There was a time when every reference to Infosys was about how well the company was doing. Over the last two-three years, the narrative has changed. All eyes are now on the new CEO S.D. Shibulal and his new strategy.
To answer your question specifically, I think during the first half of 2012 they [Infosys] will continue working on establishing their new strategy and hence will see limited success from that.
There are still some unresolved puzzles. Decision-making is slow, pricing and margins are still very important to them and they haven’t done anything in the market that gives us reason to believe that they have taken corrective steps to free some of those points.
They have been talking of a lot of interesting things, like creation of a new platform, IP, cloud, mobility. But the number of clients for each of these solutions is very less. So no sustained market for them and no threshold achieved. That makes me nervous. Are clients not buying this story or are they not able to sell effectively?
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But if they execute on this well, two or three years down the line, there is a good possibility that they will regain the position they used to enjoy in the last decade.
Take the top five or ten companies in India, their capability of delivery, strategy or solution is not very different from each other. They recruit from the same pool, have similar infrastructure; the only differentiator was their quality of client relationships.
In 25 years, this is the first time this industry is being tested on something other than cost and engineering.
The battle lines have shifted from offshore to client facing roles, so how you manage your relationships has become even more important than in the past. Exactly at that time, unfortunately for Infosys, some of that strength is going away. That is like a double jeopardy.
via Will Infosys Make a Comeback in 2012? – Forbes.com.