INTERNAL ANALYSISRESOURCESTANGIBLES:LIQUIDIY: Infosys id debt free and have 30,000 Crores in Liquid Assets which is sufficient to meet strategic objectives. Liquidity enables them to make rapid shift in direction, should the market so demand. The internal cash flows have adequately covered working capital, capital expenditure, investment in subsidiaries etc. PHYSICAL: The physical infrastructure space is 368.06 lakh sq. ft. which is more than all the competitors except TCS. The number of marketing offices is 73, whereas TCS has 81.INTANGIBLES:TECHNOLOGICAL: Infosys has several patents on its cross platform frameworks and integrated user interface systems. Infosys is a major player in Banking IT services (BITS) with its product Finnacle which has a market share of more than 60%. They are also leading players in Encryption & Securitization of banking data and other information with their advance python rail platforms and frameworks.REPUTATIONAL: Infosys has a strong reputation globally being a leading player in IT Services. Its major customer base is in North America but has projects all over the world.ORGANIZATIONAL: It has a two president organizational structure and the existing business structure has been realigned accordingly to have effective administration. They have been awarded best corporate governance. HUMAN: Infosys provides best industry training for IT fresher and producing team leaders.CAPABILITIES: BANKING: Finnacle is the industry leading banking software working on COBOL framework and has a 60% market share. They also utilize global delivery model to optimize they work. They are also leading players in Encryption & Securitization of banking data and other information.

Banking IT servicesEncryption and Securitization activitiesPlatform and framework developmentsR & D capabilities Client handling capabilities

RELATIVE STRENGTH

Global reach for IT solutions.Complete banking integrationAttrition and employee loyalty.Depth into Indian market STRATEGIC IMPORTANCE

Since the company is based in India its competitive advantage is enhanced. The Indian economy, despite weak economic indicators such as relatively high rates of inflation, has low labor costs. The workforce has relatively high skills levels in Information Technology. Couple these two elements together and you have an operational basis that offers low-cost based, highly skilled competitive advantage. Trained Indian personnel often speak very good English and are sensitive to Western culture, underpinned by Indias colonial past. Infosys is in a strong financial position. The business turned over more than $4 billion in 2008. This means that it has the capital to expand, and also the basis to leverage potential investors. The company has bases in 44 global development centers, most of which are located in India, although the company has offices in many developed and developing nations. This means not only that Infosys is becoming a global brand but also that it has the capability to support the global operations of multinational clients. Infosys on occasion struggles in the US markets, and has particular problems in securing United States Federal Government contracts in North America. Since these contracts are highly profitable and tend to run for long periods of time, Infosys is missing out on lucrative business. Added to this is the fact that its competitors do well in terms of securing the same Federal business (and one should also take into account that many of its competitors are domiciled in the US and there could be political pressure on the US Government to award contracts to domestic organizations).

CORE COMPETENCY: BITS Finnacle is the most widely used banking IT software. Its works on COBOL framework and most banks are still running COBOL system being light and fast. There are other platforms and framework as well into which Finnacle can integrate. Currently the industry does not have efficient Banking Systems on COBOL framework which can integrate into other frameworks. It also has patented UI meeting industry requirements. This gives Finnacle sustainable advantage. GAPS: Infosys has only tapped American market and has less efficient in being global. It can search for IT experts in Australia, Europe and Emerging Asian Companies for long term relationship and at lower cost. It should also penetrate more into Indian market as other giant players are coming in.The attrition and employee loyalty is low which is a serious concern and employee retention program must be implemented by HR departments. Infosys should forward integrate into banking IT for example introducing next generation smart cards.