Infosys

Infosys Business Model: How Do They Make Money?

Infosys is among the Big Six IT firms in India and a global leader in next-generation technologies like artificial intelligence, cloud computing, data analytics and sustainability solutions. Founded in the year 1981, Infosys is the second-largest Indian IT company by revenue and the third-largest by market capitalisation. The company offers a vast portfolio of services grouped under IT services and consulting, business process outsourcing and digital transformation. Its services cover the technology needs of businesses across industries, including retail, manufacturing, finance, healthcare, energy and telecommunications. Infosys leverages its technological offerings and expertise to assist businesses in adopting new technologies, improve operations, cut costs, drive growth and reach their goals. From a modest startup, Infosys has grown into a global behemoth in the IT industry. Curious to know more about this prominent IT company? A brief analysis of the company’s revenues, business model and other features is in order.

Infosys

Essentials of Infosys Business Model

Infosys operates a globally distributed IT services business model, which is also called the Global Delivery Model. IT services, including software development and maintenance, infrastructure management, cloud migration and cybersecurity, are the core of its business model. Furthermore, the company also offers digital transformation solutions like Infosys Topaz for AI, Infosys Finacle for banking, Infosys Cobalt for cloud computing and more, alongside business process outsourcing services.

Infosys’ business model is centred on delivering innovative and customised technology solutions to its clients. To this end, Infosys carries out a thorough analysis of a client’s existing IT resources, nature of the business processes and specific business objectives. Thereafter, the company works closely with the client to develop and implement solutions that meet the latter’s specific requirements.

Apart from its core services, Infosys also provides ongoing support and maintenance to its clients to help them in deriving the maximum benefits from their technology investments. These services include ongoing support, bug fixing, troubleshooting, performance optimisation and system enhancements.

Infosys has strategically positioned its operations across global locations. It has a global network of 139 development centres in both offshore and nearshore locations to optimise costs, resource allocation and real-time problem solving capabilities.

Infosys has a global focus on large enterprises. Over 200 its clients have an annual revenue spend of more than $100 million. The company is a technology partner for numerous Fortune 500 companies.

Company Infosys Limited
Establishment Year 1981
Founder Narayana Murthy, Nandan Nilekani
Headquarters Bengaluru, Karnataka, India
Industry IT Consulting and Outsourcing
Net Worth $74.20 billion
Revenue In 2024 $18.6 billion

How Does Infosys Make Money?

1. IT Consulting Services

Infosys earns a major part of its revenue from IT consulting services designed to help businesses in improving their processes, technologies and systems. They include digital transformation, strategy consulting, cybersecurity, cloud computing, enterprise application services and analytics.

The company generates revenue by charging its clients for these services. Pricing model can be contract-based or on a time and materials basis.

2. Application Development and Maintenance

Infosys offers comprehensive customised app development and maintenance services, right from designing, coding and testing to deployment and ongoing support. The charges depend upon the complexity and scope of the project, and determined on a fixed-price or time and material basis.

3. Business Process Outsourcing

Infosys offers BPO services to take over and run various non-core business processes on behalf of its clients. The services cover various departments like finance and accounting, HR, procurement, customer support and more. Infosys charges a fee for running these processes on the basis of transactions or employees involved.

4. Hardware and Software Products

Infosys designs, develops, tests and maintains numerous hardware and software products for businesses across industries. Revenue is earned by charging the clients for the product development service, with prices depending upon scope and scale of the project.

Financial Snapshot of Infosys

Infosys uses a variety of pricing models. These include time-and-material, fixed-price and outcome-based. Employee compensation is the primary expense of the company. By shifting more projects to offshore locations at lower costs, the company is able to reduce expenses and improve margins.

Infosys reported a revenue of $19.28 billion for FY 2025, with a constant currency growth of 4.2%. Net income stood at $3.16 billion, with a net income margin of 16.4%. The company’s operating margin of 21.1% in FY 2025 indicates effective cost management.

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