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Sheraz Ahmed
Journey Started
In 1981, Murthy and six of his associates at PCS formed a company named Infosys technologies Initial capital was 10,000 Rs. All borrowed from spouses They always complement each other without threading each others toes They prize fairness, dignity and respect Ex: Murthy asked Shibulal not to go home before solving a problem and he stayed 4 days at office without going home
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Journey Started
Murthy once said Our goal is to be the short-list of every Fortune 500 CEO and CIO when ever they have a business problem that requires information technology to resolve It took 12 month and 15 visit to Delhi to get a permission to import a computer It took 12 month to get a telephone They wanted not just to be a successful company but to be a trailblazer They wanted to build a firm that was professionally managed with good corporate governance, good 4 employee management and good emetics
Business: IT consulting and services (Founded in 1981) HQ, Bangalore, India; U.S HQ: Fremont, CA. Growth: CAGR of 50% over the last decade; MCap: ~25 B US$ FY 2005-06 revenues: ~US $2.1 billion with around 50, 000 employees 1999 2005: Growth of1400%, revenue terms;1000%, employee numbers Global Operations, primarily servicing Fortune 500 and Global 1000 clients located in the Americas, Europe and the Asia-Pacific Development Centers: India (8), NA (5), 1 in each U.K., East Asia and APAC Marketing offices: ~ 36 all over the world Quest for excellence integral to its social/ cultural fabric from early years Pioneers of the Global Delivery Model (GDM) for development of customized IT solutions
In 1989 Indian Govt imposed some new regulations and Infosys could no longer send programmers in US. They could not setup office in US They were on the verge of selling their company. But Murthy stand tall. And they survived !
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In 1991 Govt relaxed some trade and exchange control Result is now Infosys can send his resources freely to abroad, set up offices abroad and hire foreign consultants They goes to IPO at 1993 Fresh wind blows to Infosys By 1993 they have expanded to 500 in their own campus
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Rapid Growth
In 1993 500 In 1994 1000 By year 2000 Infosys became 18,000 people company 50 acres of campus which is largest in the world in the service industry. 25 building in the campus Registered in NASDAQ Pursue clients to develop Offshore Development Center with them Over 1 million employees Infosys & subsidiaries
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Rapid Growth
Quality, Quality, Quality ISO 9000 CMM Fixed time, Fixed Price with Quality delivery
They enjoy the low cost largest skilled resource pool in the world. This helped them to grow very fast
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As soon as Govt relaxed some trade and exchange control, MNCs like IBM decided to come to India Infosys faced serious challenge as MNCs offered very lucrative packages to competent resources They had two options. One is to lobby the Govt to keep the MNCs out. Other is to face MNCs Infosys took the second choice. They thought the only way to survive and grow is by putting own house in order Infosys analysed that bright people would go to MNCs because they provide better compensation and good environment. So they decided to do the same
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This implies the buying power of Customer. They faced it with GE Once their 40% of revenue comes from GE GE put them in a difficult position with rates. They insisted always to lower the rate. They decided not to depend on only one customer so much So finally they come to a decision that they will depend max 10% of total revenue from one customer
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In 2000 its largest customer accounted for 10% and the five largest customer accounted for 33% In this regard once Murthy said
Infosys run by 4 business principles. One is predictability of revenue Second is sustainability of revenue Third is profitability of that revenue Fourth is de-risking model
Thus Infosys focused not only its core business of offshore software development but also other complementary software services
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Shakeel Khan
Murthy once said that they have a First world company in Third world country They practiced Employee empowerment
Holistic compensation
Murthy once said We have a culture of creating wealth and sharing it with everyone Only 10% employee turn over each year. And most of them because people leave for higher studies
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Infosys scouted for talent at the top Indian universities and engineering colleages, recruiting from 55 universities They said We dont have a demand limit, we have supply limit They emphasis on Analytical ability for problem solving in hiring new member Small group
20 person team. 5 of them are real bright spark. This makes the team more balanced and motovated
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An Example
Future Infosys
Impersonal Sustain same Quality Sustain Infosys Culture Rapid Growth hides thousand Evils
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Future Infosys
Package approach and quality into methodology Balanced mix between technology and management End to end implementation
Still they can keep with 35$/hour where big names charge 250$/hour Agile way of operation gives flexibility Infosys knows that cost advantage will not last forever
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Future Infosys
If any recession comes, their ambition will be threatened Establish Global identity
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Farhan Nazeer
Solution Focused
Global Mindset Trust Connected Trust worthy & Committed Competent
Excellence in Execution
Client First Mindset
Battleground : India Business aligned compensation structures High Performance Organization Culture Leveraging Diversity A Business Imperative Inclusive Work Environment Global Talent Deployment Client Focused Competency Development
Slide 23
Driving change
Talent Acquisition
Structural Transformation Embracing the Role-based structure Talent engagement & client focused competency development Better rewards for performers, aligned with business growth Talent Deployment Technology as a catalyst of change
Slide 24
Talent acquisition
20000 15356 16000 10738 12000 8000 3766 4000 5389 9831
17095
Multicultural workforce
37 Nationalities
Employee Growth
Capacity to test 10,000 people in 7 cities on the same day Strong testing and evaluation processes
Applicants 100%
Slide 25
Structural transformation
IBU structure with focus on Verticals and Geographies Global accounts focus Strong Client Interface
Geographies
EURP
Engineering Services
Telecommunications
Greater China
Broadbanding
From existing 15 grades to current 6 bands Relative evaluation of jobs on key parameters
B A N D P R O G R E S S I O n
Software Engineer
Programmer Analyst
Technical
Resident
Program
Business
Specialist
Technical
Project Manager
Senior Project Manager Delivery Manager
Project Manager
Account
Manager
Senior
Analyst
Associate
Architect
Senior.
Manager
Business
Program Manager
Consultant
Consultant Senior
Technical Architect
Principal
Support Manager
Consultant
Principal
Architect
Consultant
Senior
Principal Consultant
Slide 27
What you deliver will determine how you grow Compete through competencies Logical and sustainable structure for the future
C O M P E
Training
T E N C I E S
Recruitment
People
Developing Leaders
Interpersonal Effectiveness
Leaders Teach Tiered Leadership Communication Business Etiquette, Practices Mentoring programs Foundation training
Technology
Business
Functional Expertise
Quality
Relationship Building
Customer Partnering
Variability in Compensation
Prior to 2000
2001
2002
2003
Slide 30
Talent deployment
Trends across geographies and visa categories Processes and timelines Quick response and compliance with requirements
Slide 31
High Touch
Compensation System
Slide 32
Competency based edge to People Practices Speed and agility in aligning HR practices to business realities Best in class retention rates Global recognition for HR practices
The JE Evolution
NOW JOB
PROMOTION Job/grade Mismatch Unreal Expectations Based on Tenure and not Performance
Performance in Current Job Org. Requirement for Job from Promotion Model
NEXT JOB
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ILITE
No No Banding
Top 10%
Reward High Potentials Talent Council
Bottom 10%
Others
Develop Potential
Specific Initiatives to Strengthen People Practices under PCMM Base-lining of Competencies to Drive Improvement Programs Tracking of Career Aspirations Goal Flow Down & Objective Setting of All Employees Formal Mentoring Program Metrics Driven HR Operation People Practices Innovation a Way of Life
Infosys Technologies Has Been Assessed at Level 5 on the PCMM Model by KPMG, Becoming the First Company in the World to Be Assessed at the Optimizing Level on the Updated Version 2.0 of the Model.
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Data Quest-idc INDIA SURVEY: Indian It's Best Employers, September 2002: Second Year Running Business Today- Hewitt Best Employers in India, Jan 2002: Second Year Running
Infosys Assessed at Level 5 on the PCMM Model by KPMG, Becoming the First Company in the World to Be Assessed at the Optimising Level on the Updated Version 2.0 of the Model
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Thank You