Professional Documents
Culture Documents
Heaven Kim
Shruti Yadav
Eric Chin
Adam Schindla
Florent Heidet
October 31st
, ‘07
IT Service Industry : Overview
Source: IDC
Fragmented market
IT Service Industry : Value Chain – Current
Supplier Enterprise Customer
Software
IT Department
Service/Product IT Consulting Business Users
(CIO, CTO, COO)
Vendor
Software
SaaS IT Department
Service/Product Business Users
(CIO, CTO, COO)
Vendor
• Salesforce.co
m Small/Medium Businesses
• SugarCRM
• Google
• Microsoft Individual Users
IT Service Industry : Transformation
Experimen Convergence
-tation
Trigger
1 Change in
Technology
1 Off-shore Biz Model (incl. GDM)
2 SaaS (Software as a Service)
?
2 Change in
Customer Needs 3 Enterprise 2.0
IT Service Industry : Transformation
CAGR
CAGR 45%/30%
43%
EBITDA
Margin % 33% 33% 32% 32%
Infosys Technologies – Business Performance
Revenue by Industry Revenue by Geographic Market
Infosys Technologies –
What are the Competitive Advantages?
India
Abundant supply of
Infosys Technologies
low-cost scientists
and engineers Excellent training
program Brand/ Cost &
reputation quality
advantage
Global Delivery Model coming from
Open/transparent •Global development Customer
& performance- relationship GDM and
centers
driven culture •Right Talents
low-cost
labor
Flat organizational
Domain structure
knowledge Right reward system
(stocks, career visions)
Infosys Technologies –
Sustainable? : vs. Current Competitors
On-shore Incumbents Other Off-shore Players
Performance Comparison
Gross Net
USD (Mil) Margin Income
Margin
Opportunities Threats
Infosys Consulting – Company Background
Access to Infosys
Large supply of
Technologies
low-cost
clients
IT/process Strong
resources operational Cost & speed
skills advantage
coming from
“1-1-3” Model “1-1-3” and
•Blend on/off shore GDM model
Unique, •Cost efficient
blended model Easier to
integrate
offshore with
onshore
Infosys Consulting –
ICI vs. Current Competitors
On-shore Incumbents Other Consulting Players
Opportunities Threats
Infosys Consulting: Cost or Profit Center?
What is ICI’s place in the Infosys Technologies Portfolio?