Infosys Technologies Ltd.

1.What quantifiable cost savings not specified in project contracts has Infosys delivered
to PFS during the past five years?

The starting of Infosys was based on the idea of earning clean money. Infosys maintained the
same line of action and reduced the Average no. of Corruption Incidents from 24 to 0, Which
translated into a Significant saving. Any such corruption would idle the PFS employees for 4
hours which would have an opportunity cost roughly (125*4*1932) rupees. In Addition,
every corruption Incident would cost (2070*4*3) +(1840*1). Thus making the total sum as
123,280.

The time saving done by adding a critical algorithm, which improved processing efficiency
by 56% and Time by 8 Hours, reduced the opportunity cost even further. It also reduced the
probability to less than 1, which again saved16.5Million rupees per failure.

The quality and time of delivery were also superior and Infosys exceeded its targets. The cost
savings from this were also quantifiable at most times.

2.What "knowledge transfer time” cost savings can PFS expect from sole sourcing the
Ariba e-Procurement System project?

“Knowledge transfer time” is the time required by IT professional to understand the system in
and out to work on its maintenance. This time is crucial as the costs associated with this time
can lead to lesser savings. This time that programmers need on understanding Technical
details of the system if they get in at maintenance stage won’t be required if PFS Sole
Sources the project to Infosys. It is estimated that the project will require 5 Programmers 12
weeks to master the new system if it’s not in-house developed. This would translate in an
opportunity cost of Rs. 3,68,000 per Month. Another benefit is that they will be better able to
tackle the problems, as they have been a part of Development. They will e in a better position
to understand and work on the issues quicker.

3.How can Infosys' PFS Account Team persuasively sell the firm's ability to deliver a
superior end-to-end solution for the Ariba e-Procurement System project?

Infosys need to emphasize on the value addition they bring to their clients as compared to
their customers apart from showing how good and effective they are and have been at
delivering end to end solutions. The following points, as per the teleconference call, were
seen of importance.
 Active Team Support by Infosys. As per their past experience PFS seems to have faith
in the Infosys team which they should try and leverage.
 Quality, Timeliness and Reliability of the Work of Infosys. Their Pitch needs to not
just mention it but show Numbers to Justify.
 Major Past Project i.e. Reengineering Project where Infosys performed exceedingly
well.
 Prevention of Data Corruption Subroutine, Record Comparison Algorithm, Reducing
Diability Claims reserves etc. which resulted in significant savings for PFS.
 Highlighting the Benefits of Sole Sourcing and How Infosys is well equipped to
handle it. Mention about similar projects already taken up by the Company.
 Discussing Pricing, the rationale and the Value addition Infosys will bring on the
table.