Assignment

no.1
0n
Management
control
System of
Infosys
Submitted to-:
Submitted to-:

Astt. Prof
Ashish
Anshul pardesi
MBA 4th sem.(468)

Introduction of MCS-:
Management Control System (MCS) is a system which is an
aggregate of machines and people that work toward a common
objective. A system can be described as a series of steps or
phases consisting of an input phase, a processing phase, and
an output phase. A control system adds measurement, analysis
and reporting phases to the system. Output is measured,
compared against a plan, analyzed and then reported back to
the appropriate earlier phases of the system in the form of
positive or negative reinforcement. In MCS, data/information is
typically fed back to managers of the various system phases.
Responsible managers will then take appropriate action based
on the data/information provided.

Infosys Technologies Limited ( Infosys)

Infosys, started in 1981 by seven people with US$ 250, is today
a global leader in the "next generation" of Information
Technology (IT) and Consulting, with revenues of US$ 6.604
billion (Q2-FY12). Infosys defines, designs and delivers
technology-enabled business solutions for Global 2000
companies. Infosys also provides a complete range of services
by leveraging its domain and business expertise and strategic

alliances with leading technology providers. Its offerings span

business and technology consulting, services, systems, product
engineering, custom software development, maintenance, reengineering, independent testing and validation services, IT
infrastructure services and business process outsourcing.
Infosys pioneered the Global Delivery Model (GDM), which
emerged as a disruptive force in the industry leading to the rise
of offshore outsourcing. The GDM is based on the principle of
taking work to the location where the best talent is available,
where it makes the best economic sense, with the least amount
of acceptable risk.

Vision and Mission

Infosys vision is that it will be a globally respected
corporation." Its mission is "strategic partnerships for building
tomorrows enterprise."

Organization Structure-:
(i) Infosys in the beginning Infosys was a start-up founded by 7
individuals. Early days were a constant struggle due to the
dynamic environment. Infosys focus was on delivering a single
product based on single technology in a single marketplace.
Low degree of Formalization, low complexity and high
centralization were few of the characteristics.
(ii) Period from 1989-2002 In 1989, company lost some key
accounts which led to a drastic change in the overall strategy.
The period after liberalization led to massive growth. Infosys
started catering to different market segments and different
clients. It had to adhere to a new set of guidelines and
streamline process due to the IPO in 1992. Its structure was
split up into functional units and the Project Matrix Structure
was employed within the production unit. These changes lead
to increasing complexity, moderate formalization and moderate
degree of centralization.

(iii) 2003 Onwards Infosys had become too big to carry on

without modifying the existing structure so the concept of
decentralization was brought in. The company was divided into
IBUs (India Business Units), each IBU concentrated on a
particular sector and this made the company more customerfocused.
Managers of each IBU were empowered to take
decisions to further the IBUs prospects and within each IBU the
project matrix structure was carried forward. Decentralized
system with an ability to take quick decisions was built.
Organization Strategy
1 Infosys has adopted a client-focused strategy to achieve
growth.
2 Focuses on limited number of large organizations throughout
world.
3 Infosys commands premium margins.
4 Increase business from existing and new clients.
Market Penetration Strategy
1 Current Markets: USA and Europe
2 Current Products: ADM, BPO, KPO etc
Market Development Strtegy
1 New Market: India, Middle-east and Australia
2 Current Product: ADM, BPO, KPO etc.
Product Development Strategy
1 Current Market: USA and Europe
2New Product: Consultancy and package implementation
services in
relatively growing sectors esp. healthcare, life
sciences etc.

Management Style and Culture

Culture at Infosys Culture represents collective norms and

behaviors of a group of people be it any region, country or an
organization. Organizational or management cultures are the
characteristics that are based on morals, values, traditions and
personnel behavior. It is generally set by the higher
management in an organization and most of the times it acts as
a control mechanism.
The various dimensions of Management culture are as follows:
Process vs. Result- whether the company focuses more on
the manner in which work is done or the outcome.
Job vs. Employee- whether the company focuses more on the
work to be done or on its employees wellbeing.
Open vs. Closed- whether anyone can
organization or only special few people can join.

fit

into

the

Loose vs. Tight Control- management is casual or serious.

Normative or Pragmatic- whether ideologically driven or
market driven.
According to Mr. Narayan Murthy It is our vision at Infosys, to
create world-class leaders who will be at the forefront of
business and technology in today's competitive marketplace.
This has been at the forefront of their management culture.
Infosys is often voted as one of the top employers of India for
its management culture andemployee friendly practices which
often act as their control system as well.
Infosys Culture: Infosys stresses that its operations are driven
by key values that is called as C-LIFE.
1. Customer Delight: A commitment to surpassing our
customer expectations.
2. Leadership by Example: A commitment to set standards in
our business and transactions and be an exemplar for the
industry and our own teams.

3. Integrity and Transparency: A commitment to be ethical,

sincere and open in our dealings.
4. Fairness: A commitment to be objective and transactionoriented, thereby earning trust and respect.
5. Pursuit of Excellence: A commitment to strive relentlessly,
to constantly improve ourselves, our teams, our services and
products so as to become the best.

Management Style at Infosys

Infosys recognizes the importance of staffing, the value of its
human resource. So they put lot of attentions towards their
assets. They have:1 Long working hours
2 High variable salary
3 Stiff dress code policy
4 Low package than industrial average.
5 ESOP options
6 Reward system for overtime pay, merit par & skilled based
pay.

Challenges-:
MNCs like Accenture, IBM Global Services, and Electronic Data
Systems have started operating from India and began offering
the same offshore rates as Indian companies.
1 The entry of multinationals has put pressure on Infosys in
terms of retaining talented manpower.

2 Infosys faced stiff competition from other Indian IT companies

which were adopting new structures.
3 Infosys and its GDM were heavily dependent on US-based
companies. Since the IT spending of the US companies was
decreasing and was expected to reduce further, it could put
Infosys in a tight spot.
4 Infosys also faced growing competition from countries like
China and the Philippines which were offering lower wages and
more facilities.

Conclusions-:
Infosys has been successfully adopting both formal control
systems like planning, budgeting and reporting and informal
control systems like goal oriented behavior leading to
improvement in productivity and achievement in organizational
change constantly.