Trends Report

Infosys Adapts To Global Market Change

The Axon Acquisition Denotes A Major Shift In Infosys' Global Growth Strategy

September 22nd, 2008
With contributors:
Pascal Matzke , Navi Radjou , Edward Radcliffe

Summary

With its proposed $753 million acquisition of UK-based consulting firm Axon Group, Infosys is taking a big step to reposition itself in an increasingly challenging market environment. Like most of its India-based competitors, Infosys is facing intense global pressures that will shape the way it does business over the next decade. Although the company has achieved tremendous success with a primarily organic growth model, this more aggressive approach to expansion — particularly in Western Europe — is reasonable given the challenges of establishing a stronger local presence in Europe and building Infosys' capabilities in higher-margin consulting work. The major hurdle for Infosys to overcome will be creating an integration plan that minimizes the cultural differences between the two companies and that leaves Axon free to create and develop the local market relationships that Infosys needs.

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