Infosys Case Study

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Issues at Infosys: The issues faced by Infosys in the financial year 2013-14 were no material revival in discretionary spending (approximately 40% of revenues from the segment), poor targeting and positioning, and smaller scale in cost efficiency segments driving growth like infrastructure management services and business process outsourcing against competition and continuing margin stress from rapid increase in cost and pricing flexibility. Along with these issues, Infosys also encountered some internal issues. These are sales, customer network and cost structure. Infosys stock indicated high volatility around earnings in that period. In the past result seasons, the stock value moved significantly on the result day. This clearly showed the…show more content…
In March 2011, it introduced a 'Infosys 3.0' strategy, which was designed to help the company to lead towards high-end consulting, innovation and more non-linear revenue which are the revenues growing faster than people costs. Although the company’s clients accepted the strategy, it was not the case with important clients like PepsiCo. The multinationals started to outsource important and more creative projects to Infosys’ rivalry, TCS, which was working on services, analytics and applications like transportation optimisation systems. The company also lost most of the non founders promoted to the company’s board. A higher number of employees have resigned, taking employee attrition to an all-time high of 18.7%. Infosys is dealing with higher attrition at all management positions. These problems resulted in Infosys' poor performance financially. Infosys staff was also getting de-motivated and…show more content…
Addressing the key human resource issues should be at the core of Infosys’ strategy, given the company’s relatively high attrition levels. Customer relationship plays very important role in growth of the business. The consequences of customer retention also compound over time, and in sometimes unexpected ways. Even a tiny change in customer retention can cascade through a business system and multiply over time. The resulting effect on long-term profit and growth shouldn’t be underestimated. The focus of organizations should not be on managing retention but on managing people. If an organization manages people well, employee attrition will come down itself. It should emphasize on managing the work environment to make better use of the available human assets. Companies are aiming to provide a pragmatic and lithe framework for the efficient management of knowledge workers in the volatile economy. People want to work for an organization which provides, Appreciation for the work done, Ample opportunities to grow, A friendly and cooperative environment The most successful companies have been using most innovative practices in managing the problem of attrition. Reducing turnover takes an investment in coaching, developing, motivating, mentoring & listening to people. There should be universal acceptance of the goal of reducing turnover along with top management commitment and dedication. These companies are

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