

Selected as a technology partner by Toyota Material Handling North America (TMHNA), a forklift sales company, for cloud-

based telematics solutions through Infosys’ diagnostics capabilities and remote monitoring services such as system

maintenance, vehicle access control, condition sensing and location tracking

July 2019Customer

Acquisition

EdgeVerve Systems was selected as a partner by Al Ahli Bank, a Kuwait-based bank, to enable Robotic Process Automation

(RPA) in operations and information security areas

April 2019Customer

Acquisition

EdgeVerve Systems was selected as a partner for Ahli United Bank, a Kuwait-based bank, to deploy RPA in the bank’s

operational processes, to improve the Service Level Agreement (SLAs), reduce errors and accelerate the turnaround time

March 2019Customer

Acquisition

Announced a three-year technology partnership with Roland-Garros, the venue that hosts the French Open

Under the partnership, Infosys will leverage its solutions in artificial intelligence, big data and analytics, mobility, virtual

and augmented reality to offer fans, players and coaches a new digital experience

March 2019Customer

Acquisition

Selected as a partner by Rolls-Royce Plc to provide digital solutions and engineering services to help achieve customers’

increasing needs for sustainable energy




Business Expansion


Nov 2019Business

Expansion

Opened a new digital innovation centre in Dusseldorf, Germany, to bridge the IT skill gap across Europe and support

customers to digitally transform businesses

The centre will focus on developing next-generation business suites, cloud-based services, 5G, IoT, Machine Learning and

AI for enterprises

Sep 2019Business

Expansion

Inaugurated a technology and innovation centre in Arizona, US. With the opening of this centre, it plans to hire 1,000

American workers in the state by the end of 2023

July 2019Business

Expansion

Established a new cyber defense centre in Bucharest, Romania, to provide real-time cybersecurity protection and

monitoring services to global and European businesses

June 2019Business

Expansion

Launched an experience design and innovation studio in London, to focus on the development of customer-centric

experience, collaboration and innovation by creating a design coupled with technologies such as 5G, IoT, AI and AR/VR

April 2019 Joint VentureEstablished a joint venture with three Japanese firms, i.e., Hitachi (diversified conglomerate), Panasonic Corporation

(electronics company) and Pasona Inc (staffing services company) to strengthen operations in Japan




Mergers & Acquisitions


Oct 2019 AcquisitionAcquired Eishtec, an Ireland-based 1,400-employee contact centre company. The transaction is expected to help in the

growth of its contact centre business as Eishtec and Infosys BPM share some key clients

May 2019 Acquisition

Infosys Consulting acquired 75.0% shareholding in Stater NV, a mortgage service provider and a subsidiary of ABN AMRO Bank

The acquisition is expected to strengthen its capabilities as a technology and business management provider for the

mortgage industry in Europe

April 2019 Acquisition

Acquired 81.0% voting interest in Hitachi Procurement Service Co., Ltd., (HIPUS), a subsidiary of Hitachi Ltd, through its

subsidiary Infosys Consulting Pte Limited (Infosys Consulting) for approximately US$ 30 M

The acquisition is expected to help in building local presence in the region



Company Strategy and SWOT


Scale Agile Digital: Targeted investments to grow digital

business and increase its share in total revenue by:

Selling digital as a set of five use cases

Partnerships to complement core competencies

Strengthening R&D capabilities to launch new offerings

Infosys growth strategy focuses on increasing digital revenue, expanding operations to the major and emerging markets through

acquisitions and partnerships and creating a sustainable organization that strengthens company’s relevance with the clients

Company Strategy Snapshot

Reskill the workforce: A key element of strategy that:

Offers courses on emerging technologies through an in-

house talent transformation platform

Partners with universities and online training providers to

offer relevant reskilling programs

Localisation: Investment in localising workforce to gain

from client proximity by:

Launching new delivery and innovation centres in the

US, complemented with focus on local recruitment

Updating Global Delivery Model

Strengthening position in emerging countries through

joint ventures

Energise the core: To continue using automation and AI-

based techniques and software automation platforms

through:

Building specific platforms for emerging technologies

Product agnostic approach

Making automation part of capabilities such as cloud

Partnerships to increase reach and availability

Sources: Company website, Annual report 2019, News articles


Company Strategy Digital services and automation

The company makes targeted investments to increase digital business which is defined as a set of following five use cases:

Experience (systems for digital marketing, omni-channel interaction, personalisation and content management), insight (AI-based

systems for analytics), innovate (digital products and offerings using concepts such as the IoT), accelerate (digitisation of core

systems by migrating to cloud technologies and RPA) and assure (advanced cyber-security systems and validation)

In 2019, it partnered with Idego (digital transformation consulting), SAP (enterprise digital transformation through a new program) and

HPE (digital transformation by paying for only consumed services) to complement its core competencies

It is also focused on enhancing R&D capabilities to incubate new offerings in areas such as blockchain, AR/VR and speech, vision, video

and image intelligence

In December 2019, it launched three blockchain applications for government, insurance and supply chain management domains

A continuous focus on digital has resulted in 5 p.p. increase of digital revenue in FY19 compared to the previous year

The company aims to continue using automation and AI-based techniques and software automation platforms to increase productivity of

clients’ core processes and systems

As part of its continuous focus on emerging technologies, it will continue investments in AssistEdge (RPA platform), Infosys Nia (AI

platform), Panaya and Skava software components, Finacle (a core business application) and McCamish (insurance, annuities and

retirement services) to keep them updated with latest features and capabilities

The company’s AI and automation capabilities are product agnostic and it has competencies in products such as Watson (a machine

learning system by IBM), Azure AI/Cortana (AI suite by Microsoft), Workfusion (AI-powered automation software) and RPA software tools

(including Automation Anywhere, Blue Prism and UIPath)

Infosys Automation Suite, offered under cloud and infrastructure management capabilities, reduces manual effort through process

standardisation, predictive analytics and workflow automation

In 2019, the customer acquisitions related to RPA included two Kuwait-based banks. It also partnered with a Peru-based digital

transformation consulting organisation to drive RPA adoption across Latin America in the same year


Energise the

core

Scale Agile

Digital


Company Strategy Reskilling and localisation

Workforce reskilling is a key element of strategy as it offers curated courses on new and emerging technologies through Lex, an in-

house next-gen talent transformation platform, to enable learning in an on-the-go anytime, anywhere way

The platform is being used by 200,000+ employees, who spend on an average between 35–40 minutes on a weekday and 50–55

minutes on weekends at the platform

The company has launched the customisable client-ready version of this platform as Wingspan

Infosys also partners with multiple universities and online training providers to offer reskilling programs

Examples include Rhode Island School of Design (design skills), Purdue University (cyber security), Trinity College, Hartford

(business analysis skills), Cornell University (program management) and the University of North Carolina (data analytics)

As client proximity offers several benefits, the company continues to invest in localising workforce in various geographies

It had announced to establish four delivery and innovation centres in the US in FY18—announced one more in FY19

These centres are operational in Indiana, Connecticut, Rhode Island, Texas and North Carolina

The company is recruiting locally from the universities in the US and aims to become an employer of choice for the US

universities. Localisation is expected to reduce dependence on immigration policies such as H1B visas

As part of localisation strategy, in September 2019, the company updated its global delivery model

The updated model follows a 70:15:15 global delivery model, as compared to the traditional 70:30 one

Under the new approach, 70% of the work will be delivered from offshore locations, 15% will be delivered through on-site local

workforce and the remaining 15% by deploying resources at clients’ premises in on-shore locations

In September 2019, the company inaugurated its latest technology and innovation centre in Arizona, US. This is part of its plans to hire

1,000 American workers in the state by the end of 2023

In the same year, the newly opened European centres included a digital innovation centre in Germany, a cybersecurity centre in

Romania and an experience design and innovation studio in London. It also established a joint venture with three Japanese firms to

strengthen local operations


Reskill the

workforce

Localisation


Legal proceedings and conflict of interest: The company’s brand image

was negatively impacted due to legal proceedings from the former CFO

related to arbitration cases and conflict between the management and the

former CEO.

Declining profitability in FY19: The operating margin and net margin

decreased by 1.5 p.p. and 4.1 p.p. y-o-y, respectively. Operating margin

declined due to 10.7% increase in operating expenses, whereas net margin

was impacted by decreased operating profit and increase in tax expenses.

High attrition rate: The company has a higher attrition rate (21.7%, Sep

2019) compared to its competitors such as TCS (11.6%, Sep 2019), Wipro

(~17%, Sep 2019) and HCL Technologies (17.3%, Jun 2019).

Strengths

Diversified and growing clientele: The company serves clients across all

major verticals. In FY19, total number of clients increased to 1,279 from

1,204 in FY18. Similarly, number of US$ 100 M+ clients increased by 25.0%

to 25 in FY19.

Strong top line performance: In FY19, the company reported revenue of

US$ 11.8 B by registering a y-o-y growth of 7.9%. During FY15-19, revenue

of the company increased at a CAGR of 7.9%. A consistent growth in

revenue augurs well for future business plans.

Robust and trusted delivery model: The company has over twenty years of

experience in delivering technology services to Fortune Global 500 clients

utilising its Global Delivery Model.

Growing global IT services spend: According to Gartner, the global IT

services spend is expected to grow at a CAGR of 4.8% to reach US$ 1,308 B

in 2022. Being a major global IT services provider, the company stands to

gain from the growing IT services spend.

Positive outlook for public cloud services: According to IDC, global

spending on public cloud services and infrastructure will more than double

over the 2019-2023 period to approximately US$ 500 B in 2023. The

company, with its cloud and infrastructure management capabilities and

enterprise cloud application solutions, is expected to benefit from the

positive outlook for public cloud services.

Currency fluctuations: Infosys operations are spread across multiple

geographies. Any adverse currency fluctuation in the exchange rate

between INR to USD and other foreign currencies can negatively impact the

company’s financial performance.

Government regulations: Stringent regulations related to the scrutiny of

new as well as renewal of H-1B visa applications in the US may result in

delay or additional cost of managing on-shore projects.

Brexit speculation: The withdrawal of the UK from the EU may result in

low demand for Infosys services, as clients may postpone or reduce their

technological spending.

Weaknesses

Opportunities Threats

SWOT Analysis

Sources: Company website, Annual report 2019, News articles and industry analysis


Industry Landscape


Industry Landscape

Global IT Services Spend (US$ B) Indian IT Services Market (US$ B) Sector-wise Breakup of Indian IT Market

The global IT services spend is expected to reach US$ 1,308 B by 2022, at a CAGR of 4.8%, as companies across BFSI, healthcare,

government and telecom sector continue to invest in IT services to ensure digital transformation

India is one of the fastest growing IT services market in the world. The growth drivers include large deals for digitalisation, improved

business opportunities in Europe and APAC and establishment of more than 1,000 global delivery centres by Indian IT companies

Top technology priorities for global businesses include advanced analytics and AI, hybrid cloud, cybersecurity, IoT and blockchain

IDC predicts that global spending on AI and cognitive intelligence will reach US$ 77.6 B by 2022 as the organizations will adopt AI to enable

their digital workforce, transform customer service and gain insights from siloed unstructured data

Similarly, cloud computing applications and platforms will proliferate to support new business models (as-a-service models) and will

achieve higher scalability, speed and security

Overview

Outlook

Industry overview

1,083 1,135 1,190 1,248 1,308

2018 2019 2020 2021 2022

167 193

213 235

260 287

317 350

2018 2019 2020 2021 2022 2023 2024 2025

51.8%

19.3%

9.0%

19.9%

IT Software

Business ProcessManagement

Hardware

SoftwareProducts &EngineeringServices

Sources: Company website, Annual report 2019, News articles and Industry analysis


Industry LandscapeKey competitors

A Comparison of Infosys and its Three Key Competitors

Target TCS Wipro HCL Technologies Infosys

Overview

Founded in 1968, TCS is an

India-based IT consulting,

service and business

solutions organization

Founded in 1968, Wipro entered IT

products and businesses in 1982.

The company is an India-based IT,

consulting, business process

service enterprise with clients

across 27 industry verticals

Founded in 1976, HCL is an India-

based IT service and consulting

company which helps enterprises

to transform business through

digital transformation

Founded in 1981, Infosys is an

India-based organisation that

offers consulting, technology,

outsourcing and digital services

Business segments

BFSI (39.6%), Retail and

Consumer Business

(17.2%), Communication,

Media and Technology

(CMT) (16.3%),

Manufacturing (10.7%) and

Others (16.2%)

IT Services (96.5%), IT Products

(2.1%) and India State Run

Enterprise (ISRE) (1.5%)

Software Services (57.8%),

Infrastructure Services (37.2%),

Business Process Outsourcing

Services (5.0%)

Financial Services (32.0%), Retail

(16.4%), Communication (12.6%),

EUR (12.6%), MFG (9.9%), Hi-Tech

(7.5%), Life Sciences (6.3%),

Others (2.8%)

Geographical

presence

Americas (53.0%), Europe

(29.7%), India (5.7%) and

Others (11.6%)

Americas (55.0%), Europe (25.0%),

India (5.0%) and Rest of the World

(15.0%)

Americas (59.6%), Europe (26.7%),

India (3.5%) and Rest of the World

(10.2%)

North America (60.5%), Europe

(24.1%), Rest of the World (12.9%)

and India (2.5%)

FY19 Sales (US$ B) 21.1 8.5 8.7 11.8

Sources: Company websites, Annual reports 2019, News articles Note: Values in brackets denote percentage contribution to the total revenue in FY19


Benori Knowledge is a global provider of custom research and analytics

solutions across industries, including consumer & retail, technology, media &

telecom, internet & e-commerce, professional services, financial services,

healthcare, industrials and education & social. We offer solutions aimed at

supporting our clients’ strategic needs that are critical to accelerate their

growth and value creation.

Our team of knowledge consultants is committed to minimising the

challenges faced due to high costs, poor access and low quality of knowledge

processes, and transforming them to deliver world-class and cost-effective

information, intelligence and insights.

Headquartered in India, we serve clients across the world.

Simplifying Decisions.

[email protected]

benoriknowledge.com

company profile infosys limited - benori · 2020. 2. 6. · infosys limited is an india-based...

Documents