Looking beyond the immediate Ariba e-procurement system project, what challenging issues related to global marketing does

this case pose for Infosys? Most of the projects that Infosys had undertaken have been very low value added and price sensitive business. Infosys had successfully increased the number of IT projects it conducts for PFS from a mere three five years ago to 65 now, but has managed to capture only US $ 30million in annual business out of PFS annual IT total spend of $1billion even though it could ideally handle up to 45 % of that total spend. Ariba requires an end-to-end solution. If it could win it and deliver a high quality solution, they can gain a greater share of more profitable, high value-added business. They are trying to secure higher value addition and profit in the business. They have to show that they can handle the strategic and conceptual consulting Infosys maintenance. Excalibur and Merrimac consulting have an outstanding reputation for grand strategy and highly conceptual big picture projects. Historically their weakness has been in the area of ongoing IT systems maintenance. They will have to demonstrate that they can deliver the maintenance portion of an end-to-end solution to PFS. Infosys, on the other hand, clearly does outstanding maintenance work. They will have to show that they can handle the strategic and conceptual consulting portion of the project. What quantifiable cost savings not specified in project contracts has Infosys delivered to PFS during the past five years? Infosys reduced the no of people operating in five maintenance project from250 to 100 and redeployed the other 150 people on to other projects of PFS with no extra charge which gave them a benefit of the costs of a full-time equivalent (FTE). The savings was $480000 per month as 150 members earning $ 3200 were moved to other projects. Reduction in corruption incidents from 24 per year to 0 fetched good savings Each corruption event cost 3 programmers 4 hrs each at $45 per hr = $540 Technical support $40 x 3 = $120 Idled employees at PFS 125x4 hrs x $42 = $21000

What knowledge transfer time cost savings can PFS expect from sole sourcing the Ariba e-procurement system project? PFS would benefit a lot from sole sourcing to Infosys Most importantly by being involved from day one in the project, Infosys will be able to forgo the knowledge transfer time required to bring programmers upto-speed on technical details of the system had they entered at the maintenance stage. It is estimated 5 programmers would take 12 weeks to master Ariba at an FTE cost of $8000 per month which amounts to $120000 How can Infosys PFS Account Team persuasively sell the firms ability to deliver a superior end-to-end solution for the Ariba e-procurement system project?