Global Delivery System At Infosys

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INFOSYS GLOBAL DELIVERY MODEL Case Presentation

Presented By: Group 1

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AGENDA

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ABSTRACT OF THE CASE q

The case examines the global delivery model (GDM) of the leading India based software company - Infosys Technologies.

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Infosys used GDM as a strategic outsourcing tool; using it, the company could take the work to the place where it could be best performed at lowest cost with minimum risk.

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Using GDM, Infosys delivered the highest process and quality standards, while leveraging differences in cost, quality and skill sets of manpower in different global locations.

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The case presents an in-depth information on the operational aspects of GDM and its benefits to Infosys.

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It also discusses the challenges faced by the company from foreign and Indian software companies Confidential

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KEY ISSUES q

Study and analyze the operational aspects of the Global Delivery Model of Infosys.

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Analyze how GDM emerged as a source of competitive advantage to Infosys.

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Understand the factors that contributed to the success of GDM.

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Examine the challenges faced by Infosys from foreign and Indian software companies

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GLOBAL COMPANY, GLOBAL OUTREACH

Canada

Europe: Stockholm Brussels Amsterdam London Frankfurt Paris Zurich Japan, Australia, Hong Kong, China, Singapore, Sharjah, Mauritius

USA: Atlanta, Boston, Chicago, Dallas, Detroit, Los Angeles, New York, Fremont, Seattle Argentina India: Bangalore, Chennai, Pune Bhubaneswar, Hyderabad, Mangalore, Mohali, Mysore Delhi, Mumbai

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GLOBAL DELIVERY MODEL

It is based on the principle of taking work where it can be done best, makes the most economic sense with least amount of acceptable risk

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INFOSYS GLOBAL DELIVERY MODEL

Why GDM at Infosys? q

Business Expansions

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Increase in Foreign Clients

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Increase in Talent Pool

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Need to open development center near client’s location

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ABOUT INFOSYS GDM q

Initially - GDM was deployed for Application development. Now – Included new services like package implementation, BPM, testing, consulting and business integration.

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GDM divided in 3 categories: - Client location - Closer to client - Remote location Global Delivery Center – Two Types 1. Proximity Development Centers (PDC) 2. Offshore Development Center (ODC)

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EXPANDING GDM GDM PLUS -Strategic response to changing market conditions -Integrated delivery model -Execution Excellence -Avoiding risk of predatory pricing of competitors

INFOSYS CONSULTING - Providing IT services - Providing consultancy services

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MAJOR COMPONENTS

q q q q q q q q q

Knowledge capture. Daily handoffs. Quality control. Continuous improvement. Mobilizing & demobilizing of staff as required. Distribution of staff between onsite & offsite locations. Recruiting & training the right kind of people Billing for cross-border teams, and Connectivity of the locations.

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WORKING OF INFOSYS GDM q

Organization into modules.

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Parallel processing of resources & activities.

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Clear transparency between teams & modules.

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Proactive approach before project’s beginning.

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Comparative analysis of competencies.

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Conduction of client meetings & preparation of status reports.

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ADVANTAGES q

Access to a large pool of highly talented professionals.

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24 hr. execution capability with operations spread across different time zones.

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Expedite large projects by simultaneously processing the project components.

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Enhanced security through physical & operational separation of clients project.

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Cost competitiveness across geographic regions.

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Uninterrupted services through built –in redundancies.

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Knowledge management system, through which solution could be re-used.

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DISADVANTAGES q

Complex to understand.

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No verticalised structure.

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Language Constraints

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Management and communication overheads.

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MANAGEMENT CONTROL SYSTEM @ INFOSYS q

PROJECT Specific -Closure Reports -Daily Worksheets -Quality System Documentation -Defect Checks -People Knowledge Map - Project specific training

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ORGANISATION Specific -Sarbens Oxley Compliance -Anti Money Laundering Practices -Implementation of Patriot act

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FIVE PILLARS OF MCS

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CONTROL PROCESSES

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Benchmarking against international quality standards.

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Six Sigma

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Detailed checklist

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Standard Guidelines & Templates

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Business continuity & disaster recovery

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Competency Mapping

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INFRASTRUCTURE q

Job allocation according to maximisation of skills at minimum cost.

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Parallel processing for deployment of activities & resources.

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Use of satellites & fibre optic links with facilities of alternate routing.

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MANAGEMENT q

Setting up of BOK.

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People knowledge map.

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Values & policies. -quality manuals -quality & productivity charters.

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REWARDS q

Variable component in salary -50% for top management -30% for middle management -10% for junior level staff

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Role based structure.

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High Compensation

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INTEGRATION & COORDINATION q

Seamless communication

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Closure reports

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Daily worksheets

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Quality system documentation

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Body of Knowledge

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CHALLENGES q

Heavily dependent on US based companies.

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Growing competition from other countries i.e. Phillipines, China

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Low Cost & high- value added custom built solutions from competitors.

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To effectively implement verticalised structure as adapted by Wipro technologies.

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Predatory Pricing Confidential

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RECOMMENDATIONS q

Demonstrate consistent performance and profitability.

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Creating customer & employee value through building deep relationships and loyalty.

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Act as an end-to-end business transformation player with appropriate brand awareness and positioning

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Leveraging the global delivery model with sustained excellence in execution through appropriate management control system.

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Manpower to be talented, best-in-class people with a multicultural, strong performance ethics.

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Focus on other geographic areas for business.

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ASPIRATION TO ACTION… IN CHALLENGING TIMES Controlled Business Environme nt

Existing Business Environment

Strengthen Value Business and Defend Volume Business

Capabilities and Talent

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The Emerging Infosys

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Fix Op era tio nal Ser vic e Pro ble ms

Be nc hm ark ing , Qu alit y sta nd ard s

M iti g at in g Ri s k

Upgr ade and Refo cus Skills Regu larly Acce ss to High Talen t Reso urce Need s

Si x Si g m a, IS O 90 00

Increa Improv se e Flexibi Service lity / /Agility Quality

High Skill ed Man pow er T ran sfer to Vari abl e Cos t Str uct ure

C apt ure, Gua rant ee and Acc eler ate Sav ing s

Manage Cost

LEARNINGS FROM INFOSYS GDM

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Thank You

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