ZACKRY ZULKARNAIN BIN ZAHEDI (MR131154)

MBA (Strategic Management)

Negotiation Skills (MRC 4073)

Case 2.1 System Modification for Japan

Q1. What did you notice about the way the opportunity for this project came about that
was an unusual business practice for Infosys?
There was no request for proposal (RFP) issued to Infosys. Apart from that, later when NTC
requested Infosys to submit a proposal after Infosys being recommended by ATC, NTC offered
to pay for the expenses bear by Infosys associated with submitting a proposal. Next, when
Infosys submitted its proposal to NTC, all other bidders were then rejected. It seems like there
could be bias and not following Standard Operating Procedure, SOP in calling for companies for
proposal submission and selecting qualified company to implement the project.

Q2. Describe the contract negotiations. In what way were these negotiations a departure
from the way you would have expected negotiations to be conducted?
The contract negotiations were between NTC and Infosys. Several meetings took place before a
final agreement reached by both parties. No formal negotiation took place as Infosys were
getting information from NTC. After several meetings and discussions between NTC and
Infosys, Infosys finally submitted proposal which cost of the project is at $220,000. However,
NTC requested for reduction as NTC claimed it was almost 50% more than NISP. Infosys
initially did not want to reduce the price but later reduce the price by 20%. NTC also requested
for the project time to be cut to 14 weeks instead of 16 weeks. Infosys agreed to this as well
though it would require overlapping the design and coding phases of the project.

The negotiations and discussions should have conducted when all parties are prepared. Besides,
both parties should study each others background as well besides entering the negotiation in
more prepared manner. In my opinion Infosys should not have agreed on the reduced time line if
it will have difficulties in completing the project based on reduced timeline.
Q3. Why do you suppose NTC accepted Infosys 20percent reduction, which is still made
their proposal more expensive than that of the other vendor?

ZACKRY ZULKARNAIN BIN ZAHEDI (MR131154)

MBA (Strategic Management)
Negotiation Skills (MRC 4073)

NTC may have accepted Infosys proposal due to the company has the experience in the
modification and enhancements of the system. Secondly NTC may have consulted ATC as well
on its experience in working with Infosys. NTC also considered giving the project to Infosys
probably due to Infosys was recommended by ATC assuming the service given by ATC
currently is satisfying.
Q4. Shouldnt Infosys have asked for something in return for reducing its price?
Yes. Infosys should have requested for something in return (trade-off) like longer project
timeline to as it is now having less resource to complete the project. Besides, Infosys may
request from NTC to consider giving them other project in hand as well as a trade off to the price
reduction.

Q5. Once NTC got a price reduction, they then asked for a two-week time reduction.
Infosys agreed to that too. Who was Infosys negotiating with? What should Infosys have
done at this stage of the negotiation?
Infosys was negotiating with its project team including the engineer to complete the project
within reduced time. Infosys should have negotiated with NTC to have the time line 15 weeks
which is in between of 16weeks requested by Infosys and 14weeks requested by NTC. However,
should NTC insists of getting the project to be completed to 14 weeks, Infosys should renegotiate
on the project price as it now needs to higher more labour and equipments.

Q6. Communication during the meetings to develop specifications were difficult. Is there
anything that Infosys might have done to facilitate communications, reduce the transaction
costs associated with developing the bid, and minimise conflict once the project was
launched? Keep in mind, that translation in Japan is very expensive.
Infosys should have sent more experienced Infosys consultant which is able to communicate in
both Japanese and English language to ease transfer of information from NTC to amongst
Infosys as well. Secondly, Sachin could assist in providing his questions in advance to the
consultant whom going to represent Infosys. This would help to run smoother negotiation build
better relationship between Infosys and NTC.

ZACKRY ZULKARNAIN BIN ZAHEDI (MR131154)

MBA (Strategic Management)
Negotiation Skills (MRC 4073)

Q7. When Sachin tried to make the point that NTC should have frozen the requirements
when the contract was agreed to, NTC responded that Infosys did what it wanted to do
without really knowing what NTC wanted. What might have led to this response?
Infosys may have conducted the project by making assumption on the NTCs request without
getting detailed clarification from NTC. Secondly, Infosys may have ignored certain
specification given by NTC. NTC may have also conducted the project by its own way and
technique without considering the working environment and applications used in there which
may not suit the way the project is implemented. NTC might have felt fed up especially with
Sachins disrespect where in the first discussion Sachin had showed he was rather bored and
refusal of Sachin to join engineer and Yoneyama-san for a drink. Sachin and team should have
gotten clear picture on what is the requirement of NTC and get approval from NTC on the
way/techniques of Infosys going to implement the project to ensure both parties understand each
other clearly. All this should be written in black and white to avoid conflict as how Infosys is
facing currently. Sachin should have also join NTC engineer and Yoneyama-san for a drink to
show respect and strengthen the relationship between them.

Q8. Should Sachin have gone out for drinks with Yoneyama-san and their counterpart at
NTC? Did Sachin need to drink alcohol?
Sachin should have also join NTC engineer and Yoneyama-san for a drink to show respect and
strengthen the relationship between them. However, Sachin need not have to drink alcohol if he
does not want to.