Monday, May 07, 2012

What ails Infosys now ? Is Infy facing tough times ?

Infosys, no.2 IT company in the country at $ 6.8 billion inn revenues and a respectable name in the Industry finds the going really tough. Even though the original founder Narayana Murthy put up his shoes two years back, the company has still not shed its conservative image regarding growth and deployment of funds, accelerated growth etc.

Is inability to move from the service to products costing Infosys dear ? Infy disinclination to inorganic growth through acquisitions and through it European markets is also costing the company dear.

Infy's reluctance to cut costs is giving loads of business for rivals Cognizant, iGate etc. and is eating into the bottom line of the company.

The Co. has been headed by its 7 member founder group over the past thirty years. This has prevented outside perspective from being considered in the company's growth. In  sellers market, with abundant quality human resources at cheap rates, Infosys could afford to be conservative in its decisions and growth plans.

T V Mohandas Pai one of the most popular officers of the co. left it a year back as there was a showdown for the CEO post between a founder and present CEO Shibulal and Mohandas Pai.

$ 4 billion in funds lying idle with it not being used to fund growth and instead insisting on organic growth is biting Infy's growth and prospects for the future very much.

It is hoped that the overall positive growth predicted for the Indian industry as a whole should take this success story also to greater heights ..


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