Infosys Business Consulting

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INFOSYS CONSULTING IN 2006: Leading the Next Generation of Business and IT consulting IT Industry Overview of the IT Services Industry: Early 1990s: BPO work in India; largely conducted by captive American companies (GE etc.) Late 1990s: Expansion of Indian IT companies like Infosys adding service lines. Leverage the benefits of off-shoring 2000s: Growth of Indian IT services cos. And expansion of global firms in India Predominant model: Global delivery; demand for end to end services (business consulting, app. development etc. Two different approaches: On-shore US firms leveraging offshore centers; offshore firms offering consulting Onshore (U.S.-Based) Leading Players: IBM, Accenture Offshore (Indian) Leading players: TCS, Wipro, Infosys Technology 47% annual growth (2003 vs. 2004) Still 0.8% market share Fragmented Market

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Case Analysis

Transcript of Infosys Business Consulting

Page 1: Infosys Business Consulting

INFOSYS CONSULTING IN 2006:Leading the Next Generation of Business and IT consulting

IT Industry Overview of the IT Services Industry: Early 1990s: BPO work in India; largely conducted by captive American companies (GE etc.) Late 1990s: Expansion of Indian IT companies like Infosys adding service lines. Leverage the

benefits of off-shoring 2000s: Growth of Indian IT services cos. And expansion of global firms in India Predominant model: Global delivery; demand for end to end services (business consulting, app.

development etc. Two different approaches: On-shore US firms leveraging offshore centers; offshore firms offering

consulting

Onshore (U.S.-Based) Leading Players: IBM, Accenture

Offshore (Indian) Leading players: TCS, Wipro, Infosys Technology

47% annual growth (2003 vs. 2004) Still 0.8% market share

Fragmented Market

Value Chain:

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US companies are moving down the value chain Indian companies are trying to move up

ICI Consulting ModelMission and Objective:

Help clients become more competitive Delivering high quality business consulting and disciplined technology implementation at

extremely competitive price Help develop their employees into great leaders Partners committed to changing the rules of the game within the consulting industry

Creating a different model The 1-1-3 Global delivery model: 1 ICI onsite resource, 1 Infosys Tech onsite, 3 Infosys Tech

offsite resources Integration of business consulting and technology implementation lifecycle Training and knowledge of global delivery of Infosys Technology’s onsite resource, a key

differentiating factor from competitor’s approaches. Shortening the lifecycle of solution Design to Implementation

Different approach to implementing technology for operational improvements Looked at process requirements rather than functional Better identification of inefficiencies Real time development by synergizing onsite and offshore teams for design and

software configuration Cost reduction : Rate of approximately $100/hour, much lower in comparison to competitors

($175-$200) Strong competitive barrier as there are structural challenges to replicate this model. It will take

the competitors 3-5 years atleast. Delivering Measurable Benefits:

CMM level 5 rating, exceeding the highest quality level by a factor of 20 Focus on achieving measurable improvements in business process metrics of the client Structured value-based deals with clients: fees were based on the success of a spend

management engagement Own set of metrics to track quality of work by taking feedback from clients

Challenges of Culture Integration: ICI formed by a team of outsiders. Different people: foreigners in ICI vs. Indians in ICT. Building a unique culture: Tradeoff between arrogant, confident consulting firm and Infosys

value system of delivering with humility.

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Creating a differentiated approach: Focus on meritocracy and transparency; Bonus structure based on overall client value delivered.

Relationship with Infosys Tech Wholly owned subsidiary Autonomy to create its own culture, organizational structure, recruitment strategy, and

compensation packages Leveraging parent company to get client engagements ICI included in client offerings of Infosys Tech. “The Fork in the Road” methodology : pursuit of the client relationship would be

allocated to the area of the company that best served the client’s situation Interfacing: Quarterly meetings between the leaders of ICI and Infosys Tech. to ensure

knowledge exchange Active intervention by senior management of Infosys to monitor the subsidiary’s

performance

ICI: The way forward Expand global reach in terms of revenue and market share Look beyond GDM: Deliver higher value and communicate Recruiting the best people: Getting the best talent Integrate ICI and Infosys Tech. to have better interface Building the brand: Infosys is still known as IT services company Infosys should leverage ICI to strengthen its position in current market and prepare for further

industry transformations.