Professional Documents
Culture Documents
Group Members:
Aline Saab
Miriam Aziz
Charbel Boutros
Kareem …..
Presented to:
Mrs. G. Sfeir
On 19-01-2010
TABLE OF CONTENTS.
INFOSYS’ BACKGROUND………………………………………………………………….….....…..3
TIMELINE…………………………………………………………...……….……….….…3
MISSION,VISION,& VALUES…………………………………………………..…..……5
SOLUTION TO CASE STUDY…………………………………………………………………………6
COMPANY OVERVIEW………………………………………………………………………………..8
HUMAN RESOURCES........................................................................................................8
FIGURE 1: NO. OF EMPLOYEES……………………………………………..………..8
TARGET MARKETS……………………....………………………………………………9
INDUSTRIES WHERE INFOSYS COMPETES……………………………….….10
INFOSYS COMPETITORS INCLUDE………………………………….…….…..10
PRODUCT DEVELOPMENT………………………………………...………………………………...11
FIGURE 2: TABLE SHOWING PRODUCT DEVELOPMENT…………………...……11
GLOBAL DELIVERY MODEL (GDM)……………………………………....................................... 12
SWOT ANALYSIS………………………………….………………………………………….….……17
FIGURE 3: SWOT ANALYSIS…………………………….…………...…………….….…...17
STRENGHTS………………………………………………………..……..…….………….…...19
WEAKNESSES………………………………………………………………..…………………20
OPPORTUNITIES…………………………………………………………………....……..…....21
THREATS…………………………………………………………………………….…………..22
FIGURE 4: BCG MATRIX OF INFOSYS IN USA………………………...…….……………………23
FIGURE 5: PORTER’S FIVE FORCES MODEL…………………...……………………….………..25
ATTACHMENTS…………………………………...…………………………….……………………..28
REFERENCE…………………………………………………………..………………………...………30
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INFOSYS’ BACKGROUND
Infosys Technologies Ltd. was started in 1981 by Narayan Murthy along with six
other partners after borrowing US$ 250 from their wives. They shifted with an
unexpected way and in a short period to become Global Market leaders and still are by
operating in 8 different countries, within 50 major cities. The company provides business
finance accounting, administration and sales order processing through its subsidiary –
Infosys BPO. Rated in the 100 List of NASDAQ, Infosys Ltd has been nominated in
TIMELINE.
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1996: e-Business initiative started
associates.
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. MISSION, VISION, & VALUES.
Mission
"To achieve our objectives in an environment of fairness, honesty, and courtesy towards
Vision
Values:
their expectations.
Integrity : to be ethical
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SOLUTION TO CASE STUDY.
As we read in the case, PFS had an important decision to make. In a summary, PFS
as mentioned in the case PFS managers were sure that this project is two folded: a
consulting and an IT project. After deliberating they decided to handle the whole project
to one company (end-to-end).In case the company chosen worked as expected it will be
There were two companies at first Excalibur and Merrimac Consulting. They both are
leading consulting firms while their weakness is maintenance. On the other hand, Infosys
were pioneers in maintenance while their weakness is consultations. Infosys had already
impressed PFS with its maintenance project (good quality and price).
Managers of PFS had to choose between those three companies and Infosys team had to
While preparing the proposal, Infosys team deducted that “To meet Infosys profit
requirements, they determined that the cost-plus price of the implementation phase of the
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installation,..and “burn-in” – should be $2 million (Rs. 92 million). As for the
maintenance portion of the end-to-end solution, the team estimated a price of $400,000
1. Alternative one: Infosys will offer all the consulting services for $2 million and
the maintenance for $400,000 to achieve their expected profits. This will mean
that they will be offering the same prices as their competitors (no cost advantage).
On the other hand, they will be making good profit in case they were offered the
project.
2. Alternative two: Infosys will offer the both consulting and maintenance service
at a price lower than the cost. Surely Infosys will have a cost advantage and PFS
will be attracted to accept their proposal but on the other hand Infosys won’t make
3. Alternative three: Infosys will offer the consulting services at a price less than
In our opinion the best course of action is alternative 3 since PFS knows that
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problem. While in the consulting part, it is more suitable for Infosys to offer a
cost less than its competitors since the competitors are market leaders and known
consulting firms.
COMPANY OVERVIEW
Human Resources:
Infosys focus on the quality of its employee that is from the academic and technical
perspective. In addition to that, Infosys focuses on constantly training its employee that’s
All. This system improved the communication between the company and its customers
by integrating the front-end sales system with the back-end delivery system.
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hierarch, which means that Infosys believes in equality among its employees.
Target Markets:
Infosys has several target market to satisfy their customer. In addition, there are nine
2. Banking and capital markets => all banks, stock exchange, brokers and traders.
3. Communication Service providers => cable and satellite, data and messaging
4. High Tech and discrete MFG => computer hardware and software,
5. Insurance and health care => all types of insurance and health care products and
services.
7. Resources, energy and utilities => Agriculture, chemicals, paper and pulp.
8. Retail, Distribution and CPG => Beverages, food and food retail.
transportation services.
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INDUSTRIES WHERE INFOSYS COMPETES
Computer Services.
Business Services.
Consulting.
Satyam
Tata Consultancy
Wipro Technologies
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PRODUCT DEVELOPMENT.
DIVERSIFICATION:
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GLOBAL DELIVERY MODEL (GDM)
We noticed something very interesting in the case which is the presence of Infosys’s
employee in different locations and their commitment to communicate in the best way to
get to the solution. “At 6:00 a.m. (6.00 hours) the next morning, Rahul inititated a hastily
arranged teleconference call with Jaspal in Dallas, and Lalitha and Ravi in Bangalore”.
We mention this since we find that this is part a small part actually of the Global
Delivery Model (GDM) that Infosys has pioneered in. 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.
So after reading the definition of GDM we realize that GDM was the reason that Infosys
was able to work at low-cost and deliver high quality products and services.
As we can see in Exhibit 1.3, GDM relies on geographically dispersed teams working
simultaneously at the lowest work breakdown level, and in multiple time zones to deliver
GDM is the most important strategic initiative; its aim is to accelerate the schedule in
Infosys has a complete set of patents rights and systems to management. These tools
which are important for development are based on GDM to maintain the applications
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IPM: All information relevant to a project flows into IPM. The decisive achievement and
the evaluation analyses are based on the information of this tool. They help the
MaST is a tool for scheduling and tracking a maintenance project. It is integrated with
other tools like IPM, PS-Web… The key features of MaST are:
-Multi-user system
DART: Daily Activity Report is an intranet based tool used for tracking the time sheet of
RADAR: a web based tool to track defects found in a lifecycle stage of a project. It can
PRISM: is a tool used for project review by Senior Management. The SM personnel use
his experience and assess risks, changes etc. ensuring supports to schedule and budget.
Internal Audit System: is a tool used by the Process Consultants (Quality Assurance) to
SPC (Statistical Process Control): is to analyze the defects occurred in a project and
ensure the quality of the delivered code and strengthen the application.
to execute a project. The conclusions derived from data are used as guidelines.
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IPSP (Intelligent Production Support Platform): it is used in Production Support
Assignments. It ensures the support to desired Service Level and improves the
productivity.
the maturity level of the business. Infosys has developed tools that enable to move from
Impact Analysis Kit: it configures the assessment for each level of maturity. It helps to
analyze the current configuration compared with the expected one. The gaps are bridged
Estimation kit: is a by-product of Impact Analysis. When the last identifies the gaps, the
estimation kit analyzes each gap and what is required to bridge them. The effort is used
ROI toolkit: enables the evaluation of the dollar-returns arising out of the IT initiatives
that take the business to higher levels of maturity as per the INSPIRE framework.
Upgrade toolkit: it aids in upgrading to higher versions that improve the productivity,
gradation. InTune powers the global model of Infosys that delivers the values of lower
cost of ownership, faster time to market and superior quality of software. It comprises 5-
1 System Study and Solution Design Documentation: customization and interfaces that
can be automated.
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.. Upgrade Documentation of new architecture: test environment.
2 Offsite Trial .
3 Offsite Upgrade: upgrading, testing and fine tuning the plan.
IntERPryz: a methodology describing a clear path for planning, executing, testing and
supporting the implementation process. It also leverages Infosys strength as to capture the
unique business processes that differentiate the client from competitors. It harnesses the
- Stressing accountability
Quality and Customer satisfaction are essential part of Infosys Value system.
shareholders.
- Tight coupling between strategy and execution to ensure relationship objectives are in
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Technology Competence: Infosys uses its SETLABS (Software and Engineering
Tools and Methodologies: Clients will have visibility into in-house tools &
Quality and Customer Satisfaction Quality: over 90% of the business comes as a repeat
one. Infosys Quality System Documentation (QSD) has a repeated process for every
stage in the service lifecycle which would translate to higher customer satisfaction.
* Issue identification.
The Infosys relationship team identifies issues including weekly status reports,
This is aimed at obtaining formal, direct and honest feedback on the performance and
ability to meet client expectations. The survey is analyzed and the findings are discussed
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. SWOT ANALYSIS
Little Weaknesses to show among the advantages Infosys is offering. Based on the
fairness, honesty, and courtesy towards our clients, employees, vendors and society at
large" the company is spreading in an unbeatable way in CRM, HRM, while focusing on
communication among team members internally and externally. Company’s Growth has
Reached a peak point, and a sharp increase in its stock from RS 95 /1993 to RS 8100/
1999, within 6 years to reach a stock price level exceeding the expectations of
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Strengths:
1. The labor force in India constitutes an undeniable strength point for Infosys. On
one hand, Infosys gains the advantage of low labor costs and on the other hand
Infosys Strives in HRM to select the prime students and improve their skills with
prosperous team.
(GDM). It has spread fast up to the rise in offshore outsourcing. GDM is the
strategy of breaking a task into small parts in order to distribute them in a way
that the maximum value will be generated. GDM along with highly trained low
cost labor force will allow Infosys to offer better quality at significant lower costs.
3. All assets join forces to provide Infosys with the first mover advantage. Infosys
was the first Indian company to enter the NASDAQ stock exchange. Thus the
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.. the years Infosys succeeded in creating strong brand equity in the market
4. Through.
and at the same time it managed to achieve long standing client relationships.
5. Infosys has a strong financial position with a turnover of $4 billion in 2008, thus
An important advantage from the financial perspective is that the company could
Infosys Market – capital is about $30 billion which positioned it among the
NASDAQ 100 list. Its financial reputation and its moderate services cost are
giving her a good financial chance especially that PFS is aiming at cost control. In
could be created ethically and honestly” serves the cost more and more.
6. Although the majority of Infosys global development centers are located in India
Exhibit 1.2 , The whole 44 centers are also located among many developing
been able to get its major revenue from external markets 63% North America,
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7. Based on the consultancy service provided as a value added offer and because the
PFS, made it the best nominated because of many known reasons and cost
savings.
Weaknesses:
2. The fact that the salaries are rising in the Indian market is taking away the cost
competitors are widely bigger relating to the global Market, Stating for example
Hewlett Packard HP ($91 B), IBM ($ 91 B), EDS ($21) and Accenture
($18billion).
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Opportunities:
1. If Infosys gets the project offered by PFS, and if they were performing as
expected, then PFS will offer Infosys more and more end-to-end projects.
2. Since Infosys increased the focus on high end work like consulting there’s an
section.
4. Domestic demand for IT services is to grow at 20% which means Infosys will
have the opportunity to grow in the Indian Market and thus its reliance on the
5. Infosys knows that its reliance on the US market is not a good strategy for the
future therefore they started to take steps to break into geographic sectors
6. There is a new and emerging market in China as the country undergoes a huge
industrial revolution.
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8. Infosys plans on having new alliances in the future such as Microsoft.
Threats:
1. A potential new entrant might affect the whole calculation of Infosys. Meaning
that Infosys has aimed many years to enter into PFS trustworthy chain and thus if
a new unknown competitor will enter it might affect the whole Infosys Plan.
Especially that some are outsourcing now from China, Korea and different low
2. The increased competition in the market especially from foreign firms like
3. The whole economic environment leading to rising wages and pricing pressure.
4. Since Infosys depends on a small number of big companies, the loss of one client
5. Losing the bid might block the expansion made by Infosys throughout PFS with
65 projects.
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.. the dollar have valued against the rupee, although Infosys is able to
6. When .
reimburse the cost difference however, it weakens the dollar for to minimize
Business Process
Consulting &
Outsourcing
High
(BPO) Package Implementation
Market
Growth
Low
Software Products NONE
& Maintenance
High Low
Market Share
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Infosys BPO is an end-to-end outsourcing services provider. It is a global
company with 12 delivery centers across the Asia Pacific, Latin America, Europe
BPO closed FY 07-08 with revenue of $ 250.3 million with 11 centers worldwide
includes the brands Lotus, Web sphere, Tivoli, Rational and DB2 Information
Management.
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PORTER’S . FIVE FORCES MODEL (INDIAN IT INDUSTRY)
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Bargaining Power of Customers (Very high):
1. Large number of IT companies competing for the offered IT projects which surely
1. Companies located in other countries such as Eastern Europe, the Philippines and
China, are emerging which is a threat to Indian IT industry because of their cost-
advantage.
2. Price allocated for the product offered should be well studied since the quality in most
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.. chain, which gives the opportunity for small enterprises to start a business
2. Large value .
as well.
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ATTACHMENTS.
Exhibit 1.1:
Exhibit 1.2:
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. Exhibit 1.3
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REFERENCE
www.infosys.com
Pinto J, http://www.jimpinto.com/writings/infosys.html
Wiki, http://en.wikipedia.org/wiki/Capability_Maturity_Model
Wikinvest, http://www.wikinvest.com/stock/Infosys_Technologies
Infosys , http://www.infosys.com/about/who-we-are/Pages/index.aspx )
The story of India’s 3 IT biggies –www.rediff.com
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