...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 Technologies Ltd.: Growing...
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...1.2 COMPANY PROFILE Infosys Technology Limited (NASDAQ: INFY) was started in 1981 by seven people with US$ 250. Today, there are global leaders in the "next generation" of IT and consulting with revenues of US$ 6.35 billion (LTM Q1-FY12). Infosys defines designs and delivers technology-enabled business solutions for Global 2000 companies. Infosys also provides a complete range of services by leveraging domains and business expertise and strategic alliances with leading technology providers. The offerings span 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 (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 65 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 133,560 employees as on June 30, 2011. Infosys takes pride in building strategic long-term client relationships. 99% of our revenues come...
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...infosys Limited, formerly Infosys Technologies Limited, (BSE: 500209, NSE: INFY, NASDAQ: INFY) is a global technology services company headquartered in Bangalore (Bengaluru), India. Infosys is the second largest IT company in India with 133,560 employees (including subsidiaries) as of March 2011.[1] Infosys is ranked 28th globally in the list of IT services providing firms.[2] It has offices in 33 countries and development centers in India, China, Australia, UK, Canada, Brazil and Japan.[3]The company offers software products for the banking industry and business process management services also provides end-to-end business solutions. Infosys Technologies has emerged as the best company to work for in India, according to the BT-Indicus-PeopleStrong 9th Annual Survey of India's Best Employers. Even as the Indian IT major shone, many other biggies missed getting into the list of the 10 best companies to work for in India. These include L&T (11th), Hindustan Unilever (12th), ONGC (13th), Tata Motors (14th), ITC (15th), ICICI Bank (19th), and Tata Steel (20th). About 9,000 employees from across 1,000 organisations across 800 cities participated in the survey. They were asked to rate companies on six key parameters, namely, career and personal growth, prestige/company reputation, training/coaching/mentoring, financial compensation and benefits, job content, and merit-based performance evaluation. While creative people in advertising and media gave little importance to the...
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...Infosys How closely do they follow the India way? * Infosys is a typical Indian company by being a value based organization- seeking respect from the company’s entire stakeholders (e.g., customers, employees, investors, partners, governments and society). It means that the company must deliver what she promises, must treat the stakeholders fairly and with dignity, must operate with transparency and accountability and never violate any laws. * Leadership by example – Setting an example at the top is the best way to instill confidence throughout the company. Narayana Murthy mentioned that his colleagues made sacrifices because they had seen him do so from the start. (e.g., he took a cut in his pay while his colleagues got small increases when they set up Infosys.) * Zero tolerance policy- The Company is willing to pay price for being committed to the above-mentioned values (e.g., avoiding paying bribe in order to enhance the company activities, firing bright and useful employees because they violate the company’s values). In addition, the company applauds good behavior and honor individual who has demonstrated the best commitment to the company’s values every year. * Infosys has demonstrated complete transparency in dealing with investors. (e.g., A significant loss on one of the company’s investments, where Infosys need not have provided the details to shareholders. Nevertheless, they decided to disclose the information and demonstrate their commitment to the Infosys...
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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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...Infosys is an Indian global technology services company headquarted in Bangalore in India. It has 64offices and development centers in 29 countries, including France. It has also more than145,000 employees of 85 nationalities. Actually, Infosys is a very big company which provides business consulting, technology, engineering and outsourcing services to help clients in over 30 countries. They are Leader of Information Technology and consulting with revenues of over $7 billion. It became the first IT company from India to be listed on NASDAQ (which is an American stock exchange). Infosys also pioneered the Global Delivery Model which is based on the principle of taking work to the location where the best talent is available Infosys was founded on 2 july 1981 in Pune, India by N R Narayana Murthy and six others engineers with an initial capital of $250. In 1983, they opened an office in Bangalore which soon became its headquarter and they also got their first client the same year which is Data Basic Corporation, NY . It opened its first international office in Boston, in 1987. This was followed by 63offices distributed in many countries such as Germany, Sweden, France, Argentina … In 2001, Infosys was rated best employer to work for, by Hewitt Associates. The same year N. R. Narayana Murthy who was the CEO of the company until 2006 was rated among 25 most influential businessmen in the world by Time Magazine. In 2007, they received over 1.3 million applications and hired fewer than...
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...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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...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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...CASO INFOSYS CONSULTING I. Introducción. En este caso se analiza la disyuntiva que presenta la empresa Infosys Consulting (ICI), subsidiaria de Infosys Technologies, al momento de decidir qué acciones estratégicas debe adoptar para posicionarse en el mercado de la consultoría en el desarrollo de soluciones tecnológicas a nivel mundial. El crecimiento de Infosys se llevó a cabo principalmente a través de nuevos contratos, adquisiciones de pequeños proveedores de servicios de Tecnologías de la información (TI) y alianzas estratégicas. En el 2006 Infosys se convierte un líder mundial, el cual es considerado como la próxima generación de servicios de TI por diferentes organismos. El Business World la califica por 4ta. vez como la empresa más respetada en la India. Se ubica entre las primeras empresas en el mundo para ser certificada en CMMI nivel 5 Actores principales. • Managing Directors: Steve Pratt, Paul Cole, Romil Bahl, Raj Joshi, Ming Tsai • Infosys Technologies. • Infosys Consulting. • IBM, Accenture, TCS, Wipro y otras empresas del ramo a nivel mundial que realizan los procesos de consultorÍa y desarrollo de soluciones a off-shore y on-shore. II. Situación de la empresa En el año de 1990 los servicios de tecnologías de información comenzaron a evolucionar hacia servicios globales, adquiriendo así, el desarrollo de aplicaciones y mantenimiento por empresas de E.U., externalizando sus procesos por medio del outsourcing en los años 1990 y 1993. De ésta...
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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 Case Study ICMR India Media "A true leader is one who leads by example and sacrifices more than anyone else, in his or her pursuit of excellence." - N. R. Narayana Murthy, Chairman, Infosys. "The US. has discovered India's high-tech industry, and the credit is largely due to shy, unflappable engineer N.R. Narayana Murthy." - Business Week, June 14, 1999 Introduction In February 2001, Infosys Technologies Ltd. (Infosys)1 was voted as the Best Managed Company in Asia in the Information Technology sector, in leading financial magazine Euromoney's Fifth Annual Survey of Best Managed Companies in Asia. Infosys was started in 1981, by seven2 professional entrepreneurs led by Narayana Murthy, Chairman and CEO of Infosys with an equity capital of Rs.10,000. By 2000, Infosys' market capitalization reached Rs.11 billion and by 2001, Infosys was one of the biggest exporters of software from India. Narayana Murthy had built an organization that was respected across the country, with very strong systems, high ethical values and a nurturing working atmosphere. With his sound management skills, Narayana Murthy seemed to have taken Infosys to the pinnacle of success in two decades. From a turnover of Rs.1.16 million in 1981, Infosys had grown to a Rs.19 billion company in 2001. There were many firsts to Narayana Murthy's credit. Infosys was the first company to push for off–shore software development3 as against body shopping4 that was coming during the 1980s. He championed...
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...THE CASE STUDY OF NARAYANA MURTHY AND INFOSYS TECHNOLOGIES LIMINTED QUESTION ONE (1) Identify and explain from the case study, those variables attributable to the company’s success in line with the ‘Concept of Effectiveness’ that constitute unique capabilities 1) Low Employee Turnover Employee turnover refers to the rate at which people resign or live their employment. With his proactive human resource practices, Marayana Murthy and Infosys was able to lower the employee turnover to a rate around 11% as opposed to an average of 25% for the industry. 2) Good Facilities for Employees Infosys Technologies Ltd provided many facilities such as ticketing, credit cards, crèche facilities for kids, transport facilities, recreational facilities etc. to its employees to take care of both the professional and personal needs. 3) Promotion Promotion is advancement to a higher-level job with increased authority, responsibility and pay within the organization. Infosys Technologies Ltd promoted about 80% of the middle and senior level executives from within the organization to motivate them. 4) Best Reward System Analysts felt that Infosys Technologies Ltd had one of the best reward systems in the industry. Most employees in Infosys Ltd were paid high salaries as compare to other employees in the industry. Also there are some monetary and non monetary benefits like compensation, overtime etc. that Infosys gives to its employees to motivate them. 5) Open (Effective)...
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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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...com/abstract=1067441 1 Vision into Action: Infosys Technologies Arpita Saha1 Abstract: Infosys is one of the world¡¦s most respected companies. It is one of those companies which have changed the way India is perceived in the global purview. Since its inception Infosys¡¦ founder members shared the vision of becoming a globally recognized organization providing high quality business solutions. Infosys is regarded as a highly respected organization because of the set of values which drive them; like the integrity and transparency with which they conduct themselves, their customer friendliness and their exemplary leadership. This article delves into the company¡¦s growth path and the role played by their vision and mission in their progress. Introduction Infosys is the world leader in providing high quality Information Technology and software services to its clients globally. Infosys is one of the companies which spearheaded the software services outsourcing strategies. Offshore outsourcing is a process in which an external organization is contracted to execute some task in an outside territory. And this has several advantages for the organizations which outsource. Infosys delivers offshore IT and software services like infrastructure support, application development, IT consulting, re-engineering and other services like setting up software development centers at different locations for their clients. Adding another feather to the Infosys¡¦ cap is a banking application that...
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...the co-founder of Infosys, a multinational corporation providing business consulting, technology, engineering, and outsourcing services. Murthy was born and raised in Mysore, Karnataka, studied electrical engineering at the National Institute of Engineering, University of Mysore, and M. Tech at the Indian Institute of Technology Kanpur. Before starting Infosys, Murthy worked with Indian Institute of Management Ahmedabad as chief systems programmer and Patni Computer Systems in Pune (Maharashtra). He started Infosys in 1981 and served as its CEO from 1981 to 2002 and as chairman from 2002 to 2011. In 2011, he stepped down from the board and became Chairman Emeritus. On 1 June 2013, Murthy was appointed as Additional Director and Executive Chairman of the board for a period of five years. CAREER/LIFE JOURNEY CAREER Murthy started his career at IIM Ahmedabad as chief systems programmer. There he worked on India's first time-sharing computer system and designed and implemented a BASIC interpreter for Electronics Corporation of India Limited. He started a company named Softronics. When that company failed after about a year and a half, he joined Patni Computer Systems in Pune. Murthy and six software professionals founded Infosys in 1981 with an initial capital injection of Rs 10,000, which was provided by his wife Sudha Murthy. Murthy served as the CEO of Infosys for 21 years from 1981 to 2002, and was succeeded by co-founder Nandan Nilekani. At Infosys he articulated,...
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