The globalization of markets for goods and services is continuing at an unabated pace. But the globalized market is highly fragmented and there are several players in IT industry who focus on one or two lines of business and operate globally or in one geography. While other IT companies focused on either the software services business or the products business, 3i Infotech envisaged to straddle both domains and has positioned itself as Solution Company having a service-product mix. But initially the company did not have products to offer to the requirements of the emerging economies. So they adopted and developed a strategy of acquiring products already launched and accepted in the market and making them stronger offerings. The case analyzes the pros and cons of this unconventional strategic plan and contemplates on the issue if the same unprecedented growth of 3i Infotech would continue with this same strategy.

3i Infotech has undergone great evolutionary changes within few years from being just a processing unit of ICIC Ltd., to a stand-alone company earlier known as ICICI Infotech. Since 1999, the company's revenue grew from 417 mn in 1999-2000 to 12.24 bn in 2007-08. The company took a hybrid strategy which resulted in revenues coming from service and product portfolio (50:50), and from developed as well as emerging markets. Such `de-risked' business model can propel the growth of the company in the future.

In its early phase (in early 2000), the company not only adopted an organic growth, but also an inorganic growth to expand its product and service portfolio among the developed as well as emerging markets. To execute its action plan efficiently, 3i Infotech raised US$150 mn and €45 mn through zero-coupon Foreign Currency Convertible Bond (FCCB). The company has been performing well but now (2008) is the real testing time when the world is undergoing an unprecedented `sub-prime' crisis. The question is: Will the company be able to survive and maintain the pace of growth in the future, and what are the future growth drivers in terms of vertical and geographical growth?

3i Infotech, promoted by the New York Stock Exchange (NYSE) listed ICICI bank, has come a long way since its inception. In 1993 it was a part of ICICI Ltd., just as a back office processing unit with a mandate of acting as a `Registrar and Transfer Agent' for the parent company, ICICI Ltd. Early in 1997, its investment was in cutting edge technologies like image-based processing and rule-based workflow management, to provide top quality service to its retail investors. Its excellent performance has given it an additional responsibility of implementing processes and supporting technology innovation within the ICICI Bank group.

Business Strategy Journal, 3i Infotech, Globalization, Software Services Business, ICICI Infotech, Emerging Markets, Foreign Currency Convertible Bond, FCCB, Global Technology Companies, Custom Software Development, Enterprise Application Integration, Product Re-Engineering, E-governance, Mutual Fund Sectors, Indian IT Industry, Business Processing Outsourcing, Software Products, Enterprise Resource Planning, Business Intelligence.