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About this document
- Pages
- 4 pages
- Price
- $4 one-time, yours to keep
- Membership
- Included in every plan
- Format
- Subject
- Business, Business Strategy
- Module
- MGT 551-12
This case study looks at Infosys’ business model, its competitive advantages, and the challenges it faces due to rising salary costs and employee attrition. It suggests strategies to address these issues.
What's inside
- Infosys' competitive advantages
- Challenges due to rising salary costs
- Employee attrition rates
- Strategies to address these issues
- Exhibits on revenue and employee growth
- Assessment of strategic options
Who it is for: Students of a Business Strategy course. (Postgraduate)
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Summary
Infosys has grown by using low-cost Indian staff to provide IT services globally. It faces challenges from rising salaries and employee turnover. Students learn about Infosys's business model and the strategies it might use to address these challenges.
Infosys's Business Model
Infosys has used low-cost Indian staff to offer IT services to global clients. This model has relied on cost savings and a highly skilled workforce. The company has invested heavily in recruiting and training employees.
Challenges to the Model
Rising salaries in India and competition for talent threaten Infosys's business model. Salaries have increased significantly in recent years. This has led to higher costs and increased employee turnover.
Strategies to Address Challenges
Infosys needs to address short-term issues like rising salaries and long-term issues like talent supply. It might offer higher wages to retain top employees. It could also invest more in training to boost the supply of quality talent.
Assessment of Strategic Options
The document lists several strategies to address Infosys's challenges. It assesses each strategy based on its short-term and long-term effects. It also considers whether Infosys has the internal capability to implement each strategy.
Key terms
- Offshoring
- Moving IT services to a different country, usually to reduce costs.
- Human capital
- The skills, knowledge, and abilities of a company's employees.
- Attrition rate
- The rate at which employees leave a company.
- Campus Connection program
- A program where Infosys works with Indian universities to train students.
- Competitive advantage
- A factor that allows a company to produce goods or services more effectively than its competitors.
- Business model
- The way a company generates revenue and makes a profit.
Questions this document helps with
- How has Infosys grown its business?
- What challenges does Infosys face?
- What strategies might Infosys use to address its challenges?
Summary written with AI from the document's text.
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