Infosys is facing a lot of global marketing issues especially in the past decade or so. The issues are related to business model as well as strategy.
Infosys is globally perceived as an IT Technology company which provides low cost advantage to its clients due to global labour arbitrage. A lot of IT companies in developing countries have been using this model to earn handsome revenues (NASSCOM, 2007). Infosys has been consciously trying to come out of this image and move up the value chain (IBEF). This was evident because of its focus on end to end solutions in the late 1990s. During this phase, Infosys developed some highly successful industry solutions such as Finacle (Finacle, 2011) and SAP retail (SAP Retail, 2011) products and marketed them well. However, a major challenge has been to go one step further and provide high end consulting services. Infosys has developed the capabilities required to do so by hiring fresh and qualified talent over the past years but marketing the same has been a challenge. The major reason for this is the presence of well reputed competitors in the market who were early movers in this domain.
Infosys has always believed in maintaining long term relationship with its clients. This has resulted in client loyalty and satisfaction. However, 80% of Infosys’s revenues come from existing clients. No doubt, retaining old customers is very important but it is equally important to acquire new clients for continuous progress and to increase bargaining power while negotiating contracts. Infosys has shifted its focus towards business domain excellence. While it is of no harm, most of the clients over the world believe in best of breed approach where they outsource their operations in parts to most suitable vendors and also avoid hundred percent sharing of data with a single vendor. Therefore, business domain excellence may not prove to be a very fruitful idea. For further analysis of the global marketing issues, it would be justified to consider the various aspects of Business and Business marketing and the issues Infosys is facing in each of them (Boon, Kurtz): I. Product In Business to Business marketing, as in the case of Infosys, the products are highly technical in nature (Boon, Kurtz). Their form is not fixed and may vary from supplier to supplier. Especially in Business to Business Services marketing, this holds true. Infosys has primarily been providing outsourcing services at low rates. But over the years it has developed end to end products which are high performers in the market. Infosys is also known for its services. It has always exceeded client expectations on the 3 evaluation parameters i.e. Quality, Timeliness and Reliability. However, Infosys has struggled in marketing its high end services over the years. It wants to address this issue in its dealing with PFS. II. Promotion In Business to Bu