Then came competitors criticising their weaknesses; but they’d reached the summit by then!

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As far as Infosys goes, the company’s core strategy has been to focus very passionately on high margin accounts, a strategy that can be credited for its sector beating performance. The other aspect is the adage of not putting all your eggs in one basket, due to which the company is not as badly affected by the BFSI debacle. But the recently announced results for the fourth quarter are not positive for the company and the sector in the long term. Infosys has forecast a yoy revenue decline of 8.2-6.5% under IFRS (which considers exchange rates for major global currencies) for FY 2009-10, which depends heavily on exchange rate trends. The rupee is one basket even Infosys cannot avoid, right? The company would also rue losing Axon to HCL, and should be looking for more such targets in the coming year.


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Source : IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and Arindam Chaudhuri (Renowned Management Guru and Economist).

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