MANAGEMENT CONTROL SYSTEMS ASSIGNMENT 6: INFOSYS’ GLOBAL DELIVERY MODEL

Submitted to:
Prof. Kanchan M

Submitted by:
Ankit Varliani (08BSHYD0113) Ankur Maurya(OSBYHYD0124) ArpitaJaitly (08BSHYD0147) AsthaAgarwal (08BSHYD0161) Belinda Rosario (08BSHYD0174) Bhaval Kumar (08BSHYD0178) Bithika Sinha (08BSHYD0185)

Date of submission: July 22, 2009
The case “Infosys’ Global Delivery Model” examines the global delivery model (GDM) of the leading India based software company - Infosys Technologies. Infosys

billing for crossborder teams and connectivity of the locations. where process-driven technology centers with highly skilled manpower were easily available. quality control. CMM and the Malcolm Baldrige framework.used GDM as a strategic outsourcing tool and by using it. Infosys used two types of Global Development Centers (GDCs) – Proximity Development Centers (PDCs) and Offshore Development Centers (ODCs) to carry out the activities related to software development. ➢ The third category consisted of tasks that could be done in remote locations. recruiting and training the right kind of people. the company could take the work to the place where it could be best performed at lowest cost with minimum risk. • • The project work was carried out with teams located at different locations across the world working round-the-clock on the project. The major chunk of Infosys’ revenues was derived from GDM based application services. mobilizing and demobilizing staff as required. daily handoffs. ➢ The second category included tasks that needed to be carried out closer to the client. • Infosys benchmarked its IT services against international quality standards like ISO 9000. • Infosys developed People Knowledge Map which had contact information of the individuals who were expert in specific areas so that people working on a particular project could contact them in need. GDM provided a superior value proposition at higher quality and lower cost. The company enhanced its GDM capabilities by applying it to new services and adding in new global delivery locations. • The major components of GDM included – knowledge capture. GLOBAL DELIVERY MODEL (GDM) The salient features of GDM are outlined below: • The large scale software development projects were divided into 3 categories: ➢ The first category included tasks that were to be carried out at the location of the client. continuous improvement. .

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independent validation. Video conferencing was used for executive level discussions and training. As a part of expansion.IMPLEMENTATION OF GDM MODEL Infosys used the services of several service providers along with a mix of satellite and fiber optic links with facilities for alternate routing. infrastructure management and systems integration . operational efficiency and people development. Infosys derived more than 40% of its revenues through new GDM based services like package implementation. In 2005-06. technology. business process management. domain expertise. GDM Plus was Infosys’ strategic response to changing market conditions and the competitive landscape to deliver high volumes to customers. quality. ADVANTAGES FROM GDM          Rapid growth in revenues Lower risks Talented workforce Best results Flexibility Round the clock productivity Faster response Shorter lead time Cost benefits RESULTS AFTER THE IMPLEMENTATION OF GDM • • Infosys’ revenues grew four-fold in the past four years and it also continued attracting a pool of high quality talented professional. Execution excellence was to be achieved through business solutions. Infosys launched GDM Plus. a combination of more services and excellence in execution. an enhanced service delivery model.

Infosys faced stiff competition from other Indian IT companies which were adopting new structures.• The benefits to clients included 35% reduction in cost and 75% reductions in time to market for various products across various geographical regions. it will take them time to acquire skills to the GDM model as well as to compete with the newer services that Infosys would offer in the consequent time period. • As Infosys was a pioneer with the GDM model. It could hike the salaries or increase the perks that it has been offering so far. Infosys and its GDM were heavily dependent on US-based companies. • Infosys also faced growing competition from countries like China and the Philippines which were offering lower wages and more facilities. and Electronic Data Systems have started operating from India and began offering the same offshore rates as Indian companies. RECOMMENDATIONS • Infosys has the first mover advantage in the domain but in order to retain the skilled employees under highly competitive scenario it need to come up with some schemes for the employees. Since the IT spending of the US companies was decreasing and was expected to reduce further. As the competitors are still trying to build their model from scratch. they have already gained an expertise on this front and can try discovering newer horizons and think of newer services that can be provided to the existing and prospective customers. . CHALLENGES • MNCs like Accenture. • • • The entry of multinationals has put pressure on Infosys in terms of retaining talented manpower. IBM Global Services. it could put Infosys in a tight spot.

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