A commoditised market, the looming economic crisis, bearish investors, employee attrition, cut-throat competition and rickety talent resources are plaguing the once numero uno player of the Indian IT industry: Infosys Technologies. Even worse is the fact that many executives in the top brass too have started abandoning the ship. In the wake of such events, how does Infy survive? I am sure that industry pundits have appropriate answers for the question, but nonetheless, a tyro like me can at least try to investigate the causes behind such a downfall. An expected Average Annual Growth Rate (2013-14) of less than 10% definitely calls for an analysis.
1. Hackneyed business approach
For ages, Infy has relied only upon outsourcing and its business approach has conspicuously been India-centric. With 94% of workforce employed in India it would not be difficult for a layman to corroborate this.
2. Inefficient executives at the helm
With due respect to the present heads, it is sad to state that Infy has lost its mojo. Once an empire which refined lustre, Infy has now reached an effete stage. Will the midas NRN, now Executive Chairman, be able to return Infy to its past glory?
3. Inability to adapt to current business environment
Small, lean business models are in vogue, the age-old model resembling behemoths are now a passé. Clients now favour such models as the business environments are volatile.
4. Poor talent resources
Recruitment from sub par tech schools which produce even sub par techies are a cause for concern. The management needs to find a solution to address this major problem.
Readers: Don’t get pissed off, me too belong to the same category of sub par techies.
So, the obvious measures to parry such impediments would be to design a revamped business approach, efficient and effective management,proper execution of plans, change according to market demands and proactive, analysed recruitment of talent. Let’s hope that this IT major regains its glory soon and usher a new dawn for itself and the industry.