Answer To: Assessment – Organisational change project The purpose of this assessment is to take on a management...
Soumi answered on Jun 03 2021
Running Head: ORGANISATIONAL CHANGE PROJECT 1
ORGANISATIONAL CHANGE PROJECT 3
ORGANISATIONAL CHANGE PROJECT
FOR INFOSYS
Table of Contents
Introduction 3
Internal and External Analysis 3
SWOT Analysis 4
Analysis 4
PEST Analysis 5
Summary 6
Literature Review 7
Lewin’s Change Management Model 7
Kotter’s 8 Step Change Model 8
McKinsey’s 7-S Model 8
Evaluation of Possible Change Strategies 9
Recommendations 11
Resource Requirements 12
Conclusion 13
References 15
Introduction
Established in 1981, Infosys is currently the second largest India-based IT corporation. The company provides IT consulting, IT services and outsourcing services. The headquarters of the company is located in Karnataka. As of 2019 revenues reports, the company has made revenue of a total of $11.8 billion. As of September 2018, the market value of the company accounted for over $44.32 billion (Gupta, 2017).
In accordance with the acquired companies, Infosys has a total of 123 development centres, as well as, 82 offices dedicated to sales and marketing that are established throughout different places of the world (Purohit, 2016). The major target markets of the company include India, Australia, Europe, Japan, China, the US and the Middle East. As of the first quarter of 2019, Infosys has employed a total of over 225,500 workers in its offices that are distributed all over the world.
It may be said that with the increased rate of globalisation and business expansion, it has become of paramount importance for IT-based firms to implement organisational initiatives in order to ensure a smooth transition of the companies into a more advanced and abled generation of technological and global consulting services. This project aims to identify the area of changes within Infosys and recommend measures, which may facilitate the organisational change.
Internal and External Analysis
In order to analyse the micro and the macro-environments associated with the business, the SWOT analysis and the PEST analysis tools have been used.
SWOT Analysis
Strengths
Weaknesses
· Lower cost of wage in India
· A vast range of comprehensive end-to-end consultation and IT services are provided
· Establishment of a strategic alliance with several key players within the IT industry
· Relies on limited markets such as Europe and North America
· The turnover rate of employees is high
· Does not provide services in emerging economic markets
Opportunities
Threats
· High opportunities for investment in technology-based start-ups
· Opportunities for investment on digital technologies facilitating transformation
· The demand for cloud-based services is increasing rapidly
· The global IT industry faces fierce competition
· Labour wage is going through inflation
· Regulation reforms in immigration laws of US may affect the business
Analysis
The labour costs are lower in India compared to the developed nation, which allows Infosys to spend a lot less in labour. The range and scale of services provided by the company are vast which offers maximum profitability to the business. The company has entered into partnership agreements with many companies within the IT sector, which have facilitated its growth. However, as much as 80% of the company's revenue is generated from Europe and North America (Mendon, Salins & Aithal, 2019). The massive dependence of the company on limited markets limits its profitability.
Due to low wages and increasing chances of career progression in other companies, the employee turnover rate of Infosys is high. The company also does not engage in business with developing nations, which represents that it is missing a majority of new opportunities. The company has huge potential opportunities in terms of investing in technology start-ups and digital technologies, which would maximise its profit and growth. On the other hand, the demand for cloud-based services among clients is rising which shows there are chances of entering into new markets and acquiring new clients to expand (Plenert & Plenert, 2018).
However, the company is situated within an industry, which experiences fierce competition, which is a threat. The labour wages within India, despite being low, are increasing at a steady rate, which could increase the necessity of expenditure on labour. Additionally, as the country relies heavily on the US, immigration law reforms could pose serious threats to the profitability of the business in the US.
PEST Analysis
Political: As the business serves worldwide, regulatory changes and political reforms have the potential to influence the business massively. The immigration law reforms in America have hugely affected the business due to its heavy dependence on the nation for profitability (Kahn, 2018). The political structure in India, however, is stable to a certain extent and technological growth and development are endorsed by the Indian government.
Economic: As the company functions at a global level, the uncertainties that occur within the global economic environment can hugely affect the organisation and its operations. Throughout the world, there are constant changes in the rates of currency exchange. Additionally, a significant number of nations of putting pricing pressures on IT services. In India, the labour wage demands are increasing at a steady rate. Additionally, the introduction of new taxation policies such as GST may influence the revenues of the business.
Social: Social factors can significantly affect the stock prices and strategies of major businesses positively or negatively. In recent years, the practices and policies adopted by Infosys have faced considerable criticism from the media. This poses a threat for the company as this may divert the interest and attention of investors and shareholders from the company. The introduction of Infosys public services to operate human welfare initiatives has enabled the company to enhance its brand image.
Technological: The technological infrastructure of the company is excellent and offers numerous chances of development for both foreign and national professionals. To cope with the current trends of innovation and the transforming technological infrastructures, Infosys has launched several technology centres including the North Carolina Innovation and Technology Hub and the Indiana Tech Centre.
Summary
Based on the outcomes of the internal and external analysis of Infosys, it could be said that the key changes, which are needed in the context of the company, include -- its expansion into emerging markets, reformulation of the labour wages and compensation strategies. Besides, it also includes development of a new IT...