Entrepreneurs are go-getters who seize opportunities and work tirelessly to overcome obstacles. Entrepreneurs who expand internationally face even more risks and challenges, but many of them thrive on those very challenges because those challenges bring previously unseen new opportunities. Our opening vignette about Infosys provides one case in point: Infosys emerged by harnessing its comparative and competitive advantages to become a world-class IT and consulting firm. Founded in 1981 by seven Indian entrepreneurs, Infosys today is a NASDAQ-listed global consulting and IT services company with US$10.8 billion in revenue and a market capitalization of about $34 billion.

Powered by Intellect: Driven By Values

The Infosys entrepreneurs were well positioned to take advantage of the Indian government’s efforts at economic liberalization in the early 1990s. Under this program, the government systematically reduced trade barriers and embraced globalization. Infosys exploited the opportunity and utilized its domestic strengths and relationships to begin its global ascent which is continuing today.

Seeing and Doing Things Differently

In 1981, seven engineers started Infosys Limited with just US$250. From the beginning, the company was founded on the principle of building and implementing great ideas that drive progress for clients and enhance lives through enterprise solutions. For over three decades, the company focused on bringing to life great ideas and enterprise solutions that drive progress for clients.

At the heart of Infosys’s competitive strength is its Global Delivery Model, known as GDM, a strategy pioneered by Infosys that led to global outsourcing. GDM is the strategy of breaking a task into small parts, and distributing them where the best talent is available and the maximum value will be generated with the least amount of acceptable risk.

Today, Infosys has a global presence with 72 offices and 94 development centers in the United States, India, China, Australia, Japan, the Middle East, and Europe. Infosys and its subsidiaries employ more than 175,000 people worldwide. This wide reach enables the company to cost-effectively support the global operations of large multinational clients as well as enhance its own brand.

Steady Success

Infosys is investing heavily in its research and development as well as in its workforce. Infosys Leadership Institute, the world’s largest training facility, is where the firm grooms the next generation of Infosys leaders. By becoming a highly-reputable and prestigious company, Infosys attracts the brightest young talent. Strong branding and economies of scale provide the firm with additional advantages. Turnover among both employees and clients is very low, with 19 out of 20 companies returning to Infosys for business. Infosys has enjoyed much success in the huge market and has recently taken strategic steps to break into other markets.

Although Infosys is the second largest IT company in India—behind market leader Tata Consultancy (TCS)—it’s much smaller than its global competitors, including HP, IBM, EDS, and Accenture. To compete effectively with high-value creation consulting firms, IBM and Accenture, Infosys must provide high-end services, which tend to be the most profitable. Additionally, the firm will need to either create alliances and partnerships or develop an acquisition strategy to counter competitive threats to its core businesses.

Combining its entrepreneurial zest with a social mission, Infosys states that its responsibilities extend beyond business. "That is why we established the Infosys Foundation—to provide assistance to some of the more socially and economically depressed sectors of the communities in which we work. And that is why we behave ethically and honestly in all our interactions—with our clients, our partners, and our employees."

Opening Case Exercises

(AACSB: Ethical Reasoning, Multiculturalism, Reflective Thinking, Analytical Skills)

What kind of people would do well working for Infosys? Do you think, for instance, that you would need a good understanding of international business to do well in Infosys?

Moving its workforce around the world to maximize opportunities and minimize costs has meant that Infosys must navigate worker regulations in many countries. How should the firm work with government policymakers especially with regard to work visas?

Answer rating: 100% (QA)

People who are energetic enthusiastic about their work and have great in... View the full answer