MARKETING MANAGEMENT

ASSIGNMENT- INFOSYS
TECHNOLOGIES LTD.

MUSKAN VALBANI
SECTION: H
ROLL NO.: PGP/23/453
Answer 1:

In the past 5 years, Infosys has taken up 4 projects for PFS in which it could deliver quantifiable cost
benefits to PFS over and above the Contract Terms majorly due to Infosys’s ability to exceed the
expected targets. The 4 projects were:

a. Re-Engineering of Project Assignments

Re-engineered projects helped reduce the personnel requirement right from the second
year and the personnel saved on was transferred to other projects with no extra charge.
Thus savings existed in terms of opportunity cost

Particulars Year 1 Year 2 Year 3 Year 4 Year 5

No of employees (US) 250 250 75 0 0
Annual cost ($8000 $24 $7.2
pm) million million
No of employees 0 0 250 100 100
(India)
Annual cost ($3200 $ 9.6 $3.84 $3.84
pm) million million million
Total employment $24 $16.8 $3.84 $3.84
cost million million million million
Savings for PFS from $7.2
transferring million
personnel to India
Savings from $5.76
reassigning personnel million
in India
Total savings to PFS $12.96
from reengineering million
project assignment

b. Data Corruption Prevention Subroutine:

Delays in batch processing beyond 5 a.m. led to shutdown of online systems leading to idle
worker time for 125 employees for upto 4 hours. Infosys provided a remedy by
automatically shutting down all batch programs at 5 am

Particulars Programmers Technical PFS workers

Assistants
(1) No of employees 3 1 125
(2) Incidents 24 24 24
(3) Hours per employee 4 1 4
(idle time)
(4) FTE ( per hour) 45 40 42
Subroutine’s Savings 12960 960 504000
((1)*(4)*24*(3))
Total Savings 517920$

c. Record Comparison Algorithm

 The requirement of PFS to deliver monthly reports compliance analysis on customer
accounts inculcated a late delivery fee. With Infosys, the existing probability of late delivery
which was 1% was eliminated thus bringing in savings

Particulars
Monthly penalties for late submission to $360,000
State Commission
Probability of late submission 0.01
Monthly savings $3600
Annual Savings $43200

d. Reduction in Disability Claims Reserve:

The requirement to hold cash reduced, ie, Cash reserves required to pay for the disability
claims reduced by $14 million due to streamlining and reengineering of the claims
submission and claims payment process of PFS by Infosys the cash reserves required for
paying the disability claims. This was achieved by streamlining and reengineering the claims
submission and claims payment process. The reduction in cash reserves was to the extent of
$14 million

Particulars
Reduction in cash reserves $14,000,000
Cost of capital 10%
Annual Savings $1,400,000

Therefore in totality, Infosys provided quantifiable cost benefits to PFS worth $14,921,120.
Other benefits would include: Reduction in learning curve time and time to market savings

Answer 2: Let’s first define what Knowledge Transfer Time stands for. It refers to the time required
to equip the Infosys programmers with all the technical specifications when they entered the project
at maintenance stage (not from the beginning).

If the Ariba e-procurement project is awarded to Infosys on a sole-sourcing basis, all the Infosys
programmers will be a part of the software right from the beginning of the project and therefore will
not require any knowledge transfer time to update their programmers on the technical aspects of
the system as they enter the maintenance phase.

As mentioned in the case, it takes 5 programmers 12 weeks to master an Ariba e-procurement

system as it has been installed by another vendor. Taking FTE costs = $ 8000 pm, the total
knowledge transfer time saving for the PFS due to sole sourcing would be around:

5*3 MONTHS*8000= $1,20,000

Answer 3: Even after significant portrayal of Infosys’ past abilities to exceed the targets and achieve
higher performance, PFS still considers the other two top class competing consulting firms as a
legitimate competition and thus need to be persuaded for the proposal.
1. Such persuasion can be worked out if Infosys is able to create a sustainable and distinct win-
win situation also known as Enterprise Selling Approach. This approach requires clear
understanding of mutual benefits of a partnership between two parties requiring a match
between the cultures of two parties and maintenance of closer links with the top
management
2. A consultative selling approach might also be used which occurs when the salesperson
brings superior knowledge and problem solving capabilities to the sales opportunity in order
to create superior value for the client. Since Infosys has a background and experience with
PFS, it also has a thorough understanding of client’s processes, constraints, and needs and
developing appropriate solutions required to create the value under this approach. This
must be highlighted
3. Finally, Infosys must quote the right terms while seeking an order and use transactional
selling tactics. The major items of discussion will be the terms comprising price, time
schedule for completion, important mile
4. Finally, Infosys must quote the right terms while seeking an order and use transactional
selling tactics. The major items of discussion will be the terms comprising price, time
schedule for completion, important milestones and proposed commitment of staff both
onsite and offshore. Infosys will need to consider the rising rupee while presenting the
pricing for implementation and maintenance. It may consider a hike in the implementation
price to about $2,075,000 and the maintenance of the end-to-end solution to around
$410,000 per annum.