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Infosys Consulting

It aimed to combine Infosys' reputation for business execution with consulting services. By 2006, it had over 200 employees and 100 consulting engagements, on target with its revenue and contribution goals. It utilized a global delivery model with onsite and offshore resources to reduce costs while maintaining quality. Client metrics and project outcomes determined fees to ensure measurable benefits. The culture emphasized autonomy while adopting values from Infosys to differentiate itself in the industry.

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rush2janani
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1K views

Infosys Consulting

It aimed to combine Infosys' reputation for business execution with consulting services. By 2006, it had over 200 employees and 100 consulting engagements, on target with its revenue and contribution goals. It utilized a global delivery model with onsite and offshore resources to reduce costs while maintaining quality. Client metrics and project outcomes determined fees to ensure measurable benefits. The culture emphasized autonomy while adopting values from Infosys to differentiate itself in the industry.

Uploaded by

rush2janani
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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April 2004 - Inception - Wholly owned subsidiary of Infosys Technologies - US based

Key people:
Steve Pratt (CEO and MD)
Paul Cole (COO and MD)
Romil Bahl (MD)
Ming Tsai (MD)
Raj Joshi (Founder)

As of 2006:
100 consulting engagements.
200 employees.
On target with its own revenue goals.
On target with its contribution to Infosys Technologies’ revenues.

Challenges

External -
Kris Gopalakrishnan - “To compete with the best” in the industry like IBM and Accenture.
Raj Joshi - “To change the rules of the game” within the consulting industry.
Internal -
To leverage Infosys Technologies - Interface productively with the parent company.

Unique business model -


Shortened life cycle from business consulting to technology implementation.
Reduced cost of a typical client engagement.
Delivered measurable benefits to clients.
Evolution of IT services in India
1990’s - Procurement of application development and maintenance services by American companies.
BPO - Largely done by captive units.

Evolution of Infosys Consulting


1993 to 1999 -
American companies gained confidence working with the Indian companies.
Wanted to leverage high quality services at low price points.
Infosys Technologies began expanding the foot print in package implementation, R&D, infrastructure management,
system integration, testing, and BPO - Started working on both the business side and the IT side - Saw opportunity
to enter client relationship earlier in the lifecycle.
Decided to initiate an in house consulting unit - Constrained - Limited brand equity, investment allocation and
recruiting capabilities

1997 to 2001 -
Raj Joshi approaches Krish Gopalakrishnan to initiate an alliance between the two firms.
Krish Gopalakrishnan rejects citing the reason that Infosys brand would get diluted.

2004 -
Infosys Technologies - Billion dollar company - 25 K employees - Established strong brand equity - Wanted to
combine its great reputation for business execution with consulting.
Thought of making a acquisition - Wanted to establish a new model - Would limit its ability to attract the right kind of
talent - Decided against the thought.
Decided to create a hybrid model - US based - Wholly owned subsidiary.
Joshi and Pratt - Leadership team in place - Set out to build a consulting organization.
Business Strategy
Delivery of high quality business consulting.
Disciplined technology implementation.
Competitive price ($100 per hour compared to $175/$225 per hour with other competitors)
Expanding GDM to the consulting arena.
Create unique culture - that
•differentiates them from other consulting firms
•enables recruitment of top clients
•enables to deliver measurable values to the client

Cost reduction
Onsite resource - premium consulting services - $150 to $400 per hour
Onsite resource - IT implementation - $100 to $150 per hour
3 offshore resources - Developers - $105 combined

Global delivery model


Pioneers for more than 20 years
Globally distributed teams
Projects broken down into logical components and distributed to different locations
24 hour working day - a reality
Cost cut by 30% and reduced time to market
Integrated to business consulting and technology implementation life cycle (1-1-3 model)
1 ICI resource onsite, 1 Infosys Technologies resource onsite and 3 Infosys Technologies resource offshore.
Ming Tsai - Knowledge of the GDM of Infosys Technologies resources onsite, a “differentiating factor” from
competitors approaches.
Approach to technology implementation
Traditional approach - Look at functional requirements - Vertical (sales, marketing, manufacturing etc)
ICI approach - Look at process requirements - Horizontal
Look at how the company was organized by process - Level 0, highest level of aggregation of
processes.
Measurable benefits
Measure everything (Infosys Technologies philosophy)
Business process metrics within the client’s business process operations as a result of its consulting
Fees owed to the company were contingent on project outcomes
Track the quality of work - clients to rate each engagement (out of 200. 100 is satisfactory. 130 is the average
of ICI as of 2006)

Culture
Autonomy to create its own culture, recruitment strategy, Organizational structure and compensation
packages.
Unique culture - maintain attributes required for successful consultants - adopting essential values of the
parent company.
Challenge - Taking people from diff. groups and making them fit to this culture.
Open and transparent culture.

Recruiting
Hire first rate employees (Narayana Murthy’s philosophy)
Campus hires + Referral based system
Half of employees are from Infosys Technologies
Recruiting more Women
More local presence

Differential approach
Staffing model - responsibility for contributing to the firm was given to the employees.
No bench - All teaching, learning, billing, contributing.
Reverse auction
Nominate and score each leader for promotion
Employees asked to block certain time when they will not be available for work
Bonuses for employees were based on the value ICI has created for its client.

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