Impact on local and international business

India’s outsourcing sector is contributing 1% of the GDP. Infosys is India’s second largest outsourcer making revenues over $4 billion having a growth of 11.7% in the fiscal year 2009. Infosys created a global footprint with 50 development centers and offices, providing IT services to companies on the globe. In order to strengthen its global delivery of IT solutions and provide world class solutions for its clients, Infosys made a strategic alliance with approximately 19 companies, some of them are IBM , Microsoft, Oracle, Sun Microsystems, etc. Infosys is partnering with Oracle and IBM which is a technology alliance where IBM provides training and product support which includes hardware and software on banking and retailing system. It also has an Oracle Application Center for training, to upgrade its skills and provide the best solution for its clients.

Infosys has a strategic alliance with Microsoft to improve .NET technology as it has a joint enterprise architecture lab that was inaugurated by Bill Gates. This was established among the two to research on new features that can be implemented in .NET technology which was introduced by Microsoft earlier.Microsoft and infosys are together working on building a common platform for developing SOA and SAAS applications which is named as "OSLO" by Microsoft. Technologies like Windows communication Foundation(WCF) and BizTalk Server by Microsoft are used for developing SOA and SAAS applications, but there should be a simpler way to develop these distributed applications and this can be achieved by OSLO. The areas where OSLO is targeting are, on .NET framework 3.5, enhancement of Biztalk server 6 for deploying and managing distributed systems and visual studio 10 for supporting these distributed applications. It is also one of Microsoft’s global systems integration alliance partners. The outsourcing companies like IBM and Oracle are more focused on cost leadership as they are outsourcing a major part of the automated systems like the banking and retailing system to Infosys under service level agreements. The impact on business operations of these two companies is much smaller when compared to that of Infosys because most of the work is being outsourced and the major part of it is developed by Infosys.Therefore IBM, Microsoft and Oracle are taking the support of this huge outsourcer to satisfy their clients with world class technology offerings.

Infosys is leveraging Sun Microsystems to provide support on software and hardware of Sun's product suite, by exploiting its expertise maximum, to offer technology based solutions and quality service delivery capabilities. This huge outsourcer has a tough competition with china but the only advantage over china is due to the proficiency in English. It also expanded its operations in china to achieve a competitive edge.

CRM projects are mostly left unsatisfied by the vendors and result in failures. The most common reason behind these failures is having an improper CRM business case implementation. The visibility of the business case is another cause of failures as the person who prepares it often different from the one who executes it. The business case should be referenced regularly during the process of requirement gathering and executing to have a proper alignment. This has a high impact on the project mile stones because once the milestones are crossed and the project is not in pace with the business case, it gets delayed and will end up in a disorientation among the two organizations where the project is carried out. This has a major affect on the company's further contracts.

Infosys is a CMM level 5 and ISO 9001 certified company that delivers efficient and assured software which becomes a destination for outsourcing to these multinational companies. The other advantage is the significant difference in the currency where 50 rupees is equivalent to one dollar which is a huge cost saving for the outsourcing company and it clearly shows, dollar is much stronger than the rupee. In 2007 the company made 46 cents on a share generating revenues $928 million and reported a 40% increase in revenues from the preceding year. The company was earning revenues in US dollars and paying its employees in rupees which resulted in a considerable profit margin.

Among the 509 clients, Infosys made deals worth $1 million from 285 of them and 113 customers of $5 million each, it also has one customer that is paying more than $200 million. The North American companies constituted 62.6% of the revenues of Infosys and Europe accounted to 28%. The rupee problem would diminish if Europe contributed a considerable proportion of revenues for Infosys, as the currency value is larger than that of the US dollar.