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With disappointing results from Infosys Technologies, and worse, what the company calls a lack of visibility on its business, questions arise on both the software bellwether and also the Indian IT story. But contrast this with the fact that industry leader Tata Consultancy Services (TCS) has been
Why Infy Not Showing respectable results ? .
1. The consultancy business is dull: Maybe it was badly timed, given the crisis that the US economy went into, or that its prime customer segment, the business and financial services industry (BFSI) was the worst hit by the Wall Street crisis of 2008. Whatever it is, the simple truth is that the company’s attempts to boost profit margins by high-value work has not quite got off the ground.
2. The India advantage is gone: Given that IBM, Hewlett Packard and Accenture have their own Indian headcount matching Infosys in some ways, the famous offshore advantage that Infosys sold to global customers is being sold by its big rivals. Infosys tried to expand into smaller centres such as Mohali, Bhubaneshwar and Jaipur to keep its costs low, but clearly, there is a limited advantage here.
3. Hot markets are cold: Time was when the US was so hot, that Infosys did not have the time to cultivate or grow the European market enough. Now, the US economic recovery is shaky while Europe’s economy is doddering. Political obstacles loom. TCS has done well by focusing on markets such as China. Infosys seems a relative laggard.
4. Business transformation is old hat: Better project delivery or process innovation are passé. Infosys talks of helping its customers do better, but that is so 2000. Business process reengineering (BPR) was in vogue two decades ago and everybody is doing it in some form. The company has no real new cards to play.
5. Gen X is not Gen Y: The graduates entering the workforce now were born after economic reforms began in 1991. Their ambitions and aspirations are different. Maruti, which is of the same vintage as Infosys, is facing unrest on account of this. Infosys needs a special advantage as an employer because it is not resting on a mountain of patents. Hiring people by the thousands is “commodity” business.
Infosys could then be having its Nokia moment. Both companies have a great brand and lots of cash, but both badly need a distinguishing feature in a competitive market.
CEO SD Shibulal has been a great delivery man respected by customers. But what the shareholders and employees of Infosys need now is a big story with which to imagine the future.
Why many Infy staff committing suicide ?
B Neelima’s family pleads with police to end probe
The family members of Infosys employee B Neelima who so far were alleging foul play in the incident, have approached Cyberabad police commissioner Ch Dwaraka Tirumala Rao requesting that the investigation into the death be stopped. They now believe that Neelima did indeed commit suicide.
The Cyberabad police said Neelima's husband Suresh Reddy and other family members had informed them that she had given a clean chit to B Prashanth, a Cognizant employee and her friend, in an email sent to her husband. She also informed him that she needed to pay 500 (currency not mentioned in the message but police presume it to be US dollars) as rent to someone in the US and 4,000 (currency not mentioned) to Prashanth.
"Suresh said he knew Neelima had a friend by name Prashanth. In the last one-and-half years, Suresh on one occasion went to the US to meet Neelima and celebrate her birthday. It was on this occasion that Neelima had introduced him to Prashanth along with several other friends. However, Suresh said he was unaware of any more details about him," the Raidurgam police said. After cracking the email password and collecting the call detail record (CDR) of Neelima's cellphone, the Cyberabad police found several mails sent to Prashanth besides the lone mail to Suresh in the last few minutes before her death. "Seconds before Neelima's death she had sent an SMS to Suresh. When Suresh was questioned about it, he told us that his message box was full and hence the SMS might have not been delivered," an official said. After unlocking the phone of Neelima, police found that she had deleted all SMSes from her phone.
In the email sent to Suresh, which according to police he checked only after her funeral, Neelima had informed him about the payments she was supposed to make and to whom her gold and flat in Chandanagar was to be given. "It was not a will, she only briefly explained that benefits given by the company like provident fund, insurance should go to certain persons. As a result, the family members requested police to stop the investigation since they no longer have any doubts about her death being a case of homicide," officials said.
With disappointing results from Infosys Technologies, and worse, what the company calls a lack of visibility on its business, questions arise on both the software bellwether and also the Indian IT story. But contrast this with the fact that industry leader Tata Consultancy Services (TCS) has been
Why Infy Not Showing respectable results ? .
1. The consultancy business is dull: Maybe it was badly timed, given the crisis that the US economy went into, or that its prime customer segment, the business and financial services industry (BFSI) was the worst hit by the Wall Street crisis of 2008. Whatever it is, the simple truth is that the company’s attempts to boost profit margins by high-value work has not quite got off the ground.
2. The India advantage is gone: Given that IBM, Hewlett Packard and Accenture have their own Indian headcount matching Infosys in some ways, the famous offshore advantage that Infosys sold to global customers is being sold by its big rivals. Infosys tried to expand into smaller centres such as Mohali, Bhubaneshwar and Jaipur to keep its costs low, but clearly, there is a limited advantage here.
3. Hot markets are cold: Time was when the US was so hot, that Infosys did not have the time to cultivate or grow the European market enough. Now, the US economic recovery is shaky while Europe’s economy is doddering. Political obstacles loom. TCS has done well by focusing on markets such as China. Infosys seems a relative laggard.
4. Business transformation is old hat: Better project delivery or process innovation are passé. Infosys talks of helping its customers do better, but that is so 2000. Business process reengineering (BPR) was in vogue two decades ago and everybody is doing it in some form. The company has no real new cards to play.
5. Gen X is not Gen Y: The graduates entering the workforce now were born after economic reforms began in 1991. Their ambitions and aspirations are different. Maruti, which is of the same vintage as Infosys, is facing unrest on account of this. Infosys needs a special advantage as an employer because it is not resting on a mountain of patents. Hiring people by the thousands is “commodity” business.
Infosys could then be having its Nokia moment. Both companies have a great brand and lots of cash, but both badly need a distinguishing feature in a competitive market.
CEO SD Shibulal has been a great delivery man respected by customers. But what the shareholders and employees of Infosys need now is a big story with which to imagine the future.
Why many Infy staff committing suicide ?
B Neelima’s family pleads with police to end probe
The family members of Infosys employee B Neelima who so far were alleging foul play in the incident, have approached Cyberabad police commissioner Ch Dwaraka Tirumala Rao requesting that the investigation into the death be stopped. They now believe that Neelima did indeed commit suicide.
The Cyberabad police said Neelima's husband Suresh Reddy and other family members had informed them that she had given a clean chit to B Prashanth, a Cognizant employee and her friend, in an email sent to her husband. She also informed him that she needed to pay 500 (currency not mentioned in the message but police presume it to be US dollars) as rent to someone in the US and 4,000 (currency not mentioned) to Prashanth.
"Suresh said he knew Neelima had a friend by name Prashanth. In the last one-and-half years, Suresh on one occasion went to the US to meet Neelima and celebrate her birthday. It was on this occasion that Neelima had introduced him to Prashanth along with several other friends. However, Suresh said he was unaware of any more details about him," the Raidurgam police said. After cracking the email password and collecting the call detail record (CDR) of Neelima's cellphone, the Cyberabad police found several mails sent to Prashanth besides the lone mail to Suresh in the last few minutes before her death. "Seconds before Neelima's death she had sent an SMS to Suresh. When Suresh was questioned about it, he told us that his message box was full and hence the SMS might have not been delivered," an official said. After unlocking the phone of Neelima, police found that she had deleted all SMSes from her phone.
In the email sent to Suresh, which according to police he checked only after her funeral, Neelima had informed him about the payments she was supposed to make and to whom her gold and flat in Chandanagar was to be given. "It was not a will, she only briefly explained that benefits given by the company like provident fund, insurance should go to certain persons. As a result, the family members requested police to stop the investigation since they no longer have any doubts about her death being a case of homicide," officials said.
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