vengabeats
Nilesh Nagdev
Analysts from Boston Consulting Group and Technology Partners International (TPI) do a SWOT on Infosys and here's what they think.
Boston Consulting Group(BCG):
STRENGTHS
* They managed to grow from $150 million to $400 million in revenues. This is a tougher milestone than the $1 billion one
* They are very focused on creating a culture and processes, which have become differentiators for the company today
WEAKNESSES
* Not doing well enough when it comes to innovation beyond process IP
OPPORTUNITIES
* Should get into more service lines and big-ticket deals, R&D and engineering services play and should increase their geographical reach
THREATS
* Global majors are becoming quite big
* They should not ignore or underestimate the creativeness and capabilities of MNC competitors
Technology Partners International
STRENGTHS
· Excellent project and services execution
· Excellent internal processes
WEAKNESSES
* Reliance on less experienced talent pool for lower costs and therefore better financial results. This precludes certain types of work
* Over reliance on India as delivery geography, has not diversified delivery capability to other offshore locations
OPPORTUNITY
* Extend delivery and process strengths to other global locations apart from India
* Massive demand for additional work in all areas of services spectrum with many existing contracts now coming up for renewal - approx $100 billion in next few years. Infosys can get a chunk of this if they are willing to take on additional delivery risk and become a true global player
THREATS
* Extremely high expectations from their investor community for growth and profitability. Will be difficult to manage this as competition begins to undercut their pricing
* MNCs have come of age in India and other offshore destinations. They can and do compete with Infosys from a level playing field
Boston Consulting Group(BCG):
STRENGTHS
* They managed to grow from $150 million to $400 million in revenues. This is a tougher milestone than the $1 billion one
* They are very focused on creating a culture and processes, which have become differentiators for the company today
WEAKNESSES
* Not doing well enough when it comes to innovation beyond process IP
OPPORTUNITIES
* Should get into more service lines and big-ticket deals, R&D and engineering services play and should increase their geographical reach
THREATS
* Global majors are becoming quite big
* They should not ignore or underestimate the creativeness and capabilities of MNC competitors
Technology Partners International
STRENGTHS
· Excellent project and services execution
· Excellent internal processes
WEAKNESSES
* Reliance on less experienced talent pool for lower costs and therefore better financial results. This precludes certain types of work
* Over reliance on India as delivery geography, has not diversified delivery capability to other offshore locations
OPPORTUNITY
* Extend delivery and process strengths to other global locations apart from India
* Massive demand for additional work in all areas of services spectrum with many existing contracts now coming up for renewal - approx $100 billion in next few years. Infosys can get a chunk of this if they are willing to take on additional delivery risk and become a true global player
THREATS
* Extremely high expectations from their investor community for growth and profitability. Will be difficult to manage this as competition begins to undercut their pricing
* MNCs have come of age in India and other offshore destinations. They can and do compete with Infosys from a level playing field
