INFOSYS CONSULTING

(ICI)

OUTLINE
General Introduction History Strategic Position IT Service Industry Strategic Organization Conclusion

DEFINITION
Infosys Technologies Limited is one of the largest IT (Information Technology) company in India with 114,822 employees (including subsidiaries) as of 2010, June 30. It has global footprint with 63 offices and development centers.

HISTORY
It was corporated in 1981, 2 July by seven enterprenues who are Narayana Murthy and 6 engineers with US$ 250 in India, Pune. But today, they say We are a global leader in the next generation of IT and consulting with revenues of over US$ 4.8 billion with a market capitalization of approximately US$ 33 billion.

THE MILESTONES
In 1981, signs up its first client, Data Basies Corporation, NY In 1983, relocates sorporate headquarters to Bangalore In 1987, opens first internationale office in Boston In 1993, it goes public. In 1994, opens a development center at Fremant In 1995, opens first European office in UK In 1996, the Infosys Foundation is established In 1997, office in Toronto, Canada In 1998, starts enterprise solutions (packaged applications) practice In 1999, touches revenues US$ 100 million continues to open offices all over the world Infosys Business Consulting service is launched

 In 2000, US$ 200 million In 2001, US$ 400 million N. Murthy is rated among Time/CNNs 25 most influential businessmen in the world In 2002, US$ 500 million awards, offices, new CEO (Nandan M. Nilekani) In 2003, establishes subsidiaries in China & Australia In 2004, US$ 1 billion Infosys Consulting Inc. is launched In 2006, US$ 2 billion, employees 50.000+ In 2007, US$ 3 billion, employees 70.000+, new subsidiary In 2008, US$ 4.18 billion, annual net profits cross US$ 1 billion In 2009, employees strength grows to over 100.000 Over 29 years, the Global Delivery Model, NASDAQ (National Association of Securities Dealers Automated Quotations)

 VISION; to be a globally respected corporation that provides best-of-breed business slutions, leveraging technolgy delivered by best-in-class people. MISSION; to achieve their objectives in an enviroment towards their clients, employees, vendors, society at large.

VALUES Customer Delight Leadership by Example Integrity & Transparency Fairness Pursuit of Excellence

END-TO-END BUSINESS SOLUTIONS Business & technology consulting Application services System integration Product engineering Custom software development Maintenance Re-engineering Business process outsourcing, etc..

In 2006, leading the next generation technolgy consulting

Dream team, January 5, proud of growth Several challenges (IBM & Accenture) Also some internal challenges Declaration; changing the rules of the game within the consulting industry Their approach, unique model; benefits to clients, reduced costs, shortened lifecycle

FLASHBACK TO APRIL, 2004 & THE INCEPTION

In the 1990s, IT services companies by American ones. At first, unwillingness to work with third parties but through 1999, they gained confidence for benefits of offshoring, advantage of high quality at lower price, as a respond Indians took more service lines.

 Main objective; increase revenue by repeating business with client base. So, offer clients new opportunities Then, relationship with them becomes more complex. In order to manage this complexity, both the business site & IT site Finally, realize the opportunity of early relations with clients, define problems & identify solutions

 At that time, distruptive changen of IT service space New way, to apply Global Delivery Model Actually, their options; making acquisition & organically growing the business Since they wanted the new way, decide against acquisition. Also the latter, limit their ability for right-kind of talent Hybrid Model; US based, wholly owned subsidiaries

2006, OVERVIEW of IT SERVICE INDUSTRY

The market for IT, large & growing Overall spending on worldwide, 7 percent compound annualy, through 2009-803.9 billion $ from 2003-524 billion $. Again third part vendors for end-to-end services (no middlemen-directly connecting people who want to sell & buy)

As a result, two different approaches in the market place Onshore US (like IBM & Accenture) leveraged off shore centers for development and implementation aspects of the value chain. Offshore firms (like Infosys,TATA, Wipro) started offering higher-end consulting services.

Competation from Indians companies Accenture, to inrease size of its work force in India (from less than 5000 in 2003 to more than 11.000 in 2004) 18.000 n 2006 and goal of reaching 34.000 in a few years IBM, also added 6.000 employees in 2004, acquisition of Daksh eServices, a BPO firm, call center vendor, a new Global Business solution center, 38.500 employees in 2006.

 Presence of more global companies, prices & wages increased. At the end of 2004, Infosys and Wipro raised wages for mid-level workers of 1520 percent to prevent attrition. Also, stock-based compensation for productivity Both Indian & US firms, building presence throughout China,Malesia, Brasil,E.Europe

ICI STRATEGY & ORGANIZATION

The leadership teams mission; new generation of business consulting is that to help clients become more competetive and to help develop their employees into great leaders. Strategy; the delivery of high quality business consulting & disciplined technolgy implementation, at an extremely competetive prices The plan; Infosys Global Delivery Model (GDM), company structure for a unique culture by differentiation

GDM
Projects, into logical components, to different locations, to be delivered at max value in the most efficient manner Cutting costs by 30 percent, decreasing time to market due to 24-hour project work day (1-1-3 model that gave the client one ICI resources onsite, one Infosys resource on-site, three Infosys resources offshore

SHORTENING the LIFECYCLE of SOLUTION DESIGN to IMPLEMENTATION

Traditional approach; a design phase that was distinct from a development phase (by vertical functions such as sales, marketing, manufacturing, etc..) ICIs approach; looking at process requirements rather than functional ones (by horizontal processes such as product development process)

Multiple level of processes Level 0 is the highest aggresation Most companies had 5 to 10 level 0 ICI organized the project team against each identified level 0 process.

Team & client, during the day, to capture design of process object. At night, the offshore team, converted design templates into software configuration

 Next day, on-site team, test it with client & undergo a second iteration of design. At that night, the offshore team, develop second iteration. So, typically 4-5 iterations for each obj. Each sub-team organization take a week If there were 6 sub-teams, 6 process objects are created in one week e.g. 200 process obj. in 6 months whereas in 10-12 months with traditional approach

COST REDUCTION

This gives a lower cost to clients and much higher margins for themselves. Main benefit for clients; cost savings, reinvest into business, more competetive The model, easy to imitiate but there is a structural challenge involved in replicating

DELIVERING MEASURABLE BENEFIT CMM (Capability Maturity Model), judged the maturity of an organizations software process and dentified key practises to inrease the maturity of this process Firms effort is first, to analyze client for current operations and to establish base-line for business process performance.The next, process metrics for efficiency & effectiveness of each process.Then to design changes in structure and to enable technology for defined improvement, so feedbacks from clients (whether meet expectations or exceed them)

COMPANY ORGANIZATION
Altough Infosys Technologies went to market as one,in order to establish a succesful consulting business; ICIs autonomy is to create its own culture, recruitment structure, organizational structure and compensation packages.

BUILDING A UNIQUE CULTURE

Their need for differentiation The culture based on its values; delivering high quality work, measuring every aspect performance, maintaining a sense of humility

RECRUITING THE RIGHT PEOPLE

Narayana Murthys philisphy, to hire first-rate employees only. Referral-based system; to target top 10 percent of talent from other companies. Demand for more women employees Represantation in local communities (more than 80 % of their consultants are citizens of the local country)

CREATING DIFFERENTIAL APPROACH

Meritocracy & transperancy e.g. the responcibility for contributing the firm was given to individual employee Staffing system; where employees could input their skills into a database. Another system, incorporating staff nominations for promotion. (all employee could nominate & score eachother) By leveraging GDM, 24-hour work cycle (time diffrential of the various teams) e.g. to block out certain times when they would unavailable to work

REWARDING EMPLOYEES

ICI compensated employees at the higher end of market rates. the only consulting firm, pays people based on delivered client value. End of every engagement, ICI asked clients percentage of business value, anticipated and realized. That translated into direct multiplier of employee bonuses. Firm also created a client mutual fund.

MANAGING THE RELATIONSHIP WITH INFOSYS TECHNOLOGIES

Management of both ICI & Infosys tech.; a seamless interface between the parent company and the subsidiary to achieve ICI mirror parent company & metrics, how well two companies work together To get right metrics, get the right business planing in place.

 Infosys tech business units, specific goal related to consulting ; ICI business unit, specific goal related to revenue for Infosys tech. Constant education, more engagements ICI do with clients , the more they understand what Infosys tech. really does and vice versa.

LEVERAGING THE PARENT COMPANY

One Infosys, internal program, to structure incentives and to set goals for more collaboration among employees across firm Capabilities, alignment with goal of saving clients and winning in the market place Focused on, training program for employees, collaborative skills, to ensure that new employees through cross-business training

INTERFACE CHALLENGES All pieces of company working together in a manner that optimized performance. Infosys tech.s viewpoint, working with ICI as an opportunity in order to transform the companys culture and to build the brand into a global transformation enabler. Leaderships of both, interacting with eachother regularly, a constant education for everyone. Becoming a global company, bringing managers from US & Europe. Migration of management from ICI to the parent c.

CONCLUSION
ICI had distruptive change in the business and IT industry, through its unique approach and organization. Steve Pratt -CEO- evaulated ways in which firm could stay ahead of the game Internal challenges of building the business, managing growth & interfacing productivty with parent company External challenge of capturing & maintaining market share in the consulting industry. S.Pratts key concern, to get the right people to do the right thing or right people in right roles

The case study Wikipedia infosys.com

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