INFOSYS CONSULTING (ICI): General Introduction History Strategic Position IT Service Industry Strategic Organization Conclusion Infosys Technologies

logies 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 incorporated in 1981, 2 July by seven entrepreneurs 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 Basis Corporation, NY In 1983, relocates corporate headquarters to Bangalore In 1987, opens first international office in Boston In 1993, it goes public. In 1994, opens a development center at Ferment 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 In 2003, establishes subsidiaries in China & Australia In 2004, US$ 1 billion Infosys Consulting Inc: (ICI): 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 VISION: to be a globally respected corporation that provides best-of-breed business solutions, leveraging technology delivered by best-in-class people. MISSION: to achieve their objectives in an environment 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 Their approach, unique model, benefits to clients, reduced costs, shortened life cycle Reason for ICI 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 off shoring, 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 change 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 subsidiaries2006,

OVERVIEW of ITS SERVICE INDUSTRY: The market for IT, large & growing Overall spending on worldwide, 7 percent compound annually, 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, and Wipro) started offering higher-end consulting, services, and competition from Indians companies Accenture, to increase size of its work force in India (from less than 5000 in 2003 more than 11.000 in 2004) 18.000 in 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 15- 20 percent to prevent attrition. Also, stock-based compensation for productivity Both Indian & US firms, building presence throughout China, Malaysia, Brazil, Eastern Europe ICI STRATEGY & ORGANIZATION: The leadership teams mission; new generation of business consulting is that to help clients become more competitive and to help develop their employees into great leaders. Strategy; the delivery of high quality business consulting & disciplined technology implementation, at an extremely competitive 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 maximum 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, and three Infosys resources offshore shortening the life cycle of project. 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 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 competitive the model, easy to imitate 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 identified key practices to increase 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 is process metrics for efficiency and 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:

 Although Infosys Technologies went to market as one, in order to establish a successful 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 philosophy is to hire first-rate employees only. Referral-based system; to target top 10 percent of talent from other companies. Demand for more women employees Representation in local communities (more than 80 % of their consultants are citizens of the local country) CREATING DIFFERENTIAL APPROACH: Meritocracy & transparency e.g. the responsibility 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 employees could nominate & score each other) By leveraging GDM, 24-hour work cycle (time differential 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 planning 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 NTERFACE CHALLENGES: All pieces of company working together in a manner that optimized performance. Infosys techs 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 each other regularly, a constant education for everyone. Becoming a global company, bringing managers from US & Europe. Migration of management from ICI to the parent CONCLUSION: ICI had disruptive change in the business and IT industry, through its unique approach and organization. Steve Pratt -CEO- evaluated ways in which firm could stay ahead of the game Internal challenges of building the business, managing growth & interfacing productivity 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.