Infosys Consulting in 2006 : Leading the Next Generation of Business & Information Technology Consulting

Prepared by (Group No 3) : Harsh Mehta 10030241149 Sachidanand bhat 10030241158 Tausif Patel 10030241169 Tushar Agarwal 10030241176 Binnu Varma Jampana 10030241181 Arpit Yadav 10030241189
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 How well is Infosys Doing?

Net Income increased by 19.6%. Combined Mkt Share of Indian companies was .8% and was expected to go upto 1.7% in coming years. Planning to increase its employee base from 52,700, by 25000 globally.

What is companies strategic position in IT industry ?

The perception of the world towards Infosys is that it s a technology company and now they are working to change this perception by moving into consultancy business.

what is its distinct competencies?

Through its Global Delivery Model they managed their projects by dividing it into components i.e. executing simultaneously at client side and at its development centers. Breaking down projects into logical components and were distributed to the right-shore (onshore, offshore, near shore) to create max. value in most cost efficient manner

 How do you describe its culture?

Humility Meritocracy Transparent Innovation

ICI pursue themselves as a guest Positive/Negative?

Positive Independent Strong Tradeoff with Parent Company Preferential Treatment Negative Cultural Difference

BCG Matrix-Verticals of Infosys

High Growth Low High

Application Development Market Share

BPO

IT Consultancy

KPO

Low

Revenue V/S Expertise Matrix

Low Expertise High High

Application Development KPO Revenue BPO

IT Consultancy

Low

How are IBM and Accenture likely to view what Infosys consulting is trying to do? How can they respond?
How ICI different from others: 1-1-3 Model Lower cost of services Purely into consulting

How are they likely to view .

ICI acted as the rule changers and came up as the disruptive change model ICI has a unique and potentially successful GDM for the long term.
1-1-3 model offers unique mix of onsite/offshore resources.

Sustainability of GDM in the light of changing economy, operation and competition ICI, being into pure consulting, helped create an impression that it was not trying to cross-sell.

How Can Competitors Respond?

Increase the value proposition
Decrease buyer power and increase competition

Integrate management and IT consulting further

Remove complexities in integration

Need not try to replicate 1-1-3 model everywhere

GDM good for low end IT Consulting May not work for critical high end business consulting

Interface challenges - Infosys technologies & ICI

Cross Cultural Challenges Aligned performance Communication Organizational Readiness Vision Clarity Team Integration Confusion to whom to contact incase of any query or problem Conflict between the common business channels. Migration of management from ICI to the parent company. Becoming a global company, bringing managers from US & Europe. Build the brand into a global transformation enabler.
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Challenges for ICI & Infosys Technologies

Infosys Technologies
Over dependence on developed market and less on emerging market in terms of revenue With increasing presence of various MNC's in India sustaining competitive advantage of Infosys is a challenge. Losing employees to the competitors Globally known as a another outsource vendor need to change the perception to knowledge partners Infosys initiative for newer disruptive models like web 2.0, web services Low presence under product segment Unstable rupee dollar rate Sustaining the existing profit margin along with healthy growth rate

Infosys Consulting
Various MNC's have opened captive centres in India which challenged competitive advantage of Infosys Getting right people to do right job Cultural clash/Interface challenges with Infosys technologies Multicultural difference to be tackled as company is increasing global presence More presence globally so as to create confidence among the clients Expensive on shore resources How to retain the operational margin along with healthy growth rate ICI is still under learning curve as compare to their competitors. It is still under investment phase for Infosys
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How can Infosys consulting stay ahead of the game? Prepare an action plan and do a SWOT analysis. Consider Strategic Position, Distinctive Competencies and also culture

Steps Infosys Can Use to Stay Ahead of the game:

Hire Right People to do Right Things Strategic Alliance with Emerging Competitors More Value from Existing Customer Base

SWOT Analysis Strength

Abundant supply of low-cost engineers and management grads Unique blended global delivery model Operational excellence Open/transparent & performance driven culture Access to Infosys Technology Client s

Weakness
Low brand equity Inexperience with consulting relationships Challenge attracting top consulting talent

Opportunities
More cost/speed conscious customers Market growth

Threat
GDM can be easily duplicated IBM, Accenture etc. increasing their presence in India Culture clash with Infosys Technologies
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Thank You .

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