...THOMAS J. DELONG Infosys (A): Strategic Human Resource Management op yo How do you feel when you look around and realize that 80% of your colleagues have been in the company for less than 24 months? — an Infoscion On November 13, 2003, the HR leadership team led by Hema Ravichandar, head of human resources for Infosys Group, left the conference room with a mixture of excitement and apprehension; a feeling that, they decided dryly, was familiar after a strategy meeting with the chairman and chief mentor of the Infosys Group, Narayana Murthy, and the CEO, Nandan Nilekani. tC The cofounders had set a new and aggressive milestone for the HR group, the latest in a long line of challenging goals that had been set for them. By 2007, the cofounders wanted HR to ensure that Infosys was on the Top Ten lists of both Best Performing companies and Best Employers. It sounded innocuous enough to an outsider, but this HR team knew better. To the best of its knowledge, no large organization had ever been able to achieve this distinction because of the tension inherent between the need to control costs for financial performance and the spending required for employee satisfaction. As the team walked back from the meeting, they were reminded of the painful and humbling experience in 2003 that had made Infosys sharply aware of the difficulties ahead as it transitioned from a small to a large company. No The decade since Ravichandar joined Infosys in 1992 had been...
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...Case Study: Infosys (A) Strategic Human Resources Management Strategic Human Resources Management defines the organization’s intentions and plans on how its business goals should be achieved through people. It is based on three propositions: first, that human capital is a major source of competitive advantage; second, that it is people who implement the strategic plan; and, third, that a systematic approach should be adopted to defining where the organization wants to go and how it should get there. Strategic Human Resources Management is a process that involves the use of overarching approaches to the development of Human Resources strategies, which are integrated vertically with the business strategy and horizontally with one another. These strategies define intentions and plans related to overall organizational considerations, such as organizational effectiveness, and to more specific aspects of people management, such as resourcing, learning and development, reward and employee relations. Strategic Human Resources Management addresses broad organizational issues relating to changes in structure and culture, organizational effectiveness and performance, matching resources to future requirements, the development of distinctive capabilities, knowledge management, and the management of change. Infosys which was founded on July 2, 1981 in Pune by N R Narayana Murthy and seven others: Nandan Nilekani, N. S. Raghavan, Kris Gopalakrishnan, S. D. Shibulal, K. Dinesh and Ashok...
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...economy growth, Infosys is one of the pioneer Indian companies that positioned the Indian firms on a leading position globally, the company generated revenue of US$ 2 billion in 2006 (Rustogi et al, 2012), and gain more than two third of its revenues from serving many clients in the United states (Dajiworld, 2007), the company success to develop scalable strategy, and create a successful organization has a global brand awareness for quality and efficiency . The report illustrate Infosys expansions plans and strategies in China and summarizing the factors influenced Infosys to establish offshore development center in China, to benefit from the advantages of the low labor cost and the great economic opportunities to have the largest second development center in China, as well analyze the Global Delivery Model of Infosys and its relevance to China, in addition to indentify the major challenges face the Indian IT companies operating in China, and propose solutions to conquer those problems. Table of Contents Background 5 Issue Statemnt 5 Literateur : Factors influenced global expansion strategy 5 Analysis of the problem : Global Delivery Model of Infosys 6 Alternatives Analysis and Selection Criteria : Development Challenges in China 7 Recommendations 9 Action and Implementation Plan 10 References 12-15 Appendix 16 List of Tables and Figures Table 1 –Infosys Ranking. 17 Table 2 – Infosys SWOT analysis 18 ...
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...INFOSYS: FINANCING AN INDIAN SOFTWARE START-UPS SUBMITTED BY: DIVYANI GARG INTRODUCTION Infosys is small software development venture which provides information technology (IT) consulting services for international clients. The company is located in Bangalore and was founded back in 1981 by a small group of skillful entrepreneurs, with very little equity of 1000$ and without backing from a large companies. Mr. R. Narayana Murthy is the CEO and chairman and Nandan Nilekani is the president and chief operating officer (COO), of Infosys Technologies Ltd. Being a company grounded on a Indian soil at that tome was not an advantage for Infosys because the economic policy supported by the government prior to 1991 caused many problems for business, especially for those businesses that wanted to import goods from a foreign market. Therefore the easiest business solution for Infosys was to develop software services, since production of hardware could have been a trouble because all the devices they need for the hardware development were imported from abroad. Because the domestic market held no real opportunity for the new company, Infosys focused on international markets for its software products. Up till 1999 Narayana Murthy bought out all the shares from the remaining founders, the company has dramatically transformed its business and image and grown with over 100 employees. It faced possible bankruptcy but somehow managed to survive it, took the advantage of the capital...
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...University Accounting Capstone – ACC 499 Professor Grant A. Wills August 3, 2011 Internal Fraud Infosys Limited is an IT and consulting company, it defines, designs and delivers technology-enabled solutions for Global 2000 companies. Infosys provides business and technology consulting, application services, systems integration, product engineering, custom software development, maintenance, re-engineering, independent testing and validation services, IT infrastructure services and business process outsourcing. Infosys pioneered the Global Delivery Model, which is based on the principle of taking work to the location where the best talent is available, with the least amount of acceptable risk and where it makes the most economic sense. Infosys employs more than 15,000 foreign workers in the United States. In February of this year, a suit was filed in Alabama that accuses Infosys of purposefully sending its Indian employees to work full-time on incorrect visas, and that Infosys was paying these employees in India for full-time work in the United States without withholding federal or state income taxes, and overbilling customers for the labor costs of these employees. Foreign nationals that work in the United Stated on temporary contracts require an H-1B visa. In 2009, increased restrictions began on H-1B visas and in 2010 the application price for H-1B visas doubled, this is when Infosys began sending employees on B-1 visas. B-1 visas are issued to employees visiting the country for...
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...Unit 2: Case Analysis Infosys GB520 Strategic Human Resource Management July 25, 2010 Infosys: The large small company The brainchild of Narayana Murthy, Infosys is an IT and software company with its base in Bangalore. The company was built around the concept of creating the products in India, with low production costs, and would be used for projects which international Infosys branches will handle. Infosys pioneered this concept using Global Delivery Model. At the heart of this company, was Murthy’s belief in people. What made this company truly stand out was its remarkable human aspect. During its rocky beginning stages, at the point where sell out seemed the only option, Murthy held onto the belief that with the right confidence and will, the company will succeed. The company did succeed and continued its belief that people, not objects nor environment alone, create things and success, through its strong Human Resources. In fact until 2003, the company was listed amongst the “Best Employer” or “Employer of Choice”. The approach of the company was three-fold: “There are three ways in which we add value to the employee: learning value-add through training, emotional value-add through the work environment, and financial-add through compensation and benefits.” (Delong, 2006) Transition into a small large company: Maintaining a strong human resource department and creating the best environment for employees is a challenge when the company is small. A growing...
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...Infosys: Company Profile About Infosys: Infosys Limited was started in 1981 by seven people with $250. Today, Infosys is global leader in "next generation" IT and consulting, with revenues of $6.04 billion. Infosys defines, designs and delivers technology enabled business solutions that help Global 2000 companies in Building Tomorrow’s Enterprise. Infosys provides a comprehensive range of services by leveraging our domain and business expertise and strategic alliances with leading technology providers. Infosys service offerings span business and technology consulting, application services, systems integration, product engineering, custom software development, maintenance, re-engineering, Independent Testing and Validation, Business Process Outsourcing, and IT infrastructure services. Infosys pioneered the Global Delivery Model (GDM), which emerged as a disruptive force in the industry leading to the rise of offshore outsourcing. The GDM is based on the principle of taking work to the location where the best talent is available, where it makes the best economic sense, with the least amount of acceptable risk. Infosys has a global footprint with 64 offices and 63 development centers in US, India, China, Australia, Japan, Middle East, UK, Germany, France, Switzerland, Netherlands, Poland, Canada and many other countries. Infosys and its subsidiaries have 130,820 employees as on March 31, 2011. Establishment: Infosys was founded on 2 July 1981...
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...management case by academicians and practitioners Infosys Technologies Ltd.: Growing Share of a Customer’s Business James A Narus and D V R Seshadri Case Analysis I Janaki Anant Principal Solution Architect i-flex solutions Ltd e-mail: janaki.anant@iflexsolutions.com his case has multiple dimensions of analysis to it. While there is certainly an immediate short-term issue of winning the Ariba® e-procurement project of the existing client, Prairie Four Square (PFS), and gaining an increased share of the customer’s business that the Infosys team is trying to address, there is also an overall long-term strategic issue that needs to be addressed as well – that of the pricing mechanism based on value that needs to be deployed for long-term sustainability and growth of the relationship. This case offers an insight into the various dimensions of moving up the value chain and increasing the economic value of a customer relationship, identifying the differentiation strategy, communicating the positioning effectively, and the impact of local competition in the global scenario. The case also effectively illustrates the general growth path followed by most Indian software services companies, the issues they face in this progression, the changing scenarios in the global competitive arena, and the relentless pressure to lower costs in a diminishing labour cost arbitrage advantage scenario. T The April-June, 32(2), 2007 issue of Vikalpa had published a Management Case titled “Infosys...
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...Responsibility Infosys Submitted to Prof Neeti Sanan Group 4 Arvind Sairam (111011) Jaydeep Patwardhan (111031) Piyush Singh (111033) Sravan Kommuri (111053) Vishnu Meena (111061) On March 1, 2012 Executive Summary This report investigates the Corporate Social Responsibility (CSR) practices of Infosys Ltd. – India’s second largest IT Company. The report discusses the background of the company and its current state of CSR practices. For better evaluation, the analysis is broken up into four thrust areas, namely The Infosys Foundation – which deals with various social welfare activities, Sustainable Change Programs – which deals with all levels of education, The Employee – Driven Programs – which are loose, unstructured programs run by volunteers and the Eco Group Programs – which deal primarily with reducing Infosys’ carbon footprint. The report discusses the CSR initiatives taken by the firm in each of these areas and subsequently provides an assessment for them based upon the criteria of proper implementation, measurable impact, magnitude and fit with the organization’s business. In forming the assessment, quantitative data has been taken wherever possible, for e.g. in the case of the financial viability of the CSR initiatives, the amount allocated to CSR has been compared with the annual profit figures of the organization. However, majority of the assessment is based upon qualitative data collected from third party assessment of the impact of Infosys’ CSR. The...
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...Infosys Technologies Ltd V G VIGNESH Situation Analysis * Infosys holds the maintenance contract for PFS ($27billion insurance company in US) mission critical IT systems across US. * Most of the contracts relate to PFS are low value added & price sensitive business. * Infosys business model evolved from offshore outsourcing, maintenance of legacy systems, end-to-end solutions, and recently business domain excellence. There are hiring domain consultants from reputed firms. * Infosys has 3% of the annual IT spend by PFS, wherein total potential is close to 45%. About PFS. * PFS handles a large amount of data, there by many IT systems for batch processing, office computers, network systems, internet & private extranets. * Majority of PFS, IT work has been done in-house & occasionally relied on to IT consulting firms. As a result, PFS is trying to cut cost significantly. * PFS prefers most competent single vendor in specific categories for key strategic & conceptual projects, since they felt one supplier will be most able to complete it & also gain leverage over the PFS entire IT system. * PFS realized that Procurement is one large area for lowering operating costs & improving their customer service to end users. Plan is to implement an end to end (e2e) solution for their procurement process. * Few consulting firms (Excalibur, Merrimac) claimed to have expertise in ERP, process engineering, logistics etc. but they lacked...
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...16, 2006 THOMAS J. DELONG Infosys (A): Strategic Human Resource Management How do you feel when you look around and realize that 80% of your colleagues have been in the company for less than 24 months? — an Infoscion On November 13, 2003, the HR leadership team led by Hema Ravichandar, head of human resources for Infosys Group, left the conference room with a mixture of excitement and apprehension; a feeling that, they decided dryly, was familiar after a strategy meeting with the chairman and chief mentor of the Infosys Group, Narayana Murthy, and the CEO, Nandan Nilekani. The cofounders had set a new and aggressive milestone for the HR group, the latest in a long line of challenging goals that had been set for them. By 2007, the cofounders wanted HR to ensure that Infosys was on the Top Ten lists of both Best Performing companies and Best Employers. It sounded innocuous enough to an outsider, but this HR team knew better. To the best of its knowledge, no large organization had ever been able to achieve this distinction because of the tension inherent between the need to control costs for financial performance and the spending required for employee satisfaction. As the team walked back from the meeting, they were reminded of the painful and humbling experience in 2003 that had made Infosys sharply aware of the difficulties ahead as it transitioned from a small to a large company. The decade since Ravichandar joined Infosys in 1992 had been a heady one for...
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...in this industry. As a result Indian companies like Wipro, Infosys increased their base level salaries. During this phase, Indian economy was transforming towards an era of information and knowledge. This can be seen from the fact that contribution of services towards the economy’s GDP was higher than 18% in 2001 as against in 1980. No other industry had done better standing against global competition. The annual exports had always been over 50% over a decade. U.S.A. share represents highest with 61% and about a third of Fortune 500 companies outsource their software work to India. To foster development, Indian government has taken a number of steps like liberalization of policies and providing necessary capital and infrastructure to foster growth. Thus Indian environment has been conducive for growth. (Ref: Indian Embassy.org) Competitor analysis- The market for IT industry was fairly competitive with IBM and Accenture as global leaders and rest of the market was pretty diffused. IBM and Accenture had strong brand and a global presence with a large customer base. They also offered panoply of services viz. technology implementation, business consulting, offshore services, customer relationship management etc. Both offered breadth and depth of services. IT market in India offered technical and business consulting with Tata Consultancy Services which was the market leader in IT exports and Wipro Technologies and Infosys being other major market players. TCS offered consultancy services...
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...Infosys Business Case | MGT 551-12 | Authors:UID # 864597543 UID # 811655441September 3, 2008 | Leveraging its vast, low-cost human capital base to deliver its services globally, Infosys has experienced remarkable growth since its inception to become a leader in the offshoring IT services industry. However, rising salary costs in India and increasing employee attrition rates at Infosys not only threaten near-term profit margins but also the sustainability of Infosys’ current business model. Since the early 1990’s, Infosys and other large IT service providers in India have relied on two key competitive advantages to create their multi-billion dollar businesses of today. First, the initial impetus behind IT offshore demand was simple: cost savings. And with the average IT professional in India costing 29 percent of comparable U.S.-based staff in 1995, Infosys was able to offer its services to global clients at fraction of the prices charged by Western companies. Exhibit 1 demonstrates the direct relationship between Infosys’ human capital growth and its sustained revenue generation over a 9 year period. This graph not only highlights the success a low cost, large work force strategy, it also identifies the second critical component in Infosys’ success: HR design and execution. Delivering those cost-saving services required a highly skilled employee base, whose development entailed large investments of time and money. Accordingly, Infosys established world-class human...
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...‘Sustainability’ The Brundtland report (named after Dr Gro Harlem Brundtland, the youngest person and first women ever to hold the office of Prime Minister of Norway, who spearheaded the initiative which ultimately led to the earth Summit in 1992), published in 1987 by the United Nation’s World Commission on Environment and Development, defined sustainable development as “Meeting the needs of the present without compromising the ability of future generations to meet their own needs”. Sustainability has been used more in the sense of human sustainability on planet Earth. At the 2005 World Summit it was noted that this requires the reconciliation of environmental, social and economic demands - the "three pillars" of sustainability. This view has been expressed as an illustration using three overlapping ellipses indicating that the three pillars of sustainability are not mutually exclusive and can be mutually reinforcing. (Definitions of sustainability often refer to the "three pillars" of social, environmental and economic sustainability) (A representation of sustainability showing how both economy and society are constrained by environmental limits) Rapid growth of industrial activities in the past has led to natural resources being depleted at a rate that is faster than the rate of restoration. If this trend continues, most globally admired companies will be out of business. Growth of businesses will always be dependent on the resources available. And if there is no...
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...Are Two CEOs Better Than One? The case of WIPRO Take an organization with business divisions that overlap, add rapid growth, and flavour with problems arising from an uncertain environment. What you have, potentially, is a recipe for confusion. At Wipro, India's largest software services firm, however, little evidence of confusion has appeared despite the turbulent winds that have buffeted the company for the past few years. When former CEO Vivek Paul left to join Texas Pacific Group, a private equity firm, Wipro has had no CEO since Paul's departure, with Chairman Azim Premji -- who owns more than 80% of this Mumbai- and New York-listed company -- combining the roles of both chairman and CEO. Wipro was established in 1947. It was a vegetable oil company to start with and was created from an oil mill established by father of Azim Premji, present Chairman and CEO of Wipro. It later ventured into consumer goods in 1966 under Azim Premji's leadership as Wipro Ltd. In 1975 Wipro Fluid Power was set up to make pneumatic cylinders and hydraulic cylinders. Wipro demerged its non-IT businesses such as in consumer care, lighting, hydraulics and medical diagnostics into a new company to provide more focus for its IT business. Infosys and TCS are pure-play IT services companies. The demerger will help improve profit margins. But analysts think that moving out the small non-IT businesses from the company will alone not help. The company needs to focus on using technology to solve business...
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