Infosys Solution

4345 Words Feb 20th, 2012 18 Pages
Define the issues Infosys is facing.

1. Productivity

Infosys’ productivity seems to be competitive compared to U.S. companies on a productivity measurement based on operating profit. Nevertheless, the company performs far behind when looking at revenue per employee. This phenomenon occurs to the whole country, causing the wage differential between India and the United States to be quite significant.

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The solution for Infosys’ performance improvement is to move up the “value chain” of software development in order to remain competitive on a global basis. Refer to Exhibit 6, the company plans to move up from software development to project management with higher margin. To implement this strategy
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Furthermore, the company provides loan with lower interest rate than the market. The loan is flexible because it allows employees to pay more if his/her salary increases. It is also a function of level and salary, meaning that the ability to borrow reflects ones’ ability to return the loan. Because of this particular system, the attrition rate of housing loan program is well below the overall level of 11%.

c) Emotional value-added

Corporate culture is the most contributing reason for one to stay with Infosys. Friendship, openness and transparency of the company are important in attracting and retaining its people.

Secondly, Infosys is excellent in terms of transparency. The company has established high standard in its reporting and disclosure policies. This is guaranteed by numerous awards in India and throughout Asia.

Thirdly, Infosys are different by its achievements. According to Exhibit 9, the degree of market leadership of Infosys can be clarified as below.

1. Infosys is the first Indian company to file a 10K and the first to perform a full audit according to U.S. GAAP. There has been very little transparency in traditional Indian businesses.

2. The first major Indian software company to obtain immediate certification to ISO 9001, an international software quality standard.

3. The first to conceptualize, articulate, and implement the 240hour productive day and the Offshore Software

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