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Infosys : Growing share of a Customer’s Business Case analysis

Submitted by

Vignesh Sreenivasan

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

Infosys has benefitted PFS over the past 5 years by helping it save the costs under different heads. PFS
enjoyed a total saving of Rs 360 Million per year. The savings on account of reengineering project
assignments were Rs. 264.96 million per year. They saved Rs. 24 million and 0.78 million respectively on

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account of Data Corruption Prevention Subroutine and Record Comparison Algorithm. The benefits

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enjoyed by PFS because of reduction in Disability Claims Reserve were Rs. 64.5 million per year. Giving

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the project to Infosys will help PFS save about Rs. 5.52 million due to the benefits of Sole Sourcing.

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

Infosys is already involved with the Ariba software and doing three projects in Ariba e-procurement.
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They also have 65 maintenance projects with PFS, hence, they have a good business knowledge and will
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therefore not require any knowledge transfer time to update their programmers on the technical aspects
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of the system as they enter the maintenance phase.

It takes 5 programmers about 12 weeks to master an Ariba system installed by someone else. Hence, the
savings from the elimination of knowledge transfer time are expected to be 5 x (12/4) months x $8,000
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per month which is equal to $120,000.

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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?
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 High Performance – Infosys has been consistent with its performance and always delivered more
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than the expectations of the customer. The average performance metrics of Infosys in the past 5
years are as follows :
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 Performance Dimension PFS Target Infosys Results
Quality
Requests delivered with zero 90% 97.1%
defects
Delivered Defects per 1000 4.9 3.2
person hours

Timeliness
Requests delivered on time 91.0% 99.6%
Effort estimation accuracy 83.0 % 98.1%
Reliability
Uptime on Infosys maintained 94.0 % 99.9%
systems
Abend ration across Infosys 1.8% 0.2%
systems

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 Prior Experience – Infosys is currently doing 3 end-to-end Ariba e-Procurement system projects, so

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they can also leverage the experience acquired here for the PFS Project. They have already saved Rs.

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4,600,000 for the client.

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In-House Knowledge – Infosys has currently 65 projects of PFS involving application development,
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business process reengineering, program management, installation of packaged solutions and
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technology consulting. This has given them a deep knowledge of the PFS business and any the e-
Procurement project can be smoothly carried out. The knowledge transfer process and the time
required to understand business, will be saved if Infosys does the project.
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 Extensive Training - Infosys is providing extensive Java training to their employees. Ing training is also
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being provided.

 Hiring Consultants – Infosys already has an expertise in maintenance projects and they are now
building their expertise in end-to-end solutions. They have hired people with considerable consulting
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experience.
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 Understanding the Client – Infosys promoted the culture of acquiring maximum client knowledge
and understanding their environment. Their Delivery Manager, regularly checked news from Dallas
and also undertook courses at the Infosys Learning and Development centre.
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 Payment projects – Infosys significantly reduced the payment process project cost and thus have
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effective experience in reengineering payment process.

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