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causing disruption in one place. process rigor. methodologies. a global company could presumably transfer work to another location where the situation is normal. earthquake or political unrest . Gartner. Global locations also provide some degree of 'risk-proofing' a customer from natural or manmade disasters such as flooding. A global delivery model implies that potentially. typically a mix of costlier 'on-site' resources combined with cheaper 'offshore' resources. defines global delivery model to encompass a "focus on the technical skills. handing off work from one location to another at the end of the 'day shift' ('follow the sun' model) .thus providing twice or even three times the capacity they would have if they worked in a single location/ time-zone only. thus ensuring that work did not get delayed for the client.Global Delivery Model The term Global Delivery Model is typically associated with companies engaged in IT consulting and services delivery business and using a model of executing a technology project using a team that is distributed globally. the term itself has acquired a broader definition. In case of such events. which is seen to be an advantage when trying to understand customer requirements. . for example. overall structure and strategies for seamlessly delivering IT-enabled services from global locations" Most IT services and consulting firms worldwide make a reference to this model of delivery to signify one or more of the following value propositions they bring to their customers: A global presence ensures an understanding of the local language and culture wherever they may be present. a firm can work round the clock for its customer. A global presence implies that the organization has access to resources of varying costs that allows it to deliver services to its customers at an optimal cost. While the commonly understood meaning of the term implies globally distributed resources. tools.
CEO and Managing Director.ZapThink. S.INTRODUCTION "The Global Delivery Model that has been at the heart of our execution is more than just a way of getting work done offshore. Gartner evaluated service providers on the basis of parameters such as completeness of vision and their ability to execute4. 2006'. a research firm focused on technology industries. Gopalakrishnan (Gopalakrishnan). This report assessed 30 leading offshore application service providers. said.Nandan Nilekani. Chief Operating Officer and Deputy Managing Director of Infosys. It is a genuine business innovation that delivers a superior value proposition at higher quality and lower cost. . Massachusetts-based IT Market Intelligence Firm. By leveraging global resources and global strengths. Infosys. the first time that Gartner has published one to focus on this area. published its 'Magic Quadrant for Offshore Application Services. The companies adopting this model leveraged their own global resources and strengths to achieve higher profitability. President. This is an important indicator for the mainstream acceptance of GDM by clients. In February 2006. in 2006. "I am happy to see Infosys being recognized as a leader in this Offshore Application Services Magic Quadrant. Gartner3."2 . "Infosys can obtain skilled labour at better rates than its customers can in their own region and the focus of the GDM is maximizing skill while minimizing cost. it creates a new degree of freedom. signifying clear vision of the market direction and building competencies to sustain its leadership position in the market. Gartner's magic quadrant analyzed the competencies of the service providers based on their Global Delivery Model (GDM). India-based Infosys Technologies (Infosys) was placed in the 'leaders' quadrant."5 GDM provided a superior value proposition at higher quality and lower cost. in 2005." . For its magic quadrant. Gartner said that Infosys' 'strong management capability relative to the other pure-play offshore providers' was one of the key demonstrated capabilities of the company.
the ability to deploy multi-location. Chennai. or to a place that has unutilized capacity. These employees were provided training and were sent abroad for onsite projects. For a GDM to be efficient. The third category consisted of tasks that could be done in remote locations. Infosys hired its first set of employees in 1982 from the Indian Institute of Technology. Infosys relied heavily on overseas projects. quality and skill sets of manpower in different locations. Infosys delivered the highest process and quality standards. Narayana Murthy.Infosys used GDM as a strategic outsourcing tool. near-site and at offshore locations). using it. This allows for a degree of freedom in the way a business is conducted. One of the founders. Under the second category were the tasks. stayed in India. the work had to be broken into logical components and distributed to locations where they could generate maximum value. Nandan Nilekani. the company could take the work to the place where it could be best performed at lowest cost with minimum risk. or special skills. commented. CEO and Managing Director of Infosys. Falling under the first category were the tasks that were to be carried out at the location of the client. 1981 by a group of seven professionals8. President. while the others went to the US to carry out onsite programming for corporate clients. Background Note Infosys was incorporated as Infosys Consultants Private Limited7 on July 02. working round-the-clock on the project. "The work can be moved anywhere. One of Infosys' first clients was the US-based sports shoe manufacturer Reebok. "What made Infosys' GDM disruptive was its framework for distributed project management . a Boston based management writer said. The company had decided to enhance its GDM capabilities by applying it to new services and adding in new global delivery locations." . From the beginning. The major part of Infosys' revenues was derived from GDM based application services. The work on projects was carried out 24 hours a day. while leveraging differences in cost. The ultimate objective was to pass on these benefits to its clients. multi-time-zone teams to execute projects efficiently and at low cost. which needed to be carried out closer to the client. with teams located at different locations across the world. Manjari Raman. large scale software development projects were divided into different categories. This is the kind of innovation (GDM) for which we are taking credit for. where process-driven technology centers with highly skilled manpower were easily available (Refer Exhibit IV for details of the tasks carried out onsite. The Global Delivery Model In the GDM. By using GDM. The work can be moved depending on where it would be cheaper to do so. Commenting on the GDM.
700 as of March 2006 against 10. According to Infosys.. It was not long before multinationals also entered the fray. there was competition among major players and customers became less willing to pay a premium. But Infosys remained confident that consultants and companies abroad could not match their manpower in their countries and hire equally talented employees in other locations with cost advantages. In the fiscal year 2005-06. an enhanced service delivery model. quality. expanded vertical footprint and execution excellence. Execution excellence was to be achieved through business solutions. The multinationals would need to redesign their operations in order to replicate Infosys' GDM.700 in 2002. Infosys' revenues grew almost four-fold in the past four years (Refer Exhibit VII for five year revenues of Infosys). But with these services becoming mainstream.GDM . several other Indian IT companies also began providing offshore services. Infosys derived more than 40% of its revenues through new GDM based services like package implementation. independent validation. GDM was cited as one of the key factors behind the rapid growth of Infosys' revenues. Expanding GDM In 2003. Infosys defined GDM Plus as an integrated delivery model that encompassed vertical solutions. the company grew to generate revenues of US$ 2 billion in 2005-06. The number of employees of Infosys grew to 52. while the project managers returned to the GDCs.. operational efficiency and people development The Benefits According to analysts. have started operating from India and began offering the same offshore rates as Indian companies. The company continued attracting a talented workforce in India and other countries. Several MNCs like Accenture . GDM Plus was its strategic response to changing market conditions and the competitive landscape to deliver high volumes to customers. a combination of more services and excellence in execution. In a span of 25 years. there was an on-site coordinator who communicated with the PDCs and ODCs regularly. some of the team members stayed back with the client to coordinate and determine any changes that the client demanded in the project. IBM Global Services . a team from Infosys visited the client in order to determine the requirements of the project. Infosys launched GDM Plus. Indian companies could charge a premium of 10-20% for their offshore services. . domain expertise. technology. infrastructure management and systems integration The Road Ahead Realizing the potential of GDM. Electronic Data Systems .Making the Model Work For an offshore development project. After obtaining the required specifications. which would be a very difficult task. business process management. At the clients' location.
guidelines and checklists. standards.DETAILED EXPLANATION Infosys pioneered the Global Delivery Model (GDM) to ensure the distribution of application and business process lifecycle activities and resources. They are implemented through process execution at the next level. Process Assets The repository of process assets facilitates the dissemination of "engagement learning" across . Exit¶ (ETVX) paradigm along with clearly defined roles and responsibilities. Quality System Documentation (QSD) Quality System Documentation (QSD) lists Infosys best practices in the form of processes. Verification. Body of Knowledge (BOK) The Infosys Body of Knowledge (BOK) is a forum to share knowledge gained from experience. The QSD provides a vast repository of detailed procedures. Task. The key drivers of our Global Delivery Model are: Processes Infosys relies on processes to consistently deliver high quality solutions while executing engagements from multiple locations. while ensuring their integration. The QSD is updated every four months. vision and policies form the first level of our three-tiered process architecture. Our values. templates. It is a central repository of experiential knowledge that can be tapped by peers at Infosys. These processes are defined by clear ownership using the µEntry.
TL 9000 and ISO 14001. AS 9100. It helps us deliver long-term excellence. We have continuously benchmarked our processes against world-class standards and models such as ISO 9001-TickIT.Infosys. to all stakeholders. Our process performance has emerged as better than that of our peers. A process asset is information gleaned from an engagement that can be reused during the future engagements.e. Regular and rigorous assessments are conducted by reputed external assessors. our project scheduling model Program management framework to enable execution of large deals Proactive risk assessment model and approach to mitigate execution risks eSCM Level 4 certification of Infosys BPO by the IT Services Qualification Center (ITSqc) at Carnegie Mellon University Internal quality certification to equip our team members with required skill sets quickly y . core and support processes. predictability of returns. Quality Quality is ensured across all our processes. and ultimately. Process Database The Process Database is a software engineering database to study the processes at Infosys with respect to productivity and quality. interfaces and outputs ² in management. Tools Repository The Tools Repository is a centralized repository containing a list of tools that have been evaluated. We improve "Execution Excellence" through continuous productivity improvement. Process Capability Baseline (PCB) Process Capability Baseline (PCB) maps out the performance of the process. i. Infosys has embarked on several strategic improvement initiatives: y y y y y y Baldrige-based assessment of units for business excellence Organization-wide reuse and tools initiatives for productivity improvement Patent application filed for PROSO.. through the Global Delivery Model (GDM). ISO 27000. ISO 20000. what level of productivity and quality can be expected when following the process. SEI-CMM / CMMI.
PRISM Project Reviews by Infosys Senior Management (PRISM) is a web-based Intranet tool to automate the workflow for reviews. customers and partners. in line with engagement schedules and plans. This data is used as a framework to construct the organization's process-capability baseline. The PRISM tool is a review mechanism that offers a clear picture of the engagement risks involved for a client as well as Infosys. InFlux InFlux is the Infosys methodology used to define effective IT solutions for enterprise initiatives. Knowledge Management Infosys provides end-to-end workforce collaboration and knowledge management services including Knowledge Management Process Consulting. making it possible to understand the impact of IT on specific processes. Process Database The process database captures all project performance related metrics at Infosys. It maps the business-process view for all IT initiatives. InFlux allows you to study the roles of different systems and entities and how they function. It also drives process improvement and sharing of best practices. which is used by project leaders to estimate effort. schedule tasks and predict defect levels during the engagementplanning phase. Its framework is based on the digital concept of an extended organization that includes suppliers. It facilitates efficient and effective project management and addresses the functionality of a typical professional services automation framework. IPM supports the Infosys Global Delivery Model and SEI CMM Level 5 processes. Collaboration and Knowledge . We keep the largest and most complex projects on track with the following tools: Integrated Project Management Integrated Project Management (IPM) is Infosys¶ web-based tool for engagement management.Tools The practice project management philosophy of Infosys is bolstered by the use of robust tools.
requirements traceability. evaluate technologies and recommend solutions in the context of your business problems. including: Project profile Project processes related to life-cycle. Enterprise Application Integration. Deliverables and effort estimates Goals and milestones y y y y . Experts from Infosys Knowledge Management group have authored the book Ten Steps to Maturity in Knowledge Management: Lessons in Economy. We have launched blogs and customized Wiki solutions to enable communities to collaborate across geographical. It focuses on Knowledge Management from a practitioner¶s viewpoint and covers all aspects of planning. We are at the forefront of introducing new methodologies and practices of knowledge-sharing and adoption. Portals.Management Applications. Security and Workflow. implementation and assessment of knowledge management. including: y y y y y y y Project planning Project monitoring. reporting procedure and review mechanisms Project risk management Configuration management Change management Issue escalation and resolution Intra-engagement communication with client managers At the outset of every engagement.000 knowledge assets. most of which are experiential documents derived from different facets of our business. Our Knowledge Management Services help you assess your needs. change management. process tailoring. These processes address key aspects of a project across the project life cycle. design. Document Management. Content Management. etc. Program Management The project management processes followed by Infosys are in line with the SEI CMM Level 5 requirements. formal customer deliverables and process-mandated artifacts. our robust planning and estimation processes delineate all aspects of the project. Our central knowledge repository hosts over 75. time and project boundaries.
Our business continuity plans are focused on: Infrastructure y y y y y y Well-defined business continuity and disaster recovery plans at the organization and client level De-risked global development centers State-of-the-art. It covers risk identification. quality. issues. monitoring and mitigation is a part of project planning. key personnel. support groups and subsidiaries. a detailed plan for risk identification. prioritization and mitigation options. which help us manage the complexities of the Global Delivery Model (GDM). Risk Mitigation At Infosys.y y y y Project tracking: Tasks. The results offered a y y y y y y y y y . service offerings. escalation Defect estimates and defect prevention Project team roles. client feedback. skills. reviews. reporting. verticals. It covered all business units. if needed Legal agreements with employees to ensure compliance Agreements under relevant jurisdiction for the client People Built-in redundancies for key personnel Back-up of project artifacts and experiential repositories Infosys undertook an organization-wide Risk Self-Identification (RSI) exercise. training Risks and mitigation plan Our project management and project quality processes are strengthened by the use of a variety of custom-built as well as third party tools. fail-safe network connectivity with multiple fall-back options Interoperability to ensure seamless relocation Locations set away from potentially conflict-ridden zones Fully-equipped Offsite Disaster Recovery Facility in Mauritius Security Stringent physical security and network security Secure human resources practices Regular external audits to ensure compliance and cover blind spots Confidentiality and Privacy Access restrictions and controls for all information assets Context-dependent security measures including physical isolation of projects.
we have identified primary risk categories that form the Infosys enterprisewide Risk Management (IRM) framework. more diverse and quantified feedback on risks. Using the Basic Risk Inventory. The results of the RSI were collated and categorized and the probability and impact-magnitude assessment was completed. This enables us address actual and potential risk events in a systematic manner.deeper. .
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