SWOT Analysis of Infosys. Infosys Limited is an IT (information technology) Indian multinational company Ashok Arora, NS Raghavan, K Dinesh, SD Shibulal, Kris Gopalakrishnan, Nandan Nilekani, and NR Narayana Murthy laid the foundation of the company on July 02, 1981. The headquarter of the company is in Bangalore, Karnataka, India.
Some of the main products and services of Infosys are as follows;
- Digital Marketing
- Engineering services
- Skava or Equinox
- Panaya Info Suite
- EdgeVerve System
- Infosys Information Platform
- Cloud-based transformation services
- Infosys consulting
- NIA (Next Generation Integrated AI platform)
- Outsourcing services
- Business consultation
Some of the main business divisions of the company are as follows;
- Infosys Consulting
- EdgeVerve Systems
- Infosys BPM
Key statistical facts and figures about Infosys are as follows;
- The annual revenue of the IT Company Infosys in 2023 was 19 billion US dollars
- Out of which, the net income of the company was 3 billion US dollars
- Approximately 336,294 employees are working for the company to manage its worldwide operations
Some of the top competitors of Infosys are as follows;
- NTT DATA
- Tech Mahindra
- Tata Consultancy Services
- HCL Tech
Today, we’ll discuss the swot analysis of Infosys. It is going to focus on the internal strengths and weaknesses; external opportunities and threats to the tech company. Here’s the swot analysis of Infosys as follows;
Strengths of Infosys
Some of the main strengths in the swot analysis of Infosys are as follows;
After Tata Consulting Services, Infosys is the 2nd largest Indian tech and IT consulting company. In fact, Infosys became the 4th Indian brand that has achieved the status of crossing 100 million dollars of market capital. The company has received various awards over the years including following;
- Global System Integrator of the Year
- Green Apple Award
- Gartner Magic Quadrants
Global Market Reach
According to an estimate, Infosys is operating its business in more than 50 countries across the world. The IT has a network of more than 247 location points in the Middle East, Japan, Australia, India, China, and the USA. Out of which, approximately 123 are development centers and 82 are sales and marketing offices.
Innovation & Creativity
Innovation and creativity are the key pillars of the tech industry. In order to offer creative solutions to its clients, Infosys has launched a network of high-tech co-creation incubation centers in order to offer digitally innovative solutions to its clients. According to an estimate, the IT Company allocated 0.5% of its total revenue to innovation and creativity.
Infosys has established partnerships and alliances with other world’s leading tech companies like Oracle, HP, Microsoft, IBM, Google, and Amazon. It allows the company to offer better IT solutions and strengthen its market position in the consultancy service industry.
Infosys is operating its business in various categories like Life Science, Hi-Tech, Manufacturing, Telecom, Energies, and Utilities. Approximately 47% of the total revenue and profit of the IT Company comes from financial services. However, it allows the company not to rely on a single source of earnings and diversify its business assets.
Infosys offers the world’s best employee training and development programs in the tech industry. The company employs a variety of techniques and methods like; micro and macro-learning setups, and virtual and blended physical classrooms.
Weaknesses of Infosys
Some of the main weaknesses in the swot analysis of Infosys are as follows;
Infosys has got limited clients and they contribute significantly to the total revenue and profitability of the company. Approximately the top 10 clients of the company added 20.5% of the revenue; the top 5 clients contributed 11.9% of the total revenue of the company.
Along with successful acquisitions, Infosys has also made some unsuccessful acquisitions like Skava and Panaya for 120 million and 200 million US dollars respectively. They didn’t contribute to the company’s growth and development as expected.
Whether it is Infosy’s involvement in the Russian Energy Industry after the invasion of Ukraine; or settling the tax fraud lawsuit for 800 thousand dollars. Such types of controversial involvement of the tech company are jeopardizing its reputation.
Opportunities for Infosys
Some of the main available opportunities in the swot analysis of Infosys are as follows;
IT Value Chain
According to an estimate, the global software and IT industry has a growth opportunity of 1 trillion US dollars by the end of 2025. The Indian software industry is the world’s fastest-growing industry with a lot of growth and progress opportunities.
The tech industry is shifting and transforming towards cloud computing and cloud-based services. According to an estimate, the global cloud-based service industry would roundabout 1026 billion US dollars by the end of 2028. Infosys should consider expanding its business in the cloud service industry.
Approximately 57% revenue of the tech industry comes from the sale of digital products and services. Infosys should consider expanding its business and digital product and service portfolio, it would help the company to approach a mass audience.
Threats to Infosys
Some of the main potential threats in the swot analysis of Infosys are as follows;
According to an estimate, roundabout 62% of the revenue of tech companies goes to the salaries of employees. Many analysts are saying that increasing employee salaries are consuming a significant portion of the company’s revenue and profitability.
The tech and IT industry have become highly competitive in recent years, and there are various world renowned brands are offering more or less similar types of digital services. It has become highly difficult for the tech giant company to operate its business in such a highly competitive environment.
Conclusion: Infosys SWOT Analysis
After an in-depth study of the swot analysis of Infosys; we have realized that Infosys is the world’s leading IT and digital service-providing tech company. If you are learning about the business of Infosys tech company, then you should keep in mind the abovementioned internal and external factors.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.