Infosys Technology Consulting

...

After reviewed CAGE analysis we can conclude that Infosys has current advantage for their 1-1-3-business model with saving on human resources and fast delivery projects (24 hours working).

About competitive position of Infosys in the market we can say that the main strength is their killer business model with lower cost to clients and much higher margins where been pioneers in creating the model has a competitive position against competitor. If some other company tried to implement their GDM model will need to change all financial structure orientation, then Infosys already has the advantage in terms of time. Is important to say that Infosys provide services and they don’t take over and run people’s data centers and they don’t sell various pieces of software [1]. Service that they develop and provide to their costumers has a significant difference compared with its competitors in terms of quality service and costs.

Weaknesses: Market development has been concentrated in the U.S where competitor has a strong presence leading the market with a traditional product for the last years.

Opportunities: Domestic market has an attractive margin to grow; besides the expanding options overseas can be reached as well. The marketshare of big actors of the industry have is too big, and that can be a problem too. For IBM faced challenges with integrating its global delivery approach across all its practices and complexity in using appropriate sales channels to drive work o its global delivery in some markets.[2]

Threat: Intense competition in the market for technology service and the dependency on a small number of clients can be a threat in the future. Is important to make references to Business model implemented by Infosys might be copied for their competitor and if they have to invest in innovation in their strategy business model to still has this asset.

According to the AAA Framework global strategy model will give as an orientation about responsiveness to local conditions. Company has to take strategic decisions to reach economical scale through adaptation by the organization structure. The way that Infosys hire their people is oriented in cultural knowledge legacy among their employees helping the company to growth stronger. Arbitrage allows Infosys to learn about different solutions in different markets gaining advantages over competitor who are concentrate in the U.S markets.

After applied all analysis we concluded that Infosys GDM is a proven advantage in the IT consulting market, its hard to replicate by IBM and Accenture eventually. Given the cost advantage and the geographic advantage, Infosis should apply to the business-consulting segment because the legacy companies can’t copy as they have a 3-3-1 model. Some clients will be cost conscious and will try this competitive advantage that GDM model has.

---------------------------------------------------------------