Infosys in China Essay Example | Topics and Well Written Essays - 1750 words

Infosys in China - Essay Example These centers would look after new projects on software, IT and ITES (ICMR, 2006, p.9). The report deals with some of the issues faced by Infosys in China on its way to expansion and also the role of Global Delivery Model. It suggests measures for a better development in China and also other emerging countries. Background Infosys was started by a group of seven members in the year 1981. It incorporated with the name Infosys Consultant Private Ltd. From the very beginning Infosys was depended on the overseas business. The founder of Infosys, Narayana Murthy operated its business in India while the other seven went to US and started working for their corporate clients. Reebok was Infosys first US based client. The company earned revenue of Rs 1.2 million in 1981. 1981 was a period when India did not experience the growth of computers, so licensing of computers would take a longer period. Infosys did not have the space needed to install a computer, thus it hired a premise of a customer where the new employees would be provided training. It also concentrated in the fields like retailing, distribution, finance and telecommunications. Infosys has entered into a joint venture with Kurt Salmon Associate (ICMR, 2006, p.2). Infosys being the first company to get listed on NASDAQ stock exchange. It accounted a net profit of $US 152.1 million at the end of the quarterly result. USA is its main source of revenue; it is planning to expand in Europe and Asia. Infosys in china is merely focusing on its local clients. It has been recognized as one of the fastest growing company (IBEF, n.d., p.1). In the year 2000, 78% of revenue came from North America, 14.8% from Europe and only 1.4% from India. By 2005, Infosys mode of operation was proximity development, which consisted of 9 and off shore software development about 17, mainly operating in India. Infosys is also facing a tough competition from other It giants because of the liberalization that has effected India and its econo my (ICMR, 2006, p.3). An important achievement for the company came its way when it pioneered the Global Delivery Model. With the help of this model work can be done at places where it suited the most, its economical and least risk of acceptance. The company is using level 5 of CMM and PCMM. It has been awarded Asia’s Most Admirable Knowledge Enterprise in the year 2002. Infosys operates mostly in Bangalore, being the head quarter in India (Kochikar & Suresh, 2004, p.3). Issue Statement Factors that led to enter the Chinese Market In the year 2006, Infosys reported that it has achieved a milestone of US $ 2billion. Thus its revenue increased at a high rate by 33.5% in the financial year 2005-2006. But the subsidiary in China had suffered a loss of 83.9 million. The projected employee rate in China was in between 800-1000 but the China office had only 500 employees. Thus Infosys decided to enter the china market. In the year 2004, Infosys entered China as a part of its global extension plan. The reason behind Infosys entering China was the high demand of the employees due to globalization. Since the demand is rising there prevails a shortage of manpower. NASSCOM estimated that there would be a shortage of 250000 employees in the IT sector. Thus china was the option for Infosys as it’s comparable with India in terms of salary and quality of

Writing homework Essay Example | Topics and Well Written Essays - 750 words

Writing homework - Essay Example It is not as if progress cannot happen in a state controlled protectionist system, and be competitive with a free market system. However, the author’s assertions that free trade is superior to protectionism generally is a convincing argument overall. To move from national politics to a more global perspective, it is also important to understand the role of labor in other countries in contrast to its role in the US, and Roberts concentrates mostly on a global workforce. For example, the role of labor unions in Europe is more totalized than it is in the United States. In the U.S., unions represent exact and specific parts of industries and call for more benefits and worker’s rights to be brokered with individual companies. In Europe, unions represent the entire industry because their groups are put together and are more powerful. They call for less specific issues, since they are representing an entire industry in Europe, though. More sweeping changes are possible this way, but the changes are less specifically geared to the immediate concerns of workers in a certain segment of the industry. In terms of labor participation in management, this was unheard-of many years ago, but is becoming more common both in the U.S. and in ternationally. Employees are more frequently being included in the decision-making process and communication is growing between employees and managers, despite political setbacks and setbacks in the US involving union membership and union density. â€Å"The real choice is between a dynamic world and a static world---a world of encouraging people to dream and acquire the skills to make those dreams come true and a world of encouraging people to be content with what they have and to dream less† (Roberts, 2000). The argument for and against international economics is basically a reflection of bigger argument about theoretical issues of protectionism and free trade, which was mentioned above. In this international argument,