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
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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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