Infosys Sales Growth Strategy in U.S. Market Constraints

Geographic Market Expansion Opportunities

Infosys began as a small start-up company writing simple patches and fixes for existing software and has evolved into one of the leading IT companies of the 21st century. However, like most markets, Infosys has been affected by the U.S. economic downturn. In order to maintain its exponential growth over recent years, Infosys must change the way in which it does business. Currently, the bulk of Infosys' business comes from the U.S.—71% to be exact (Spiro, Rich & Stanton, 2008, p. 538). In order to stay competitive in the marketplace, Infosys needs to expand its focus elsewhere while maintaining its business relationships in the U.S.

According to United Nations Statistics Division, Japan, Germany, and China have the 2nd, 3rd, and 4th largest consumer markets in the world. Being that only 7% of Infosys' business comes from other parts of the world, these are huge untapped markets that can be explored to compensate for the downturn in the U.S. market. Furthermore, Infosys should take advantage of its CMM Level 5 score, using that as a selling point to the 315 U.S.-based Fortune 500 companies that are yet to outsource to India (Spiro, Rich & Stanton, 2008, pp. 537–538). This is not to say Infosys cannot use its CMM score to sell its services to the relatively smaller markets of Japan, Germany, and China. However, it goes without saying that, geographically, it may be more cost-effective for Infosys to explore business relationships with customers in these countries.

Infosys' biggest advantage seems to be its ability to evolve and adapt to change. With U.S. companies focusing more on the short-term, Infosys needs to refocus these companies on what Infosys can provide in the long-term. By establishing a strong presence in Japan, Germany, and China, Infosys can reduce its dependence on the U.S. market and create multiple revenue streams that are less vulnerable to regional economic fluctuations.

Strategic Service Diversification and Sales Management

In an attempt to cut costs and reduce relatively simple coding work, Infosys could pursue a strategy that the U.S. has done for decades: outsource. By outsourcing more simple code work to other countries, Infosys can focus more on high-end systems management and solutions. As stated above, Infosys must also evolve as the world economy evolves. Infosys should explore new solutions such as "enterprise mobility, cloud computing, and sustainability" (Sengupta, 2014, p. 84).

With these types of solutions in mind, Infosys should attempt to increase its overall value to customers by making itself the top provider not only for IT software but also for business solutions, offering more than one type of service. Subsequently, "Infosys should not only provide software services and solutions but also engage itself in transformational projects. Along with these IT services it should also put its effort in developing the business side of clients" (Sengupta, 2014, p. 83). With the economy struggling and a good number of companies Infosys does business with struggling as well, it should explore possible contracts with foreign governments through, for example, "Infosys Public Service Subsidiaries, which explores various public service work under the U.S. Government" (Sengupta, 2014, p. 83). This diversification strategy positions Infosys to serve clients across multiple sectors and geographic regions, reducing vulnerability to sector-specific downturns.