infosys consulting case analysis ici
TRANSCRIPT
Group 2Amol Deherkar 040/46Ankit Sukhija 052/46
Madhan Darwin 168/46
INFOSYS CONSULTING
Overview of IT Services IndustryEarly 1990s: BPO Work in India; largely conducted
by captive units of American Companies (GE etc.)Late 1990s: Expansion of Indian IT companies like
Infosys by adding service lines. Leverage the benefits of offshoring
2000s: Growth of Indian IT Services cos. And expansion of global firms in India
Predominant model: Global Delivery; demand for end-to-end services (business consulting, app. Development etc.)
Two different approaches: onshore US firms leveraging offshore centers; offshore firms offering consulting
ICI Consulting ModelMission and Objective:Help clients become more competitiveDelivering high-quality business consulting
and disciplined technology implementation at extremely competitive price
Help develop their employees into great leaders
Partners committed to “changing the rules of the game within the consulting industry”
Creating a different modelThe 1-1-3 Global Delivery Model
- 1 ICI onsite resource, 1 Infosys Tech onsite + 3 Infosys Tech offsite resources- Integration of business consulting and technology implementation lifecycle- Training and knowledge of global delivery of Infosys Technology’s onsite resource, a key differentiating factor from competitors’ approaches
Different ModelShortening the lifecycle of Solution Design to
Implementation:- Different approach to implementing technology for operational improvements- Looked at process requirements rather than functional- Better identification of inefficiencies- Real-time development by synergizing onsite and offshore teams for design and s/w configuration
Cost Reduction:- Blended rate of $100 per hour Vs. $175-225 for IBM etc- Strong competitive barrier: structural challenges in replication
Different ModelDelivering Measurable Benefits:
- CMM Level 5 rating; exceeded highest quality level by a factor of 20- Focus on achieving measurable improvements in business process metrics of the client- Structured ‘value-based’ deals with clients: fees owed to the company contingent on project outcomes- Internal metrics to track the quality of work performed by using elaborate client feedback mechanism
Different ModelBuilding a unique culture
- Tradeoff between the ‘confident, assertive business advice consultant’ and the Infosys value system of delivering with a sense of humility
Creating a differentiated approach- Focus on transparency and meritocracy- Staffing model: responsibility with individuals; reverse auctioning model- Staff nominations for promotion- Bonus structure based on overall client value created
Interpretive SchemeShades of both (especially HRM systems), but
overall structure more towards MPB typeExternal ownership (subsidiary of a corporate
entity)Consulting approach: services related to a
particular product (Business/IT consulting, and Not Mgmt consulting)
Org Structure: High Leverage ratio (about 19) Decision-making: more directive than
consensualAdministrative tasks: No hint of partners
sharing; possibility of dedicated staff
Relationship with Infosys Tech.Wholly owned US subsidiaryAutonomy to create its own culture, recruitment
strategy, organizational structure and compensation packages
Metrics established to measure the interfaceLeveraged parent company to get client
engagementsICI included in service offerings of Infosys Tech.“One Infy” program to enhance cultural
integration mechanisms like forums for employees to meet/learn
Improving internal collaborative mechanisms so that clients see Infosys as one company
Relationship with Infosys Tech.Initial tensions in the company on who would lead
the client relationship – resolved by “The Fork in the Road” methodology
Allocation to the area that best served the client’s situation
ICI also brought in new clients for Infosys Tech.Active intervention by the senior management
of Infosys to review subsidiary’s performanceRelationship with ICI seen by Infosys as an
opportunity to transform culture and build a global brand over time
HRM SystemsShades of both P2 & MPB Arch typesP2 Features
Focus on broad level of generic SkillsSelection based on Personal interactions
similar to P2 firms“One Infy” similar to “One Firm Concept”Project Staffing : On demand by Employees
MPB FeaturesOutcome based performance MatrixSome standardization of Processes offeringsMajor ownership not with employees
Contd …
HRM SystemsCombined Features
Training Method: Emphasis Interpersonal,Analytical,Managerial and Technical skillsCross training
Firm Size :Smaller ICI Group(Elitism) with a Larger Infosys Technologies backing
Responsibility of Hiring and Recruitment mid way between P2 & MPBLocal Hiring
HRM Policies : CultureKey Features
Alignment with Infosys Culture ofHigh qualityMeasurement of every aspect of PerformanceMaintaining a sense of Humility
OutcomeAlignment of goals with Infosys TechnologiesSupport for 1-1-3 delivery modelAvoiding Project Leadership Conflicts with
the technlogy organization (Fork in the Road)
HRM Policies : RecruitmentKey Features
Top 10% Talent in lateral hiringRecruiting from Infosys technologiesDiversity & Local Presence
OutcomesShortened Lifecycle of Solutions design to
ImplementationOnsite SupportCost ReductionSupports the Global Delivery Model
HRM Policies : Performance ReviewKey features
Individuals bid for projects and set the goalsMeasurement of attainment of the targets
and Client SatisfactionPeer ReviewManaging Work life balance
OutcomesImprovement in Quality of OutputValue delivered to the shareholders of the
Client
HRM Policies : CompensationKey Features
Employed paid at higher end of Market ratesBonus Structure linked to delivery of Client
ValuesInfosys Sales teams incentivized on ICI Business
OutcomesAttracting top talentCustomer focused EvaluationsEnables getting repeat business from existing
clients of Infosys technologies
RecommendationsAggressive Hiring :
The ratio of 200/50000 employees of ICI/ITL is still pretty low
Huge potential with large base of loyal ITL Clients
Focus on Indian MarketsHuge Potential in the MarketUnderstanding cultural context essential for
Consulting: With large number of Indians as employees this would be easier
Sales process can be easier
RecommendationsICI Branding
Value focus vs. Cost focusshould set POD from Infosys Technologies
(ITL)
Senior Consultants as Account ManagersSenior Consultants should be aligned to ITL
accounts to identify new business opportunities
Performance measurement not only on deliverables but acquired business
Thank You !!!