MIS PRACTICUM ASSIGNMENT _ 3 INDUSTRY _ FIRM ANALYSIS by malj

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									    MIS PRACTICUM
    ASSIGNMENT # 3
INDUSTRY & FIRM ANALYSIS

    SAURABH DAYAMA
 FIRST YEAR MBA/MS-MIS
        Industry Analysis:
  Industry Chosen: IT Consulting
       (Banking & Finance)

Firm Chosen : Infosys Technologies
            Limited.
Primary Activities/Focus of firms in
           the industry
Address the following needs of their clients
• Aligning IT strategy to business value
• Building an enterprise architecture "blueprint"
• Transforming IT Infrastructure
• Improving IT security
• Renewing legacy applications
• Engineering performance into systems and
  applications
Size, structure, and composition of
            the industry
• IBM- Ranked 15 in the Fortune 500 list. Revenues-
  $91,424 million, Profits-$9,492 million, Employee
  head count- 300,000.
• Accenture- Ranked 394 in the Fortune 500 list.
  Revenues-$18,228.4 million, Profits-$973.3
  million, Employee head count- 140,000.
• Cognizent Technologies- Ranked 58 in the Fastest
  Growing Companies Fortune 500 list. Revenues-
  $1,599 million, Profits-$261.1 million, Employee
  head count- 50,000.
             Industry Leaders
• The IT consulting industry consists of several large
  midsize & small firms all across the globe.
• Leading companies from the US are mainly IBM
  Global Services (which is the largest firm offering
  IT consultancy), Accenture, Booz Allen Hamilton
  McLean, Electronic Data Systems, Cognizant
  Technology, Deloitte Touche etc.
• Industry leaders from Europe are: Capgemini,
  Altran, Atos Origin etc.
• Large consultancy firms from Asia are : Infosys,
  Wipro, TCS, Satyam Computer Services.
     General Trends & Issues
• Consultants work on various levels with their
  clients.
• The most popular trend is for IT consulting
  companies to send their consultants at client
  site.
• These consultants work closely with the
  clients at the business and at the technology
  levels.
Sources of additional information
•   IBM 2007 Annual Report
•   Accenture 2007 Annual Report
•   Capgemini 2007 Annual Report
•   Fortune 500 website:
    http://money.cnn.com/magazines/fortune/
     Description of role of IS in the
               industry
• The primary motive of IT consulting it not only to
  promote the role of IT but also to implement it in
  the business decision making process.
• It is done by capturing, managing, processing and
  then reporting the relevant information digitally.
• This implies that managers have instant access to
  the data that will answer their queries and help
  them make accurate business decision within a
  shorter period of time.
IS trends and issues in industry
• The major IS trend in this industry is to
  replace the old legacy systems with web
  based technologies.
• With more and more activities taking place
  over the web, converting to web based
  technologies is the wave of the future.
• Another major IS issue relevant here is the
  compatibility issue. Software and
  technologies from different vendors are often
  do not have integration capability and so are
  not compatible straight away.
 Industry leaders with respect to IS
• IBM has a unique advantage that it not only provides
  IT consulting but it also has its own software and
  hardware to implement IT solutions. It is this
  combination that makes IBM the strongest player.
• Another industry leader that is very popular is
  ORACLE. ORACLE has a suite of softwares and
  applications that enable companies to implement
  Datawarehousing, SCM, CRM, ERP solutions.
• Some individuals also have had a great impact in
  specific parts of the industry, viz. Ralph Kimball and Bill
  Inmon are the two biggest names in the data
  warehousing field.
Other key players in IS in the industry
• The major vendors in the IS industry are IBM,
  ORACLE, Microsoft, Teradata, PeopleSoft, SAP,
  Sun Microsystems etc.
• Government regulations and forecasting
  reports by various agencies like Mckinsey also
  play a major role in forecasting the future of
  the industry.
     Industry specific IS resources
•   www.ibm.com
•   http://www.oracle.com/index.html
•   http://www.sap.com/usa/index.epx
•   http://www.teradata.com/t/
               Firm Analysis
          Primary Activities/Focus
• Infosys' service offerings span business and technology
  consulting, application services, systems integration,
  product engineering, custom software development,
  maintenance, re-engineering, independent testing and
  validation services, IT infrastructure services and
  business process outsourcing.
• Infosys pioneered the Global Delivery Model (GDM) in
  India, which emerged as a disruptive force in the Indian
  IT industry leading to the rise of offshore outsourcing.
• Infosys has a global footprint with over 40 offices and
  development centers in India, China, Australia, the
  Czech Republic, Poland, the UK, Canada and Japan.
              Financial summary
The Financial summary of the firms for the year 2007 is as
  follows:
• The income from software services and products for the
  year 2007 is INR 131,490 million. i.e. USD 2,922 million.
• The Gross Profit for the year is INR 58,710 million i.e. USD
  1304.67 million.
• The current stock price in BSE (Bombay Stock Exchange) is
  Rs. 1391.5 = $30.91. The company has 572 million shares in
  BSE. The EPS is 85.15 and the P/E= 16.35.
• The Infosys ADR on NASDAQ is priced at $30.70.
• Infosys get 97% of its revenues from existing clients.
       Size, Structure, Culture, and
                Composition
• Infosys is a $4 billion dollar company with its foot
  prints all over the globe.
• It is split into several verticals based on the
  functionality or domain of the industry.
  Horizontally it is divided on the basis of the
  technology expertise.
• Due to this well defined horizontal and vertical
  structure the resource utilization is optimized.
• Culture includes: Diversity, Community Spirit,
  Work/Life Balance, Equal Opportunity Employer.
                    Key leaders
Infosys was founded in 1981 by Mr. N R Murthy and 6 other
   gentlemen:
• N. R. Murthy (Currently, Chairman of the Board and Chief
   Mentor)
• Nandan Nilekani, (Currently, Co-Chairman of the Board of
   Directors )
• Kris Gopalakrishnan, (Currently, CEO)
• N. S. Raghavan,
• S. D. Shibulal,
• K. Dinesh
• Ashok Arora
• V Balakrishnan (Currently, the CFO of the company)
      Recent successes and crises
• Infosys wins Global MAKE award for the fourth year
• Infosys in Fortune’s Top 10 Companies for Leaders
• Rated among the Top 5 investor relations websites in APAC/
  Africa by IR magazine
• Infosys CEO is Forbes Asia Businessman of the Year
• Infosys is most admired company for the 6th consecutive
  survey by Asia Wall Street Journal
• Infosys added to the NASDAQ-100 Index
• Nandan M. Nilekani recognized as one of the World's 100
  Most Influential People
• Infosys ranked #36 on the worldwide list of the World's
  Most Innovative Companies
     Recent successes and crises
Cries-
• Infosys client list is consists mostly of US based
  clients.
• It needs to diversify its revenue operations
  throughout the world.
• The revenue collected from Europe is less
  compared to that from the US.
       General trends and issues
• In March 2008 the exchange rate was 1USD=39 INR
  while in August the rate was 1 USD = 45 INR. This
  fluctuation is affecting the revenues and the stock price
  of the firm substantially. It needs to diversify its
  revenue operations throughout the world.
• Another trend that is on the rise is that major banks
  are starting up their own IT development center means
  that market share of firms such as Infosys is decreasing.
• Lastly, rising employee compensations and
  infrastructural costs in India are eating up the company
  profits.
         Additional resources
• Infosys Annual Report.
• http://www.infosys.com/investors/reports-
  filings/annual-report/annual/AR-
  2007/ar_2007.html
• Infosys Company website:
• http://www.infosys.com/

								
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