Group 2Amol Deherkar 040/46Ankit Sukhija 052/46

Madhan Darwin 168/46

INFOSYS CONSULTING

Overview of IT Services IndustryEarly 1990s: BPO Work in India; largely conducted

by captive units of American Companies (GE etc.)Late 1990s: Expansion of Indian IT companies like

Infosys by adding service lines. Leverage the benefits of offshoring

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: onshore US firms leveraging offshore centers; offshore firms offering consulting

ICI Consulting ModelMission and Objective:Help clients become more competitiveDelivering 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 modelThe 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 competitors’ approaches

Different ModelShortening 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 s/w configuration

Cost Reduction:- Blended rate of $100 per hour Vs. $175-225 for IBM etc- Strong competitive barrier: structural challenges in replication

Different ModelDelivering Measurable Benefits:

- CMM Level 5 rating; exceeded 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 owed to the company contingent on project outcomes- Internal metrics to track the quality of work performed by using elaborate client feedback mechanism

Different ModelBuilding a unique culture

- Tradeoff between the ‘confident, assertive business advice consultant’ and the Infosys value system of delivering with a sense of humility

Creating a differentiated approach- Focus on transparency and meritocracy- Staffing model: responsibility with individuals; reverse auctioning model- Staff nominations for promotion- Bonus structure based on overall client value created

Interpretive SchemeShades of both (especially HRM systems), but

overall structure more towards MPB typeExternal ownership (subsidiary of a corporate

entity)Consulting approach: services related to a

particular product (Business/IT consulting, and Not Mgmt consulting)

Org Structure: High Leverage ratio (about 19) Decision-making: more directive than

consensualAdministrative tasks: No hint of partners

sharing; possibility of dedicated staff

Relationship with Infosys Tech.Wholly owned US subsidiaryAutonomy to create its own culture, recruitment

strategy, organizational structure and compensation packages

Metrics established to measure the interfaceLeveraged parent company to get client

engagementsICI included in service offerings of Infosys Tech.“One Infy” program to enhance cultural

integration mechanisms like forums for employees to meet/learn

Improving internal collaborative mechanisms so that clients see Infosys as one company

Relationship with Infosys Tech.Initial tensions in the company on who would lead

the client relationship – resolved by “The Fork in the Road” methodology

Allocation to the area that best served the client’s situation

ICI also brought in new clients for Infosys Tech.Active intervention by the senior management

of Infosys to review subsidiary’s performanceRelationship with ICI seen by Infosys as an

opportunity to transform culture and build a global brand over time

HRM SystemsShades of both P2 & MPB Arch typesP2 Features

Focus on broad level of generic SkillsSelection based on Personal interactions

similar to P2 firms“One Infy” similar to “One Firm Concept”Project Staffing : On demand by Employees

MPB FeaturesOutcome based performance MatrixSome standardization of Processes offeringsMajor ownership not with employees

Contd …

HRM SystemsCombined Features

Training Method: Emphasis Interpersonal,Analytical,Managerial and Technical skillsCross training

Firm Size :Smaller ICI Group(Elitism) with a Larger Infosys Technologies backing

Responsibility of Hiring and Recruitment mid way between P2 & MPBLocal Hiring

HRM Policies : CultureKey Features

Alignment with Infosys Culture ofHigh qualityMeasurement of every aspect of PerformanceMaintaining a sense of Humility

OutcomeAlignment of goals with Infosys TechnologiesSupport for 1-1-3 delivery modelAvoiding Project Leadership Conflicts with

the technlogy organization (Fork in the Road)

HRM Policies : RecruitmentKey Features

Top 10% Talent in lateral hiringRecruiting from Infosys technologiesDiversity & Local Presence

OutcomesShortened Lifecycle of Solutions design to

ImplementationOnsite SupportCost ReductionSupports the Global Delivery Model

HRM Policies : Performance ReviewKey features

Individuals bid for projects and set the goalsMeasurement of attainment of the targets

and Client SatisfactionPeer ReviewManaging Work life balance

OutcomesImprovement in Quality of OutputValue delivered to the shareholders of the

Client

HRM Policies : CompensationKey Features

Employed paid at higher end of Market ratesBonus Structure linked to delivery of Client

ValuesInfosys Sales teams incentivized on ICI Business

OutcomesAttracting top talentCustomer focused EvaluationsEnables getting repeat business from existing

clients of Infosys technologies

RecommendationsAggressive Hiring :

The ratio of 200/50000 employees of ICI/ITL is still pretty low

Huge potential with large base of loyal ITL Clients

Focus on Indian MarketsHuge Potential in the MarketUnderstanding cultural context essential for

Consulting: With large number of Indians as employees this would be easier

Sales process can be easier

RecommendationsICI Branding

Value focus vs. Cost focusshould set POD from Infosys Technologies

(ITL)

Senior Consultants as Account ManagersSenior Consultants should be aligned to ITL

accounts to identify new business opportunities

Performance measurement not only on deliverables but acquired business

Thank You !!!