Infosys Case Analysis

1025 Words Jul 17th, 2012 5 Pages
Case A-3
Infosys Technologies Ltd.

Question 1
Infosys should consider expanding its operation into other foreign markets and industries. As indicated in the article, Infosys gets over 70% of its revenue from the United States and the majority of its big clients (such as Goldman Sachs, Visa or JC Penny) come from various industries but all of them are very sensitive to changes in the US economy. In order for Infosys to not only maintain but also increase their sales growth in spite of the referenced economic downturn, Infosys has to expand its global account management system along with restructuring its strategic account management. First and foremost Infosys should build a reliable network of foreign intermediaries in Asia and
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Question 4 Strategic business unit benefits include unit developing deep subject matter competency, the attention that sales force is able to give each product line, developing the next generation of company leaders and retaining nimbleness and an ability to respond to the market (via smaller units). In this way customers who were purchasing the product were able to easily locate a designated executive responsible for its sales who was also able to answer their specific questions, customize solutions or provide necessary support.
Negatives of this structure include cost inefficiencies, possibility of affiliates having incompatible “back-office” systems (i.e. IT, accounting, HR) making company-wide planning more difficult, logistics difficulties (i.e. clients in NY and China require staffing for different shifts due to time difference, mastering different languages, cultures, etc.) and lack of synergies (i.e. each unit is in a silo structure so unit A that provides service Z may never hear of the desperate need for service Z from a Fortune 100 company that Unit B knows of).
Practice units (PU) benefits include being near clients so can meet face to face, being familiar with a given culture, same time zone, can claim to be a “domestic” as opposed to “foreign” company, greater pool of (qualified) applicants and company-wide efficiencies (i.e. one HR, accounting department), economies of scale and ensures more efficient coverage of entire market

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