Company has forecast a substantial revenue growth in

company has forecast a substantial revenue growth in the current fiscal (2005-06) enabling it to cross
the $2 billion mark by March 2006.
While it took 23 years for Infosys to go past the $1 billion revenue mark, it may take less than 18
months for it to cross the next billion. The scorching pace at which Infosys is growing gives an

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indication of the company getting several of its initiatives right. ―We are beginning to see the results
of various initiatives taken over the last few years,‖ Mr. Nandan Nilekani, the CEO and Managing
Director of the company, observed in April 2005. He said the company‘s clients increasingly see it as
a strategic long-term partner which can offer a wide range of services and contribute to their business
goals. The company also hopes to reap large benefits from its current investments. Infosys is
expected to invest Rs. 950 – 1100 crore mainly in technology infra-structure expansion of seat
capacity and China Operations.
Business Strategy of Infosys
As Infosys scorches its way ahead with around 50 per cent growth rates, there are a handful of
hurdles it will have to clear to stay on course. The most obvious one is the strong appreciation of the
rupee, but there are other, far more significant challenges, such as the shrinking pool of skilled
manpower and the creation of a complete solutions provider with global reach and scale; yet another
challenge is the increasing cost of adherence to global best practices that would tell upon profit
margins in an extremely competitive environment as has been demonstrated in 2004 – 05 financials of
many software services companies. Their profit margins were highly reduced consequent on their
complying with Sarbanes-Oxley Act on corporate governance, the Anti-Money Laundering Act and
the Patriots Act in the US.
Like its peers in the upper reaches of India‘s IT service industry, Infosys faces the challenges of,
all at once, inducting and orienting a large number of employees, ensuring that the Infosys way, a
process-driven way of working, does not change, and distilling knowledge from all the projects it has
completed or from the work in progress. The company, which currently has around 36,000
employees on its rolls, has addressed these challenges through what it terms ―PRIDE‖ (Pro cess
Repository @ Infosys for Driving Excellence), an online resource that segues into the company‘s
fancied knowledge management system termed Kshop (Knowledge Shop) at one end, and the actual
development environment at another. As a result of this, ―Info sys will reap the benefit of an army of
employees that works the same way, gains in process efficiency and productivity, and higher
quality‖.
Rapid Wealth and Value Creation Through Diversified Business
Building a $1-billion company has not been achieved by just being good to employees. While it was
initially just a plain IT services company, Infosys has stepped up its offerings over the past few years