Infosys Technologies is one of India's leading technology services firms, mainly providing software development and engineering to corporations from its subsidiaries, regional offices, and development centers worldwide. The company also provides data management, systems integration, project management, and support services. Its US-based consulting arm provides IT and professional consulting services, while subsidiary Infosys BPO provides business process outsourcing (BPO) services. Infosys makes almost all of its sales overseas, with North America accounting for two-thirds of the total. Key industries served by the company include financial services, insurance, manufacturing, telecom, retail, and consumer goods.
In order to better focus on its core software development business, Infosys integrated the operations of its US-based Infosys Consulting subsidiary into its broader business in 2011 as a response to market trends and declining profits. The sluggish global economy has contributed to customers seeking more bundled IT and professional services instead of paying for additional premium services such as strategy consulting. The company's consulting activities are now contained within its systems integration and other enterprise IT service operations.
Geographic expansion is a key component of Infosys' growth strategy. The company seeks long-term partnerships with large global enterprises to maximize its recurring revenue stream; the company boasts more than 90% of its sales as coming from existing or previous customers. To expand its business in geographic growth areas, Infosys invested in its subsidiaries in China, Brazil, and Mexico in in 2011.
To extend beyond its strong presence in the North American corporate market, the company established a subsidiary called Infosys Public Services in 2010 to address demand for outsourcing and consulting services from the US government. Also that year Infosys expanded its workforce in the US, where it foresees robust demand for outsourcing contracts.
Closer to home, the company has invested in its infrastructure to handle the increased demands on human resources required by the growth of its business. In 2012 Infosys began investing in its product research and development center, where it plans to double staff by 2014. The expansion of its R&D operations support the company's plan to develop new applications that cater to digital consumers, emerging economies, and the health care industry, while incorporating technologies from cloud computing, mobile communcations, analytics, and social media. Also that year Infosys added a new facility in the US to increase its consulting, systems integration, and training capacity, and it opened another office in Japan to court new manufacturing customers. The company opened a new training facility in India in 2011 to prepare more personnel for their development and support duties.
Amid a global market characterized by strong demand for outsourced IT services, Infosys pushed its revenue up 15% to nearly $7 billion in 2012; profts also rose despite higher operating costs, extending a more than decade-long upward trend.
Infosys has historically relied on organic growth to fuel expansion, rather than acquiring smaller or rival businesses. This approach has contributed to the loss of global market share to rivals in India who have been more acquisitive of complementary international businesses. The company has been investing more in acquisitions to remedy this.
In 2012 Infosys acquired Zurich-based global management consulting firm Lodestone Holding for 330 million Swiss francs (about $350 million). The acquisition added 200 customers and 750 consultants and strengthened Infosys both in continental Europe and globally. Also that year the company acquired Australia-based Portland Group, a provider of such IT services as procurement, supply chain, and asset efficiency consulting, process and systems support, and contracting. Its customers included top players in telecommunications, aerospace and defense, banking, and leading supermarkets and retailers. Infosys bought the software business of New Zealand-based Gen-i the previous year to better provide outsourcing services to clients in the region. – less