• Subject Name : IT Computer Science

Socio-Economic and Legal Environment

Table of Contents


Principles of IT/IS and business strategy of the Infosys Limited.

2.1. About Infosys.

2.2. Principles of IT & IS that are important to the Infosys Limited.

2.3. Business strategy of Infosys and its alignment with the current IT/IS strategy.

Review of current IT / IS of the Infosys.

3.1 Current IT/ IS at Infosys.

3.2. Challenges faced by Infosys and their solutions.

IT procurement strategy and supplier evaluation method.

4.1. IT procurement strategy of Infosys.

4.2. Supplier evaluation method.

Critical evaluation of strategic quality on the information system and technology of the Infosys and its implication and how it contributes to organizational excellence in terms of design, and development.

5.1. Critical evaluation of strategic quality on the information system..

5.2 Contribution of system quality on organizational excellence in terms of design, and development.

Artificial intelligence platform leads to competitive advantage for business.



1. Introduction to Socio-Economic and Legal Environment

In today's modern world, technology has continuously been increasing in the workplace. Today, every organization either small or large is incorporating the new emerging technologies in performing their operations. The advancement in information technology has led to the evolution of numerous information technology systems that businesses are using the smooth functioning of the organization. This report discusses the IT & IS (Information technology and information system capabilities, leadership skills, procurement and contract strategies, effective team management and the project management strategies of the Infosys Limited organization. further, it discusses the importance of artificial intelligence for gaining the competitive advantage of the company (Infosys 2020 a).

2. Principles of IT/IS and Business Strategy of The Infosys Limited

2.1. About Infosys

Infosys is the IT services organization that was established in the year 1981. It is the worldwide leader in the consulting business and next-generation digital services. This organization had a total of 38 years of experience and exist worldwide in approximately 46 countries. It’s headquarter is based in Karnataka, Bangalore, India. It offers services in the areas namely maintenance, software development and more. Further, it also offers autonomous authentication services to the other companies in manufacturing, insurance, finance, and many other fields. Majorly it has its presence in the United States, Australia, India, Europe, Japan, and the Middle East (Infosys 2020 b)

2.2. Principles of IT & IS that are Important to The Infosys Limited

(1) One single front, middle, and back and office that is important: There must be one single digital office where all individuals, their intelligence, technological systems, and the infrastructure work as a single united unit. It helps the organization to unite all the participants in the organization namely associates, customers, and the employees.

(2) Emphasis on relationships: It is important to consider the relationships between the customers, and the service provider to raise the collaboration required to generate the completed solution that can gratify the desires of the customers. The company must recognize the client’s activities and the environment they are functioning in and then plan the project accordingly. This principle is important for Infosys Limited so that it can generate the perfect IT and IS solutions for its clients.

(3) Description of roles: The description of the roles is another important principle for Infosys Limited so that the roles and responsibilities are clearly defined for achieving smoother processes. IT professionals must ensure that their customers are conscious of their energetic role in the project.

(4) Alignment towards results: Company must make sure that all the actions are leading towards the realization of the terminating goals. Its role must be to help the client in each probable way including the enactment of the system, training, and any proposals on what to implement (Infosys 2020 c)

2.3. Business Strategy of Infosys and Its Alignment with The Current IT/IS Strategy.

The strategic aim of the Infosys is to make it a sustainable company that rests pertinent to the schema of its customers and generating growth prospects for its personnel and making the lucrative growth for its shareholders. The business strategy of the Infosys is to be a navigator or guide for its customers as they perform and plan their drive to a digital prospect. Its clients are met with transformative corporate prospects due to progression in the computer and software equipment. Its customers are dealing with the task of reinvesting their practices and the structures to position themselves as digitally empowered. For this to make successful, Infosys's strategy is to reinforce its significance to customers and drive enhanced value formation. All its business strategies are in alignment with the current IT / IS strategies of business (Shah 2017). Four business strategies of Infosys in regards to fulfilling the demands of its customers are as follows:

(1) Scale Responsive Digital: In this strategy, Infosys is spending in the digital competences and the significant services. It helps the company to quicken its digital business.

(2) Strengthen the fundamental: It is continuously implementing Artificial intelligence techniques and tools, and software mechanization techniques in order to increase the efficiency of its customer’s indispensable processes.

(3) Reskill of people: In the culture of Infosys, learning and training are the central elements for increasing the skills of its workers.

(4) Enlarge localization: It is strategically investing in localizing its employees in several geographies that help Infosys to decrease its reliance on immigration rules.

3. Review of Current IT / IS of the Infosys

3.1 Current IT/ IS at Infosys

The information technologies used by the Infosys are big data, artificial intelligence, machine learning, and analytics so that it can plan the education of the employees and advise training programs that are better for them. The current Information systems and information technologies of the Infosys are as follows:

  • GIS (Geographic information system): This system has been created by its proficient team in incorporating the GIS systems with enterprise and functioning systems like employees management system, enterprise skill management system, client information system, order management system and more. This information system is using an application platform involving the Smallworld web, iOS, oracle spatial, windows, Esri suite of products, etc. All these platforms in refining the GIS workflow like data editing, automation, and data model. Moreover, it helps in incorporation with SAP, Microsoft SharePoint, and real-time systems. It helps customers for project management for any difficult programs by the waterfall procedure.
  • Record management system: This system of Infosys is responsible for managing the store protection of records systematically that supports the corporate desires of the client business. This information system helps to generate and manage reliable, consistent, and functional records that can support business purposes and actions for the compulsory period. Since this provides cloud-based storage, it has advantages like enlarged security, disaster retrieval, and quicker & easier recovery.
  • Infosys Blockchain: Company has recently launched three blockchain-related applications for the insurance services, supply chain management field, and government services. They are furnished with projecting ROI (Return on investment) analytics for business reserves that can be personalized to meet several industry-specific requirements. When this technology is to be integrated with the enterprise resource planning (ERP) of the organization, it brings transparency. Moreover, it helps the businesses to overwhelm the intrinsic challenges of their present processes.
  • IoT (Internet of things): Infosys has developed an information technology solution for the businesses that aid them to collect data from sensors to deliver actionable business visions.
  • Cloud business services: It offers integration as a service, and managed service model for the hybrid cloud amalgamation projects. The cloud integration technology of Infosys allows the unified flow of data and communications across systems in the organization. It leads to the minimization of costs and reduction in provisioning time as well.
  • Data management system: Infosys has developed a high enactment data management solution the supports conscious analytics and enhances major value to energy processes. This solution helps in detecting the designs, provides the approvals on the basis of projecting analytics, helps in strategic decision making in real-time and more.
  • 5 G technology: This is the recent technology at Infosys that helps the businesses to make and imagine the new economies with this technology. Moreover, it helps the communication service providers to quicken and monetize their 5G network placement. Infosys has established 5G labs in five locations in the world. This technology further helps in lowering the linked costs and increasing the distribution of network-based services. It brings significant opportunities for network visualization, automation, and artificial intelligence.

3.2. Challenges Faced by Infosys and Their Solutions

(1) H1-B visas: This is the major IT challenge faced by Infosys. It is one of the companies that have seen extreme denials of demands for allowance of H-1B visas. Infosys is dependent on the US market and the H1-B visa.

(2) Economic slowdown: Due to the hiring of the client by Infosys from western countries like Spain, Canada, the UK, and the US. These countries are facing an economic slowdown that ultimately leads to the economic slowdown in the Infosys. 

(3) Data security and confidentiality rules: The data privacy rules of the other countries prevent Infosys limited to serve in those countries. This is the major challenge faced by the company.

(4) Internal challenges: The demands of the customers and technology are continuously changing. Infosys is also overcoming this challenge by implementing the modern technologies in the company such as clock technology, IoT (Internet of things), artificial intelligence and many more. These technologies will help the company in reducing costs, saving them time, increase employee efficiency, and enhance time to market.

The long term and the current solutions that Infosys is doing for overcoming these challenges are as follows:

(1) Deliver great knowledge with end-to finished data visibility

(2) Innovation assisted by data: It helps to fulfill the changing demand and desires of the customers by the digital transformation and innovation.

(3) Quicken processes: Infosys is trying to accelerate its processes for smooth operations. It works closely with the customers to determine their desires.

(4) Partnerships: Infosys recently partnered with GE to embark on the excursion of making a digital twins Universe. In collaboration with GE, it reconstructs the whole life cycle of any product starting from expansion to sales and promotion.

(5) Reorientation of its thinking to the new reality: through the use of tools and methods like design thinking helps in teaching an empathetic approach to problem-solving and finding.

4. IT Procurement Strategy and Supplier Evaluation Method

4.1. IT Procurement Strategy of Infosys

IT procurement can be defined as the procedure of sourcing and acquiring assets required for information technology to carry on the operations of the business. It can comprise of IT services like cybersecurity services, cloud services, administrative, and strategic responsibilities. Moreover, it can include software and hardware products. The main objective of the IT procurement strategy is to meet the necessities’ of the organization by procuring the IT assets at the optimum prices and protecting the business from various risks like cybersecurity and more (Wawuda and Mwangangi 2018).

At Infosys, CPO (chief procurement officer) works as a value enabler in the procurement activities. His role appears as developing to that of a reliable business companion and counselor functioning in accordance with the C-suite and procurement strategic division creators to reveal value through partnership, manages threats, form sustainability, and allow user involvement. It helps its customers to their attaining strategies and development and roadmaps for the improvement, scheming operating models, and grasp them during the alteration process.

The IT procurement strategy at Infosys emphasizes on the following:

  • Bringing the complete value from the end on obtaining processes rather than only being attentive on savings.
  • Handling the risks and supporting businesses than only gratifying supply requests.
  • In this procurement strategy, Infosys influences the power of robotics, artificial intelligence, and personalized methods and work as being practical and projects.

The strategies used by Infosys in the IT procurement are as follows:

  • Allotting requests for proposals (RFP)
  • Leveraging conglomerates with IT production original equipment manufacturers
  • Discussing with original equipment manufacturers on provision and valuing
  • Dealing with the interior stakeholders
  • Investigating choices on the market
  • Requirements for information

The CPO at Infosys always creates a balance between the cost reserves and fulfilling the needs of the business. His goals for IT procurement that needs to be achieved during this process are:

(1) To obtain the technology that brings into line with the managerial needs.

(2) To form the planned partnerships and relationships

(3) To involve the stakeholders in the process of IT procurement.

(4) To diminish the risks

(5) To procure assets keeping in view and considering the future perspective.

Infosys strategically uses a multifaceted procurement management software resolution that is helpful in creating the items list for procurement and establishing the procurement records. Moreover, it helps in launching communication networks with the procurement contactors. It also helps the company to implement the excellent control and guarantee and aids in following and supervisory status of IT acquiring contracts (Kumari 2018).

4.2. Supplier Evaluation Method

An organization uses different techniques in order to evaluate the performance of the suppliers. For this purpose, the company considers some qualities and metrics to measure and evaluate the supplier. The metrics are service level, on-time distribution, quality level, price of the product, readiness to share delicate information, precise quantity, communication abilities, and quick reply time in case of superior request, documentation, and certification, readiness to change their products and facilities to meet the altering requirements and more. The main objective of the supplier evaluation is to minimize the risks and maximize the total value to the purchaser.

There are various methods for the supplier evaluation namely categorical method, weighted point method, cost ratio method, dimensional analysis method, and analytical hierarchy process (Zarghami et al 2018). All these methods can be used by following some steps that are as follows:

  • Identifying the main supplier evaluation modules
  • Weight each assessment class
  • Classify and weight subdivisions
  • Defining the scoring system for classes and subdivisions
  • Appraising the supplier directly
  • Analysis of the evaluation outcomes and create the selection choice
  • Review the supplier enactment endlessly

At Infosys, the metrics that are considered while supplier evaluation are production capacity, quality, performance, risk, and environmental impact

Infosys uses the cost–ratio supplier evaluation method which evaluates the performance of suppliers by using the average cost analysis. This method provides a justified and balanced technique for assessing the main supplier performance features. It helps in identifying the non-performance overheads and precisely reveals the real cost of doing the business with the contractors. The higher the ratio of costs to value, the lower the rating applied to the vendor or supplier. This method is the most flexible to be used for supplier evaluation as it reduces the limitation of subjectivity as in the other evaluation methods. Using this method, Infosys is able to measure the extra costs acquired if a supplier fails to achieve as anticipated. The entire cost of doing commerce with the contractor can be intended using the SPI (supplier performance index). Its base value is 1 which means that more closely the SPI to 1, the superior will be the supplier. This method has benefited the Infosys so far with the number of advantages like:

  • A reasonable and reliable evaluation tool
  • Description of supplier performance prospect
  • Communication of the company’s purchasing urgencies to suppliers
  • Capability to do obtaining risk valuation
  • Foundation for a supplier honor program
  • Capability to offer optimistic supplier support
  • The technique to rise the responsibility and control of the supplier
  • Capability to source necessities centered on total cost concern.

Many other companies like Cederroth use the weighed point method for the evaluation of suppliers. The company namely Finnradiator accesses the performance of suppliers on the basis of metrics like quality, price level, and service flexibility and delivery accuracy.

5. Critical Evaluation of Strategic Quality on The Information System and Technology of The Infosys and Its Implication and How It Contributes to Organizational Excellence in Terms of Design, and Development

5.1. Critical Evaluation of Strategic Quality on The Information System

Strategic quality means the improved quality of the processes, information systems, and the technology of the organization. The high quality of the system results in the improved quality of the information. Furthermore, the improved quality of the information aids the company in properly handling their business processes. It is a fact that the quality of the system and information results in a better quality of information system. Today, it is important for the organizations to spend more time and effort to enhance the system excellence in order to expand the quality of the information formed along with the enhancement of managerial performance of the business. Strategic quality is involved in the processes, technology, and information systems of business in the form of ease of use of the system, response time, efficiency of employees, flexibility of the system, superiority, and more. Furthermore, the quality of technology and systems is based on the characteristics of the information produced by the systems (Drinka and Yen 2019). The main characteristic of the information is as follows:

  • Completeness: At Infosys, all the information systems are strategically made that ensure quality information. They always produce complete information that leads to the smooth running of the company's operations. All the employees are fully informed about their tasks due to the complete information generated through the quality information systems of the company.
  • Accuracy: It is an important aspect that shows a wider implication of strategic quality on the company’s information systems and technology. The MIS system at Infosys produces accurate information and does not contain any kind of error. It leads to more generalized solutions offered by the company.
  • Consistency: The information produced by each process of business is consistent that is presented in the same setup.
  • Accessibility: All the employees at Infosys can access and retrieve the information at any point of time through its quality processes and systems.
  • Timeliness: Information distribution at Infosys is always at a suitable time for all the members of the company. Due to this fact, employees have all the knowledge of what to do and how to do their defined tasks. Moreover, they also know about any new event of the organization on time with the help of its quality technological systems.

5.2 Contribution of System Quality on Organizational Excellence in Terms of Design, and Development

System quality depends on the total quality management in the organization. The TQM can be defined as the technique for management using the continuous improvement approach in the organization. It leads to enhance the performance of the business and satisfying the stakeholders and clients in the best possible manner. TQM leads to produce quality systems and that further leads to organizational excellence of the business (Soltani and Amanat 2019)

Infosys has been awarded the business excellence award to be renowned as the role model for the TQM. Through TQM, Infosys achieve milestones in the fields of partnerships, the performance of business, leadership & strategy, customer-driven processes, and more. The system quality at Infosys develops a vigorous work environment and gets more gratification of customers. Moreover, the organizational excellence of business depends on the effective processes that are different from the competitors in the market. Competition is one of the challenges that hinder the company to position itself in the market in terms of higher profits and share (Sony 2019). In order to improve its position in the market, Infosys adopts the strategy of focusing on external factors like changes in the technology, changing demands of the clients, environmental concerns and globalization factors so as to produce quality systems. 

6. Artificial Intelligence Platform Leads to Competitive Advantage for Business

Artificial intelligence platforms can enable companies to build a competitive advantage in the industry. These platforms improve the efficiency of the business and increase productivity through automated practices. Artificial intelligence platforms and software have helped Infosys to position its services as the finest services for its clients. Today, artificial intelligence software is the basic necessity to be competitive in the market (Chui 2017). The main advantage that artificial intelligence software and platforms bring to the Infosys limited is that it takes decisions and takes suitable actions in a quicker way than the human.

One of the components or subsets of artificial intelligence is machine learning. It is the technical study of procedures and arithmetical models that computer systems practice for the accomplishment of a particular task successfully without using obvious commands, and inferences. Moreover, robotics is another subset of artificial intelligence that is responsible for building a competitive advantage for the company. Robotics process automation leads to quick ROI (return on investment). For example, many British companies are using robots at their back-office that can process more than one million transactions in a month. Further, robotics automation reduces the human errors that lead to facilitate compliance. In order to stay competitive in the market, robots help in cybersecurity also (Willcocks, Lacity and Craig 2017).

The business scope and opportunities for artificial intelligence software can be that it is used to solve the problems. Moreover, it helps to raise the sales, advance the customer experience, identify fraud, deliver the projecting analysis, and mechanize the work procedures. Infosys is currently using these platforms and trying to achieve a higher position among the competition. 

The risks that can be associated with the artificial intelligence software are privacy destructions, weapons automatization, algorithmic unfairness produced by bad data, socioeconomic disparity, and more. There can be a loss of certain occupations due to AI advancements. In order to overcome this, the company must need variations in the education and development programs so that future workforce can be ready to deal with new technology as well as the existing employees get help for transition (Bellamy et al 2019).

Today, it is easier for organizations to anticipate the needs of the customer using the advancements in technologies like artificial intelligence. It permits businesses to estimate what customers will be enthusiastic about, concerned about, or requirement in the forthcoming. There are many instances concerning this, one example can be Deloitte's blab tool that is responsible for mining the data from over 50000 sources and this tool proved to be 70% accurate. The information generated by this tool helped the company in making an approach to customize its products and services in accordance with ongoing trends. The growth of artificial intelligence software or platforms streamlines the decision-making process of the companies in the actual time. AI and Big data lead to the improved customer experience by predicting the desires of the customers in the upcoming prospects. These platforms generate more pertinent and imaginative solutions for the customers before their awareness of it (Syam and Sharma 2018).

7. Conclusion on Socio-Economic and Legal Environment

From the above report on IT and IS capabilities of Infosys Limited, it can be concluded that the company is well-versed with the wide range of technological solutions and services. The company offers services in the areas namely maintenance, software development and more. It operates on the basis of various principles in IT/IS areas like it focuses more on the relationships with clients and other stakeholders. The strategic aim of the Infosys is to make it a supportable company that rests appropriate to the plan of its customers and making growth projections for its workers and making the profitable growth for its stakeholders. At Infosys, CPO (chief procurement officer) works as a value enabler in the procurement activities. He always creates a balance between the cost reserves and fulfilling the needs of the business. Moreover, the challenge faced by the company in IT / IS areas are H1-B visas, economic slowdown, data security issues and more. Infosys uses the cost–ratio supplier evaluation method which evaluates the performance of suppliers by using the average cost analysis. Furthermore, through TQM, Infosys achieve milestones in the fields of partnerships, the performance of business, leadership & strategy, customer-driven processes, and more.

References for Socio-Economic and Legal Environment

Bellamy, R.K., Dey, K., Hind, M., Hoffman, S.C., Houde, S., Kannan, K., Lohia, P., Mehta, S., Mojsilovic, A., Nagar, S. and Ramamurthy, K.N. 2019. Think your artificial intelligence software is fair? Think again. IEEE Software36(4), pp.76-80.

Chui, M. 2017. Artificial intelligence the next digital frontier?. McKinsey and Company Global Institute47, pp.3-6.

Drinka, D. and Yen, M.Y.M. 2019. Controlling curriculum redesign with a process improvement model. Journal of Information Systems Education19(3), p.10.

Infosys 2020 a. About us. [Online]. Available at https://www.infosys.com/about.html. Accessed on 19 March 2020.

Infosys 2020 b. History. [Online]. Available at https://www.infosys.com/about/history.html Accessed on 19 March 2020.

Infosys 2020 c. Annual report. [Online]. Available at https://www.infosys.com/investors/reports-filings/annual-report/annual/documents/infosys-ar-19.pdf. Accessed on 19 March 2020.

Kumari, N.2018. Organizational Diagnosis: A Case of Infosys, India. The Journal of Asian Finance, Economics, and Business (JAFEB)5(1), pp.53-62.

Shah, E. 2017. BITS of Belonging: Information Technology, Water, and Neoliberal Governance in India by Simanti Dasgupta. Technology and Culture58(3), pp.898-900.

Soltani, H. and Amanat, E. 2019. The Mediating Role of Kaizen in the Relationship between Total Quality Management and Organization’s Performance. Journal of System Management5(1), pp.061-074.

Sony, M. 2019. Implementing sustainable operational excellence in organizations: an integrative viewpoint. Production & Manufacturing Research7(1), pp.67-87.

Syam, N. and Sharma, A. 2018. Waiting for a sales renaissance in the fourth industrial revolution: Machine learning and artificial intelligence in sales research and practice. Industrial Marketing Management69, pp.135-146.

Wawuda, J. and Mwangangi, P.2018. Influence of information communication technology on performance of procurement among parastatals in kenya. International Journal of Supply Chain and Logistics2(1), pp.40-66.

Willcocks, L., Lacity, M. and Craig, A. 2017. Robotic process automation: strategic transformation lever for global business services?. Journal of Information Technology Teaching Cases7(1), pp.17-28.

Zarghami, E., Azemati, H., Fatourehchi, D. and Karamloo, M. 2018. Customizing well-known sustainability assessment tools for Iranian residential buildings using Fuzzy Analytic Hierarchy Process. Building and Environment128, pp.107-128.

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