global delivery system at infosys

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INFOSYS GLOBAL DELIVERY MODEL

Case Presentation

Presented By: Group 1

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AGENDA

• Abstract of the case• Key Issues

• Global delivery model• Infosys GDM practices

• MCS at Infosys• Competitive Advantage of

Infosys GDM

• Challenges• Recommendations

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ABSTRACT OF THE CASE The case examines the global delivery model (GDM) of the leading India

based software company - Infosys Technologies.

Infosys used GDM as a strategic outsourcing tool; using it, the company could take the work to the place where it could be best performed at lowest cost with minimum risk.

Using GDM, Infosys delivered the highest process and quality standards, while leveraging differences in cost, quality and skill sets of manpower in different global locations.

The case presents an in-depth information on the operational aspects of GDM and its benefits to Infosys.

It also discusses the challenges faced by the company from foreign and Indian software companies

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KEY ISSUES

Study and analyze the operational aspects of the Global

Delivery Model of Infosys.

Analyze how GDM emerged as a source of competitive

advantage to Infosys.

Understand the factors that contributed to the success of GDM.

Examine the challenges faced by Infosys from foreign and

Indian software companies

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Europe: StockholmBrusselsAmsterdamLondonFrankfurt

Paris Zurich

USA: Atlanta, Boston, Chicago, Dallas,

Detroit,Los Angeles,New York, Fremont, Seattle

Argentina

Japan, Australia, Hong Kong, China,Singapore, Sharjah,Mauritius

India: Bangalore, Chennai, Pune Bhubaneswar, Hyderabad, Mangalore, Mohali, MysoreDelhi, Mumbai

Canada

GLOBAL COMPANY, GLOBAL OUTREACH

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GLOBAL DELIVERY MODEL

It is based on the principle of taking work where it can be done best, makes the most economic sense with least amount of acceptable risk

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INFOSYS GLOBAL DELIVERY MODEL

Why GDM at Infosys?

Business Expansions

Increase in Foreign Clients

Increase in Talent Pool

Need to open development center near client’s location

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ABOUT INFOSYS GDM

Initially - GDM was deployed for Application

development.

Now – Included new services like package implementation,

BPM, testing, consulting and business integration.

GDM divided in 3 categories:

- Client location

- Closer to client

- Remote location

Global Delivery Center – Two Types

1. Proximity Development Centers (PDC)

2. Offshore Development Center (ODC)

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EXPANDING GDM

GDM PLUS-Strategic response to changing market conditions

-Integrated delivery model

-Execution Excellence

-Avoiding risk of predatory pricing of competitors

INFOSYS CONSULTING- Providing IT services

- Providing consultancy services

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MAJOR COMPONENTS

Knowledge capture. Daily handoffs. Quality control. Continuous improvement. Mobilizing & demobilizing of staff as required. Distribution of staff between onsite & offsite locations. Recruiting & training the right kind of people Billing for cross-border teams, and Connectivity of the locations.

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WORKING OF INFOSYS GDM

Organization into modules.

Parallel processing of resources & activities.

Clear transparency between teams & modules.

Proactive approach before project’s beginning.

Comparative analysis of competencies.

Conduction of client meetings & preparation of status reports.

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ADVANTAGES

Access to a large pool of highly talented professionals.

24 hr. execution capability with operations spread across different time

zones.

Expedite large projects by simultaneously processing the project

components.

Enhanced security through physical & operational separation of clients

project.

Cost competitiveness across geographic regions.

Uninterrupted services through built –in redundancies.

Knowledge management system, through which solution could be re-used.

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DISADVANTAGES

Complex to understand.

No verticalised structure.

Language Constraints

Management and communication overheads.

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MANAGEMENT CONTROL SYSTEM @ INFOSYS

PROJECT Specific

-Closure Reports

-Daily Worksheets

-Quality System Documentation

-Defect Checks

-People Knowledge Map

- Project specific training

ORGANISATION Specific

-Sarbens Oxley Compliance

-Anti Money Laundering Practices

-Implementation of Patriot act

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FIVE PILLARS OF MCS

ControlProcesses

Infrastructure

Management

Coordination/Integration

Rewards

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CONTROL PROCESSES

Benchmarking against international quality standards.

Six Sigma

Detailed checklist

Standard Guidelines & Templates

Business continuity & disaster recovery

Competency Mapping

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INFRASTRUCTURE

Job allocation according to maximisation of skills at minimum cost.

Parallel processing for deployment of activities & resources.

Use of satellites & fibre optic links with facilities of alternate routing.

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MANAGEMENT

Setting up of BOK.

People knowledge map.

Values & policies.

-quality manuals

-quality & productivity charters.

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REWARDS

Variable component in salary

-50% for top management

-30% for middle management

-10% for junior level staff

Role based structure.

High Compensation

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INTEGRATION & COORDINATION

Seamless communication

Closure reports

Daily worksheets

Quality system documentation

Body of Knowledge

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CHALLENGES

Heavily dependent on US based companies.

Growing competition from other countries i.e. Phillipines, China

Low Cost & high- value added custom built solutions from competitors.

To effectively implement verticalised structure as adapted by Wipro technologies.

Predatory Pricing

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RECOMMENDATIONS Demonstrate consistent performance and profitability.

Creating customer & employee value through building deep relationships and loyalty.

Act as an end-to-end business transformation player with appropriate brand awareness and positioning

Leveraging the global delivery model with sustained excellence in execution through appropriate management control system.

Manpower to be talented, best-in-class people with a multicultural, strong performance ethics.

Focus on other geographic areas for business.

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ASPIRATION TO ACTION… IN CHALLENGING TIMES

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Strengthen Value Business

and

Defend Volume Business

Capabilities andTalent

Controlled Business

Environment

Existing Business

Environment

TheEmerging Infosys

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LEARNINGS FROM INFOSYS GDM

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Capture, Guarantee and Accelerate Savings

Transfer to Variable Cost Structure

Six Sigma, ISO 9000

Upgrade and Refocus Skills Regularly

Access to High Talent Resource Needs

Fix Operational Service Problems

Mitigating Risk

Manage Cost

Improve Service/ Quality

Increase Flexibility

/Agility

Benchmarking, Quality standards

High- Skilled Manpower

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Thank You