This is the detailed PESTEL analysis of Infosys company which has been operating in technology industry. Being a global leader, Infosys enables the clients in 45 countries to establish and implement strategies for technology outsourcing to solve their problems effectively. The company is providing the meaningful solutions for every area of engineering to application development, knowledge management and business process management. Infosys performance can be best analyzed through PESTLE Analysis which explains the external factors affecting the business strategies and decisions.
Political Factors
America is one of the major markets for Infosys business, therefore any political or economic change in the country can bring a huge impact on its business. The positive engagement with the government is essential for successful performance of the company. After the change in government and the demand of Trump administration to curb the non-immigrant visas, the major IT companies of India like Infosys has to take action to become independent of the visa issues. The company has also announced to provide more jobs for the US citizens in America.
Economic Factors
Since operating at a global level, the Infosys business has been affected by the economic uncertainties of the global environment. The pricing pressures on the IT services, changes in the currency exchange rates, high wage pressures and sudden increase in taxes can affect the profitability to a large extent. The entry of new IT firms in the technology market can bring an intensifying competition for Infosys and can have impact on the cost advantage and revenues. The expiration of the tax holidays and benefits in India has also brought huge changes in the profit margins.
Social Factors
Infosys is a global software major where the stock prices and strategies are affected by the social factors. The negative media coverage of the Infosys policies and practices in recent years has adverse impact on the business reputation. The response to the media allegations can divert the attention of shareholders and the investor interest. Infosys has also introduced the Infosys public services for carrying out various human welfare programs. The Infosys foundation is working towards creating a balance between the people and the funds for social welfare purpose.
Technological Factors
The Indian based software company Infosys has an amazing technological infrastructure offering exciting opportunities for both local and the foreign professionals. The technology jobs saw a major growth over the last years worldwide. With the changing technology and innovation trends, the company is keeping its pace by introducing new tech centers as the Indiana tech center and the North Carolina technology and innovation hub in the US.
Legal Factors
Both the domestic and foreign laws and policies can affect the business operations at a higher extent. The offshore outsourcing by the IT firms as Infosys is getting major political attention in countries like US where the new laws and legislations by the new government can restrict the operations. The wage laws for the work visa holders have also changed, thus affecting the company to do business in those areas. The change in laws can also have an impact on the company’s ability to attract and maintain qualified IT professionals.
Environmental Factors
Infosys strives to be a sustainable corporation through up to mark strategies addressing the innovation, education and automation. The company carbon price is US $ 10.5 ON January 2017. Infosys is also building a strong partnership with the world leading environmental consultancy as ERM for providing the innovative solutions for environmental health and safety. Infosys has also leveraged the digital technologies over the years to address the energy, water, emissions and biodiversity challenges.