Company: INFY
Filing Date: 2025-07-01
Form Type: 20-F
Source: 0000950170-25-091925
Chunk: 17

Company: Infosys Ltd
Filing Date: 2025-07-01
Form: 20-F
Item: Item 3
Chunk 17
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 had, and may in the future have design or operating gaps or weakness due to the large size of the organization. This may lead to control failures such as fraud, cybersecurity attacks, and privacy breaches which in turn may negatively impact our reputation, financial condition, profitability, and stakeholder relationships.

Inadequate financial controls may increase the possibility of fraud and/or negatively impact the accuracy of our financial reporting and shareholder relationships. In addition, continued growth increases the challenges involved in:

•recruiting, training and retaining sufficient skilled technical, marketing and management personnel;
•adhering to and further improving our high quality and process execution standards;
•preserving our culture, values and entrepreneurial environment;
•successfully expanding the range of services offered to our clients;
•developing and improving our internal administrative infrastructure, particularly our financial, operational, communications and other internal systems;

 

•maintaining high levels of client satisfaction; and
•maintaining an effective internal control system and training our employees to mitigate the risk of individuals engaging in unlawful or fraudulent activity, breaching contractual obligations, or otherwise exposing us to unacceptable business risks.
Our growth strategy relies on expanding our operations around the world. The costs involved in entering and establishing ourselves in new markets, and expanding such operations, may be higher than expected and we may face significant competition in these regions. Our inability to manage our expansion and related growth in these markets or regions may have an adverse effect on our business, results of operations and financial condition.
We may face competition in other countries from companies that may have more experience with operations in such countries or with international operations generally. We may also face difficulties integrating new facilities in different countries into our existing operations.
Our organizational structures, processes and culture may not be sufficiently agile and adaptive to embrace the changes required to execute our strategy.

Wage pressures and the hiring of employees and sub-contractors either outside or in India may prevent us from sustaining some of our competitive advantage and may reduce our profits.

Wage costs in India have historically been significantly lower than wage costs in the United States and Europe for comparably skilled professionals, which has been one of our competitive strengths. However, wages in India have seen considerable increases over the years, due to a multitude of factors, such as inflation, intense competition for skilled resources between IT services companies and the overall economic growth leading to competition from traditional industrial sectors. Additionally, we have historically experienced significant competition for employees from large multinational companies that have established and continue to establish offshore operations in India, including GCCs. Increased demand for talent in India