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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.

q 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.

q 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.

q The case presents an in-depth information on the operational aspects of


GDM and its benefits to Infosys.

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

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KEY ISSUES

q Study and analyze the operational aspects of the Global


Delivery Model of Infosys.
q Analyze how GDM emerged as a source of competitive
advantage to Infosys.
q Understand the factors that contributed to the success of GDM.
q Examine the challenges faced by Infosys from foreign and
Indian software companies

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GLOBAL COMPANY, GLOBAL OUTREACH

Europe: Stockholm
Brussels
Amsterdam
Canada London
Frankfurt
Paris
Zurich
Japan, Australia,
Hong Kong, China,
USA: Atlanta, Singapore, Sharjah,
Boston, Chicago, Mauritius
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
q Increase in Foreign Clients
q Increase in Talent Pool
q 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.

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

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WORKING OF INFOSYS GDM

q Organization into modules.


q Parallel processing of resources & activities.
q Clear transparency between teams & modules.
q Proactive approach before project’s beginning.
q Comparative analysis of competencies.
q Conduction of client meetings & preparation of status reports.

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ADVANTAGES

q Access to a large pool of highly talented professionals.


q 24 hr. execution capability with operations spread across different time
zones.
q Expedite large projects by simultaneously processing the project
components.
q Enhanced security through physical & operational separation of clients
project.
q Cost competitiveness across geographic regions.
q Uninterrupted services through built –in redundancies.
q Knowledge management system, through which solution could be re-used.

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DISADVANTAGES

q Complex to understand.

q No verticalised structure.

q Language Constraints

q 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

q 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

q Benchmarking against international quality standards.


q Six Sigma
q Detailed checklist
q Standard Guidelines & Templates
q Business continuity & disaster recovery
q Competency Mapping

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INFRASTRUCTURE

q Job allocation according to maximisation of skills at minimum


cost.

q Parallel processing for deployment of activities & resources.

q Use of satellites & fibre optic links with facilities of alternate


routing.

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MANAGEMENT

q Setting up of BOK.
q People knowledge map.
q 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
q Role based structure.
q High Compensation

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INTEGRATION & COORDINATION

q Seamless communication

q Closure reports

q Daily worksheets

q Quality system documentation

q Body of Knowledge

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CHALLENGES

q Heavily dependent on US based companies.

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


China

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

q To effectively implement verticalised structure as adapted by


Wipro technologies.

q Predatory Pricing

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RECOMMENDATIONS
q Demonstrate consistent performance and profitability.

q Creating customer & employee value through building


deep relationships and loyalty.

q Act as an end-to-end business transformation player with


appropriate brand awareness and positioning

q Leveraging the global delivery model with sustained


excellence in execution through appropriate
management control system.

q Manpower to be talented, best-in-class people with a


multicultural, strong performance ethics.

q Focus on other geographic areas for business.

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ASPIRATION TO ACTION… IN CHALLENGING TIMES

Controlled
Business
Environme
nt

Strengthen Value
Existing Business The
Business and Emerging
Environment Defend Volume Infosys
Business

Capabilities
and
Talent

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High Increa Improv Manage
- se e Cost
Skill Flexibi Service

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ed lity /
Man /Agility Quality
pow
er
Upgr M Si Be T C

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ade iti Fix x nc ran apt
and g Op Si hm sfer ure,
Refo at era g ark to Gua
cus in tio m ing Vari rant
Skills g nal a, , abl ee
Regu Ri Ser IS Qu e and
larly s vic O alit Cos Acc
Acce k e 90 y t eler
ss to Pro 00 sta Str ate
High ble nd uct Sav
Talen ms ard ure ing
LEARNINGS FROM INFOSYS GDM

t s s
Reso
urce
Need
s
Thank You

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