Infosys Technologies Limited.

Growing Share of a Customer s Business

Stakeholder s Background
1. Infosys Referred to as the Microsoft of India , Infosys (often called as Infy) is a perfect example of Indian IT entrepreneurship. The then annual sales of the company were over Rs. 35 Billion and net profits exceeding Rs. 9 Billion. With over 816 delivery centres worldwide and 24 delivery centres, Infosys employ more than 17 thousand employees. Infosys remains the first company to get listed on the NASDAQ. The vision and the policies of the company encourage merit based promotions and innovation. It is also a symbol of corrupt free industry in India. Simple living and high thinking is the mantra that the founders of Infosys follow. Intellectual superiority is given more credence than anything else. Infosys had relied on offshore outsourcing model in the first decade of this existence. The main contributor in the success of Infosys was the availability of the world class IT work force at a very low cost. Infosys had to pay almost one third the salary to Indian IT professionals in India as it had to pay an American IT professional in US. Infosys bagged many maintenance projects and low value back office work in its early stage. Exceptional performance in these projects helped Infosys to get more glamorous and technologically challenging projects in future. Infosys started focusing on giving eng-to-end solutions so that they can be associated with the project from the starting of the project life cycle and extract the entire project budget surplus. Later in the company life cycle, Infosys started focusing on the business domain excellence model. They started focusing on mission critical IT projects which are highly customized projects and give high profits. 2. Prairie Four Square (PFS) PFS is one of the leading providers of individual life group life, medical and dental and long term insurance in the US. The real essence of the company can be known from the line to provide reasonably priced reliable, long term shelter and security for the families. The company had a image of offering fair prices, personalized and friendly service, prompt and equitable resolution of all claims. PFS maintained extensive and mission critical IT system across US. IT technologies used by the company consisted of amalgam of mainframe for batch professing, office computers for online analysis and network systems. PFS had outsourced more than 65 small maintenance projects to Infosys and are now considering outsourcing and entire mission critical IT project to them from the starting of it s life cycle.

Problem statement
Infosys needs to get into the US market for making mission critical end to end products. PFS project is very critical for their entry into this market. Rahul and Jaspal, Infosys s representatives in US, have to give a presentation to the PFS s purchasing team and put a strong proposal infront of them. The two main competitors are the two of the well known consulting firms. Their forte is in operational

But. The competitive advantage of low bidding and high profits of Infosys would now not be there. If they are able to pull this off. This is possible because Infosys would work from Bangalore and deliver the project in US. Demonstrating capabilities: In order to prepare a compelling for this project. The low cost and highly skilled IT workforce of India would be the USP of Infosys. It s a HIGH RISK and HIGH gain project. This project is very critical for Infosys. If this product is not developed in time or in the stated budget or according to the software requirements. CRM and financial analysis system project which PFS would need in future. No experience of end to end project solution: Infosys is taking this project to mark its presence in this end to end and mission critical project segment. then it would be a sure shot way to success in this niche segment. document and analyze such complex and ongoing data. 5. but even they want to enter into the IT software end to end solution market. Infosys also eyes the Infosys also needs to show that they can handle this type of end to end customer specific projects. Finally. they should see the long term profits that they can make if they make this product successfully and enter into this niche market segment. As there is cash crunch in the organization. Infosys has to show PFS their previous track record of achieving technological excellence before time. the CEO of PFS was on cost cutting measure. Infosys would have to present a very strong case with best of the cost accounting methodology followed. then it would create a very bad image of Infosys. Cost cutting measures by the CEO of PFS: After the recession on Wall Street. Infosys has to collect all the data. Infosys has to make sure that they persuade PFS to outsource the entire procurement software development to single firm and not multiple . At the same time. current and past performance records. the problem starts here. Risk Involved: Taking PFS project as a means to enter a very niche market of end to end product delivery and making customized products can be very risky. 3. Challenges that Infosys can face 1. Loss of competitive advantage on the low cost and high skilled Indian IT work force: The major point on which Infosys would be putting up their case for the project is that they can do the work on low cost. 2. As software industry is a service industry. India. 4. Infosys has to effectively show that their people can diligently and rigorously gather. PFS would want a high quality product on a very competitive price. It would be very difficult to make the CEO approve a high budget project. Lack of project experience in this segment can be a hindrance for a successful implementation of this project. brand image is very important. Infosys has to take into consideration that these two consulting companies can under bid to get the project. Both these companies would now bid less as compared to what they would have done if they were to develop the project in US. Both Excalibur and Merrimac have now opened their development centres in Bangalore. Thus Infosys has to take utmost care of making this project a success. Even if Infosys has to face some short term losses.

it was a very new company. Infosys should concentrate on have large offices in those areas to provide better services. Bed Rock Customers: These are the customers who are very specific about the product specifications. They have clearly specified to Infosys and other bidders that they will not accept any low quality product at any chance. Because of this. 4. Because PFS has professional buyers. Both Infosys and PFS have the same principals of achieving . cost of development and quality. New Buy situation to Modified Re Buy situation: PFS is not giving contract to Infosys for the first time. Importance of PFS as a client for Infosys 1. Infosys is handling more than 65 individual projects of PFS. Being in Insurance sector. and delivery requirements. Infosys had exceeded their expectations and were then given more maintenance projects. Infosys has to provide a lot of technical details about the project to PFS. This sales force has dedicated and most effective salesperson. PFS was a loyal customer: PFS has outsourced around 65 small projects to Infosys. Professional Purchasing: PFS has trained and qualified professionals which are incharge of the procurement of the software. This is the biggest opportunity and challenge for Infosys. Knowledge Management Company: PFS was a knowledge management company which deals with large amount of live data and numbers. process and analyze data and acts upon tremendous amounts of diverse data. number of projects given to Infosys has been increasing every year. PFS wants to automate the procurement processes and wants the efficiency of the software to of top quality. The basics of the software development is still the same. As most of the high end buyers of this product are in developed markets like US. Geographically Concentrated buyers: The target segment of Infosys is located in US and other developed countries. PFS has made changes in product specifications. price. The past records and brand name of Infosys would be very helpful in getting this deal cracked. They are ready to pay the premium but want utmost quality and adherence of the contract. They have the technical expertise to check the quality and specifications of the product developed by Infosys. PFS is an example of a Bed rock customer. 2. Infosys has to follow PFS s purchasing policies. Infosys has a moderate size of staff in US (Dallas). 2. All the three issues addressed above are the constraints that Infosys can face while making the presentation to the PFS team. The selling of modified Re Buy is very complicated and involves missionary sales force. delivery time. constraints and constraints. PFS trusted Infosys and were not disappointed. PFS works in mission critical projects. An Ideal example of B2B marketing 1. Initially when PFS gave projects to Infosys. Infosys which was built on the grounds of meritocracy finds PFS as a very apt customer to lend its services. The main motive of Infosys is to make the new buy of the software from other software manufacturers to a modified re buy from Infosys itself.firms. 3. they can have a coordination and operational problem in developing and implementing the software. UK or Europe. Since then. Thus.

In addition. Information and Data mining solution: The need of Industry is to have complete end to end solution. Past records and performance is also a major factor in allotting new projects to companies.In Full NE. it would be a great profit making venture for the company. Doing a project. OT. Targeting strategy should also specifically design so that Infosys can target the insurance industry as a whole and get contracts to make end-to-end solutions. If this pilot project for Infosys is a success. PFS is in insurance sector which does a lot of data mining and data crunching activities. Because of this. under the allotted budget and with good quality. it will position Infosys as a very technologically advanced and competitive firm and might get more projects that are similar. Credence based marketing is recognized as one the strongest marketing techniques. one to one marketing and because of this dedicated management of relationship with customer.On Time IF. Infosys should position itself in such a manner that it is a preferred partner for technologically challenging and innovating projects. Infosys has to show a fact that they were able to complete the project on time. Key account management makes a better delivery model.technical excellence. relationships have to be built. The segmentation is an end to end and mission critical project. then it will make sure that Infosys has a good brand image in this segment and will get some future projects. Defining and Importance fine STP (Segmentation. IT end to end projects cost a huge amount of money. The needs of this industry are different from other industry that needs software solutions. This is a very niche segment and Infosys should fine tune its segmentation strategy to influence the PFS procurement people. This would be a great thing for Infosys as they would be providing total end to end solution. Giving a complete solution to this company would mean giving a total complete solution from start to the end. It makes sense to concentrate more on those individual key . If Infosys can complete the project on time. in this segment. This makes path for long term survival of the marketer. Thus. under the finance constraints and schedule.No Error Long term and Credence based Marketing The field of software making needs not a short-term marketing but a long-term marketing strategy. IT projects take years to develop and then again a lot of time to implement. If Infosys is able to pull this project off. Key Account Management by Infosys Service marketing is all about customization of the product and services that are provided by the vendor to the buyer. Target and Positioning) for PFS As this is a modified re-buy situation. a very challenging one. Infosys should fine tune the STP analysis to get this project. Statistics show that 80% of the profits come from just 20% of the customers. 3. Word to mouth publicity also works wonders in this area. would definitely give a very good brand upliftment of Infosys.

Therefore. His work experience in Excalibur would again be an asset for Infosys in estimating the bidding price and other things. Though he attending frequent Indian association meetings. Key account management evolved in this manner. he was American at heart. Key account management reaches inside both the seller and the buyer. Latitha is virtually living two different cities at the same time( Dallas and Bangalore). Rahul had also worked in Excalibur consulting for 10 years and now the same company is bidding for the project. Latitha has also taken many courses in Infosys Leaning and Development Centre. Advantages of Key Account Management Understand each customers need and then anticipate it later Find out the various sources of risk and then take corrective action to prevent them Develop appropriate strategy for each individual customer Keep a track of the progress of both development and maintenance of the project of each key account 5. Infosys treated PFS as a partner in its business rather than just a plain customer. b) Jaspal: He was an entrepreneur at heat. She has also travelled extensively in Asia. She watched TV channels aired in Dallas to get the feel of what is happening in that place. Europe and the US completing a wide range of IT projects. it is much more complex than simple marketing and sales. Analyze. the team formation for this key account was very important for Infosys. As she is working with teams in two difference continents. Jaspal had started and operated a successful Value Added Reseller (VAR). The team that Infosys had made for making a presentation to PFS consisted of the followinga) Rahul: He was a 2nd generation American from Bay Area. He knows how to get projects from companies which are cash crunched or want to have a modified re buy. He was in the team mainly to communicate better with American clients (PFS). 2. . Infosys had made PFS as a Key Account for this end-to-end project. This would again help Infosys in bagging this deal from PFS. Infosys also trained him for International Operations. 4.customers. He was an MBA in Finance and was then well equipped to make a cracker deal with PFS. she has to handle teams in two different time zones. d) Ravikiran Gowda: He was a senior programmer and Latitha top assistant. He was one of the important front-end person s of the team. California. Infosys treated PFS as a key account. 3. He was the one who advised Latitha on technical 1. Because of special needs of PFS for this project. She has an experience of more than 15 years in IT related projects in TCS. future profits and project to give them due importance. This meant that Infosys was paying too much attention to make PFS feel that Infosys was serious about the project. Team to Team Marketing (Infosys to PFS) As I just wrote before. His role in the team was very important. c) Latitha Krishnan: She was an Computer Science Engineer from IIT Kanpur and an MBA from IIM B. Organize and Prioritize various key accounts as per revenue. The other two consulting companies have just recently opened their offices in India and still have to learn this project development and delivery model. Infosys has already excelled the Onsite Offshore Model. which would give Infosys an edge. She was able to coordinate with Dallas and Bangalore team very well.

This is just 3 of the total US market for IT related products.How Infosys went beyond P S s expectation 1.38 Billion out of it. Infosys also wants itself to relate itself to PFS because PFS has built its reputation of being a technologically advanced company. They want to increase the domain in which they work and provide end -to-end solution to PFS. More than 80 of the revenue is generated by these 20 of type of projects. Infosys wants to position itself in this segment as a reliable and technologically advanced partner. Thus. small and maintenance projects from PFS.Wh this p oj t is i po t nt fo Infos s This jec is ve y important for Infosys as Infosys wants to enter the se ment of providing end to end mission critical projects This segment caters for the maximum wall t share of the IT industry. Ariba e-Pro urement System. 2. Infosys till date has just got individual. Infosys would be at an advantageous position to gain a greater share of this very profitable market. This it is prudent on Infosys s side to make efforts to get into this developed market and reap huge profits.38 3 Total Market(Billion Rupees 46 97 The total US spend on IT projects is more than 46 Billion Rupees and Infosys is able to tap just 1. Full Time Equi alent FTE) of employee G nnual Sales(Billion Rupees P Total Market(Billion Rupees 6 7 D Q 5 7 G H A F G 1 8 H E I 9 210 C B @  1 §¦  ¡ ¦ ¦¡ ©£ ¨¥© ¥© ¥ ¦ #   ¡   £ ¤¥ ¤ £ ¦¡ ¤¤  ©¥ ¢ £ © ¤¤ £ ¤  ¦£ ¤ ¤  ¤ ¤ ¢¤ ¢    ¡  #    ¨¡ ¡  ©¥ £  ¥ ¦£   ¡¨  £  §¦£ ¨¡ £ § ¡  £  ¤ ¤ ¤ ¤  ! ¤¤ ¤ ¤ ¤¤ ¤ " ¥¦   ©£ ¤¢¥ ¤¦ ¨ © ¥©  £ ¡ ¤¡© ¦¥¡ ¡¨ §¦ ¥ ¤ §¦  ¤ ¢¥ ¦¡ ¤ ©£¨  ¤ ¦¡ ¦ £ © ¥ ¨¡ © £  ©£  ¡  ¡ ¥ £ ¥  ¥ ¥ §¦£ ¦£  £ £  £   ¦ §¦£ ¤ ¤   ¤ ¤ ¤ ¤ ¤ ¤ ¤ ©¥ £ ¡   ¥ §¡§ ¥ ¦ £ ¦ ¨ ¥© ¨¡ §¦£ ¦¥¡ £ ¡ ¡   £  ¨ ¤ ¤  ¤ ¤ ¤ ¢ ¢ ¤ ¤ ¤ s ec c e e FS s e e ve e s sys FS c y s e e e e ss c e s e FS sys c e e c se e s c FS sys e s e s ec e c e s s ve y c e e s e e s ve e ec s e s jec s e 4 $ % )% ( 3 '& % $ . 3 Annual Sales of Infosys in US is just 3% of total IT market nnual Sales(Billion Rupees 1. With its technologically advanced delivery model and high quality solution. Insurance Industry is ever growing industry and needs data analysis and data crunching tools very fre uently.

5 times of that of FTE of employee of US. This amount was reduced to zero by Infosys because they had reduced the number of incidents to zero.000 The Full Time Equivalent (FTE) of employee in US is around $8. Cost savin to PFS The number of corruption incidents per year went down from 24 to zero. PFS lost more than $ 21225. This gave Infosys a huge advantage is cutting the costs of the project and bringing the project under the tight budgets.000 and that of Indian IT professionals is $3. For every corruption incident. Every corruption incident caused a huge amount of money loss to PFS. 2. This also made sure that Infosys could allocate e tra man force on PFS s project and complete on time. S R T .200.000 $6. This FTE of Indian IT professional is more than 2.FTE in US Series1 FTE in India $0 $2.000 $4. rather. before time.000 $8.

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