SWOT Analysis of Infosys

Strength: High technology for database is a very attractive service provided by Indian IT Industry which acts as a major attraction for companies seeking service for their database Demand for IT services are very high around the world High quality products are provided by Indian IT industry and the service provided is also very good Professional web designing and information architecture service is one of the best in the world which gives the Indian IT industry an upper hand against the competitors Free photographic download for graphic members adds to the strength of the industry Weakness: Lack of brand awareness acts as a weakness as the companies are not able to create a good brand image for themselves. There are only the big six IT companies who have a brand image in the Indian IT industry Lack of marketing experience by IT companies Lack of awareness about web designing and other web services among small web business which affects the overall growth of IT Industry There is lack of suppliers of IT products and services in India which adds to the weakness of IT Industry Opportunity: The Indian market is developing, it is now transforming from a agro based economy to a knowledge based economy so there are lots of opportunity in the IT sector The Indian IT companies are now developing and designing according to the web standards for international clients attracting more clients from all over the world IT companies are now able to provide more securities and effective database environment IT industry in India is now moving and experimenting into new attractive market segments for graphic members

Threats: Same kind of web designing services are provided by competitors that may pull away clients Price wars between competitors Constant changes in the technology increases the cost and maintenance

PEST Analysis of IT Industry

Political FactorsGovernment rules and regulation toward a particular business environment. Indian government has decided to contract IT job to Indian IT companies creating more opportunities for the company and the industry. Indian government has strengthened the IT act, 2000 to provide a sound legal environment.

Economic FactorEconomic Factors Rising includes working pay, global recession, competition,

contract available and fee. Domestic IT spending grew by 20% and reached $20 billion in 2009. Currency fluctuations caused by the devaluation of the dollar has affected the industry during the last recession. Recession cause low attribute rate due to job layouts and job cuts. Indias global IT spending yet to decline due to entry of new IS companies and the cause of the recession. With the decline of banking and financial sectors, the revenue from there is expected to decline, hurting the bottom line of IT majors

Social FactorThe social factors affecting IT industry ranges from employee right, language

barriers, race nationality of company or other issues. English language being widely spoken in India has help in fostering the industrys relationship and interaction in India and on the global stage. Great number of institute and universities offer IT course

creating room for availability of IT professional at lower cost since there is job competition. Social Issues- Being a major player in the global IT market Infosys has introduces measure to help in the reduction of carbon emission by trying to reduce its water consumption, electricity utilization, carbon emission and partnering with other companies in troubleshooting this global dilemma

Technological factorCellular mobile telephony tariffs in India are the lowest in the world. The airtime

tariffs have plunged by over 75% in the last three years alone. India has the second largest telephone network after China. Internet: India had as on 2011, 100 million active internet users. India now third biggest internet user after China (300 million) and US (207 million). New IT technology: Web2.0 represents the next transition in the evolution of web applications. Computer-aided design (CAD)

Porters Five Force Analysis

Threat of Substitutes: MEDIUM Other Software locations such as Eastern Europe, the Philippines and China are emerging and are posing threat to Indian IT Industry owing to their cost advantage. However, this should have an impact from medium to long term. Price quoted for projects is a major differentiator, the quality of products being the same

Barriers to Entry: LOW Low capital requirements. Large value chain space for small enterprises. MNCs are ramping up capacity and employee strength.

Rivalry among firms: HIGH Commoditized offerings. Low-cost, little differentiation positioning. High industry growth. Strong competitors.

Bargaining power of Suppliers: Shift from High to Low Due to slowdown, the job-cuts, the layoffs, and bleak IT outlook. Demand and Supply of IT professionals no longer that favorable to employees. Availability of vast talent pool - fresher and experienced.

Bargaining power of Customers: Very High Large number of IT companies vying for IT Projects - resulting in high competition for projects. Huge decline in IT expenditure - Indian IT companies are dependent on United States and on BFSI sector in particular for majority of its revenues, and with the recent financial crisis, new spending from this source has reduced considerably. For existing products and services, the clients continue with the old companies.