SWOT Analysis of Infosys [Detailed]

SWOT Analysis of Infosys focuses on Strengths, weaknesses, opportunities, and threats. Strength and Weakness are the internal factors and Opportunities and Threats are the external factors that influence the SWOT Analysis of Infosys.

Strengths are defined as the best thing every company does in its range of activities that can give it hold on its competitors. Weaknesses are used in areas in which improvement of the business or brand is necessary. Opportunities are the environmental avenues around the enterprise that can be used to increase its income. Threats are environmental factors that can adversely affect business growth.

Infosys is an Indian IT company that offers business consulting, software and management services for business processes. The majority of Infosys’ clients are based in North America and Europe. Nearly all of its development centres are located in India. As of December 2020 market capitalization of Infosys was 71.92 Billion US Dollars.Standard & Poor has given “A- Credit Rating” to Infosys. Infosys is headquartered at Bangalore. Infosys was founded in the year 1981. Infosys has a employee base of 242371 as of March 2020.

swot analysis of infosys

Strengths in the SWOT Analysis of Infosys – Infosys SWOT Analysis

  • Low Salary: India has given the company an advantage over rivals in terms of lower cost. The majority of Infosys 119 development centres are located in India, which provides it with high-quality technical talent at a significant cost advantage, given that salaries in India are significantly lower than in developed countries.
  • Large Array of IT Services: The company offers a large array of IT services and software-based solutions, in addition to consultancy and management services. For this reason, Infosys attracts different types of businesses.
  • Strategic Alliances: Infosys has formed strategic alliances with leading technology and business players in order to bolster its services and business solutions. Earlier it’s worked with Hewlett-Packard, Microsoft, IBM, and Amazon on similar projects. We are confident in our ability to form a strong partnership to provide innovative and collaborative solutions.
  • Good ROI: Infosys is relatively successful at the execution of new projects and it generates good profits through its existing business. The company is generating a good Return on its investments.
  • Good Training and Development Programmes for its Employees: High-level personal skills can be acquired through training and development programmes. Infosys Inc is providing continuous training and development of its employees resulting in an enthusiastic and motivated team.
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Weaknesses in the SWOT Analysis of Infosys – Infosys SWOT Analysis

  • Depending on Foreign Markets: American and European operations have been the majority of the company’s bases of operations. Nearly 80% of the Infosys revenue comes from North America and Europe. Under such conditions, the company is vulnerable to instability and uncertainty.
  • Emerging markets: the recent growth in emerging markets has outpaced funding. Infosys lacks the critical development information for most of the developing nations, leaving them with only one way to grow.
  • High Attrition Rate: Many employees leave Infosys for better-paying jobs, better career options, and higher education opportunities for higher education. When staff turnover is high, a company has a bad image.

Opportunities in the SWOT Analysis of Infosys – Infosys SWOT Analysis

  • Acquisition of New Startups: One way to expand technology would be to start to invest in technology start-up companies. Infosys has identified potential and invested heavily in technology companies at the early stage. For instance, in 2016, investments were made in Trifacta, a data wrangling software company, and Waterline Data Science. Infosys should continue to invest in companies that provide Infosys with the competitive advantage of technology.
  • Digital Transformation: Spending on Digital Transformation Technologies is growing. And the company has begun to focus on providing digital transformation services, which can benefit in terms of increasing global investment.
  • Cloud-Based Computing: Demand for cloud-based solutions is increasing, as cloud computing has altered the fundamental nature of computing. The worldwide expenditure on cloud services is estimated to grow at a rapid pace by 2025, according to industry estimates. Infosys, which has a sizable presence in the cloud computing market, stands to benefit from the growing demand.
  • Concentrate on emerging markets: Infosys should concentrate its efforts on emerging markets, which are expected to generate significant revenue for IT services and consulting firms in the future. Infosys should not fall behind.
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Threats in the SWOT Analysis of Infosys – Infosys SWOT Analysis

  • Intense Competition: The information technology services industry is a highly competitive sector. IT/business consulting services like Cap Gemini, Accenture, Cap Gemini, and TCS go head-to-to-head with high-tech and consultancies like Infy In addition to competing with software giants like Oracle and SAP, the company also competes with software consultancy competitors. Intense competition results in price pressures and increased investment in innovative technology to maintain a competitive edge.
  • Changes in US immigration laws: Because immigration laws are subject to political pressure, they are susceptible to change in the event of a change in political power in the United States. Infyis and other countries could be adversely affected by the tightening of immigration rules.
  • Increasing salary inflation in India: Lower wage cost is a major competitive advantage for companies such as Infosys, but wage increases are also pressurized in India. Infosys has had to keep the quality of its employees because of wage inflation. It has an adverse effect on the company’s operating margins.
  • Liability Laws: The liability laws in different countries are different, and Infosys may be exposed to various liability claims.
  • Volatile World Markets: Because of the volatile world financial markets, Infosys is exposed to volatile international macro-economic indicators.

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