RSSInfosys - Model & Challenges
I came across the slides from a recent presentation at the deutsche bank Technology Conference by the COO of Infosys - Gopalakrishnan (Krish - Soon to be CEO)
Below are two slides from the slide deck that i find interesting, first is about the change in the model of Indian IT Services firms and the second is the key challenges faced by them.
I think the two key challenges that weren't included in the list but is like to cause the most disruption the market is /are
1. Software being delivered as a service
2. Need to break the linearity between the growth in staff to growth in revenue.
More on these topics in posts to come.
Tags: infosys - outsource - offshore - it+services - india
Source: 1
It has been a quite a smooth ride for Infy so far. Its going to get tougher from now on. It will be interesting to watch how Infy will manage the next 3-4 years
Prashanth,
Not sure if you have permission from Infosys and the client to share this slide on the web?
Assuming you do here are my (personal) two cents.
Software being delivered as a service (SaaS) model is certainly something most folks in the services industry are watching keenly. I have also bloggged about it earlier. This said, will it be a ‘disruptive’ trend or just another fad … time will tell .. right?
With the Political pressure to stop the Outsourcing of jobs Offshore, as well as, to slow the influx of H1Bs, expect to see changes in year 2008 and 2009 in the Tax Laws. All Offshore work to support USA Operations will be Taxed via a Sales Tax for Offshore Development and support, as well as, all Employers of H1B Visa holders will be responsible for 100% of the normal employee and employer FICA Obligations. So if you hire cheap labor via the H1B or even an L1 visa, the Employer must contribute %15.3 of the H1Bs Gross Income for FICA (Social Security and Medicare) instead of the normal %7.65 for any US citizen who is an employee. As it is, all H1Bs and L1 Visa holder and their employers are exempt from any FICA Obligations. This is why Bill Gates says we need more. We don’t have shortage of talent in the US, we only have a shortage of Cheap H1Bs. Thanks to Infosys, many of the H1Bs have been consumed in terms of Annual Quotas. The H1B Cheap Labor concept is going to die with the 2008 election.